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Income and assets tests for Youth Allowance

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• Personal income test
• Assets test
• Parental means test

If you are independent a personal income test and assets test will be used to work out how much you can get. If you are not independent, the personal income test and the parental means test apply.

Personal income test

As a student or Australian Apprentice on Youth Allowance:

• you can earn up to $236 before tax per fortnight before your payment is affected
• income between $236 and $316 reduces your payment by 50 cents in the dollar
• income over $316 per fortnight reduces your payment by 60 cents in the dollar.

Your income bank balance may increase the amount you can earn before your payment is reduced.

As a jobseeker on Youth Allowance

• you can earn up to $62 before tax per fortnight before your payment is affected
• income between $62 and $250 reduces your payment by 50 cents in the dollar
• income over $250 per fortnight reduces your payment by 60 cents in the dollar.

Your working credit balance may increase the amount you can earn before your payment is reduced.

• Personal income test chart
• Types of income we assess

Income bank

Youth Allowance customers who are full-time students are able to accumulate up to $6,000 of any unused portion of their fortnightly income free area. The accumulated income bank credits can be used to offset any income earned that exceeds the fortnightly income free area.

Australian Apprentices can accumulate up to $1,000 of any unused portion of their fortnightly income free area.

Working credit

Youth Allowance customers who are looking for work have access to Working Credit. This helps you keep more of your Youth Allowance payment if you do any part-time or casual work. It also makes it easier for you to get Youth Allowance back if you have a short-term full-time job.

When your total income is less than $48 a fortnight, you will automatically build up working credits. When you have income from work, your credits will reduce the effect that income has on your Youth Allowance payment.

You can collect up to 1000 credits, and for every credit you can earn $1 extra before your Youth Allowance payment is reduced. Your credits will also help you to keep more of your payment when you start a full-time job. This means you could get some or all of your Youth Allowance payment in addition to your pay when you first start work.

Assets test

If you are independent, the personal assets test will be used to work out how much you can get:

• Assets test for homeowners
• Assets test for non-homeowners
• Types of assets we assess

Payment may be deferred if your liquid assets exceed:

• $2,500 if you are single, or
• $5,000 if you are a couple, or single with dependants.

Hardship provisions may apply to the personal assets test.

If you are not considered independent, the family assets test will be used instead.

Parental means test

The Parental Means Test is used to work out if parents can financially help their dependent children, whether they are a student, Australian Apprentice or a job seeker.

There are three parts to the Parental Means Test:

• Family Assets Test
• Parental Income Test
• Family Actual Means Test

The Family Assets Test takes into account personal, business and farm assets. A 75% discount is applied to business and farm assets. No payment can be made if your family's assets exceed $547,000.

The Parental Income Test includes combined parental taxable income, child support, any fringe benefits received from employers, income from outside Australia and net passive business losses.

The Family Actual Means Test may apply if your parents or guardians are self-employed, have income or assets outside Australia, have claimed a business loss, have interests in a trust or company, or are business migrants.

• Personal income test chart

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