Income test for pensions
This income test is effective from 1 July 2010. This information applies to the following payments:
- Age Pension
- Disability Support Pension
- Wife Pension
- Widow B Pension
- Bereavement Allowance
- Carer Payment (caring for a person 16 years or over)
- Carer Payment (caring for a child under 16 years)
- Pension Bonus Bereavement Payment
Note: This income test does not apply if you receive Parenting Payment Single - refer to income and assets test for Parenting Payment.
You are exempt from this income test if you are permanently blind and you get Age Pension or Disability Support Pension.
Income test for pensions†
| Family situation | For full pension/allowance (pf)* | For part pension (pf)# |
|---|---|---|
| Single | up to $146 | less than $1,548.20 |
| Couple (combined) | up to $256 | less than $2,370.00 |
| Illness separated (couple combined) | up to $256 | less than $3,060.40 |
Income test for DSP under 21, no children
| Family situation | For full pension/allowance (pf)* | For part pension (pf)# |
|---|---|---|
| 16–17 years | up to $146 | less than $784.00 |
| 18–20 years | up to $146 | less than $867.60 |
| 16–20 years | up to $146 | less than $1,125.40 |
Income test for pensioners - transitional rules
The notional maximum pension for transitional rate pensioners is $634.30 per fortnight for a single pensioner and $1,024.60 per fortnight combined for pensioner couples. This rate excludes Rent Assistance.
| Family situation | For full pension/allowance (pf)* | For part pension (pf)# |
|---|---|---|
| Single | up to $146 | less than $1,731.75 |
| Couple (combined) | up to $256 | less than $2,817.50 |
| Illness separated (couple combined) | up to $256 | less than $3,427.50 |
| *Allowable income is increased by up to $24.60 pf for each dependant child. | ||
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DSP under 21 - single - no children - saved status
| Family situation | For full pension/allowance (pf)* | For part pension (pf)# |
|---|---|---|
| Saved status: with affected income as at 19 September 2009 | ||
| 16–17 years | up to $146 | less than $943.50 |
| 18–20 years | up to $146 | less than $1,048.00 |
| 16–20 years independent | up to $146 | less than $1,370.25 |
| Couple (combined) | up to $256 | less than $2,689.50 |
Note: The rate of payment is calculated under both the income and assets tests. The test that results in the lower rate (or nil rate) will apply.
† This income test does not apply to recipients of Parenting Payment Single. Refer to Parenting Payment for more information.
* Income over these amounts reduces your rate of pension by 50 cents in the dollar (single), or 25 cents in the dollar each (for couples). For transitional or saved cases, income over these amounts reduces your rate of pension by 40 cents in the dollar (single), or 20 cents in the dollar each (for couples).
Pensioners receiving payments at 19 September 2009 may be paid under 'transitional arrangements' or saved status.
# These figures may be higher if Rent Assistance is paid with your pension.
Some assets are deemed to earn income, while there are special rules for other types of income. Contact Centrelink for more information.
Employment income is subject to a Work Bonus for eligible pensioners over age pension age.
More information
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