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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 working while you’re getting Disability Support Pension.
Pensions have income and asset limits. If you’re over these limits, you get a lower pension.
If you’re permanently blind and get DSP, we don’t use the income test unless you get Rent Assistance.
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 fortnight | Amount your pension will reduce by |
|---|---|
| Up to $218 | $0 |
| Over $218 | 50 cents for each dollar over $218 |
Couple living together or apart due to ill health
| Combined income per fortnight | Amount your combined pension will reduce by |
|---|---|
| Up to $380 | $0 |
| Over $380 | 50 cents for each dollar over $380 |
What the transitional rules are
These are the income rules for transitional rate pensioners, except for DSP customers who at 19 September 2009 met both of the following:
- were younger than 21 years
- had no dependent children.
Single person
| Income per fortnight is | Amount your pension will reduce by |
|---|---|
| Up to $218 | $0 |
| Over $218 | 40 cents for each dollar over $218 |
Couple living together or apart due to ill health
| Combined income per fortnight | Amount your combined pension will reduce by |
|---|---|
| Up to $380 | $0 |
| Over $380 | 40 cents for each dollar over $380 |
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 |
|---|---|
| 21 or older, single | $2,516.00 |
| 21 or older, couple living together | $3,844.40 combined |
| 21 or older, couple living apart due to ill health | $4,976.00 combined |
| 18 to 20, single, no children, at home | $1,508.40 |
| 16 to 17, single, no children, at home | $1,382.60 |
| 16 to 20, single, no children, independent | $1,895.00 |
| 16 to 20, couple, no children | $3,720.40 combined |
| Transitional rate 21 or older, single | $2,580.00 |
| Transitional rate 21 or older, couple living together | $4,191.50 combined |
| Transitional rate 21 or older, living apart due to ill health | $5,104.00 combined |