7.9.3.1 — The table below sets out the steps for determining the 'formulated rate' of recovery.
Step | Action |
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1 | Calculate the total income from all sources. Write the total income at (a) | (a) | |
2 | Is the amount at (a) greater than the maximum basic rate (MBR)? If yes, write the MBR at (b) If no, copy (a) to (b) | (b) | |
3 | Multiply (b) by 14% and write the amount at (c) |
| (c) |
4 | Is the amount at (a) less than the MBR? If yes, write $0 to (d) If no, subtract the MBR from (a), and write the amount to (d) | (d) |
|
5 | Is the amount at (d) greater than the income free area (IFA)? If yes, copy the IFA to (e) If no, copy (d) to (e) | (e) |
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6 | Multiply (e) by 55% |
| (f) |
7 | Is the amount at (d) less than the IFA? If yes, write $0 to (g) If no, subtract the IFA from (d), and write the amount to (g) | (g) |
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8 | Multiply (g) by 27.5% and write the amount at (h) |
| (h) |
9 | Add up the amounts at (c), (f) and (h) to determine the formulated rate. |
|
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7.9.3.2 — Income used in the formulated rate includes:
7.9.3.3 — Income not used in the formulated rate includes:
a payment under Part VI [2] VEA rent assistance remote area allowance deprived income (in income support pension assessment) | deemed income (in income support pension assessment) family tax benefit any payment under the VCES orphan's pension received in trust for a child |
Note:An example of the formulated rate is in this manual's Section 7.21 Examples at the end of this chapter.
Links
[1] https://clik.dva.gov.au/user/login?destination=comment/reply/24257%23comment-form
[2] https://clik.dva.gov.au/service-eligibility-assistant-updates/all-determinations-order-date-signed-oldest-most-recent/determinations-under-vea