Document ID: chunk:federal_register_of_legislation:C2024C00866:clause:6_5:p1
Version: federal_register_of_legislation:C2024C00866
Segment Type: clause
Provision Reference: sch 6 cl 5 (pt 1/9)
Character Range: 2075435–2078189

5  Commencing rates
 (1) The amounts and rates set out in the Rate Calculator at the time of commencement of this Schedule (the commencing time) are the same as the corresponding amounts and rates that applied under this Act as in force on 1 January 1997.
 (2) However, each amount or rate so set out that is subject to indexation or adjustment under Division 18 of Part IIIB is taken to be replaced immediately after the commencing time by the amount or rate that would have been in force at that time as a result of the application of that Division if this Schedule had commenced on 1 January 1997.

Part 2—Rate Calculator

Module A—Overall rate calculation process

Rate to be an annual rate
         SCH6‑A1(1) The rate of service pension, income support supplement or veteran payment is an annual rate (fortnightly amounts are provided for information only).

Method statement 1 (service pension, not blind, not war widow/war widower—pensioner)
 (2) The rate of service pension for a person who:
 (a) is not permanently blind; and
 (b) is not a war widow/war widower—pensioner;
is worked out in accordance with Method statement 1.
Note: For war widow/war widower—pensioner see subsection 5Q(1).

      Method statement 1
           Step 1. Work out the person's maximum basic rate using MODULE B below.
           Step 1A. Work out the amount of pension supplement using Module BA below.
           Step 1B. Work out the amount of energy supplement (if any) using Module BB below.
           Step 2. Work out the amount per year (if any) by way of rent assistance using MODULE C below.
           Step 4. Add up the amounts obtained in Steps 1, 1A, 1B and 2: the result is called the maximum payment rate.
                  Note: Section 65A may affect whether the amount obtained in step 1B is added.
           Step 5. Apply the ordinary/adjusted income test using MODULE E below to work out the reduction for ordinary/adjusted income.
           Step 6. Take the reduction for ordinary/adjusted income away from the maximum payment rate: the result is called the income reduced rate.
           Step 7. Apply the assets test using MODULE F below to work out the reduction for assets.
           Step 8. Take the reduction for assets away from the maximum payment rate: the result is called the assets reduced rate.
           Step 9. Compare the income reduced rate and the assets reduced rate: the lower of the 2 rates, or the income reduced rate if the rates are equal, is the provisional payment rate.
           Step 10. Work out the amount per year (if any) payable by way of remote area allowance using MODULE G below.
           Step 11. Add any amount obtained in Step 10 to the person's provisional payment rate (see Step 9). The result