Key Components of the Income Test

Assessable Income: This includes all sources of income that Centrelink considers when evaluating eligibility for benefits. It encompasses:
Employment income (wages, salaries, bonuses)
Investment income (interest, dividends)
Business income (profits from self-employment or business activities)
Foreign income
Pension and annuity income
Income from rental properties
Regular gifts or allowances from family members
Certain fringe benefits and non-cash benefits
Income Thresholds: Centrelink sets specific income thresholds that vary depending on the type of benefit and the applicant’s circumstances (e.g., single, partnered, with or without children). These thresholds determine the cut-off points beyond which benefits are reduced or no longer payable.
Income Free Area: This is the amount of income an individual or couple can earn before their benefits start to be reduced. For example, as of the latest updates, a single person receiving JobSeeker Payment can earn up to $150 per fortnight without their payment being affected.
Taper Rates: Once income exceeds the income free area, benefits are reduced at a specific rate (taper rate). For instance, the JobSeeker Payment is reduced by 50 cents for each dollar of income earned between $150 and $256 per fortnight, and by 60 cents for each dollar earned above $256.

Key Components of the Income Test