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Income Test for partnered pension customers 108-03010020

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This page contains an example of using the Income Test to work out a customer's member of a couple pension rate. It also contains a link to the Services Australia website for Income Test information.

Services Australia website link

Income test for pensions- Age Pension

Income test for pensions - Disability Support Pension

Income test for pensions - Carer Payment

For pension customers, their income tested rate is compared to their asset tested rate and the lower rate paid. Note: these amounts are examples only and may not reflect current rates.

Example

Calculating a partnered customer's pension rate

This table describes an example of using the Income Test to work out a customer's member of a couple pension rate.

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

Item

Description

1

Pensioner couple

Tom and Alex have combined ordinary income of $7,980 pa.

Combined income / 2 = $3,990

Half of the pension couple income free area = $3,328 pa

Excess income = $3,990 - $3,328 = $662 each

Income reduction = $662 x 0.5 = $331.00 each

Maximum annual pension rate less reduction = $14,034.80 - $331.00 = $13,703.80 pa each

Fortnightly pension rate = $13,703.80/ 26 = $527.10 each (rounded up)