Centrelink Income and Assets Tests Explained (Australia 2026)

Most Centrelink payments are means-tested. Services Australia estimates your financial position using:

1. Income test — wages, business income, deemed returns on financial assets, and some other income.
2. Assets test — savings, investments, property (except your home), and other countable assets.

For many payments, both tests apply. You are paid based on the test that gives the lower entitlement. If either test reduces your payment to zero, you may not receive that payment (even if you pass the other test).

Different payments use different thresholds and taper rates. JobSeeker rules are not the same as Age Pension rules.

Income free area

Each payment has an income free area — the amount you can earn per fortnight before your payment starts reducing.

Examples (approximate, 2025–26 — check Services Australia for current figures):

• JobSeeker (single): about $150/fortnight free area
• Disability Support Pension (single): about $204/fortnight free area
• Parenting Payment (single): about $200/fortnight free area

Taper rates

Above the free area, your payment reduces by a taper rate — cents lost per dollar earned.

JobSeeker (single, illustrative):

• 50 cents per dollar for income in a middle band above the free area
• 60 cents per dollar for higher earnings

Parenting Payment (single): often 40 cents per dollar above the free area.

Age Pension: 50 cents per dollar above the pension income threshold (with a Work Bonus that can exempt up to $300/fortnight of employment income for pensioners).

Partner income

If you are partnered, your partner's income is usually combined with yours for the income test. A partner earning a full-time wage can reduce or eliminate your JobSeeker entitlement even if you are not working.

Deeming on financial assets

Centrelink does not only look at wages. Bank accounts, shares, and many investments are deemed to earn a set rate of return for income-test purposes — even if actual interest is lower.

Deeming uses tiered rates on your total financial assets. If your actual income is lower than the deemed amount, you may be able to use the actual figure — check with Services Australia.

Reporting obligations

For recurring payments like JobSeeker, you must report employment income each fortnight (myGov or Express Plus Centrelink). Report income in the fortnight you earn it.

Failure to report on time can suspend your payment. Overpayments create Centrelink debts you must repay.

What counts

Generally counted toward the assets test:

• Bank accounts and term deposits
• Shares and managed funds (market value)
• Investment property (market value minus mortgage)
• Boats, caravans, and extra vehicles beyond household exemptions
• Business assets (in some cases)
• Some life insurance and investment bonds

What is usually exempt

Generally not counted:

• Your principal home (where you live)
• Household contents and personal effects
• One motor vehicle used for personal transport (rules vary by payment)
• Superannuation before you reach Age Pension age (for the claimant below pension age)
• Prepaid funeral expenses (up to limits)

Threshold examples (JobSeeker, 2025–26 approximate)

Assets above these limits can make you ineligible for JobSeeker. Age Pension uses different (often higher) thresholds — see our Age Pension assets test guide.

Gifting and deprivation

You cannot simply give away assets to qualify. Gifting rules treat large gifts as if you still own the assets for up to five years if they exceed:

• $10,000 in one financial year, or
• $30,000 over five financial years

This is called deprivation. Strategic gifting to pass the assets test can backfire.

Centrelink calculates your rate under both tests and pays the lower result.

Example (simplified): A part-pensioner might be limited by the assets test while employment income is still under the income free area. A JobSeeker recipient with little savings but part-time wages might be limited by the income test only.

Use your Centrelink online account to see which test is affecting your rate.

Family payments use household income rules that differ from JobSeeker — a family can fail JobSeeker but still receive some FTB.

1. Check both tests before major financial decisions (selling property, receiving a lump sum, inheriting money).
2. Report on time — set a recurring reminder for your reporting day.
3. Keep records of payslips, business income, and bank statements.
4. Ask about exemptions — carers, medical incapacity, and family violence can affect mutual obligation and reporting in some cases.
5. Use free help — Financial Counselling (1800 007 007) and Services Australia (132 850).

See also:

• Centrelink recipients: save money in Australia
• Centrelink payments guide 2026
• Australian welfare system overview
• Pensioner discounts and concessions

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