Progressive Financial Solutions

book a meeting

Centrelink Income Test

If you are eligible for a Centrelink/Veterans’ Affairs payment, such as the Age Pension, how much you receive depends on an income and assets test assessment. The lower payment under the two tests is the amount payable.

Assessable Income for the Income Test

Assessable income is income sources, including deemed income, assessed by Centrelink under the income test to determine your Centrelink/Veterans’ Affairs entitlements, such as the Age Pension. All income sources are included in the income test, and combined income is included for a couple.

Income sources include:

  • Deemed income on financial investments (e.g. cash, term deposits, shares, managed funds and superannuation in the accumulation phase for a person over age/service pension age)
  • Deemed income on gifts over the allowable thresholds (deprived assets)
  • Employment income (amounts over the work bonus amounts)
  • Business income
  • Taxable income on an investment property (exemptions may apply to rent on the former home for a person living in an aged care facility)
  • Royalties
  • Taxable income of a family trust or private company. This is if assets are captured in the person’s assets test (under control or source tests)

The Income Test

Penson payments include :

  • Age Pension
  • Carer Payment
  • Disability Support Pension
Status
Income Free (per fortnight)
Income Limit (per fortnight)
Single
up to $212
$2,444.60
Couple Combined
up to $372
$3,737.60
Couple, Illness Seperated
up to $372
$4,837.20

If income is below the income free amount, the full pension is payable under the income test. The pension will reduce by $0.50 per fortnight (single or couple combined) for each $1.00 of income over the threshold. No pension is payable if income reaches the income limit.

Assessable income may not be the same as actual income or taxable income. Specific rules apply to determine how much income is assessed on some investments. The most common rule is deeming.

Applying for and receiving the Centrelink Age Pension is part of your retirement plan. At Progressive Financial Solutions, we offer tailored holistic retirement financial planning services to help our clients fund their desired retirement lifestyle. You can read more about our retirement planning services here.