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Tax-exempt pension supplement
For service pensioners this is calculated by subtracting the person's pension supplement basic amount from their total pension supplement.
The pension supplement basic amount is an annual rate paid fortnightly from 20 September 2009. It replaces the GST supplement. It is indexed twice a year in line with CPI increases.
The pension supplement is added to a person's maximum basic rate. The pension supplement is calculated as a 'combined couple' rate. The 'not a member of a couple' rate is 66.33% of the 'combined couple' rate. The member of a couple rate is 50% of the combined couple rate. From 1 July 2010, the minimum pension supplement amount will be able to be claimed on a quarterly basis rather than on a fortnightly basis.
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