Work Out Your Own Payment
One page cannot hold every payment's rules, so each has its own calculator built on the figures Services Australia published for 23 September 2026:
- JobSeeker payment calculator: what you keep when you work, with partner income and the $150 / 50c / 60c test.
- Austudy and Youth Allowance calculator: the student income test ($539 free area, 50c to $646, then $53.50 plus 60c).
- Age Pension income test calculator: single and couple tests with the $300-a-fortnight Work Bonus applied.
- Parenting Payment calculator: single ($1,068.20, 40c over $232.60) and partnered ($755.10), with your partner's income.
- Family Tax Benefit calculator: FTB Part A and Part B on your family income for 2026–27.
- Rent Assistance calculator: 75c for each dollar of rent over the threshold, up to $223.80 a fortnight single.
- Carer Payment calculator: the pension income test, the 100-hours-in-4-weeks work rule and the assets limits.
- Carer Allowance: $162.60 a fortnight, not reduced by wages under the $250,000 family income limit.
- Paid Parental Leave calculator: 26 weeks from 1 July 2026, the income and work tests, and super.
- Centrelink advance payment calculator: how much you can get early and the advance ÷ 13 repayment.
- Centrelink payment dates: how the fortnightly payment and reporting cycle works, and the Christmas date changes.
- Crisis Payment: one week of your payment's basic rate after an extreme circumstance.
- Centrelink debt: how a wrong income report becomes an overpayment, refunds and the income apportionment scheme.
- Cost of living payment 2026: there isn't one; what exists instead.
- Age Pension assets test calculator: full pension up to $333,000 (single homeowner), $3 less per $1,000 above it, and which test sets your pension.
- Deeming rates and calculator: 1.75% and 3.75% from 20 September 2026, and what your savings add to the income test.
- Disability Support Pension calculator: the pension income test on your wages and the 29-hours-a-week work rule.
- Child Care Subsidy calculator: 90% up to $88,520 family income, 1% less per $5,000 above, and your gap fee.
- Commonwealth Seniors Health Card: income under $105,048 single or $168,076 couple, no assets test.
What Is the Centrelink Income Test?
The Centrelink income test is a means-testing formula that reduces your social security payment as your assessable income rises above a set “free area” threshold. Services Australia applies this test to every income-support payment including JobSeeker Payment, Youth Allowance, Age Pension, Parenting Payment, Austudy, and Disability Support Pension.
The test operates on a fortnightly reporting cycle. You report your gross employment income every 14 days, and Centrelink calculates your adjusted payment before the next pay run. Centrelink runs two separate means tests, the income test and the assets test, and pays the lower result of the two, so an estimate of your entitlement needs both.
Not every Centrelink payment is taxed. JobSeeker, Youth Allowance, Austudy and the Age Pension are taxable income, so an Australian tax calculator adds them to your wages; Carer Allowance, and the Disability Support Pension paid to someone under Age Pension age, are tax-free. Your payment amount directly affects your take-home pay, so knowing the income test thresholds helps you plan part-time work alongside your benefit.
How Does the Income Test Work?
The Centrelink income test reduces your payment by a fixed number of cents for every dollar you earn above the free area. This reduction rate is the taper rate. Below the free area, your payment remains at the full maximum rate with no reduction.
Most working-age payments use a two-stage taper. JobSeeker Payment, for example, applies a 50-cent taper for each dollar earned between $150 and $256 per fortnight, then increases to a 60-cent taper for every dollar above $256. The Age Pension uses a single 50-cent taper above its free area of $226 per fortnight for singles.
Your payment reaches $0 (the “cut-off point”) once your income exceeds the level where the taper fully absorbs the maximum payment. For a single JobSeeker recipient with no children on the $808.70 maximum paid to 19 September 2026, the published cut-off is $1,530.17 a fortnight; from 20 September 2026 the maximum rises to $824.90 and the cut-off with it, to $1,557.17. Earning above that amount means your fortnightly JobSeeker drops to nil.
