Reproduced from Centrelink's "A Guide to Australian Government Payments 1 January - 19 March 2012"

Basic Conditions of Eligibility
Residence Requirements
Basic Rates
Rent Assistance
Assets Test
Income Test
Deeming - Financial Investments

Basic Conditions of Eligibility

• Must be unemployed, or regarded as unemployed (this can include some people who work).
• Aged 21 or over but under Age Pension age.
• Willing to undertake suitable paid employment.
• Unless exempted, must participate in or be willing to participate in approved activities and/or JobSearch
• Prepared to enter into, comply or vary an existing Activity Agreement to fulfil the activity test.

Residence Requirements

• Must be an Australian resident.
• Available to newly arrived migrants after 104 weeks in Australia as an Australian resident (some exemptions may apply).
• If not required to look for work you may be paid for up to 13 weeks of temporary overseas absence in certain limited circumstances.

Basic Rates

• Advance of allowance of up to $500 may be available.
• Pharmaceutical Allowance may be paid.
• Education Entry Payment of $208 may be payable.
• Job Seekers undertaking Work for the Dole (including Full-time Work for the Dole and Drought Force), Green Corps activities and the Language, Literacy and Numeracy Program may be eligible for an additional supplement of $20.80 per fortnight.
• Job Seekers undertaking National Green Jobs Corps activities may be eligible for an additional supplement of $41.60 per fortnight.
• If a couple is separated because of illness, they may each be paid $526.60 per fortnight.
• One member of a couple may be paid $526.60 per fortnight if the partner not receiving payment is imprisoned.
• Single principal carers of a dependent child under 16 and people assessed as having a partial capacity to work may be eligible for a Pensioner Concession Card.

Rent Assistance

Family Situation	Maximum payment per fortnight	No payment if your fortnightly rent is less than	Maximum payment if your fortnightly rent is more than
Single, no children	$119.40	$106.20	$265.40
Single, no children, sharer	$79.60	$106.20	$212.33
Couple, no children	$112.60	$172.80	$322.93
One of a couple who are separated due to illness, no children*	$119.40	$106.20	$265.40
One of a couple who are temporarily separated, no children	$112.60	$106.20	$256.33

*Includes respite care and partner in prison.

• Rent Assistance for families with children is usually paid with Family Tax Benefit. See Family Tax Benefit Part A for current rates.
• Rent Assistance is not paid:
  • to people paying rent to a government housing authority, although in some situations sub-tenants may qualify for Rent Assistance.
  • for residents of Australian Government funded nursing homes and hostels.
  • to single Disability Support Pensioners under 21, without dependants, living with parents.
  • to other single people aged under 25, living with parents.
• Special rules apply to single sharers, people who pay board and lodging or live in a retirement village.
• Rent Certificates are required to verify rent where the person does not have a formal tenancy agreement or is not named as a tenant on a formal tenancy agreement.
• Rent Assistance is paid as part of another payment. It may be reduced due to the income test rules applying to that primary payment.
• Rent Assistance is subject to portability provisions where relevant.

• Rent Assistance is not available to single people aged under 25, without dependants, who live with their parent or guardian
• Where both members of a couple without children are receiving an allowance or benefit, Rent Assistance is shared.

Income Test

Family Situation	For full Allowance (pf)*	For part Allowance (pf)**
Single no children	up to $62	less than $904.67
Single aged over 60 after nine continuous months on payment	up to $62	less than $981.00
Single, with dependent child(ren)	up to $62	less than $971.00
Partnered (each)	up to $62	less than $825.67
Single, principal carer of a dependent child (granted an exemption for foster caring/home schooling/distance education/large family)	up to $62	less than $1,162.50

*	Fortnightly income between $62 and $250 reduces fortnightly allowance by 50 cents in the dollar. For income above $250 per fortnight, fortnightly allowance reduces by 60 cents in the dollar. Partner income which exceeds the cut-off point reduces fortnightly allowance by 60 cents in the dollar.
**	These figures may be higher if you are eligible for Pharmaceutical Allowance or Rent Assistance.

Working Credit

Working Credit helps working-age people to keep more of their income support payment when they take up work. When people have little or no income, they will build up "working credits". Then if they do work, their working credits increase the amount they can earn before their income support payment is reduced. For example, someone with 150 working credits is able to earn an extra $150 above the income free area before their payment starts to reduce.

It also helps people who take up short-term jobs by making it easier for them to get their payments restarted (for up to 12 weeks). This means that people don't have to reapply for payments, they just need to prove that their job has ended, or that their income has dropped, and Centrelink will restart their payments.

