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A married couple receiving part Service Pension, and both have debts. They receive the following income per fortnight.

 Reduced rate Service Pension \$232.70 each Investment income \$317.13 each Total \$549.83 each
##### Calculation
 Step Action 1 Calculate the total income from all sources. Write the total income at (a) (a) \$549.83 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) \$387.60 3 Multiply (b) by 14% and copy (c) (c) \$54.26 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) \$162.23 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) \$42.23 8 Multiply (g) by 27.5% and write the amount at (h) (h) \$11.61 9 Add up the amounts at (c), (f) and (h) to determine the formulated rate. \$131.87

Thus the Limitation Rate (rounded down to the nearest dollar) is \$131.00 each per fortnight.