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.
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.
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.