Partner Income Test for ABSTUDY customers under 22 years old, Austudy and Youth Allowance students and Australian Apprentices 010-08010020

If the customer is claiming or receiving ABSTUDY or YA (student or Australian Apprentice), the Partner Income Test will only apply if the customer is independent and a member of a couple.

Independence criteria for ABSTUDY

Independence criteria for YA

• If the customer does not satisfy the independence criteria, they are subject to the Parental Means Test. Procedure ends here
• If the ABSTUDY customer is 22 years or over, see Partner Income Test for ABSTUDY customers 22 years and over
• For all other customers, go to Step 2

Are both members of the couple considered to be independent by Services Australia?

• Yes, go to Step 3
• No, the Partner Income Test does not apply to either member. Procedure ends here

• Yes, a different Income Test applies. See Income Test for pension customers with partners on allowance. Procedure ends here
• No, go to Step 4

• Under 22 years of age and not receiving an income support payment, the Partner Income Free Area (PIFA) is the amount of the partner's income which would preclude payment of YA, based on the personal income free area for a YA (other or job seeker) which is:
• (maximum fortnightly rate of YA (other) - $50.00) ÷ 0.6 + $250.00). The Partner Income Free Area (PIFA) is then rounded up to the nearest whole dollar, before it commences to affect the customer's rate of payment. Note: the maximum fortnightly rate used in this formula is for the basic benefit amount plus the Energy Supplement
• 22 and over and not receiving an income support payment, the Partner Income Free Area (PIFA) is the amount of the partner's income which would preclude payment of JSP which is
• (maximum fortnightly rate of JSP - $53.00) ÷ 0.6 + $256.00. The Partner Income Free Area (PIFA) is then rounded up to the nearest dollar, before it commences to affect the customer's rate of payment. Note: the maximum fortnightly rate used in this formula is for the basic benefit amount plus the Energy Supplement
• any age and is receiving an income support payment, the Partner Income Free Area (PIFA) is the amount of the partner's income which would preclude payment and add-ons (Rent Assistance) for that benefit. For example:
• If partner is on a benefit such as JobSeeker Payment (JSP) or Parenting Payment Partnered (PPP)

Partner Income Free Area (PIFA) = (partner's max. rate of basic benefit (BB) + The Energy Supplement + Rent Assistance (RA) + Remote Area Allowance (RAA) + Pharmaceutical Allowance (PhA) - $53.00) ÷ 0.6 + $256.00

• If partner is a student or Australian Apprentice on a benefit such as ABSTUDY Living Allowance, Austudy or YA (student or Australian Apprentice)

Partner Income Free Area (PIFA) = (partner's max. rate of BB + CES + RA + RAA + PhA - $43.50) ÷ 0.6 + $524.00 + partner's Income Bank balance.

Note: if the partner is a full-time student or Australian Apprentice receiving ABSTUDY, Austudy or YA (student or Australian Apprentice), ensure that any Student Income Bank/Australian Apprentice Income Bank credits are deducted from their own Income Bank first, and the higher income free area is used.

For examples of these calculations, see Resources.

Subtract the relevant Partner Income Free Area (PIFA) (from Step 4) from the partner's income before tax. Any amount left is partner excess income.

Is there a partner income excess?

• Yes, go to Step 6
• No, determine how much of the customer's income (if any) will reduce their own payment. See Personal Income Test and Income Bank for ABSTUDY, Austudy and Youth Allowance (YA) students and Australian Apprentices. Procedure ends here

Partner income reduction = partner income excess (from Step 5) X 0.6.

This is the amount of the customer's income, if any, which will affect their payment.

For help, see Personal Income Test and Income Bank for ABSTUDY, Austudy and YA students and Australian Apprentices.

Determine the customer's fortnightly income before tax.

Note: if the customer is a full-time student or Australian Apprentice, reduce the ordinary income by the Student Income Bank/Australian Apprentice Income Bank credits, if any.

Amount payable = maximum fortnightly rate - partner's income reduction (from Step 6) - customer's income reduction (from Step 7).

Record details of income on a DOC.