Income test for Newstart Allowance, Partner Allowance, Sickness Allowance and Widow Allowance
An income test is used to work out your payment rate. An assets test is also used and out of these, the one that results in the lowest payment rate will apply.
This income test is updated on 20 March and 20 September each year and applies to the following payments. It will also depend on your family situation.
The table below outlines the income test amounts for the following family situations:
- single, no children
- single, with dependent child/children (but not the principal carer)
- single, aged 60 or over and have been receiving payment for at least nine months continuously
- partnered (each person)
| Fortnightly income | up to $62 | between $62 and $250 | over $250 |
|---|---|---|---|
| Reduction in payment | none – full payment | 50 cents for each dollar over $62 | $94 plus 60 cents for each dollar over $250 |
Note for partnered recipients: In addition, if your partner earns income above $842, your payment is reduced by 60 cents for every dollar of income over $842. Likewise, if your partner receives a payment from us, your income may affect their amount.
If a couple is separated because of illness, they each will be paid $537.80 per fortnight. One member of a couple may be paid $537.80 per fortnight if the other partner is imprisoned.
The table below outlines the income test amounts for single principal carers, including:
- single principal carer, with dependent child/children
- single principal carer of a dependent child
(granted an exemption for foster caring/home schooling/distance education/large family)
| Fortnightly income | up to $62 | over $62 |
|---|---|---|
| Reduction in payment | none – full payment | 40 cents for each dollar over $62 |
Cut-off points
If you earn enough income your payment reduces to $0, this is called the cut-off point. This table outlines the cut-off point for each family situation.
Note: The amount of income you can earn before your payment reduces to $0 may be higher if you are eligible for Pharmaceutical Allowance or Rent Assistance.
| Family situation | payment reduces to $0 once your income reaches this amount |
|---|---|
| Single, no children | $935.67 |
| Single, aged 60 or over and have been receiving payment for at least nine months continuously | $1,015.17 |
| Single, principal carer, with dependent child/children | $1,429.25 |
| Single principal carer of a dependent child (granted an exemption for foster caring/home schooling/distance education/large family) | $1,799.75 |
| Single, with dependent child/children (but not the principal carer) | $1,004.84 |
| Partnered (each person) | $853.84 |
Information on the assets test for: