GM Lesson 007 Income Support Payments
Learning Intentions
- Calculate income support payments from given allowance or pension information.
- Interpret payment rates over weekly, fortnightly or monthly periods.
- Use income support information to determine total income.
Prerequisites
- Convert between weekly, fortnightly, monthly and annual amounts.
- Add and subtract money amounts written in dollars and cents.
- Interpret information presented in tables.
- Understand that
year has weeks, fortnights and months.
Key Idea Summary
Many Australian Centrelink payments are listed as fortnightly payments.
For this lesson, students are not expected to memorise Centrelink rates. Instead, students practise reading payment tables and using the given information to calculate total income.
Useful conversions:
To convert a fortnightly payment to a weekly amount:
To convert a fortnightly payment to an annual amount:
To estimate an average monthly amount from a fortnightly payment:
Income support payments may also be combined with other income, such as wages, rent assistance or supplements.
Direct Instruction and Worked Examples
Time Allocation
Time Allocation
Time Allocation
Link to original
- Introduction, warmup and vocabulary: 5 minutes
- Direct instruction: 15 minutes
- Understanding checks: 5 minutes
- Exercises: 20 minutes
- Homework: 20 to 30 minutes outside the lesson it was taught in.
Centrelink-Style Tables Used in This Lesson
The following payment tables are used as mathematical examples only. They are not financial advice.
Austudy Maximum Fortnightly Rates
| Situation | Maximum fortnightly payment |
|---|---|
| Single, no children | $677.20 |
| Single, with children | $854.20 |
| A couple, no children | $677.20 |
| A couple, with children | $733.20 |
Age Pension Normal Fortnightly Rates
| Situation | Maximum basic rate | Maximum Pension Supplement | Energy Supplement | Total |
|---|---|---|---|---|
| Single | $1,100.30 | $86.50 | $14.10 | $1,200.90 |
| Couple, each | $829.40 | $65.20 | $10.60 | $905.20 |
| Couple, combined | $1,658.80 | $130.40 | $21.20 | $1,810.40 |
Youth Allowance Student Maximum Fortnightly Rates
| Situation | Maximum fortnightly payment |
|---|---|
| Single, no children, younger than | $418.90 |
| Single, no children, younger than | $677.20 |
| Single, no children, | $482.40 |
| Single, no children, | $677.20 |
| Single, with children | $854.20 |
| A couple, with no children | $677.20 |
| A couple, with children | $733.20 |
JobSeeker Maximum Fortnightly Rates
| Situation | Maximum fortnightly payment |
|---|---|
| Single, no children | $808.70 |
| Single, with a dependent child or children | $866.00 |
| Single, | $866.00 |
| Partnered | $740.30 |
Rent Assistance Rule
For eligible people, Rent Assistance is calculated using the rule:
The payment cannot exceed the listed maximum.
For a single person receiving income support:
| Situation | Fortnightly rent must be more than | Rent needed for maximum payment | Maximum fortnightly Rent Assistance |
|---|---|---|---|
| Single | $154.80 | $447.34 | $219.40 |
| Single sharer | $154.80 | $349.83 | $146.27 |
Worked Example 1: Austudy Weekly Equivalent
A single student with no children receives the maximum Austudy rate of $677.20 per fortnight.
Find the equivalent weekly amount.
Since
The weekly equivalent is approximately $ $338.60.
Worked Example 2: Austudy Annual Income
A person receives Austudy of $677.20 per fortnight for a full year.
Find the annual income from Austudy.
There are
The annual Austudy income is $ $17,607.20.
Worked Example 3: Age Pension Total Fortnightly Payment
A single Age Pension recipient has the following fortnightly amounts:
| Component | Amount |
|---|---|
| Maximum basic rate | $1,100.30 |
| Maximum Pension Supplement | $86.50 |
| Energy Supplement | $14.10 |
Find the total fortnightly payment.
The total fortnightly payment is $1,200.90.
Worked Example 4: Combined Couple Age Pension Annual Total
A couple receives a combined Age Pension total of $1,810.40 per fortnight.
Find their annual total.
The annual combined total is $47,070.40.
Worked Example 5: Youth Allowance Living at Home Compared with Living Away
A student aged
| Situation | Maximum fortnightly payment |
|---|---|
| Living at parent’s home | $482.40 |
| Living away from parent’s home | $677.20 |
Find the fortnightly difference.
The student living away from home receives $194.80 more per fortnight.
Worked Example 6: Rent Assistance for a Single Person
A single person receiving income support pays $300 rent per fortnight.
For a single person, Rent Assistance begins when fortnightly rent is more than $154.80.
Amount of rent above the threshold:
Rent Assistance is paid at
Since $108.90 is below the maximum of $219.40, the Rent Assistance is $108.90 per fortnight.
