Document ID: chunk:federal_register_of_legislation:C2004A04996:front:0:p7
Version: federal_register_of_legislation:C2004A04996
Segment Type: other
Provision Reference: 
Character Range: 16154–18972

worked out using the formula:

;

(b) $1,882.40 per year;

where:

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 41-CAA3.
Note 2: For residential care charge see section 5NAA.
     Note 3: The residential care charge threshold rate is in point 41-CAA3. This rate and the amount in paragraph (b) are indexed 6 monthly in line with CPI increases (see sections 59B to 59E).

Effect of disability pension on rate of residential care allowance

"41-CAA6. 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 41-CAA7.
      Step 2. Work out the person's residential care allowance free area (see point 41-CAA8 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 41-CAA5 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 41-CAA5: the result is the person's rate of residential care allowance.

Members of couples

"41-CAA7.(1) 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 to work out the amount of the disability pension income of each of them for the purposes of this Module.

Note: For disability pension see section 5N. For member of a couple see subsection 5E(1).

"(2) If a person is a member of an illness separated couple or a respite care couple, any amount that the person's partner pays or is liable to pay in respect of the accommodation of the person is to be treated as paid or payable by the person.

Note: For illness separated couple and respite care