A New Tax System (Bonuses for Older Australians) Act 1999 (REPEALED)

Part 3 - Veterans' Affairs customers who qualify for bonus payment  

Division 5 - Amount of bonus payment etc  

30   Amount of bonus payment  

(1)    
The amount of a Veterans' Affairs customer's aged persons savings bonus payment is worked out in accordance with the following table:

Example:

Ruth has annual retirement income of $23,000 and annual savings and investment income of $1,500.

Ruth's aged persons savings bonus payment is worked out as follows.

Ruth's annual savings and investment income of $1,500 exceeds the maximum of $1,000, so only $1,000 is potentially allowable.

The phasing out fraction of the $1,000 then needs to be subtracted. The fraction is:

$23,000 − $20,000 $10,000

=

3   10

Therefore 3/10 of $1,000 (i.e. $300) needs to be subtracted. This leaves an aged persons savings bonus payment of $700.

Bonus payments less than $1 rounded up to $1

(2)    
If the amount of a Veterans' Affairs customer's aged persons savings bonus payment worked out under this section is greater than nil and less than $1, the amount is rounded up to $1.

Phasing out fraction

(3)    
In this section:

phasing out fraction
means the following fraction:

Veteran's Affairs customer's annual retirement income − $20,000 $10,000