Centrelink Income Test Calculator — Australia 2026-27
See how your income affects your Centrelink entitlements.
Estimate how your fortnightly income affects Centrelink payments in 2026-27. Select your payment type — JobSeeker, Age Pension, Youth Allowance, Parenting Payment, DSP, or Carer Payment — and see your estimated payment after the income test. Includes Work Bonus, Working Credit, partner income, and taper rate chart. Estimate only — verify at servicesaustralia.gov.au.
⚠️ Estimates only — rates are indexed to CPI in March and September each year. Always verify at servicesaustralia.gov.au before making financial decisions.
How the Centrelink income test works 2026-27
The income test reduces Centrelink payments as your income rises above the free area. Understanding the taper rate, thresholds, and partner income rules helps you accurately predict your payment.
The income test formula
Payment reduction = (Income - Free area) × Taper rate. For Age Pension singles: free area $226/fortnight, taper 50c per $1 over threshold. Pension cuts off entirely at ~$2,628/fortnight income.
Free areas by payment type
Free areas differ by Centrelink payment: Age Pension ($226/fortnight single, $396 couple combined). JobSeeker ($150 single, $300 couple). Youth Allowance ($500/fortnight for students). Parenting Payment varies by individual vs partnered. These thresholds rise twice yearly with CPI.
Taper rates explained
Age Pension: 50c per $1 over free area (single); 25c per $1 per member (couple). JobSeeker: 50c per $1 between $150-$256/fortnight, 60c per $1 above. Parenting Payment Single: 40c per $1 over $230/fortnight.
Work Bonus for age pensioners
Up to $300/fortnight of employment income is excluded from the Age Pension income test. Unused Work Bonus credits accumulate in a 'bank' up to $11,800 — useful for pensioners with variable or seasonal work income.
Centrelink income test thresholds by payment type 2026-27
Age Pension income test (fortnightly)
| Category | Full pension up to | Part pension cut-off |
|---|---|---|
| Single | $226/fortnight | ~$2,628/fortnight |
| Couple (combined) | $396/fortnight | ~$4,017/fortnight |
| Couple apart due to illness | $396 combined | ~$4,946 |
JobSeeker income test (fortnightly)
| Category | Full payment up to | Cut-off |
|---|---|---|
| Single, no children | $150 | $1,375 |
| Single, with children | $150 | $1,474 |
| Partnered (per member) | $150 each | $1,261 each |
Income test components
Included: employment, self-employment, rental income, investment returns, foreign pensions, deemed income from financial assets. Excluded: primary residence, NDIS funding, one-off gifts below threshold. Partner income affects most payments for partnered recipients.
Centrelink assets test vs income test — which applies?
Twin tests — lower payment applies
Centrelink runs both the income test AND the assets test, then pays the lower of the two results. Many pensioners are assets-tested, particularly those with significant super or investment property.
Age Pension asset limits 2026-27
| Category | Homeowner | Non-homeowner |
|---|---|---|
| Single — full pension | $333,000 | $600,000 |
| Single — cut off | $733,500 | $1,000,500 |
| Couple — full pension | $499,000 | $766,000 |
| Couple — cut off | $1,102,500 | $1,369,500 |
What counts as an asset
Included: super, investments, vehicles, second properties, business assets, bank accounts. Excluded: primary residence, household goods, personal effects, prepaid funerals.
Deeming rules
Financial investments deemed to earn a return regardless of actual earnings. 2026-27 deeming rates: 1.25% up to $66,800 (single) / $110,600 (couple); 3.25% above. This 'deemed income' is counted in the income test even if actual returns are different.
FAQFrequently asked questions about Centrelink income tests
How much can I earn before losing Age Pension?
Single: full pension up to $226/fortnight income, tapers to zero at ~$2,628/fortnight. Couple combined: full pension up to $396/fortnight, tapers to zero at ~$4,017/fortnight.
Does my partner's income affect my Centrelink payment?
Yes — for most payments. Partnered Age Pension uses combined income; JobSeeker adds partner income with tapering. Parenting Payment Single does not count partner income.
What is the Work Bonus?
Age pensioners can earn up to $300/fortnight from employment income without it counting in the income test. Unused credits bank up to $11,800 for lumpy income.
Is my super counted for Centrelink?
Super in accumulation phase isn't counted if you're under Age Pension age. Once you reach pension age OR convert to income stream, it's assessed under deeming rules.
What is deeming?
Centrelink 'deems' financial assets (savings, shares, super in drawdown) to earn a set return, regardless of actual earnings. 2026-27: 1.25% below threshold, 3.25% above.
Do I pay tax on Centrelink payments?
Most Centrelink payments are taxable income (Age Pension, JobSeeker, etc.). Some are tax-free (Disability Support Pension, Carer Payment under pension age). Always declare in your tax return.
