Topic: Pension Rebates

Tagged: Earning Money, Pension Rebates

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Keymaster

December 5, 2018 at 3:50 pm

Post count: 1622

#15390

Danny is single and receives the age pension of $712 per fortnight. He takes a part time job earning $300 per fortnight. He loses 50 cents for each dollar in excess of $152 in his pension payment. Calculate his new pension payment.

find the amount over $152
= 300 – 152
= 148

for every dollar he loses 50c
148 × 0.50 = $74

new pension = $712 – $74
= $638

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Keymaster

December 30, 2020 at 9:11 pm

Post count: 1622

#18549

Most pensions paid by the government departments are taxable. Special rebates operate in relation to the taxation of pensioners’ incomes. The maximum pensioner rebate is $430. This reduces by 12.5 cents for every dollar earned in excess of $6892. a. A pensioners’ total income for the year is $8200. Calculate the rebate payable. b. What is the smallest income for which there is no rebate?
a. $8200 – $6892 = $1308	find the amount over $6892
1308 × 12.5 = 16350c	for ever dollar over, it is 12.5 cents, so multiply 1308 by 12 to find the reduction in the rebate
16350 ÷ 100 = $163.50	convert to dollars by dividing by 100 as 100c = $1
$430 – $163.50 = $266.50	so the rebate was $430 and is now reduced by $163.50
b. A × 0.125 = 430	For there to be no rebate, the amount over $6892 × 12.5c must equal $430 let that amount be A and we will use $0.125 instead of cents
0.125A = 430 $$\frac{\cancel{0.125}A}{\cancel{0.125}}=\frac{430}{0.125}$$ A = $3440	solve for A by dividing throughout by 0.125
$6892 + $3440 = $10 322	so they will need to earn $3440 over the $6892 in order for there to be no rebate

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