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

An income test and an assets test are used to work out your payment rate. The test that results in the lowest payment rate will apply.

Income test amounts

The income test depends on your family situation. It applies to:

Single and partnered

Income test amounts if you are:

  • single, but not a single principal carer
  • partnered - if your partner is a pensioner, we assess half the combined income for each member of the couple
Fortnightly income up to $104 between $104 and $254 over $254
Reduction in payment none 50 cents for each dollar over $104 $75 plus 60 cents for each dollar over $254

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

If your partner is not a pensioner

We work out your payment using your own income and any income your partner earns that may affect your payment. Your income reduces your payment as per the income test above.

Your partner's income reduces your payment by 60 cents for every dollar your partner earns over the partner income free area. The partner income free area is $937 per fortnight and 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 up to $104 over $104
Reduction in payment none 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 are eligible for Pharmaceutical Allowance or Rent Assistance.

Family situation payment reduces to nil once your income reaches this amount
Single with no children $1,023.00
Single, 60 years of age or older and have been receiving payment for at least 9 months continuously $1,106.50
Single, principal carer, with a dependent child $1,554.75
Single principal carer of a dependent child, granted an exemption for foster caring, home schooling, distance education, caring for a child who is a relative under a court order, or large family $1,976.75
Single, principal carer with a dependent child, 60 years of age or older and have been receiving payment for at least 9 months continuously $1,554.75
Single, with a dependent child but not the principal carer $1,096.17
Partnered $936.17

Assets test

If your assessable assets are above the assets test limit, you will not get a payment.

Read more about assets.

Page last updated: 1 July 2016

This information was printed Thursday 28 July 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.