Nil rate payment period

The nil rate payment period helps you stay on your payment even if your income is over the cut-off point for your payment.

If you report employment income and your total income is over the cut-off point, your payment will reduce to $0. We call this the nil rate payment period.

Your total income includes:

  • your income
  • your partner’s income
  • your combined income.

How the nil rate payment period works

In the nil rate payment period, you can have up to 12 fortnights in a row of $0 payment before we’ll suspend or cancel your payment.

If we pay you at least $1 before the end of the nil rate payment period, we’ll automatically restart your payments. You won’t need to submit a new claim or serve any waiting periods.

You must continue to report your income fortnightly to us so we can apply the nil rate payment period. If you have a partner, this applies to their income as well.

What payments the nil rate payment period applies to

The nil rate payment period is 12 fortnights for the following payments:

  • JobSeeker Payment
  • Youth Allowance for job seekers
  • Youth Allowance for students and Australian Apprentices
  • Austudy
  • Parenting Payment Partnered
  • Parenting Payment Single
  • Age Pension
  • Disability Support Pension
  • Farm Household Allowance.

If you’re getting ABSTUDY Living Allowance, there are different rules that apply to you for the nil rate payment period.

What the nil rate payment period doesn’t apply to

If you’re getting Special Benefit, you’re unable to access a nil rate payment period and your payment may be cancelled.

If you’re getting a supplementary benefit or hold a concession card, these won’t be affected in a nil rate payment period.

Page last updated: 30 July 2026.
QC 84376