Income test

Your income can reduce how much we pay you. We use the pension income test to assess Carer Payment.

What an income test is

We assess your and your partner’s income from all sources. This includes financial assets such as superannuation if you are over Age Pension age.

To work out how much income your financial assets produce, we use deeming. If you’re paid employment income, read about time off to work, study or train.

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 when you are over Age Pension age.

Single person

Income per fortnightAmount your pension will reduce by
Up to $204$0
Over $20450 cents for each dollar over $204

Couple living together or apart due to ill health

Combined income per fortnightAmount your combined pension will reduce by
Up to $360$0
Over $36050 cents for each dollar over $360

What the transitional rules are

These are the income rules for transitional rate pensioners.

Single person

Income per fortnight isAmount your pension will reduce by
Up to $204$0
Over $20440 cents for each dollar over $204

Couple living together or apart due to ill health

Combined income per fortnightAmount your combined pension will reduce by
Up to $360$0
Over $36040 cents for each dollar over $360

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 situationFortnightly income cut off point
Single$2,436.60
A couple living together$3,725.60 combined
A couple living apart due to ill health$4,825.20 combined
A transitional rate pensioner - single$2,511.25
Transitional rate pensioners - couple living together$4,083.00 combined
Transitional rate pensioners - couple living apart due to ill health$4,974.50 combined
Page last updated: 20 March 2024.
QC 65078