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Example 1 - War Widow with ISS
A War Widow receives the following income per fortnight.
War Widow's Pension |
$489.20 |
Income Support Supplement |
$137.90 |
Total |
$627.10 |
Calculation
Step |
Action |
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1 |
Calculate the total income from all sources. Write the total income at (a) |
(a) $627.10 |
|
2 |
Is the amount at (a) ? the maximum basic rate (MBR)? If yes, write the MBR at (b) if no, copy (a) to (b) |
(b) $464.20 |
|
3 |
Multiply (b) by 14% and copy (c) |
(c) $64.99 |
|
4 |
Is the amount at (a) ? MBR? If yes, write $0 to (d) If no, subtract the MBR from (a), and write the amount to (d) |
(d) $162.90 |
|
5 |
Is the amount at (d) ? the income free area (IFA)? if yes, copy the IFA to (e) if no, copy (d) to (e) |
(e) $120.00 |
|
6 |
Multiply (e) by 55% and write the amount at (f) |
(f) $66.00 |
|
7 |
Is the amount at (d) ? IFA? If yes, write $0 to (g) If no, subtract the IFA from (d), and write the amount to (g) |
(g) $42.90 |
|
8 |
Multiply (g) by 27.5% and write the amount at (h) |
(h) $11.80 |
|
9 |
Add up the amounts at (c), (f) and (h) to determine the formulated rate. |
$142.79 |
Thus the Limitation Rate (rounded down to the nearest dollar) is $142.00 per fortnight.