smc-6276-40-Govt Payments

Financial Maths, STD2 EQ-Bank 18

David and Mary are a couple living together. They each receive the maximum Age Pension payment of $888.50 per fortnight (which includes basic rate, Pension Supplement and Energy Supplement).

Their combined income from part-time work is $520 per fortnight. Their Age Pension is reduced by 25 cents each for every dollar of combined income over $380 per fortnight..

Calculate the reduction in each person's Age Pension payment. (2 marks)
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Calculate their total household fortnightly income including their reduced Age Pension payments and earnings. (2 marks)
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What percentage of their total household income comes from their Age Pension payments? Give your answer to 1 decimal place. (1 mark)
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a. $$35$

b. $$2227$

c. $76.6\%\ \text{(to 1 d.p.)}$

Show Worked Solution

a. $\text{Combined income over free area} = 520-380=$140$

$\text{Reduction for each person} = 0.25 \times 140= $35$

$\therefore\ \text{Each person’s pension is reduced by \$35}$

b. $\text{Reduced pension for each person}=888.50-35= $853.50$

$\text{Combined Age Pension} = 2 \times 853.50=$1707$

$\text{Total household income} = 1707+520=$2227$

c. $\text{Percentage from Age Pension} =\dfrac{1707}{2227}\times 100=76.6\%\ \text{(to 1 d.p.)}$

$\therefore\ 76.6\%\text{ of their household income comes from Age Pension}$

Financial Maths, STD2 EQ-Bank 34

Baron is 19 years old, single with no children, and lives away from his parents' home to study. He receives the maximum Youth Allowance payment of $663.30 per fortnight.

Baron supplements his payments by working part-time and earns $15.50 per hour in a retail position. His Youth Allowance is reduced by 50 cents for each dollar earned over $236 per fortnight.

Baron works 22 hours per fortnight. Calculate his total fortnightly income including his reduced Youth Allowance payment and earnings. (2 marks)
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What is the maximum number of hours Baron can work per fortnight before his Youth Allowance payment is reduced to zero? Give your answer to the nearest whole hour. (2 marks)
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a. $\text{\$951.80 per fortnight}$

b. $\text{101 hours per fortnight}$

Show Worked Solution

a. $\text{Baron’s earnings} = 15.50\times 22=$341$

$\text{Income over free area} = 341-236 = $105$

$\text{Reduction in payment} = 0.50\times 105= $52.50$

$\text{Reduced Youth Allowance} = 663.30-52.50=$610.80$

$\text{Total fortnightly income} = 610.80+341=$951.80$

b. $\text{For payment to reduce to zero, reduction needed} = $663.30$

$\text{Income over free area} = \dfrac{663.30}{0.50}=$1326.60$

$\text{Total earnings needed} = 1326.60+236=$1562.60$

$\text{Hours needed}=\dfrac{1562.60}{15.50}=100.8$

$\therefore\ \text{Baron can work a maximum of 101 hours per fortnight}$

Financial Maths, STD2 EQ-Bank 16

Yuki is single with no children and receives the maximum JobSeeker Payment of $793.60 per fortnight.

Her JobSeeker Payment is reduced by 50 cents for each dollar earned over $150 per fortnight.

Rachel earns $380 per fortnight from casual work. Calculate her reduced JobSeeker Payment. (2 marks)
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How much would Rachel need to earn per fortnight for her JobSeeker Payment to be reduced to $600? (2 marks)
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a. $$678.60\ \text{per fortnight}$

b. $$537.20\ \text{per fortnight}$

Show Worked Solution

a. $\text{Income over free area} = 380-150=$230$

$\text{Reduction in payment} = 0.50\times 230 = $115$

$\text{Reduced JobSeeker Payment} = 793.60-115 = $678.60$

$\therefore\ \text{Rachel receives \$678.60 per fortnight}$

b. $\text{Required reduction} = 793.60-600=$193.60$

$\text{Income over free area} = \dfrac{193.60}{0.50}=$387.20$

$\text{Total income needed} = 387.20+150=$537.20$

$\therefore\ \text{Rachel needs to earn \$537.20 per fortnight}$

Financial Maths, STD2 EQ-Bank 15 MC

Margaret is single and receives the maximum Age Pension payment of $1,178.70 per fortnight.

She earns $280 per fortnight from part-time work. Her pension is reduced by 50 cents for each dollar earned over $218 per fortnight.

What is Margaret's total fortnightly income (including her Age Pension and earnings)?

$1,427.70
$1,447.70
$1,458.70
$1,489.70

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$A$

Show Worked Solution

$\text{Maximum Age Pension} = $663.30$

$\text{Income over free area} = 280-218 = $62$

$\text{Reduction in payment} = 0.50\times 62 = $31$

$\text{Age Pension received} = 1178.70-31 = $1,147.70$

$\therefore\ \text{Total fortnightly income} = 1147.70+280 = $1,427.70$

$\Rightarrow A$

Financial Maths, STD2 EQ-Bank 14 MC

Emma is 20 years old, single with no children, and lives away from her parents' home to study.

She receives the maximum Youth Allowance payment of $663.30 per fortnight.

Emma earns $420 per fortnight from part-time work. Her Youth Allowance is reduced by 50 cents for each dollar earned over $236 per fortnight.

What is Emma's total fortnightly income (including her Youth Allowance payment and earnings)?

$899.30
$991.30
$1011.30
$1083.30

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$B$

Show Worked Solution

$\text{Maximum Youth Allowance} = $663.30$

$\text{Income over free area} = 420-236 = $184$

$\text{Reduction in payment} = 0.50\times 184 = $92$

$\text{JobSeeker Payment received} = 663.30-92 = $571.30$

$\therefore\ \text{Total fortnightly income} = 571.30+420 = $991.30$

$\Rightarrow B$

Financial Maths, STD2 EQ-Bank 13 MC

Sarah is single with no children and receives the maximum JobSeeker Payment of $793.60 per fortnight.

She earns $350 per fortnight from casual work. The JobSeeker Payment is reduced by 50 cents for each dollar earned over $150 per fortnight.

What is Sarah's total fortnightly income (including her JobSeeker Payment and earnings)?

$893.60
$943.60
$993.60
$1043.60

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$D$

Show Worked Solution

$\text{Maximum JobSeeker Payment (single, no children)} = $793.60$

$\text{Income over free area} = 350-150 = $200$

$\text{Reduction in payment} = 0.50\times 200 = $100$

$\text{JobSeeker Payment received} = 793.60-100 = $693.60$

$\therefore\ \text{Total fortnightly income} = 693.60+350 = $1043.60$

$\Rightarrow D$

Financial Maths, STD2 F1 2012 HSC 18 MC

Jo qualifies for both Rent Assistance and Youth Allowance and receives a fortnightly payment from the government.

Rent Assistance is $119.40 per fortnight.

The maximum Youth Allowance is $402.70 per fortnight. It is reduced by 50 cents in the dollar for any income earned over $236 per fortnight.

Jo earns $300 per fortnight from a part-time job.

What is the total payment Jo receives each fortnight from the government?

$370.70
$372.10
$458.60
$490.10

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`D`

Show Worked Solution

`text(Rent assistance)\ = $119.40`

`text(Youth allowance)`	`= 402.70\ text(less 50c per dollar)\ \ (text(income) > $236)`
	`= 402.70-0.5(300-236)= 402.70-32= $370.70`

`:.\ text{Total Payment}=119.40 + 370.70=$490.10`

`=> D`