What Is the Income Free Area?
The “Income Free Area” is the amount you earn each fortnight before any reduction applies. For JobSeeker and Youth Allowance (job seeker), the free area is $150 per fortnight. For Age Pension (single), it is $226 per fortnight. For Parenting Payment Single, it is $232.60 per fortnight with one child, plus $24.60 for each extra child. Earning at or below the free area means your Centrelink payment stays at the full rate.
What Is the Taper Rate?
The taper rate determines how quickly your payment reduces per dollar of income above the free area. A 50-cent taper means you lose 50 cents of payment for every $1 earned. A 60-cent taper means you lose 60 cents. Parenting Payment Single uses a gentler 40-cent taper, so a single parent on that payment keeps more of each extra dollar earned above the free area. Use our Income Tax Calculator to estimate the combined effect of income tax and taper-rate reductions on your take-home pay.
Current Income Test Thresholds and Rates
This table gives the free area, taper, maximum fortnightly rate and cut-off (the income at which the payment reaches $0) for JobSeeker, Austudy, Youth Allowance and the Age Pension. Verified at Services Australia on 23 September 2026; JobSeeker and Age Pension are indexed on 20 March and 20 September, the student payments on 1 January. The last column carries the 20 September 2026 figures, published in the DSS rates list on 20 August 2026. The March rates in the columns before it are the ones paid until 19 September 2026.
| Payment | Free area (per fortnight) | Taper | Maximum rate (from) | Cut-off | From 20 Sep 2026 (max / cut-off) |
|---|---|---|---|---|---|
| JobSeeker Payment (single, no children) | $150 | 50c to $256, then 60c | $808.70 (20 March 2026) | $1,530.17 | $824.90 / $1,557.17 |
| JobSeeker Payment (single principal carer) | $150 | 40c per $1 | $866.00 (20 March 2026) | $2,356.25 | $883.30 / $2,399.50 |
| JobSeeker Payment (partnered) | $150 | 50c to $256, then 60c; partner income 60c over $1,440 | $740.30 (20 March 2026) | depends on partner income | $755.10 / partner free area $1,440 |
| Austudy (single, no children) | $539 | 50c to $646, then 60c | $677.20 (1 January 2026) | $1,697.17 | no change — indexes 1 January |
| Youth Allowance, student (single, away from home) | $539 | 50c to $646, then 60c | $677.20 (1 January 2026) | $1,697.17 | no change — indexes 1 January |
| Youth Allowance, student (single, 18+, at home) | $539 | 50c to $646, then 60c | $482.40 (1 January 2026) | $1,368.50 | no change — indexes 1 January |
| Age Pension (single) | $226 | 50c per $1 | $1,200.90 (20 March 2026) | $2,627.80 | $1,237.70 / $2,701.40 |
| Age Pension (couple, combined) | $396 | 25c per $1 off each pension | $1,810.40 combined (20 March 2026) | $4,016.80 combined | $1,866.00 / $4,128.00 combined |
Cut-offs for JobSeeker and the student payments include the Energy Supplement, which not every recipient gets, so the payment in our calculators reaches $0 slightly below them. Age Pension totals already include the Pension and Energy Supplements. All cut-offs are Services Australia's published figures (the 20 September 2026 ones re-checked on 23 September 2026). Parenting Payment, Family Tax Benefit and Rent Assistance are in the next section; Carer Payment uses the same pension income test as the Age Pension: see the Carer Payment calculator. Disability Support Pension uses the same pension income test: see the DSP calculator.
