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Exempt income and assets for Centrelink payments 108-04080000

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This document outlines information about income and assets that have a legislated exemption from the income and/or asset tests.

Exempt income and assets

Although exempt income is not assessed against fortnightly entitlements, if the funds are invested, then deeming provisions apply.

An exempt asset is one that is disregarded under the assets test, irrespective of its value. All assets, other than those specified as exempt, are assessable.

Care must be taken when assessing a customer's entitlement that exempt income is disregarded under the income test, but may be an assessable asset, and vice-versa.

Note: different rules apply to an approved Special Disability Trust (SDT). An SDT's income is exempt from the income test. The SDT's assets are exempt from the assets test as long as the assets are not over the concessional asset limit.

The Training & Support page contains links to the courses/training modules in the Learning Portal relevant for this topic and its procedures.

Contents

Exempt income

Exempt Assets

Exempt Funeral Investments (Funeral Bonds)

Exempt lump sums

Effect of income support entitlement on Family Tax Benefit (FTB)

Income from boarders and lodgers

Payments from the Department of Veterans' Affairs (DVA) and referrals to the DVA Clearance Team)

Assessment of income for Centrelink payments

Assessment of assets (CLK)

Special Disability Trust (SDT) - initial contact