10Calculating the daily penalty rate

10 Calculating the daily penalty rate

The daily penalty rate for a day in a particular instalment period is the lesser of the amount worked out in accordance with subsection (2) and the amount worked out in accordance with subsection (3).

First method

The first method for working out the daily penalty rate is:

daily penalty rate = 1.4 × PAR / (Dayinst) where:

PAR means the person’s penalty-affected rate for the instalment period in which the day occurs. Dayinst is the number of days in that instalment period. Second method

The second method for working out the daily penalty rate is:

daily penalty rate = PAR / (WDinst) where: PAR means the person’s penalty-affected rate for the instalment period in which the day occurs. WDinst is the number of weekdays in that instalment period.

Penalty-affected rate

A person’s penalty-affected rate for an instalment period is the amount worked out in accordance with the following formula:

PPAinst – (PAinst + PSinst + RAinst + RAAinst + YDSinst) where: PPAinst is the amount of participation payment payable to the person (or in relation to a non-attendance failure, that would, apart from subsection 42SA(2) of the Act, be payable), for the instalment period in which the day occurs, and includes any supplement or allowance that is part of the rate of that payment for that period. PAinst is the amount of pharmaceutical allowance payable to the person for the instalment period. PSinst is the amount of pension supplement payable to the person for the instalment period. RAinst is the amount of rent assistance payable to the person for the instalment period. RAAinst is the amount of remote area allowance payable to the person for the instalment period. YDSinst is the amount of youth disability supplement payable to the person for the instalment period.

Note 1 A person’s rate of participation payment amount may include an amount for supplements such as language, literacy and numeracy supplement and approved program of work supplement.

Note 2 A person may also receive allowances and supplements, such as mobility allowance, pensioner education supplement, telephone allowance, and utilities allowance, that are not part of the person’s rate of participation payment. These are not included in the calculation of the person’s penalty-affected rate.

Note 3 More than one calculation method and calculated daily amount may apply to a reconnection failure period that exceeds one instalment period in duration.

Schedule 1—Repeals

Social Security (Administration) (Penalty Amount) Determination 2015 (No. 1)