• A personal income test is applied.

Assets Test

Assets Test Limits for Allowances and Full Pensions

Some assets are deemed to earn income, while certain assets are not included in the assets test; see Deeming - Financial Investments or contact Centrelink for more information.

Allowances, Austudy and Parenting Payment are not payable if assets exceed these amounts.

For pensions, assets over these amounts reduce pension by $1.50 per fortnight for every $1,000 above the amount (single and couple combined).

Assets Test Limits for Part Pensions

Transitional

Assets Test for Disability Support Pension - Aged under 21 (no children)

Some assets are deemed to earn income, while certain assets are not included in the assets test; see Deeming - Financial Investments or contact Centrelink for more information.

Note: The rate of payment is calculated under both the income and assets tests. The test that results in the lower rate (or nil rate) will apply.

#  Limits will increase if Rent Assistance is paid with your pension.

The asset limits above may only apply to people who are resident in Australia, or are temporarily absent for up to 13 weeks. Contact Centrelink for more information.

Extra Allowable amount for Retirement Village and Granny Flat Residents

If your Entry Contribution is equal to or less than the Extra Allowable Amount, you are assessed as a non-homeowner. Your Entry Contribution will count as an asset. You may qualify for Rent Assistance. The Extra Allowable Amount is the difference between the non-homeowner and homeowner test limits, currently $135,000.

Hardship Provisions

If you have assets but little or no income you are expected to rearrange your affairs to provide for yourself. In some cases that is not possible. If you are in "severe financial hardship" you may be able to get a social security payment. Different tests apply to such cases.

• Payment may be deferred when liquid assets exceed $3,000 (single) or $6,000 (couple or single with dependants).
• Hardship provisions may apply.

Deeming - Financial Investments

(a) Income Test for Pensions†

(b) Income Test for Disability Support Pension under 21, no children

(c) Income Test for Pensioners - Transitional Rules^

The notional maximum pension for transitional rate pensioners is $667.20 per fortnight for a single pensioner and $1,077.60 per fortnight for pensioner couples. This rate excludes rent assistance.

(d) Income Test for Disability Support Pension under 21 - no children - Saved Status

Note: The rate of payment is calculated under both the income and assets tests. The test that results in the lower rate (or nil rate) will apply.

Pensioners receiving payments at 19 September 2009 may be paid under 'transitional arrangements' or saved status.

Some assets are deemed to earn income, while there are special rules for other types of income. Contact Centrelink for more information.

Employment income is subject to a Work Bonus for eligible pensioners over pension age.

Work Bonus

Basic conditions of eligibility:

• The Work Bonus is a concession on the income test treatment of employment income for pensioners over age pension age, except Parenting Payment (Single).
• The Work Bonus is used to reduce assessable employment income in an instalment period. An instalment period is a period of a maximum of 14 days.
• Half of the first $500 of fortnightly employment income will be disregarded from the income test for pensioners over age pension age. This is in addition to the normal allowable income threshold.
• All pensioners over age pension age, other than recipients of Parenting Payment (Single), are eligible for the Work Bonus. If they are eligible for a transitional rate, Centrelink will compare the transitional rate (which has no Work Bonus) to the new rate (which does include the Work Bonus). The transitional rate is paid where it pays a higher rate.
• No registration process, however pensioners must keep Centrelink up to date with their employment income.

Compensation Payment

Compensation payments, such as weekly workers' compensation payments, are assessed differently. If the compensable injury occurred prior to receiving an income support payment each dollar of any regular compensation payment reduces the income support payment (pension or allowance) by a dollar. If the compensable injury occurred while receiving an income support payment any regular compensation payment is assessed under the normal income test. Compensation payments may include a component of taxable income and it is this component that is included as income for Family Tax Benefit purposes. Lump sum compensation payments may result in a non-payment period. Contact Centrelink for more information.

Means Testing of Income Streams

Classification	Income Test	Deductible Amount	Assets Test
Complying eg. Life or Life expectancy/fixed term pensions or annuities.	Gross Income less Deductible amount	Purchase Price Relevant Number (term)	Exempt
Non-complying (>5 yrs) e.g. allocated pensions, allocated annuities or term certain annuities.	Gross Income less Deductible amount	Purchase Price Relevant Number (term)	Account balance or if none: PP less [(PP - RCV) / RN x term elapsed]
Non-complying (5 yrs or less) e.g. term certain annuities.	Deem Income	Not Applicable	Account balance or if none: PP less [(PP - RCV) / RN x term elapsed]

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