Income and assets tests for blind customers 108-03010080

Customers who are permanently blind are not affected by the income test and assets test for Age Pension and DSP unless they are claiming Rent Assistance (RA). This means they do not need to report employment income to continue receiving their own pension payment.

The blind customer must provide their income and assets if they have a partner who:

• gets an income support payment, and
• is not permanently blind

The blind customer's income and assets are used in the income test and assets test to calculate their partner’s rate of income support payment. Even where this information must be provided for the partner's payment, blind customers not claiming RA do not have employment reporting requirements in any circumstances. It is the responsibility of the partner to report employment income.

If a customer's RA is paid with Family Tax Benefit, payability of RA will be determined by the income test for family assistance and Paid Parental Leave income and assets details will not need to be supplied unless required for another reason.

A blind customer's entitlement for payment of Age Pension or DSP consists of:

• maximum basic pension
• Pension Supplement
• Remote Area Allowance, if applicable

If a blind customer wishes to test their eligibility for RA, their rate is calculated using the pension income test and assets test. To be paid RA with their income support payment, a blind customer must have their income and assets coded on their record.

The rate of pension is the greater of:

• The rate (including RA) that would be payable after applying the income test and assets test as if the customer was not blind. Note: if eligible, the transitional rules for pension customers may apply
• The rate calculated (free of the income test and assets test) if they were not claiming RA

Customers on Age Pension Blind (AGB) or Disability Support Pension Blind (DSB) generally do not need to report as their pension payment is not subject to means testing.

Blind customers who have employment income must report if they are claiming or receiving rent assistance (RA) as RA is subject to means testing.

If the blind customer has a partner on an income support payment (excluding AGB/DSB), the partner is still required to report employment income for both themself and their AGB/DSB partner as their payment is subject to means testing.

Note: DSB customers who are not required to report can still claim the higher rate Mobility Allowance based on their employment hours. Their employment hours need to be recorded on the Employment Training Screen (ETS) to assess their eligibility for Mobility Allowance. See Rates for Mobility Allowance (MOB).

There are no changes to the Pension Monthly Exception (MTE) rule.

The customer can receive the Reporting Statement in an alternative letter format. This will allow the customer or their partner to report their income through the various reporting channels.

Blind pension customers with employment income who provide their income details for RA or for their partner's entitlement may receive:

• Work Bonus for pensioners of Age Pension age (excluding PPS). Note: the Work Bonus is not used in the customer's transitional rules calculation, however the Work Bonus will still be used in the comparison calculations and partners may still benefit by the reduction in total income
• Working Credits for DSB customers under Age Pension age

Family Tax Benefit (FTB) and any RA that is paid with FTB is assessed normally.

A customer may have their pension rate calculated using the transitional rules.

Compensation is not exempt and generally affects payability of DSP and Age Pension to blind pensioners in the same way as other customers. Where lump sum compensation payments result in a preclusion period, blind pensioners will be precluded from receiving DSP or Age Pension and may need to repay past payments. DSP Blind and Age Pension Blind payments may also be reduced dollar for dollar by any periodic compensation received. However, where compensation payments are treated as ordinary income, the income test exemption still applies. This means a blind pensioner's rate of payment will not be reduced if their partner receives compensation or when a blind pensioner receives periodic compensation payments which are assessed as ordinary income.

See Treatment of compensation payments for more information.

Age Pension (Blind) and DSP (Blind) customers granted under an international agreement are not exempt from the direct deduction provisions. Where a payment is granted under an agreement, foreign pension payments are a direct dollar for dollar deduction from the rate of payment. This also applies for any New Zealand government pension payments.

Income stream reminder letters are sent to customers aged over 55 years, excluding Age Pension customers. These letters remind them to tell the agency if they are getting, or have started to get, an income stream.

The relevant income test and assets test does not apply to blind Age Pension and DSP customers unless they are claiming Rent Assistance (RA). If the blind customer has a partner who is not also permanently blind, then the partner is subject to the relevant income test and assets test dependent upon the payment type being claimed by them.

Note: from 20 September 2023, Services Australia incorrectly sent these letters to DSP (Blind) customers. Processes have been put in place, so this does not happen again.