Pensioners and ISS recipients who were in receipt of pension on or before 19 September 2009 are eligible to be assessed under transitional rules, if:
- transitional rules will result in a higher rate of pension, and
- they have never been assessed under the new rules.
The requirement that the pensioner has never been assessed under the new rules, does not arise where the pensioner's entitlement is re-determined from a date prior to 20 September 2009. Where new pension information is received and is effective prior to this date, the pensioner's right to receive the transitional rate is considered anew.
Once a pensioner or ISS recipient has been assessed under the new rules they cannot revert to transitional rules. There is one exception to this, to cover respite care changes to pensioners who return to live as a couple again.
Recipients assessed under transitional rules:
- have their payment calculated using the transitional [glossary:maximum basic rate:475],
- have a taper rate of 40 cents in the dollar for the [glossary:income test:288], and
- can still receive the additional income free area for children.