Worked Example 7: Total Income with JobSeeker and Rent Assistance
A single person receives JobSeeker of $808.70 per fortnight and Rent Assistance of $108.90 per fortnight.
Find the total fortnightly income.
The total fortnightly income is $917.60.
Understanding Checks
Check 1
Austudy for a single person with no children is $677.20 per fortnight.
What operation converts this to a weekly amount?
Check 2
A single Age Pension recipient has a total fortnightly payment of $1,200.90.
What operation calculates their annual payment?
Check 3
A Youth Allowance student aged
Which situation has the higher payment?
Check 4
For a single person, Rent Assistance begins when fortnightly rent is more than $154.80.
If the person pays $154.80 exactly, how much rent is above the threshold?
Check 5
Why should all amounts be converted to the same payment period before adding them?
Exercises
Simple Familiar Exercises
Exercise 1
Use the Austudy table.
Convert each fortnightly Austudy payment to a weekly amount.
a. Single, no children: $677.20
b. Single, with children: $854.20
c. A couple, no children: $677.20
d. A couple, with children: $733.20
Exercise 2
Use the Austudy table.
Calculate the annual payment for each situation.
a. Single, no children: $677.20 per fortnight
b. Single, with children: $854.20 per fortnight
c. A couple, with children: $733.20 per fortnight
Exercise 3
Use the Age Pension table.
Calculate the total fortnightly payment for a single pensioner using:
- maximum basic rate: $1,100.30
- maximum Pension Supplement: $86.50
- Energy Supplement: $14.10
Exercise 4
Use the Age Pension table.
Calculate the total fortnightly payment for a couple combined using:
- maximum basic rate: $1,658.80
- maximum Pension Supplement: $130.40
- Energy Supplement: $21.20
Exercise 5
Use the Youth Allowance table.
Find the difference between the fortnightly payment for:
a. a student younger than
b. a student aged
c. a single student with children and a couple with children
Complex Familiar Exercises
Exercise 6
A single student receives Austudy of $677.20 per fortnight.
They also earn $145 per week from part-time work.
Calculate their total fortnightly income.
Exercise 7
A single Age Pension recipient receives a total of $1,200.90 per fortnight.
Calculate:
a. their weekly equivalent income
b. their annual income
c. their average monthly income
Exercise 8
A couple receives a combined Age Pension total of $1,810.40 per fortnight.
Calculate:
a. the annual combined income
b. the average monthly combined income
c. the weekly combined equivalent income
Exercise 9
A single person receives JobSeeker of $808.70 per fortnight.
They also receive $90.00 per fortnight from another support payment.
Calculate:
a. their total fortnightly income
b. their weekly equivalent income
c. their annual income
Exercise 10
A student aged
Another student aged
Calculate how much more the second student receives:
a. per fortnight
b. per year
Homework Problems
Problem 1
Use the Austudy table.
A single person with children receives $854.20 per fortnight.
Calculate:
a. the weekly equivalent payment
b. the annual payment
c. the average monthly payment
Problem 2
Use the Youth Allowance table.
Calculate the annual payment for:
a. a student aged
b. a student aged
c. the difference between these annual payments
Problem 3
A single person receives JobSeeker of $808.70 per fortnight and earns $130 per week from casual work.
Calculate their total fortnightly income before any income test is considered.
Problem 4
A single person pays rent of $280 per fortnight.
For a single person, Rent Assistance begins when rent is more than $154.80 per fortnight. The payment is
Calculate the Rent Assistance payment.
Problem 5
A single Age Pension recipient receives a total pension payment of $1,200.90 per fortnight and Rent Assistance of $180.00 per fortnight.
Calculate:
a. total fortnightly income
b. annual income
c. average monthly income
Problem 6
Compare the following two people.
| Person | Payment | Extra income |
|---|---|---|
| A | Austudy of $677.20 per fortnight | $120 per week |
| B | JobSeeker of $808.70 per fortnight | $50 per week |
Calculate each person’s total fortnightly income before any income test is considered, then determine who has the greater fortnightly income.
Problem 7
A couple receives a combined Age Pension total of $1,810.40 per fortnight.
Their fortnightly rent is $760 and their other fortnightly expenses total $690.
Calculate:
a. their total fortnightly expenses
b. their amount remaining each fortnight
c. their amount remaining over
Problem 8
A single person receives income support and pays rent of $500 per fortnight.
For a single person, the maximum Rent Assistance is $219.40 per fortnight.
They also receive JobSeeker of $808.70 per fortnight.
Calculate:
a. total fortnightly income including maximum Rent Assistance
b. income remaining after rent
c. annual income including Rent Assistance