Senator Grimes asked the Minister for Social Security, upon notice, on 25 November 1980:

Do aged married couples who are occupants of separate nursing homes receive the single rate pension because of their separate circumstances for pension purposes and, for income test purposes, is the allowable income level applied at the married rate of $1794 per annum; instead of a single rate of $1040 per annum; if so, what are the reasons for this difference in treatment.

Senator Chaney —The answer to the honourable senator's question is as follows:

Yes. Where either or both of a married couple, because of illness or infinite basis and their living expenses are or are likely to be greater than they would otherwise be, each may receive single rate pension. Eligibility for single rate pension was extended to persons in this situation in 1970 in recognition that they have lost the normal financial advantages of cost sharing.

However, for income test purposes the combined income of the couple is still taken into account and the allowable income remains unchanged, although the level of income at which pension ceases to be payable is extended in keeping with payment of the single rate of pension. If each were treated as a single person for income test purposes the halving principle would not be applicable and overall disadvantage could result. It is only where a couple is living apart and estranged that they are treated as separate entities for pension income test purposes.