Where these figures come from
Income figures on this page are drawn from the Australian Taxation Office (ATO), the Fair Work Commission (minimum wage and awards), and the Australian Bureau of Statistics (national earnings).
- PAYG withholding & income tax rates — ATO — Individual income tax rates.
- Superannuation Guarantee rate — ATO — Super guarantee percentage.
- National minimum wage — Fair Work Ombudsman — Minimum wages.
- Average weekly earnings — ABS — Average Weekly Earnings.
- Medicare levy — ATO — Medicare levy.
Last checked: July 2026. Rates and thresholds are reviewed against the source of record each November, when annual adjustments for the following tax year are published.
Select the question that matches where you are right now.
Your estimated payment shows how much you would receive after the income test reduces your maximum rate. The taper curve chart (Standard mode) shows your position along the full income range from zero to the cutout point.
The 50c taper for most payments means for every extra $100 you earn above the free area, you keep $50 of the extra earnings after the payment reduction is applied. You are never worse off for working — every dollar earned above the free area nets you 50 cents after the payment reduction. With Parenting Payment Single's 40c taper, you keep 60 cents of every dollar earned over the free area.
This calculator uses published 2026-27 rates as a planning guide. Your actual payment may differ because: (1) Rates are indexed in March and September; (2) Individual circumstances such as rent assistance, pharmaceutical allowance, or remote area supplements add to your base payment; (3) The assets test may produce a different result; (4) Deemed income from financial assets may apply. Always verify at myGov or call Services Australia.
Switch to Standard mode to see the taper curve — a line chart showing payment amount at every income level from zero to the cutout. The blue vertical line marks the free area, and your current income position is shown as a red dot with your estimated payment. This helps you see exactly how close you are to the cutout and how much earning more or less changes your payment.
The Work Bonus is one of the most valuable and underused features of the Age Pension income test. Understanding it can significantly increase how much you earn without losing pension.
For Age Pension, DSP, and Carer Payment recipients, the first $300/fn of employment income is excluded from the income test. This is on top of the normal $226/fn free area. In effect, you can earn up to $526/fn from employment before any pension reduction — significantly more than the standard $226 free area suggests.
If you earn less than $300/fn from employment in any fortnight, the unused portion accumulates in a Work Bonus bank — up to $11,800 can be saved. This bank can then be drawn on in fortnights with higher employment income. For example: a pensioner who earns nothing for most of the year but earns $3,000 in December from seasonal work — the $11,800 bank means this is largely or fully excluded.
The Work Bonus applies to salary, wages, and earnings from self-employment as an individual (not through a company or trust). It does NOT apply to: investment income, superannuation distributions, rental income, business income from a structure, or income from a public position. The distinction between employment and other income is important — ask Services Australia if uncertain whether your income type qualifies. Enter the employment portion separately in Standard mode to see the Work Bonus applied correctly.
If you have a partner who earns income, their income may reduce your Centrelink payment — even if they do not receive any payment themselves.
For partnered JobSeeker, Youth Allowance, and Parenting Payment Partnered, income above approximately $1,163.70/fn reduces your payment by 60 cents per dollar. This threshold is higher than your own free area — the government recognises that two people sharing expenses need more combined income than one person alone before assistance is appropriate.
Both you and your partner are legally required to report income to Centrelink accurately. Your partner must provide their income details even if they are not receiving a payment. Centrelink can cross-match against ATO employment and payslip records. Incorrect partner reporting is one of the most common causes of Centrelink overpayments — which must be repaid and can attract additional consequences.
Age Pension couples are assessed differently — on combined income with a higher combined free area ($360/fn). If one partner is on Age Pension and the other is not, the non-recipient partner's income is tested against the partner income provisions. Enter your partner income in Standard mode to see the full assessment for partnered payments.
Accurate fortnightly reporting is a legal requirement. Getting it right protects you from debt and ensures your payment is correct.
Since July 2019, you report employment income in the fortnight it is paid to you — not when you worked for it. If your pay date lands in a fortnight, that payslip amount is reported in that fortnight. This "paid basis" rule means a three-week pay gap (due to public holidays or pay period timing) can result in one very high fortnight, which may temporarily reduce your payment more than usual.
You must report every fortnight by the due date — even if you earned nothing. Failing to report on time can suspend your payment. If you forget, call Centrelink immediately — payments can sometimes be reinstated. Repeated late reporting may be flagged by Centrelink as a compliance concern. Set a reminder for every fortnight's reporting deadline (typically Monday night).
Overpayments arise when your income was higher than declared — Centrelink will seek repayment. You can arrange to repay gradually through payment reductions. Underpayments (you earned less than declared) can result in an arrears payment. The key rule: when in doubt, report the higher figure — it is far easier to receive an arrears payment for underpayment than to manage a debt for overpayment.