This is pay you get for work you've done for an employer.
What employment income includes
Employment income includes all of the following:
- Salary, wages or commissions
- allowances, unless you spend the whole amount on the thing it’s meant for
- pay for piece work, such as for an amount of fruit you pick
- fixed and variable price contracts
- fringe benefits
- payments from a private trust you’re involved in that aren’t distribution or loan repayments
- payments from a company you’re involved in that aren’t dividend or loan repayments
- other income you get for work performed including lump sums such as directors fees.
Employment income paid from a private trust or company includes:
- directors fees
- other remunerative lump sums such as bonus payments or commissions.
Read more about private trusts and companies.
What it doesn’t include
Employment income doesn’t include any of the following:
- money you get from your sole trader business or partnership
- superannuation pensions
- injury compensation
- insurance payouts that relate to your job
- lump sum leave payments when your job ends.
To work out your payment rate we look at an income test and an assets test.
The test result we use is the one that gives you the lower payment rate.
Income free threshold
We don’t reduce your payment if your income is under the income free threshold.
The threshold amount depends on whether you’re single or have a partner, and are getting a pension or allowance.
Everything you earn above the threshold may affect your payment.
Income tests and reporting
- the income test for pensions
- the income test for allowances, which covers JobSeeker Payment, Partner Allowance, and Widow Allowance
- how to report your income.
If you’re Age Pension age and still employed, you may qualify for the Work Bonus. This reduces the effect of your employment income on your payment rate.
Page last updated: 8 October 2021
This information was printed 27 November 2021 from https://www.servicesaustralia.gov.au/individuals/topics/employment-income/28946. It may not include all of the relevant information on this topic. Please consider any relevant site notices at https://www.servicesaustralia.gov.au/individuals/site-notices when using this material.