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Income Test for partnered allowance customers 108-01020020

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Scenarios - applying the Income Test for partnered allowance customers

These amounts may not be current. They are examples only. For current payments, see Rates and thresholds.

Table 1

Item

Scenario

1

One customer receiving JobSeeker Payment (JSP) and their partner receiving Parenting Payment Partnered (PPP)

Note: this scenario uses a Partner Income Free Area of $1,124 for calculation purposes only.

John is receiving JSP and Brenda is receiving PPP.

Brenda gets a job earning $602 per fortnight (continuing income). Brenda's income reduction amount will be $260.60 per fortnight for PPP and there will be no effect on John's JSP (PPP is still current as income is below $1,124 Partner Income Free Area).

2

One customer receiving JSP and their partner not receiving payment

Note: this scenario uses a Partner Income Free Area of $1,124 for calculation purposes only.

Stan is receiving JSP and Julia has a job earning $1,850 per fortnight.

Julia is not entitled to any payment and Stan's JSP needs to be assessed based on Julia's income using the allowance Income Test. See the following calculation (note all figures are approximate):

Partner Income Free Area = $1,124.

Partner income excess = $1,850 - $1,124 = $726.

Partner income reduction amount = $726 x 0.6 = $435.60.

Therefore, Stan's payment will reduce by $435.60 pf.

Note: these scenarios are representative of calculations only and the amounts shown should not be taken to be current.

For an allowance customer, the way their Partner Income Free Area is worked out differs depending on whether the partner is receiving a social security benefit or not.

  • If the partner is receiving a social security benefit, the Partner Income Free Area is the amount of the partner's income beyond which that benefit would not be payable to the partner
  • If the partner is not in receipt of a social security benefit, the Partner Income Free Area is the amount of the partner's income beyond which Youth Allowance (YA) (job seeker) or JSP would not be payable to the partner

COVID-19 - Historical changes to Partner Income Free Area and taper rates in response to Coronavirus from 27 April 2020 to 01 April 2021

Table 2

Date of change

Personal Income Free Area

Partner Income Free Area (Partner 22 and over)

Partner Income Free Area (Partner under 22)

Partner income taper rate

01/04/2020

$104

$994

$944

60 cents

27/04/2020

$104

$994

$944

25 cents

01/07/2020

$106

$996

$944

25 cents

25/09/2020

$300

$1165

$1083

27 cents

01/04/2021

$150

$1124

$1033

60 cents

As at 01 April, 2021, 2 tier personal income test resumed where income between personal income free area and upper threshold affects at 50 cents in the dollar and above the upper threshold at 60 cents in the dollar.