Income test for Newstart Allowance, Partner Allowance, Sickness Allowance and Widow Allowance

Income and assets tests are used to work out your payment rate. The test resulting in the lowest payment rate will apply.

Income test amounts

The income test depends on your family situation.

Single and partnered

Income test amounts if you're:

  • single, but not a single principal carer
  • partnered - if your partner is a pensioner, we assess half of your combined income
Fortnightly income Reduction in payment
Up to $104 None
Between $104 and $254 50 cents for each dollar over $104
Over $254 $75 plus 60 cents for each dollar over $254

If your partner gets a payment from us, your income may also affect the amount they get.

If your partner is not a pensioner

We work out your payment using your income and any income your partner earns over the partner income free area. Your income reduces your payment as per the income test above.

Your partner's income reduces your payment by 60 cents for every dollar they earn over the partner income free area. The partner income free area is $937 per fortnight. It may be higher if your partner is eligible for Pharmaceutical Allowance or Rent Assistance.

Single principal carers

Income test amounts for single principal carers:

  • with a dependent child
  • of a dependent child, granted an exemption for foster caring, home schooling, distance education, or large family
Fortnightly income Reduction in payment
Up to $104 None
Over $104 40 cents for each dollar over $104

Cut off points

Your payment reduces to nil when your income reaches the cut off point.

The amount of income you can earn before your payment reduces to nil may be higher if you're eligible for Pharmaceutical Allowance or Rent Assistance.

Family situation Payment reduces to nil once your income reaches this amount per fortnight
Single with no children $1,024.84
Single, 60 years of age or older and have been receiving payment for at least 9 months continuously $1,108.34
Single, principal carer, with a dependent child $1,557.50
Single principal carer of a dependent child, granted an exemption from mutual obligation requirements $1,980.25
Single, principal carer with a dependent child, 60 years of age or older and have been getting payment for at least 9 months continuously $1,573.00
Single, with a dependent child but not the principal carer $1,098.00
Partnered $937.84

Assets test

If your assessable assets are above the assets test limit, you won't get a payment.

Read more about assets.

Page last updated: 23 November 2016

This information was printed Sunday 4 December 2016 from humanservices.gov.au/customer/enablers/income-test-newstart-allowance-partner-allowance-sickness-allowance-and-widow It may not include all of the relevant information on this topic. Please consider any relevant site notices at humanservices.gov.au/siteinformation when using this material.