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Centrelink Income and Assets Test 2026
Thresholds, free areas and cutoff amounts for all major Centrelink payments, updated to reflect the 20 March 2026 indexation.
✓ Updated 20 March 2026 — next update 1 July 2026 (assets) / 20 September 2026 (rates)
Income Test by Payment
Income free areas and fortnightly cutoff amounts. Payments reduce by the taper rate above the free area.
| Payment | Single free area | Couple free area | Single cutoff | Taper |
|---|---|---|---|---|
| Age Pension Pension income test. Financial assets assessed via deeming. | $212.00/fn | $372.00/fn (combined) | $2,472.00/fn | 50 cents per $1 |
| JobSeeker Payment Must be meeting mutual obligations and actively seeking work. | $150.00/fn | $150.00/fn each | $1,368.50/fn | 50 cents per $1 up to $256/fn; then 60 cents |
| Disability Support Pension Same income test as Age Pension. Assets test applies separately. | $212.00/fn | $372.00/fn (combined) | $2,472.00/fn | 50 cents per $1 |
| Youth Allowance (Student) Parental income test also applies if under 22 and not independent. | $480.00/fn | $480.00/fn each | $1,313.25/fn | 50 cents per $1 |
| Austudy For students and apprentices aged 25+. Partner income test also applies. | $480.00/fn | $480.00/fn each | $1,626.00/fn | 50 cents per $1 |
| Carer Payment Same test as Age Pension. Care receiver's income also assessed. | $212.00/fn | $372.00/fn (combined) | $2,472.00/fn | 50 cents per $1 |
Assets Test Thresholds 2026
Assets below these limits do not affect your payment. Above the lower threshold, Age Pension reduces by $3.00/fn per $1,000. Most allowance payments cut out entirely above the limit.
| Payment | Single homeowner | Single non-homeowner | Couple homeowner | Couple non-homeowner |
|---|---|---|---|---|
| Age Pension Assets above these thresholds reduce pension by $3/fn per $1,000 | $314,000 | $566,000 | $470,000 | $722,000 |
| Disability Support Pension (under 21, no children) Same thresholds as Age Pension | $314,000 | $566,000 | $470,000 | $722,000 |
| JobSeeker Payment Lower taper — assets over limit cut out payment entirely | $314,000 | $566,000 | $470,000 | $722,000 |
| Youth Allowance / Austudy No assets test for most student payments in practice | $314,000 | $566,000 | $470,000 | $722,000 |
Deeming Rates 2026
Centrelink uses deeming to assess income from financial assets (bank accounts, shares, managed funds, superannuation in pension phase). Actual interest earned is irrelevant — deeming applies a standard rate.
Lower deeming rate
On first $62,600 (single) / $103,800 (couple)
Upper deeming rate
On financial assets above those thresholds
Deeming frozen until
Rates extended to assist with cost of living
Example: Single with $100,000 in bank accounts → first $62,600 deemed at 0.25% = $156.50/yr; remaining $37,400 deemed at 2.25% = $841.50/yr. Total deemed income = $998.00/yr = $38.38/fn.
Frequently Asked Questions
What is the Centrelink income test?
The Centrelink income test determines how much your payment reduces based on your income. Most payments have an "income free area" — an amount you can earn before your payment reduces. Above this, your payment reduces by a set amount (the taper rate) for every dollar earned. The free area and taper rate differ by payment type.
What counts as income for Centrelink purposes?
Income includes: wages and salary, self-employment income, rental income, dividends and interest (or deemed amounts for financial assets), most government payments, overseas pensions, and family trust distributions. It does not include the value of your family home, most superannuation (if under pension age), and certain compensation payments.
What is the Centrelink assets test?
The assets test measures the total value of your assets — including savings, investments, vehicles, property (excluding your family home), superannuation (if over pension age), and household contents. If your assets exceed the relevant threshold, your payment reduces or cuts out. The family home and some personal items are exempt.
Is my family home counted as an asset?
No. Your principal place of residence (family home) is exempt from the Centrelink assets test. However, your home exemption status affects your threshold — homeowners have lower asset limits than non-homeowners because their home is already a major asset not counted.
What is deeming?
Deeming is how Centrelink assesses income from financial assets (bank accounts, shares, managed funds, superannuation). Rather than using actual interest earned, Centrelink applies a set "deeming rate" to estimate income. The lower rate (0.25%) applies to the first $62,600 of financial assets for singles; the upper rate (2.25%) applies above that.
How often are income and assets test thresholds updated?
Income free areas and assets test thresholds are generally updated on 1 July each year in line with the Consumer Price Index (CPI). Pension income free areas are also updated in March and September with each payment rate indexation.
What is the income cutoff for JobSeeker Payment in 2026?
The income cutoff for single JobSeeker recipients is approximately $1,368.50 per fortnight. The income free area is $150/fn, with payments reducing by 50 cents per dollar above $150/fn up to $256/fn, then by 60 cents per dollar above $256/fn. The exact cutoff depends on your relationship status and any additional supplements.
Does the income test affect Rent Assistance?
Rent Assistance itself does not have a separate income test — it is paid on top of your eligible Centrelink payment. However, if your income from the main payment's income test reduces your base payment to zero, you also lose Rent Assistance. There is no separate means test for Rent Assistance beyond eligibility for the main payment.