Parenting Payment, Family Tax Benefit and Rent Assistance
Parenting Payment, Family Tax Benefit and Rent Assistance also change with your pay. Parenting Payment and Rent Assistance move on 20 March and 20 September; Family Tax Benefit is set per financial year and tested on your family's yearly adjusted taxable income rather than fortnightly wages. Verified at Services Australia on 23 September 2026.
| Payment | Maximum | Income test | Calculator |
|---|---|---|---|
| Parenting Payment Single | $1,068.20 a fortnight (from 20 September 2026) | 40c per $1 over $232.60 (1 child, +$24.60 each extra); cut-off $2,950.60 | Parenting Payment |
| Parenting Payment Partnered | $755.10 a fortnight | 50c $150–$256, then 60c; partner 60c over $1,440.00 | Parenting Payment |
| FTB Part A (2026–27) | $235.48 per child 0–12, $306.46 per teen | 20c per $1 over $69,131 to the base rate; 30c over $123,078 | Family Tax Benefit |
| FTB Part B (2026–27) | $200.34 (youngest under 5), $139.86 (5–18) | Higher earner ≤ $124,327; lower earner 20c over $7,154 | Family Tax Benefit |
| Rent Assistance | $223.80 single; $263.06 family, 1–2 children (from 20 September 2026) | 75c per $1 of rent over $157.80 (single); part of the payment it comes with | Rent Assistance |
What Counts as Assessable Income for Centrelink?
Assessable income for Centrelink purposes includes all gross employment income, investment returns and certain other receipts: broadly, any money that increases your capacity to support yourself.
Income Types That Are Counted
- Employment income: wages, salary, commissions, bonuses, overtime, and penalty rates paid by an employer
- Self-employment income: net business profit after allowable deductions
- Investment income: bank interest, share dividends, managed fund distributions, and rental income
- Overseas income: any income earned from overseas sources, converted to AUD
- Superannuation income streams: account-based pensions and annuity payments if you are of Age Pension age
- Deemed income: income assumed from financial assets using the deeming rate, regardless of actual returns earned
- Director fees and trust distributions: payments received as a company director or trust beneficiary
- Leave and redundancy pay when a job ends: a lump sum for unused sick, annual or long service leave, or a termination or redundancy payment, can start an income maintenance period, a wait before JobSeeker, Parenting Payment, Youth Allowance, Austudy or Disability Support Pension (unless you are permanently blind) is paid
Income Types That Are Not Counted
- Child support payments you receive
- Certain compensation payments (e.g., workers' compensation periodic payments are treated separately)
- Family Tax Benefit payments
- Rent Assistance
- Energy Supplement payments
Salary sacrifice arrangements require special attention. Salary or wages you choose to sacrifice into superannuation count as income for Centrelink, so sacrificing to super does not raise your payment. The compulsory super your employer pays is not counted. Our Salary Sacrifice Guide explains how concessional contributions interact with both employer SG rate obligations and Centrelink reporting.
How Does the Assets Test Interact with the Income Test?
Services Australia applies both an income test and an assets test to your Centrelink claim, then pays you the lower of the two results. You must pass both tests to receive the full payment rate.
| Status | Homeowner — Full Pension Limit | Non-Homeowner — Full Pension Limit |
|---|---|---|
| Single | $333,000 | $600,000 |
| Couple (combined) | $499,000 | $766,000 |
Assets above the full-pension limit reduce the Age Pension by $3.00 per fortnight for every $1,000 of assets above the threshold (single rate) or $1.50 each for couples. The assets test does not count your principal home, but it does count superannuation balances if you have reached Age Pension age. From 20 September 2026 a part pension stops above $745,750 (single homeowner) or $1,121,000 (couple homeowner). Run both tests on your own figures with the Age Pension assets test calculator.
Working-age payments use a separate allowance assets test with a single cut-off rather than a taper. For Parenting Payment, the payment stops when assets exceed $333,000 for a single homeowner or $600,000 for a non-homeowner ($499,000 and $766,000 for a couple, combined); JobSeeker and Youth Allowance list their limits on their own Services Australia pages. Understanding how both tests interact helps you decide whether to draw down savings, adjust your superannuation balance through Superannuation Calculator modelling, or restructure investments before claiming.
