External
Departmental Instruction

A war widow is a member of a couple and her partner receives age pension.  She receives war widows pension of \$371.80 per fortnight and the couple have some managed investments from which an income of \$80.00 per fortnight is deemed.

As war widow/ers pension is counted as income for both partner's pensions, their combined income for pension purposes is assessed as \$451.80 (the war widows pension plus the deemed income).

The amount of income held in the war widows ISS assessment will be half that amount that is \$225.90 per fortnight.

With this amount of income, her assessed rate of ISS (\$278.90) is above the ceiling rate and so she is paid ISS at the ceiling rate of \$120.10.

As her ISS is limited to the ceiling, it is necessary to apply a deduction to the income figure held in her ISS assessment to determine the amount that is assessable by DH&FS.  The deduction is calculated as follows:

Deduction               =  (assessed rate of ISS  -  ceiling rate)

=  (\$278.90  -  \$120.10)

=  \$158.80

Thus the amount of income assessable by DH&FS in this case would be:

Income assessed=  income in ISS assessment  -  deduction

=  \$225.90  -  \$158.80

=  \$67.10

In practice, the figure actually sent to DH&FS on the data file would be the amount assessable by DH&FS, less the income free area applicable to the person.  The excess income of the person rather than the couple is sent.

As the amount assessable by DH&FS is below the income free area applicable to this war widow, a nil figure would be included on the file and she would pay no income tested fees.