Factors that affect allowances or benefits

• Allowances
• Are payment rates adjusted in line with the cost of living?
• How much income can I have before my payment is affected?
• How much can I have in assets before my payment is affected?
• What if I have assets over the limit and am in financial hardship?

Allowances

The allowances and benefits in this section include:

• Youth Allowance
• Newstart Allowance
• Widow Allowance
• Partner Allowance
• Parenting Payment
• Sickness Allowance
• Special Benefit
• Austudy
• ABSTUDY

If you are receiving one of these payments, the amount you receive depends on both an income test and an assets test. If you are under 25, you may also have to meet a Parental Income, Assets and Family Actual Means test.

For more information on these payments, choose the relevant link from the list above or contact your nearest Centrelink Customer Service Centre.

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Are payment rates adjusted in line with the cost of living?

Your payment rate is usually adjusted in line with the Consumer Price Index (CPI):

1. In January each year if you are under 21 and don't have any children or if you are receiving Youth Allowance, Austudy or ABSTUDY.
2. In March and September each year if you are aged 21 or more, or under 21 if you have dependent children.

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How much income can I have before my payment is affected?

If you are receiving an allowance and you are:

• single, or
• a member of a couple.
• you can earn up to $62 a fortnight without your payment being affected
• your payment is reduced by 50 cents for every dollar of income between $62 and $142 a fortnight
• any income over $142 a fortnight reduces your payment by 70 cents for each dollar
• the limits do not change if you have dependent children.

Note: If you are receiving Special Benefit every dollar of income you have reduces your payment by a dollar.

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How much can I have in assets before my payment is affected?

The assets limits are the same as the pensions' assets test, except if:

1. You are under 18 years, and
2. You were granted payment of Youth Allowance or Sickness Allowance after 1 January 1995.

In this case you have the same assets limits as the Austudy assets test.

The allowance assets test is different from the pensions assets test in that you cannot receive a payment if you have assets over the minimum limits (for pensions the payment rate is reduced for assets over the minimum level). If you have assets below the minimum limits, you receive your payment under the income test.

For more information, contact your nearest Centrelink Customer Service Centre.

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What if I have assets over the limit and am in financial hardship?

If you have substantial assets over the limit to qualify but you can’t rearrange your financial affairs and are in financial hardship, you may qualify for help under hardship provisions. You qualify under these provisions if:

1. You aren’t eligible for payment under the assets test.
2. All your other income is less than the maximum fortnightly rate payable to you.
3. You cannot qualify for any other Australian Government assistance.
4. Your readily available funds are less than the applicable limit. Note: The applicable limit varies based on your payment type.
5. You own a substantial asset that cannot be sold or borrowed against and it is on the market at a realistic price.
6. Deprivation provisions do not apply or can be disregarded.
7. There is no other course of action you can reasonably be expected to take.

For more information, contact your nearest Centrelink Customer Service Centre.

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