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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. To work out how much income your financial assets produce, we use deeming.
Pensions have income and asset limits. If you’re over these limits, you get a lower pension.
Who income tests are for
The pension income test is for people who get any of the following:
Unless you get Rent Assistance we don’t use the income test if you’re permanently blind and get either:
What the standard rules are
These are the income rules for most pensioners.
Single person
| Income per fortnight | Amount your pension will reduce by |
|---|---|
| Up to $190 | $0 |
| Over $190 | 50 cents for each dollar over $190 |
Couple living together or apart due to ill health
| Combined income per fortnight | Amount your combined pension will reduce by |
|---|---|
| Up to $336 | $0 |
| Over $336 | 50 cents for each dollar over $336 |
What the transitional rules are
These are the income rules for transitional rate pensioners and Disability Support Pension customers who meet the following:
- are younger than 21 years
- have no dependent children that had affecting income as at 19 September 2009.
Single person
| Income per fortnight is | Amount your pension will reduce by |
|---|---|
| Up to $190 | $0 |
| Over $190 | 40 cents for each dollar over $190 |
Couple living together or apart due to ill health
| Combined income per fortnight | Amount your combined pension will reduce by |
|---|---|
| Up to $336 | $0 |
| Over $336 | 40 cents for each dollar over $336 |
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.
Your cut off point may be lower if you don’t live in Australia.
Disability Support Pension cut off points per fortnight
| Your situation | Income cut off point |
|---|---|
| 21 or older, single | $2,318.00 |
| 21 or older, couple living together | $3,544.00 combined |
| 21 or older, couple living apart due to ill health | $4,592.00 combined |
| 18 to 20, single, no children, at home | $1,284.80 |
| 16 to 17, single, no children, at home | $1,170.40 |
| 16 to 20, single, no children, independent | $1,636.60 |
| 16 to 20, couple, no children | $3,216.00 combined |
Age Pension and Carer payment cut off points per fortnight
These cut off points are for:
Your Age Pension cut off point will be higher if you get the Work Bonus.
| Your situation | Income cut off point |
|---|---|
| Single | $2,318.00 |
| A couple living together | $3,544.00 combined |
| A couple living apart due to ill health | $4,592.00 combined |
| A transitional rate pensioner - single | $2,409.00 |
| Transitional rate pensioners - couple living together | $3,916.50 combined |
| Transitional rate pensioners - couple living apart due to ill health | $4,774.00 combined |