Last amended: 30 September 2008
Calculating a person's rate of service pension or ISS
In calculating a person's rate of service pension or income support supplement ISS, the ordinary/adjusted income test and assets tests are applied as follows:
In determining the rate of | for a person who is | the ordinary/adjusted income and assets tests |
service pension | not permanently blind and not a war widow/widower-pensioner | are applied and the test resulting in the lower rate is used in the pension rate calculation. If both test results are the same, the income reduced rate is used. |
| permanently blind and not a war widow/widower pensioner | are applied only in calculating the rate of rent assistance payable. The rate of service pension payable is the higher of the notional income/assets tested rate compared to the non-income/assets tested rate. Rent assistance is not included in the calculation of the non-income/assets tested rate. |
| not permanently blind and a war widow/widower pensioner | are applied and the resulting income and assets tested rates plus any remote area allowance payable are compared to the sum of the ceiling rate and any remote area allowance and rent assistance payable. The rate of pension is the lower of the two amounts. |
| permanently blind and a war widow/widower pensioner | are not applied. The rate of pension is automatically the ceiling rate plus any rent assistance and remote area allowance payable. |
income support supplement | not permanently blind | are applied and the resulting income and assets tested rates are compared to the ceiling rate plus any rent assistance payable. The lowest rate is the income support supplement rate. If all three rates are the same, the income reduced rate is used. Any remote area allowance payable is then added. |
| permanently blind | are not applied. The rate of pension is automatically the ceiling rate plus any rent assistance and remote area allowance payable. |
Income and assets of a member of a couple
For the purpose of the income and assets test, if two people are members of a couple, they are treated as pooling their income and assets and sharing those resources equally.
Blinded pensioners and income and assets test
The income and assets of a blind service pensioner or ISS recipient will not affect the rate of pension payable to the blind person. However, rent assistance is not payable to blind service pensioners/ISS recipients unless the blind person would be better off to be treated as a non-blind person and be subject to the income and assets tests.
In order to determine the most appropriate rate of payment for a blind pensioner who is renting, the payment should be calculated without subjecting it to the income and assets tests. It should also be calculated using the income and assets tests, but including any rent assistance that may be payable (as for a non-blind pensioner). The higher of these rates is the rate payable to the blind pensioner. Service pension or ISS payable to the partner of a blind person will still be subject to the income and assets tests.