Income Test for partnered allowance customers 108-01020020

A partnered JobSeeker Payment (JSP) customers rate will not be reduced under the income test if:

• the partner is a pensioner and half the couple's combined ordinary income in the fortnight is below their income free area
• the partner is not a pensioner and the customer's ordinary income in the fortnight is below their income free area and their partner's income is below the Partner Income Free Area

For ABSTUDY, Youth Allowance (YA) students and Australian Apprentices (apprentice or trainee), the Income Test includes a higher income free area and is covered in a separate procedure.

For each dollar of half the couple's combined income between the allowance income free area and upper income threshold, the allowance customer's rate is reduced by 50 cents in the dollar.

Additionally, for each dollar of half of the couple's combined income over the upper threshold, the customer's rate is reduced by 60 cents in the dollar.

The customer's income reduces their allowance under the Income Test for single allowance customers.

Then their partner's total income above the Partner Income Free Area further reduces the customer's allowance by 60 cents in the dollar. The Partner Income Free Area is the amount of the partner's income beyond which the benefit would not be payable to the partner.

Allowance customers who have employment income may be able to deplete Working Credits which can affect the rate of payment paid to them under the Income Test and must be applied before the application of the Income Test.

NDIS funds from the National Disability Insurance Agency (NDIA) which are deposited into an account to manage the customer's NDIS plan are exempt from the income test.

This includes whether the funds are received periodically or as a lump sum, and also includes any interest.

NDIS funds do not need to be reported. If they are reported, they should not be taken into account in the income and asset assessment.

Customers granted a payment under an International Agreement may be subject to a direct deduction Income Test if they receive income from that agreement country.

Defined New Zealand pension payments:

• are always a direct deduction, and
• affect both members of a couple equally regardless of their income support payment

See New Zealand Agreement and foreign pension information.