There are different types of income we use to work out your payment rates.
What income means
- an income amount you earn, derive or receive for your own use or benefit
- profits - the amount of earnings in excess of expenses, whether of a capital nature or not, or
- a periodic payment or benefit you receive as a gift or allowance
- income from outside Australia
- monies - legal tender, cash
- valuable consideration - you receive goods, services or some other benefit in exchange for an item, action or promise
Assessable income is the income we use to work out your payment rate. If you have a partner, we take both of your incomes into account.
Examples of assessable income include:
- deemed income from financial investments, including money in superannuation funds if you have reached age pension age
- gross employment income - earnings for work performed including wages, salaries, bonuses, penalty rates, overtime, commission or honoraria, and stipends including fringe benefits and amounts salary sacrificed into superannuation
- net business income, including from farms
- distributions or dividends from private trusts and private companies
- real estate income, including net income or losses from rental property, and income from boarders and lodgers
- reportable superannuation contributions
- income from outside Australia, including non-Australian pensions and other income from sources outside Australia
- some lump sums
- some types of income specific to Indigenous Australians
We don’t normally use your taxable income to work out your payment rate. However, we may ask you for your income tax return or profit and loss statement if you own a business or a rental property to help us calculate your correct entitlement.
Exempt income is not included when we work out the rate of your income support payment.
- a rent subsidy paid by the Commonwealth, or a state or territory government
- most payments we make, however, these payments may be income for the Family Tax Benefit income test
- compensation for loss of, or damage to, building, plant and personal effects
- child support or maintenance payments for a dependent child. However, child support payments may affect the amount of Family Tax Benefit Part A you can receive
- Pensioner Education Supplement and Education Entry Payment if you are receiving a pension, allowance or benefit
- the value of any free board and lodging you receive
- a periodic payment from an immediate relative, for instance, your father, mother, son, daughter, brother or sister. This applies only if you are receiving a pension
- emergency relief or similar assistance
- any restitution payments you receive because you were the victim of National Socialist persecution
- any withdrawals from, or returns paid on, a First Home Saver Account
- reimbursement of expenses
- some allowances where the allowance is fully expended on the item or items
- payments received as part of a funded package of support through the National Disability Insurance Scheme
- some lump sums
Exempt equity and merit based scholarships
An equity or merit based scholarship is any scholarship you receive:
- so you can study or do research at an educational institution, or
- for achievement in study or research
Most education scholarships are equity or merit based scholarships.
If you receive a scholarship, up to $7,485 of it is exempt from the income test for all our payments with a personal, partner or parental income test.
Any amount over $7,485 is considered personal income and may affect your payment rate. We average the excess amount over the remaining fortnights of your scholarship. This means it has a consistent impact on your fortnightly Centrelink payment rate.
If you receive more than one scholarship, the $7,485 applies to the total amount you receive, not to each scholarship. This amount is indexed each year.
Deeming is a simple set of social security rules we use to assess income from financial assets. Under the pension income test and allowance income test, any income you get from financial investments is assessed under these rules. Read more about deeming.