Document ID: chunk:federal_register_of_legislation:C2004A04771:front:0:p49
Version: federal_register_of_legislation:C2004A04771
Segment Type: other
Provision Reference: 
Character Range: 125043–127704

Part II or IV is compensation reduced. Compare the adjusted income reduced rate (see Step 6) and the assets reduced rate (see Step 8); the rate of income support supplement is equal to:
            (a) whichever is the lower of those rates; or
            (b) if the 2 rates are the same—those rates.
Step 12.  This Step applies only to a person whose pension under Part II or IV is not compensation reduced. Compare the adjusted income reduced rate, the assets reduced rate and the ceiling rate; the rate of income support supplement is equal to:
            (a) whichever is the least of those rates; or
            (b) if 2 of those rates are the same and the third one is higher—the lower rate; or
            (c) if the 3 rates are the same—those rates.

Note 1: For 'adjusted income' see section 5H.
    Note 2: If a person's assets reduced rate is less than the person's adjusted income reduced rate, the person may be able to take advantage of provisions dealing with:
    • financial hardship (sections 52Y and 52Z);
    • pension loans scheme (sections 52ZA to 52ZM).
    Note 3: If a person's rate is reduced under Step 10, the order in which the reduction is to be made against the components of the maximum payment rate is laid down by section 45V (maximum basic rate first, then remote area allowance and, finally, rent assistance).
Note 4: The rate calculation for a member of a couple is affected by the operation of point 45X-A2.
    Note 5: The amount of a fortnightly instalment of income support supplement will be rounded off to the nearest multiple of 10 cents (see subsections 58A(2) and (3)).
    Note 6: For the minimum amount of a fortnightly instalment of income support supplement see subsection 58A(4).

Members of a couple

"45X-A2. Where 2 persons 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 45X-E2 and 45X-F2 below). They will also be treated as sharing expenses (e.g. for rent) on a 50/50 basis (see points 45X-D9 and 45X-D10 below).

Ceiling rate

"45X-A3. The ceiling rate for a war widow or war widower is $3,122.60 unless point 45X-A4 applies to the war widow or war widower.

  "45X-A4. If:

     (a) a person became a war widow or war widower before 1 November 1986; and

     (b) immediately before 1 November 1986 the person was receiving a social security pension at a rate ('pre-November 1986 rate') equal to or more than $3,122.60; and

     (c) since that day the person has been continuously receiving the social security pension or income support supplement;

his or her ceiling rate is equal to the pre-November 1986