Calculating weekly payments 103-05010030

In this example there is no change to entitlement during the fortnight:

• $550 for Disability Support Pension, Pharmaceutical Allowance and Rent Assistance
• $20.80 - Language, Literacy and Numeracy Supplement (LLNS)
  LLNS is not paid weekly. It is paid on a customer's EPED

Gross rate for the fortnight = $570.80

Deductions and withholdings of $200:

• Debt withholdings $20
• Child Support Deduction $20
• Rent Deduction Scheme $130
• Centrepay - electricity $10
• Centrepay - phone $20

Net rate for fortnight:

= Gross rate - deductions - add-ons that cannot be paid weekly

= $570.80 - $200 - $20.80

= $350

Adjusted net rate of all add-ons that can be paid weekly

= $350

Week 1 payment:

= half of Adjusted Net + add-ons that cannot be paid weekly

= (0.5 x $350) + 20.80

= $195.80.

This pays 14 days after the previous EPED.

Week 2 payment:

= half of Adjusted Net

= 0.5 x $350

= $175.00

This pays 7 days after the Week 1 payment.

The customer's gross rate is $560. There are no add-ons that cannot be paid weekly, or deductions. So these are the same:

• Gross rate
• Net rate
• Adjusted net rate

On original EPED, Week 1 payment:

= 0.5 x (gross rate - deductions)

= $280

On second day after the original EPED, the customer asks to change their EPED to Day 3. The instalment period shortens to 3 days.

The customer's actual payment for the period should have been:

= daily gross rate x 3 days

= (gross rate/14 days) x 3 days

= ($560/14) x 3

= $120

The customer is paid $120 on the new EPED.

The scheduled and undelivered Week 2 payment ($280) will be paid on the original offset EPED. This is 7 days after the original EPED.

The customer is paid their:

• next Week 1 payment of $280 on the next new EPED
• Week 2 payment 7 days later

The customer's gross rate is $560. There are no add-ons that cannot be paid weekly, or deductions. So these are the same:

• Gross rate
• Net rate
• Adjusted net rate

On original EPED, Week 1 payment:

= 0.5 x net rate

= (Gross rate - deductions) x 0.5

= $280

On Day 5 after the original EPED, the customer asks to change their EPED to Day 4. The instalment period shortens to 4 days.

The customer's actual payment for the period should have been:

= daily gross rate x 4 days

= (gross rate/14 days) x 4 days

= ($560/14) x 4

= $160

The customer is paid $160 as an immediate payment on the date they ask to change their EPED.

The scheduled and undelivered Week 2 payment ($280) will be paid on the original offset EPED. This is 7 days after the original EPED.

The customer is paid their:

• next Week 1 weekly payment on the next new EPED
• Week 2 payment 7 days later

The customer's gross rate is $560. There are no add-ons that cannot be paid weekly, or deductions. So these are the same:

• Gross rate
• Net rate
• Adjusted net rate

On original EPED, Week 1 payment:

= 0.5 x (gross rate - deductions)

= $280

On the offset EPED (7 days after the EPED), the Week 2 payment ($280) is made.

On Day 8t after the original EPED, the customer asks to change their EPED to Day 10. The instalment period shortens to 10 days.

The customer's actual payment for the period should have been:

= daily gross rate x 10 days

= (gross rate/14 days) x 10 days

= ($560/14) x 10

= $400

The customer will receive their:

• Week 1 instalment of $200 on the new EPED. This is 50% of the reduced rate of $40
• Week 2 instalment of $200 7 days later

The customer's gross rate is $560. There are no add-ons that cannot be paid weekly, or deductions. So these are the same:

• Gross rate
• Net rate
• Adjusted net rate

On the original EPED, Week 1 payment:

= 0.5 x net rate

(Gross rate - deductions) x 0.5

= $280

On the offset EPED (7 days after the EPED), the Week 2 payment ($280) is made.

On Day 10 after the original EPED, the customer asks to change their EPED to Day 8. The instalment period shortens to 8 days.

The customer's actual payment for the period should have been:

= daily gross rate x 8 days

= (gross rate/ 14 days) x 8 days

= $560/14 x 8

= $320

The customer will receive their:

• Week 1 instalment of $160 as an immediate payment on the date they ask for the EPED change. This is 50% of the reduced rate of $320
• Week 2 instalment of $160 7 days later

In this example, there is no change to entitlement during the fortnight..

• $550 for Disability Support Pension, Pharmaceutical Allowance and Rent Assistance
• $20.90 - Language, Literacy and Numeracy Supplement (LLNS)
  LLNS is not paid weekly. It is paid on a customer's EPED.

Gross rate for the fortnight = $570.80

Deductions and withholding = $200:

• Debt withholdings $20
• Child Support Deduction $20
• Rent Deduction Scheme $130
• Centrepay - electricity $10
• Centrepay - phone $20

Net rate for fortnight:

= Gross rate - deductions - add-ons that cannot be paid weekly

= $550 - $200

= $350

Adjusted net rate of all add-ons that can be paid weekly

= $350

Week 1 payment:

= half of Adjusted Net rate

= 0.5 x $350

= $175

Week 2 payment:

= half of Adjusted Net rate - Week 1 + add-ons that cannot be paid weekly

=$350 - $175 + $20.80

= $195.80

Using the figures from Example 1 in Table 1, assume that:

• Week 1 payment issued
• the customer's rate is reassessed before Week 2 payment

The customer's gross fortnightly rate is now $500.00.

