Pro Rata

A “pro rata” is where a payment is reduced to portion of a fee based on a specific period of time rather than a full billing cycle.

In other words, this is a way of calculating the cost based on a proportional rate rather than a full fortnightly fee. This ensures members are only billed for the days the membership was active in that billing cycle.

Pro rata is used when someone is starting a new membership – this pays for the days the membership was active before the first full payment. Pro ratas are also used for membership Holds that don’t align with the membership payment cycle (see below).

The below table shows the breakdown of a $110.00 fortnightly membership fee. The $110.00 is divided by the 14-day billing cycle to give a “per day” fee.

EXAMPLE:

A member joins Elixr and chooses to start their membership 4-days prior to the upcomming billing cycle.

• Membership fees will be charged for 4 days of access – 4 days of membership fees = $31.43
• Elixr memberships are paid for 2 weeks in advance on each direct debit – 14 days of membership fees = $110.00
• Adding these two fees together gives you the total membership fees due for the direct debit – Total membership fees = $141.43

All Holds that do not align with the debit cycle, and do not conform to 14-day blocks will also be adjusted with pro ratas.

Both your membership fee, and Hold fee, will have a pro rata amount applied to bring your payments back into alignment with the debit cycle. This ensures the you will only be paying the Hold fee for the days you are on Hold, and your normal membership fess when not on Hold.

This table shows the break down or “per day” fees. The first row shows the Hold pro rata ($0.80 per day) and the second row shows an example of membership fees ($110.00 per fortnight).

EXAMPLE:

A member has a 27-day hold, which is 1 day short of a 4-week block.

• The first fortinightly payment will be 14 x $0.80 – 14 Days of Hold fees = $11.20
• The second fortnightly payment will be adjusted with pro ratas to account for remaining 13 days of Hold and 1 day of membership access:
  • The Hold fee will be adjusted to subtract a 1-day pro rata, for 13 days of Hold fees – 13 Days of Hold fees = $10.40
  • The membership fee will be adjusted to add a 1-day pro rata, for 1 day of membership fees – 1 Day of Membership fees = $7.86
• Adding these two fees together gives you the total fees due – Total Pro Rata Fees = $17.86

Members can choose to pay the pro rata early via the membership portal otherwise the pro rata will be billed automatically on the next direct debit, with the next fortnightly membership fees.

Please note: If you have paid for 2 weeks of Hold fees in advance this will be subtracted from the total.