3.10.6 Rate Calculation under the Hardship Provisions

According to Section 52Z(3) of the VEA a person's adjusted annual rate of ordinary income is an amount per year equal to the sum of:

• the person's annual rate of ordinary income (other than income from assets), and
• the person's annual rate of ordinary income from assets that are not assets tested, and
• either:

• the person's annual rate of ordinary income from unrealisable assets, or
• the person's notional rate of ordinary income from unrealisable assets, whichever is the greater, and

• an amount per year equal to $9.75 for each $250 of the value of the person's assets (other than disregarded assets)

The maximum payment rate is the amount calculated by adding the maximum basic rate applicable to a person to any rent assistance and pension supplement payable. See SCH6-A1(2) of VEA [8] (Method Statement 1 Step 4) and SCH6-A1(6) of VEA [8] (Method Statement 5 Step 4).