How Much JobSeeker Do You Keep with Part-Time Work?
A single person on JobSeeker with no children who earns $600 a fortnight keeps $549.30 of the $808.70 maximum, for $1,149.30 in total before tax. The reduction does not change on 20 September (only the maximum rate does), so from 20 September 2026 the same fortnight keeps $565.50:
- Maximum rate from 20 March 2026: $808.70 (from 20 September 2026: $824.90)
- First $150: free area, no reduction
- $150 to $256 at 50c: $53.00
- $256 to $600 at 60c: $206.40
- Total reduction $259.40; payment $549.30, or $565.50 from 20 September 2026
Working credits built up in low-income fortnights are used before this test applies, so the first higher fortnight after a quiet stretch often keeps more. Try your own figures in the JobSeeker payment calculator, then put wages and payment together through the take-home pay calculator, because JobSeeker is taxable.
How Do You Report Income to Centrelink?
You report your gross employment income to Centrelink every 14 days on your designated reporting day, online through your Centrelink online account in myGov, in the Express Plus Centrelink app, or by phone on the Centrelink reporting line, 133 276.
Step-by-Step Reporting Process
- Log in to myGov and navigate to your linked Centrelink account
- Select MENU, then Income and assets, Employment income and Report employment income
- Enter your gross income for the reporting period, meaning your total pay before tax, Medicare levy, or salary sacrifice deductions
- Declare any other income such as bank interest, rental income, or overseas income received during the fortnight
- Add your hours worked if the form asks for them: whether you report hours depends on your payment type
- Submit your report by 5 pm local time on your reporting date so you are paid on time
If you don't report every 2 weeks, your payment stops. If you report late, your payment is late. Deliberately underreporting income results in a Centrelink debt, and Services Australia applies a 10% recovery fee on debts caused by false reporting.
Employers now report payroll data to the ATO through “Single Touch Payroll” (STP), and Centrelink cross-references this data against your self-reported figures. Discrepancies trigger automated reviews. Our Understanding Your Payslip guide explains which payslip figure to use when reporting to Centrelink.
Current Maximum Rates and Indexation Dates
Every payment’s current rate is on one page in our Centrelink payment rates table.
JobSeeker and pension rates move on 20 March and 20 September; student payments on 1 January. The middle column is what was paid to 19 September 2026; the last column is the 20 September 2026 indexation, in force now, published in the DSS rates list on 20 August 2026 and verified here on 23 September 2026. Keep the March figures for any payslip or Centrelink letter dated before 20 September.
| Payment | Rates from | Maximum per fortnight | From 20 September 2026 |
|---|---|---|---|
| JobSeeker Payment | 20 March 2026 | Single $808.70; single with a child, single 55+ after 9 months, or single with partial capacity $866.00; partnered $740.30 | Single $824.90; single with a child, single 55+ or single with partial capacity $883.30; partnered $755.10 |
| Austudy | 1 January 2026 | Single or partnered, no children $677.20; single with children $854.20; partnered with children $733.20 | No change — Austudy indexes on 1 January |
| Youth Allowance (students / apprentices) | 1 January 2026 | From $418.90 (under 18, at home) to $677.20 (away from home); $854.20 single with children | No change — Youth Allowance indexes on 1 January |
| Age Pension | 20 March 2026 | Single $1,200.90; couple $905.20 each ($1,810.40 combined), including supplements | Single $1,237.70; couple $933.00 each ($1,866.00 combined) |
| Work Bonus (pensioners) | ongoing | $300 credit a fortnight; balance up to $11,800 | No change — set in legislation, not indexed in September |
The September indexation leaves the taper rates unchanged: 50 and 60 cents for allowances, 40 cents for single principal carers, and 50 cents (single) and 25 cents each (couple) for pensions. The free areas are also unchanged: the $150 JobSeeker free area is not indexed, and the $226 single pensioner free area indexes on 1 July. The maximum rates move on 20 September, and the cut-offs move with them. The JobSeeker and Age Pension calculators hold both dated sets and switch over on the day.
