Scenarios - applying the PIT and calculating the Partner Income Free Area (PIFA)
Note: rates used are current from 1 April 2021.
These amounts may not be current. They are examples only. For current payments, see Rates and thresholds.
Scenario |
Description |
1 |
Applying the Partner Income Test (PIT) + Read more ...
Betty and Ron have been living as a member of a couple for five months.
Betty is applying for Youth Allowance (YA).
Betty has worked full-time for the past 3 years since leaving school.
Ron is still employed full-time.
In this case, Betty is already independent from her parents as she meets the workforce criteria. Therefore, she is not subject to the Parental Means Tests. Betty's rate of YA is, however, subject to the partner Income and Assets Tests. This is because the member of a YA couple provisions relate to independence and the application of the Parental Means Tests, and not to the application of the Partner Income Test.
|
2 |
Griselda and Augustine have been members of a couple for 11 months + Read more ...
Griselda is currently working as a professional photographer for an international fashion magazine and makes at least $1,000+ per week.
Augustine is an 18 year old full-time tertiary student in receipt of YA. Augustine has worked full-time for eight months and earned enough to satisfy the 'self-supporting' independence criteria, however he has not been out of secondary school for a period of 14 months, nor has he been in a member of a couple relationship for a period of 12 months.
Even though he has a high-income partner, until such time as he satisfies the independence criteria, Griselda's income will not affect his YA. The income will still be recorded but it will not change his rate of payment.
|
3 |
Calculating the Partner Income Free Area (PIFA) when partner under 22 and not receiving a social security benefit + Read more ...
The Partner Income Free Area (PIFA) is the amount of the partner's income which would preclude payment of the maximum basic rate of YA (other) based on the personal income free area for a non-student. This is:
(Maximum fortnightly rate of YA (other) + Energy Supplement - $50.00) ÷ 0.6 + $250.00
The Partner Income Free Area (PIFA) for an under 22 partner who is not receiving social security benefit and has no dependent children is, therefore:
($512.50 + $7.00 - $50.00) ÷ 0.6 + $250.00 = $1,032.50 (This is then rounded up to the nearest dollar, therefore the PIFA = $1033).
The Partner Income Free Area (PIFA) for an under 22 partner, not receiving social security benefit who has dependent children is:
($557.90 + $7.90 - $50.00) ÷ 0.6 + $250.00 = $1,109.67 (This is then rounded up to the nearest dollar, therefore the Partner Income Free Area (PIFA) = $1,110).
|
4 |
Partner over 22 years of age and not receiving a social security benefit + Read more ...
The PIFA is the amount of the partner's income which would preclude payment of the maximum basic rate of JobSeeker Payment (JSP). This is:
(Maximum fortnightly rate of JSP + Energy Supplement - $53.00) ÷ 0.6 + $256.00
The Partner Income Free Area (PIFA) for a partner over 22 is:
($565.40 + $7.90 - $53.00) ÷ 0.6 + $256.00 = $1,123.16 (this is then rounded up to the nearest dollar, therefore the Partner Income Free Area (PIFA) = $1,124).
|