A single war widow receives a superannuation pension of $140.00 per fortnight plus war widows pension of $371.80 per fortnight.
As war widows pension is counted as income in assessing the rate of ISS, the total income held in her ISS assessment is $511.80 per fortnight.
With this amount of income, her assessed rate of ISS ($141.90) 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 = 2 × (assessed rate of ISS - ceiling rate)
= 2 × ($141.90 - $120.10)
= 2 × $21.80
= $43.60
Thus the amount of income assessable by DH&FS in this case would be:
Income assessed= income in ISS assessment - deduction
= $511.80 - $43.60
= $468.20
In practice, the figure actually transmitted to DH&FS is the amount assessable by DH&FS, less the income free area applicable to the person which in this case would be $100.00 per fortnight. Therefore the amount included on the file for this war widow would be $368.20.