Employment income

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
  • remuneration from your own private trust that doesn't include distributions
  • remuneration from your own company that doesn't include dividends
  • other income you get for work performed including lump sums such as  directors’ fees.

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.

How it affects your payment rate

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

Read about:

  • the income test for pensions
  • the income test for allowances, which covers JobSeeker Payment, Partner Allowance, and Widow Allowance
  • reporting your income.

Work Bonus

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: 20 March 2020