The Age Pension income test is a means of assessing your income to determine your eligibility for the Age Pension and the rate at which you may receive it. The income test considers various sources of income and applies different rules and thresholds depending on your circumstances. Here are some key points about the Age Pension income test:
- Income Sources: The income test takes into account a range of income sources, including but not limited to:
- Employment income (wages, salary, self-employment income)
- Investment income (rental income, dividends, interest)
- Superannuation income
- Government pensions or allowances
- Certain types of fringe benefits
- Income Thresholds: The income test has both lower and upper income thresholds. If your income exceeds the upper threshold, you may not be eligible for the Age Pension. If your income falls between the lower and upper thresholds, it will affect the rate of pension you receive.
- Income Test Allowances: There are certain allowances and deductions applied to your income when assessing it for the Age Pension income test. These allowances help to reduce the impact of some income sources on your Age Pension payment. For example, there is a work bonus that allows for a certain amount of employment income to be disregarded each fortnight.
- Income Test Limits: The income test limits are subject to change and are different for single individuals and couples. The thresholds are adjusted periodically based on government policies and indexation. It is important to check the current income test limits on the official Services Australia website or contact Centrelink for the most up-to-date information.
- Reduction of Pension: If your income exceeds the lower threshold, your Age Pension payment will be reduced by a certain rate for each dollar of income above the threshold. The reduction rate depends on your income level and may vary based on individual circumstances.
It’s important to note that the Age Pension income test works alongside the assets test, and the test that results in a lower rate of payment is the one that will be applied.
For accurate and personalized information regarding the Age Pension income test and how it may affect your specific situation, it is recommended to visit the official Services Australia website or contact Centrelink directly. They can provide you with the most up-to-date guidelines, thresholds, and details regarding the Age Pension income test.