Income and Assets tests for Sickness, Youth, Newstart and Parenting Payment (Partnered)

Parental Means Test (s1067E)

A person under the age of 21 receiving Youth Allowance is subject to a parental means test unless they fit into one of the exceptions: for example, the person is independent (see s1067A SSA), or have a parent receiving a social security pension or benefit or a service pension (see: “Rate of allowance” under “Youth Allowance“, above).

If the parental means test applies, the benefit or allowance payable may be reduced by reference to the parents’ assets or income.

Ordinary Income Test (ss1067, 1068)

If a person is receiving Sickness Allowance, Youth Allowance (see separate discussion above) or Newstart Allowance, the rate of payment to them may be reduced by their income.

A person receiving Youth Allowance is allowed to receive “free” income of $143 a fortnight (jobseekers) or $400 a fortnight (students). The rate of payment will then be reduced by:

• 50 cents for each $1 between $143 and $250 (job seekers) or $400 and $480 (students) of fortnightly income; and
• 60 cents for each $1 of fortnightly income above $250 (jobseekers), or $480 for (students).

Recipients of Youth Allowance (Student) can accumulate up to $10,000 of any unused portion of the fortnightly income-free area as Income Bank credits, which can be used to offset income that exceeds the fortnightly income free area.

Assets Test (ss547C, 611, 680)

A person whose assets are above the relevant limit receives no payment. The limits differ for single and partnered persons, and for homeowners and non-homeowners.