Income test for pensions
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.
Note: You are exempt from this income test if you are permanently blind and you get Age Pension or Disability Support Pension.
This income test is effective from 1 January 2013 and applies to the following payments and family situations:
- Age Pension
- Wife Pension
- Widow B Pension
- Bereavement Allowance
- Carer Payment
- Disability Support Pension
Single, couple combined, illness separated (couple combined)
Single
| Fortnightly income | up to $152 | over $152 |
|---|---|---|
| Reduction in payment | none – full payment | 50 cents for each dollar over $152 |
Couple combined, illness separated (couple combined)
| Fortnightly income | up to $268 | over $268 |
|---|---|---|
| Reduction in payment | none – full payment | 50 cents for each dollar over $268 (combined) |
Transitional rate pensioners
The income test for transitional rate pensioners is effective from 19 September 2009.
Single
| Fortnightly income | up to $152 | over $152 |
|---|---|---|
| Reduction in payment | none – full payment | 40 cents for each dollar over $152 |
Couple combined, illness separated (couple combined)
| Fortnightly income | up to $268 | over $268 |
|---|---|---|
| Reduction in payment | none – full payment | 40 cents for each dollar over $268 |
Note: Allowable income is increased by up to $24.60 per fortnight for each dependent child
Disability Support Pension
Single
- Under 21, single, no children, 16-17 years (at home)
- Under 21, single, no children, 18-20 years (at home)
- Under 21, single, no children, 16-20 years (independent)
| Fortnightly income | up to $152 | over $152 |
|---|---|---|
| Reduction in payment | none – full payment | 50 cents for each dollar over $152 |
Couple combined
- Under 21, member of a couple, no children, under 18 years
- Under 21, member of a couple, no children, 18-20 years
| Fortnightly income | up to $152 | over $152 |
|---|---|---|
| Reduction in payment | none – full payment | 50 cents for each dollar over $152 |
Single, saved status
- Under 21, single, no children, saved status, 16-17 years (at home)
- Under 21, single, no children, saved status, 18-20 years (at home)
- Under 21, single, no children, saved status, 16-20 years (independent)
| Fortnightly income | up to $152 | over $152 |
|---|---|---|
| Reduction in payment | none – full payment | 40 cents for each dollar over $152 |
Couple combined, saved status
| Fortnightly income | up to $268 | over $268 |
|---|---|---|
| Reduction in payment | none – full payment | 40 cents for each dollar over $268 |
Note: The income test for saved status is effective from 19 September 2009.
Some assets are deemed to earn income, while there are special rules for other types of income. Contact us for more information.
Employment income is subject to a Work Bonus for eligible pensioners over age pension age.
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 Rent Assistance.
Disability Support Pension
| If you are | payment reduces to $0 once your fortnightly income reaches this amount |
|---|---|
| Single | $1768.80 |
| Couple (combined) | $2705.60 |
| Illness separated (couple combined) | $3501.60 |
| Under 21, single, no children, 16-17 years (at home) | $841.20 |
| Under 21, single, no children, 18-20 years (at home) | $931.60 |
| Under 21, single, no children, 16-20 years (independent) | $1210.20 |
| Under 21, member of a couple, no children, under 18 years | $1210.20 |
| Under 21, member of a couple, no children, 18-20 years | $1210.20 |
| Under 21, single, no children, saved status, 16-17 years (at home) | $1013.50 |
| Under 21, single, no children, saved status, 18-20 years (at home) | $1126.50 |
| Under 21, single, no children, saved status, 16-20 years (independent) | $1474.75 |
| Couple (combined), saved status | $2898.00 |
Other pensions
- Age Pension
- Wife Pension
- Widow B Pension
- Bereavement Allowance
- Carer Payment (caring for a person 16 years or over)
- Carer Payment (caring for a child under 16 years)
| If you are | payment reduces to $0 once your fortnightly income reaches this amount |
|---|---|
| Single | $1768.80 |
| Couple (combined) | $2705.60 |
| Illness separated (couple combined) | $3501.60 |
| Transitional rate pensioners – Single | $1889.00 |
| Transitional rate pensioners – Couple (combined) | $3070.00 |
| Transitional rate pensioners – Illness separated (couple combined) | $3742.00 |