Document ID: chunk:federal_register_of_legislation:C2025C00162:section:1064:p3
Version: federal_register_of_legislation:C2025C00162
Segment Type: section
Provision Reference: s 1064 (pt 3/4)
Character Range: 1654934–1657709

1070A(b).
           Step 4. Add up the amounts obtained in Steps 1, 1A, 1B and 3: the result is called the maximum payment rate.
           Step 5. Apply the ordinary income test using MODULE E below to work out the income reduction.
                  Note: Module F contains provisions that may apply to working out the ordinary income of a person, and the ordinary income of a partner of the person, for the purposes of disability support pension.
           Step 8. Take the income reduction away from the maximum payment rate: the result is called the income reduced rate.
           Step 9. Apply the assets test using MODULE G below to work out the reduction for assets.
           Step 10. Take the reduction for assets away from the maximum payment rate: the result is called the assets reduced rate.
           Step 11. 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 annual payment rate.
           Step 12. The rate of pension is the amount obtained by:

                (a) subtracting from the provisional annual payment rate any special employment advance deduction (see Part 3.16B); and
                (b) if there is any amount remaining, subtracting from that amount any advance payment deduction (see Part 3.16A); and
                (c) adding any amount payable by way of remote area allowance (see Module H).
Note 1: If a person's assets reduced rate is less than the person's income reduced rate, the person may be able to take advantage of provisions dealing with financial hardship (sections 1129 and 1130).
Note 2: Section 1210 deals with the application of income and assets test reductions.
Note 3: The rate calculation for a member of a couple is affected by the operation of points 1064‑A2 and 1064‑A3.
Note 4: In some circumstances a person may also be qualified for a pharmaceutical allowance under Part 2.22.
Note 5: A person's rate may also be reduced because the person or the person's partner receives compensation (see section 1173) or because the person or the person's partner is receiving a foreign pension (see scheduled international social security agreements at section 1208).
Note 7: Clause 146 of Schedule 1A may affect the provisional annual payment rate in step 11.

Members of a couple
 1064‑A2 Where 2 people are members of a couple, they will be treated as pooling their resources (income and assets) and sharing them on a 50/50 basis (see points 1064‑E2 and 1064‑G2 below). They will also be treated as sharing expenses (e.g. for rent) on a 50/50 basis (see section 1070V).

Module B—Maximum basic rate

Maximum basic rate
 1064‑B1 A person's maximum basic rate depends on the person's family situation. Work out