How Does Working Credit Help You Keep More of Your Payment?
Working credits build in fortnights when your employment income is under $48. When a later fortnight is higher, Services Australia applies those credits to your income first, so you can still get some payment even above the published cut-off. Students on Austudy or Youth Allowance have the equivalent Income Bank, which builds while income is under $539; pensioners have the Work Bonus. Your balance is shown in your Centrelink online account, and none of our calculators assume a balance.
Related Resources
The links below go to our Centrelink payment calculators and guides, plus the tax and super tools for your wages.
- JobSeeker Payment Calculator: what you keep of JobSeeker when you work part-time
- Austudy & Youth Allowance Calculator: the student income test with current rates
- Age Pension Income Test Calculator: single and couple tests with the Work Bonus
- Take-Home Pay Calculator: estimate your after-tax income including Centrelink payments in your total assessable income
- Tax Brackets Guide: view the FY2026-27 marginal tax rates that apply to your combined employment and Centrelink income
- Income Tax Calculator: calculate PAYG withholding on your employment income, including the Medicare levy and surcharge thresholds
- Superannuation Calculator: check how your employer's SG rate contributions affect your retirement savings alongside Centrelink entitlements
- Parenting Payment Calculator: single and partnered, with the 40c single-parent taper
- Family Tax Benefit Calculator: FTB Part A and Part B on your family income
- Rent Assistance Calculator: Centrelink Rent Assistance for your rent
- Carer Payment Calculator: rates, income test and work hours for carers
- Centrelink Debt: overpayments from income reporting, refunds and repayment options
- Age Pension Assets Test Calculator: both pension tests with your wages and savings
- Deeming Rates: current rates, thresholds and a deeming calculator
- Disability Support Pension Calculator: DSP rates, income test and work hours
- Child Care Subsidy Calculator: CCS on your family income and your gap fee
- Commonwealth Seniors Health Card: the income limit and an eligibility check
- Paid Parental Leave Calculator: weeks, pay, and the income and work tests for government-funded parental leave
- Low Income Tax Offset Guide: find out if you qualify for the LITO, which reduces tax for Australians earning under $66,667
Frequently Asked Questions
How this guide works▼
This guide's income thresholds and taper rates come from Services Australia. JobSeeker and pension rates are indexed on 20 March and 20 September, Austudy and Youth Allowance (students) on 1 January, and Family Tax Benefit on 1 July. Payment rates reflect the most recent indexation. The Australian tax calculator and income test thresholds are updated each financial year to align with ATO and Services Australia data.
Sources & References
- 1Income test for pensions, Services Australia
- 2Income test for JobSeeker Payment, Services Australia
- 3Working Credit, Services Australia
- 4Assets test, Services Australia
- 5Social Security Payment Parameters — 20 September 2026 indexation, Department of Social Services
- 6Income and assets tests for Parenting Payment, Services Australia
- 7Income test for FTB Part A, Services Australia
- 8How much Rent Assistance you can get, Services Australia
Last verified: 9 October 2026. Our content is based on the latest information from official Australian government sources.
Anita Bell
AuthorFounder & Senior Bookkeeper
Accountancy degree (2015); certified in Xero, QuickBooks Online, MYOB, Saasu, Zoho and Reckon One
Anita Bell earned her accountancy degree in 2015 and has worked as a senior bookkeeper with Prime Bookkeeping for over 5 years. This built her skills in Australian and New Zealand tax legislation and industry regulations. She is certified in Xero, QuickBooks Online, MYOB, Saasu, Zoho and Reckon One, and works with payroll and rostering software including Gusto, Deputy, Tsheets and KeyPay. She has strong experience in hospitality, building and construction, financial services, real estate, ecommerce, and medical and health services.
Areas of Expertise