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What the income test is
We assess your and your partner’s income from all sources. This includes financial assets such as savings, shares and superannuation. To work out how much income your financial assets produce, we use deeming.
If you or your partner work, you’ll need to report any employment income you’ve been paid. Read about employment income reporting.
You don’t need to give us your payslips unless we ask you for them.
Read about working while you’re getting Age Pension.
Age Pension has income and asset free areas and limits. If you’re over the free area, you get a lower pension until you reach the limit or cut off point.
If you’re permanently blind and get Age Pension, we don’t use the income test unless you get Rent Assistance or your partner is getting a payment and is not also blind.
What the standard rules are
These are the income rules for most pensioners. Read about the Work Bonus and how it can help you earn more income from working without reducing your pension.
Single person
| Income per fortnight | Amount your pension will reduce by |
|---|---|
| Up to $212 (free area) | $0 |
| Over $212 | 50 cents for each dollar over $212 |
Couple living together or apart due to ill health
Different rates apply for partners getting a payment other than a pension.
| Combined income per fortnight | Amount each member of the couple’s pension will reduce by |
|---|---|
| Up to $372 (free area) | $0 |
| Over $372 | 25 cents for each dollar over $372 |
What the transitional rules are
These are the income rules for a transitional rate pensioner.
Single person
| Income per fortnight is | Amount your pension will reduce by |
|---|---|
| Up to $212 | $0 |
| Over $212 | 40 cents for each dollar over $212 |
Couple living together or apart due to ill health
Different rates apply for partners getting a payment other than a pension.
| Combined income per fortnight | Amount each member of the couple’s pension will reduce by |
|---|---|
| Up to $372 | $0 |
| Over $372 | 20 cents for each dollar over $372 |
Transitional rate with dependent children
You can earn up to an extra $24.60 per fortnight for each dependent child without reducing your pension. Couples living together and both getting a pension can each earn an extra $12.30 per fortnight for each dependent child.
What the cut off points are
If your income in a fortnight goes over the cut off point, we’ll pay you $0 for that fortnight.
Your cut off point may be higher if you get Rent Assistance or Work Bonus.
Your cut off point may be lower if you don’t live in Australia.
| Your situation | Fortnightly income cut off point |
|---|---|
| Single | $2,500.80 |
| A couple living together | $3,822.40 combined |
| A couple living apart due to ill health | $4,949.60 combined |
| A transitional rate pensioner - single | $2,564.75 |
| Transitional rate pensioners - couple living together | $4,168.50 combined |
| Transitional rate pensioners - couple living apart due to ill health | $5,077.50 combined |