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Example 2 - Married Couple with part Service Pension
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.