Week 2 payment:

= Net rate - Week 1 payment

= (Gross rate - deductions) - Week 1 + add-ons that cannot be paid weekly

= ($500 - $200) - $175 + 20.80

= $145.80

Using the figures from Example 1 in Table 1, assume that:

• Week 1 payment issued
• the customer's rate is reassessed before Week 2 payment

The customer's gross fortnightly rate t is now $215.

Week 2 payment:

= Net rate - Week 1 payment

= (Gross rate - deductions) - Week 1 + add-ons that cannot be paid weekly

= $215 - $200 - $175 + 20.80

= -$139.20 Note: this is a negative figure

The customer will not receive any payment for Week 2.

A shortfall of $139.20 carries over into the next instalment.

Due to the rate reduction, the Week 2 payment has been used for deductions. The system applies the priority order of deductions.

Using the figures from Example 1 in Table 1, assume that:

• Week 1 payment issued
• the customer's rate is reassessed before Week 2 payment

The customer's gross fortnightly rate is $150.

Week 2 payment:

= Net rate - Week 1 payment

= (Gross rate - deductions) - Week add that cannot be paid weekly

= $150 - $200 - $175 + 20.80

= -$204.20 Note: this is a negative figure

The customer will not receive any payment for Week 2.

A shortfall of $204.20 carries over into the next instalment period.

Due to the rate reduction, the Week 2 payment is used for deductions. The system applies the priority order of deductions.

As the Week 1 payment has not been fully recovered, the unrecovered amount becomes an overpayment:

= $150 - $175

= $25

A customer' gross rate is $280. There are no add-ons that cannot be paid weekly, or deductions. So these are the same:

• Gross rate
• Net rate
• Adjusted Net rate

Day 7 Week 1 payment:

= 0.5 x (gross rate - deductions)

= $140

On Day 12, the customer asks to change their EPED to Day 3. Their instalment period shortens to 3 days.

The customer's actual payment for the period should have been:

= daily gross rate x 3 days

= (gross rate/14 days) x 3 days

= ($280/14) x 3

= $60

As the Week 1 payment is more than their gross rate, this creates a shortfall. Recover this amount in the next instalment period as resulted from the EPED change.

Shortfall:

= Week 1 payment - gross rate

= $140 - $60

= $80

The customer's new instalment period spans Day 4 to Day 17 (14 days).

Carryover:

= 0.5 x net rate

= 0.5 x ($280 - $80)

= $100

This pays on Day 12 when the EPED changes, as the Week 1 payment is now due on Day 10.

Day 17 payment:

= gross rate - (shortfall + carryover)

= $280 - ($80 + $100)

= $100

A customer's gross rate is $280. There are no add-ons that cannot be paid weekly, or deductions. So these are the same:

• Gross rate
• Net rate
• Adjusted Net rate

Day 7 Week 1 payment:

= 0.5 x net rate

= $140

On Day 9, the customer asks to change their EPED to Day 4. The instalment period shortens to 4 days.

The customer's actual payment for the period should have been:

= daily gross rate x 4 days

= (gross rate/14 days) x 4 days

= ($280/14) x 4

= $80

As carryover is greater than gross entitlement, this create a shortfall. Recover this in the next instalment period as it resulted from the EPED change.

Shortfall:

= carryover - gross rate

= $140 - $80

= $60

The customer's new instalment period spans Day 5 to Day 18 (14 days).

Carryover:

= 0.5 x net rate

= 0.5 x ($280 - $60)

= $110

This pays on Day 11 when the EPED changes, as the Week 1 payment is now due on Day 11.

Day 18 payment:

= gross rate - (shortfall + carryover)

= $280 - ($60 + $110)

= $110

A customer's gross rate is $280. There are no add-ons that cannot be paid weekly, or deductions. So these are the same:

• Gross rate
• Net rate

Adjusted Net rate

Day 7 Week 1 payment:

= 0.5 x net rate

= $140

On Day 8, the customer asks to change their EPED to Day 10. The instalment period shortens to 10 days.

The customer's actual payment for the period should have been:

= daily gross rate x 10 days

= (gross rate/14 days) x 10 days

= ($280/14) x 10

= $200

The customer's new entitlement period spans Day 11 to Day 24 (14 days).

Day 17 payment:

= 0.5 x net rate

= 0.5 x ($280 - $0)

= $140 Day 24 payment:

= gross rate - (shortfall + carryover)

= $280 - ($0 + $140)

= $140

A customer's gross rate is $280. There are no add-ons that cannot be paid weekly, or deductions. So these are the same:

• Gross rate
• Net rate
• Adjusted Net rate

Day 7 Week 1 payment:

= 0.5 x net rate

= $140

On Day 10, the customer asks to change their EPED to Day 8. The instalment period shortens to 8 days.

The customer's actual payment for the period should have been:

= daily gross rate x 8 days

= gross rate/ 14 days x 8 days

= $280/14 x 8

= $160

On Day 10 the customer is paid for Day 8. Notification reporters are paid immediately, 2 weekly reporters after lodgement.

= gross rate - carryover

= $160 - $140

= $20 (this is for one day only, already paid for Days 1 to 7)

The customer's new instalment period spans Day 9 to Day 22 (14 days).

Day 15 payment

= 0.5 x net rate

= 0.5 x ($280 - $0)

= $140

Day 22 payment:

= gross rate - (shortfall + carryover)

= $280 - ($0 + $140)

= $140