Parenting Payment Single (PPS) income and assets tests 108-01010150

Under the PPS Income Test, a customer's PPS rate is reduced if their assessable income is above the income limit for PPS. Their payment will cease when the income tested rate reaches the income threshold. For the PPS income free area, see Parenting Payment (PP) - income test.

If the customer is workforce age and has income from employment, apply the Working Credit rules to the total ordinary income before applying the Income Test.

If a person receives a payment under an international agreement the rate calculation may be affected by that agreement.

Parental Leave Pay (PPL) was counted as assessable income for PPS for children born or entering care prior to 1 October 2016.

PPL is counted as ordinary income for PPS for children born or entering care on or after 1 October 2016.

Where an income support customer is also in receipt of PPL, their PPL details can be viewed on the PPL Claim Details (P1RCD) screen.

The customer does not have to report their PPL payment.

Children may attract an additional income free area if they meet the definition of a dependent child, but this is not always the case. In some cases, a child who does not meet this definition may still attract an additional income free area. This is explained in a separate procedure which covers the definition of a dependent child under social security law. Income received by or on behalf of a child reduces a customer's additional free area for a child unless it is exempt child income.

PPS is paid under the benefits Asset Test (also known as the allowance Assets Test). The allowance assets thresholds are indexed (and may change) on 1 July each year. For the Allowance assets threshold, see Assets test - Allowance (Independent).

A person's principal residence is not included in the calculation of assets. Assets are assessed as either a primary production asset or a non-primary production asset so that negative net primary production assets can be offset against other primary production assets; primary production aggregation rules.

National Disability Insurance Scheme (NDIS) funds received from the National Disability Insurance Agency (NDIA), (whether received periodically or as a lump sum, including interest accrued), which are deposited into an account specifically for the purpose of managing the customer's NDIS plan, are exempt from the Income and Assets Test and deeming. They are not required to be reported or if reported should not be taken into account in the income and asset assessment.