Working out the daily means tested amount
319 Working out the daily means tested amount
The daily means tested amount for an individual is worked out as follows:
Work out the per day income tested amount using Steps 1 to 7:
Step 1. Work out the individual’s total assessable income (which is determined under section 322).
Step 2. If the individual’s total assessable income does not exceed the total assessable income free area (see subsection (2)), the per day income tested amount is zero.
Step 3. If the individual’s total assessable income exceeds the total assessable income free area but not the first income threshold (see paragraph (4)(a)), the per day income tested amount is 50% of that excess, divided by 364.
Step 4. If the individual’s total assessable income exceeds the first income threshold but not the second income threshold (see paragraph (4)(b)), the per day income tested amount is 50% of the difference between the total assessable income free area and the first income threshold, divided by 364.
Step 5. If the individual’s total assessable income exceeds the second income threshold but not the third income threshold (see paragraph (4)(c)), the per day income tested amount is the sum of the following, divided by 364:
50% of the difference between the total assessable income free area and the first income threshold;
50% of the excess above the second income threshold.
Step 6. If the individual’s total assessable income exceeds the third income threshold but not the fourth income threshold (see paragraph (4)(d)), the per day income tested amount is the sum of the following, divided by 364:
50% of the difference between the total assessable income free area and the first income threshold;
50% of the difference between the second income threshold and the third income threshold.
Step 7. If the individual’s total assessable income exceeds the fourth income threshold, the per day income tested amount is the sum of the following, divided by 364:
50% of the difference between the total assessable income free area and the first income threshold;
50% of the difference between the second income threshold and the third income threshold;
50% of the excess above the fourth income threshold.
Work out the per day asset tested amount using Steps 8 to 14:
Step 8. Work out the value of the individual’s assets (which is determined under section 329).
Step 9. If the value of the individual’s assets does not exceed the asset free area (see subsection (3)), the per day asset tested amount is zero.
Step 10. If the value of the individual’s assets exceeds the asset free area but not the first asset threshold (see paragraph (4)(e)), the per day asset tested amount is 17.5% of the excess, divided by 364.
Step 11. If the value of the individual’s assets exceeds the first asset threshold but not the second asset threshold (see paragraph (4)(f)), the per day asset tested amount is 17.5% of the difference between the asset free area and the first asset threshold, divided by 364.
Step 12. If the value of the individual’s assets exceeds the second asset threshold but not the third asset threshold (see paragraph (4)(g)), the per day asset tested amount is the sum of the following, divided by 364:
17.5% of the difference between the asset free area and the first asset threshold;
7.8% of the excess above the second asset threshold.
Step 13. If the value of the individual’s assets exceeds the third asset threshold but not the fourth asset threshold (see paragraph (4)(h)), the per day asset tested amount is the sum of the following, divided by 364:
17.5% of the difference between the asset free area and the first asset threshold;
7.8% of the difference between the second asset threshold and the third asset threshold.
Step 14. If the value of the individual’s assets exceeds the fourth asset threshold, the per day asset tested amount is the sum of the following, divided by 364:
17.5% of the difference between the asset free area and the first asset threshold;
7.8% of the difference between the second asset threshold and the third asset threshold;
7.8% of the excess above the fourth asset threshold.
The daily means tested amount is the sum of the per day income tested amount and the per day asset tested amount.
If either the per day income tested amount or the per day asset tested amount cannot be worked out, the daily means tested amount cannot be determined (see section 320 about an individual having means not disclosed status).
The total assessable income free area is the sum of the following:
the amount worked out by applying point 1064‑B1 of Pension Rate Calculator A at the end of section 1064 of the Social Security Act 1991;
the amount worked out under point 1064‑BA4 of Pension Rate Calculator A at the end of section 1064 of the Social Security Act 1991;
the amount worked out by applying point 1064‑E4 of Pension Rate Calculator A at the end of section 1064 of the Social Security Act 1991.
The asset free area is:
unless paragraph (b) applies—the amount equal to 2.25 times the basic age pension amount; or
if rules are in force for the purposes of this paragraph—such other amount as is calculated in accordance with the rules.
Each of the following terms have the meaning prescribed by the rules:
first income threshold;
second income threshold;
third income threshold;
fourth income threshold;
first asset threshold;
second asset threshold;
third asset threshold;
fourth asset threshold.
Despite subsection (1), if the individual is in a class of individuals prescribed by the rules, the daily means tested amount for the individual is the amount prescribed by the rules.
To avoid doubt, an amount prescribed by the rules under subsection (5) may refer to an individual’s total assessable income, the value of an individual’s assets, or both.
This Act’s bill:Explanatory memorandumSecond reading speech
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