Document ID: chunk:federal_register_of_legislation:C2004A04996:front:0:p11
Version: federal_register_of_legislation:C2004A04996
Segment Type: other
Provision Reference: 
Character Range: 27568–30729

pension see sections 5NAA and 5N respectively.
Note 2: For pension increase child see subsection 5F(6).

Rate of residential care allowance

"42-DAAA5.(1) The rate of residential care allowance in respect of a person is the rate per year that is the lesser of Rate A and Rate B applicable to the person in accordance with Table DAAA-1.

SCHEDULE 1—continued

TABLE DAAA-1
RATE OF RESIDENTIAL CARE ALLOWANCE
column 1                            column 2
Rate A                              Rate B
                                    column 2A                         column 2B
                                                                      3 or more pension increase children
                                    1 or 2 pension Increase children

                                    $2,064.40                         $2,355.60

"(2) In the Table in subpoint (1):

annual charge means the annual residential care charge paid or payable by the person whose pension rate is being calculated.

Note 1: For residential care charge threshold rate see point 42-DAAA3.
Note 2: For residential care charge see section 5NAA.
    Note 3: The residential care charge threshold rate is in point 42-DAAA3. This rate and the amounts in column 2 of Table DAAA-1 are indexed 6 monthly in line with CPI increases (see sections 59B to 59E).

Effect of disability pension on rate of residential care allowance

"42-DAAA6. This is how to work out the effect of a person's disability pension on the person's rate of residential care allowance:

SCHEDULE 1—continued

Method statement
        Step 1. Work out the annual rate of the person's disability pension: the result is the person's disability pension income.
Note 1: For disability pension see section 5N.
            Note 2: For the treatment of the amount of disability pension of members of a couple see point 42-DAAA7.
        Step 2. Work out the person's residential care allowance free area (see point 42-DAAA8 below).
        Step 3. Work out whether the person's disability pension income exceeds the person's residential care allowance free area.
        Step 4. If the person's disability pension income does not exceed the person's residential care allowance free area, the person's rate of residential care allowance worked out under point 42-DAAA5 is not affected.
        Step 5. If the person's disability pension income exceeds the person's residential care allowance free area, take the person's residential care allowance free area away from the person's disability pension income: the result is the person's disability pension income excess.
        Step 6. Halve the person's disability pension income excess: the result is the residential care allowance reduction amount.
        Step 7. Take the person's residential care allowance reduction amount away from the rate of residential care allowance worked out under point 42-DAAA5: the result is the person's rate of residential care allowance.

Members of couples

"42-DAAA7.(l) If a person is a member of a couple and the person's partner also receives disability pension, add the couple's disability pensions (on a yearly basis) and divide by 2