Knowee
Questions
Features
Study Tools

. A pensioner couple has a combined assessable income under the Income Test of $10,400 p.a. Whatis the Age Pension entitlement for each member of the couple under the Income Test?

Question

. A pensioner couple has a combined assessable income under the Income Test of $10,400 p.a. Whatis the Age Pension entitlement for each member of the couple under the Income Test?

🧐 Not the exact question you are looking for?Go ask a question

Solution

To calculate the Age Pension entitlement for each member of the couple under the Income Test, we need to follow these steps:

  1. Determine the income threshold: As of September 20, 2021, the income threshold for couples is 316perfortnightcombined.Thismeansthatforayear,thethresholdis316 per fortnight combined. This means that for a year, the threshold is 316 * 26 = $8,216.

  2. Calculate the excess income: In this case, the couple's combined assessable income is 10,400peryear.So,theexcessincomeis10,400 per year. So, the excess income is 10,400 - 8,216=8,216 = 2,184.

  3. Determine the reduction in pension: For every dollar of income over the threshold, the pension is reduced by 50 cents. So, the reduction in pension due to excess income is 2,184∗0.5=2,184 * 0.5 = 1,092 per year combined.

  4. Calculate the full pension amount: As of September 20, 2021, the full Age Pension for a couple living together is 1,423.60perfortnightcombined,or1,423.60 per fortnight combined, or 1,423.60 * 26 = $37,013.60 per year combined.

  5. Subtract the reduction from the full pension amount: 37,013.60−37,013.60 - 1,092 = $35,921.60 per year combined.

  6. Divide by two to get the pension for each member of the couple: 35,921.60/2=35,921.60 / 2 = 17,960.80 per year.

So, each member of the couple would be entitled to an Age Pension of $17,960.80 per year under the Income Test. Please note that these calculations are based on the rates as of September 20, 2021, and the actual amounts may vary if the rates or the couple's income changes.

This problem has been solved

Similar Questions

Q2. Fred, a single non-homeowner aged 65 has the following assets:Term deposit $200,000Debentures $57,500Shares $118,000Managed fund $20,000In addition, Fred owns the following lifestyle assets, shown at market value:Furniture $15,500Coin collection $7,500Motor vehicle $18,000Fred has a personal loan on his vehicle of $4,500.Determine Fred’s Age Pension under the Assets Test, who has recently become eligible to receive theAge Pension

Anthony is 58 years old. During the current year of assessment, he earned a salary R544 000. He contributed R67 000 to a provident fund. Antony and his employer contributed R62 000 each to his pension fund. You may assume that his remuneration is R626 400.YOU ARE REQUIRED to determine the retirement fund contribution deduction which he will be allowed to deduct from his taxable income for the current year of assessment.a.R62 000b.R129 000c.R169 128d.R67 000

Select the correct answerThe ratio of incomes of two persons A and B last year was 9:13. Ratio of their incomes of last year to this year is 9:10 and 13:15 respectively. The sum of their present incomes is Rs. 50,000. What is the present income of B?OptionsRs. 32,000Rs. 20,000Rs. 30,000Rs. 24,000

Select the correct answerThe incomes of two persons A and B are in the ratio 1: 2 and the ratio of their expenditures is 2: 5. If A saves Rs.20,000 and B saves Rs.35,000, what is the total income of A and B?Options60000300009000070000

Pension age is the age people can A.access their superannuation, if they do not work anymore.B.access the government pension, if they meet the asset tests.C.access the government pension, without any condition.D.access their superannuation, without any condition.

1/2

Upgrade your grade with Knowee

Get personalized homework help. Review tough concepts in more detail, or go deeper into your topic by exploring other relevant questions.