Date

Permissible income

Income test

27/09/1969

Note A

Note B

Note C

- $3.00 per week (pw) unmarried, under 21, one parent residing in Australia

- $6.00 other persons

Benefit reduced $ for $ by income over permissible income ($3.00 or $6.00).

01/11/1980

- $3.00 pw unmarried, under 18, one parent residing in Australia

Benefit reduced by half the amount by which income exceeds $3.00 pw up to $40.00 pw and the full amount of any income over $40.00 pw.

- $6.00 other persons

Benefit reduced by half the amount by which income exceeds $6.00 pw up to $50.00 pw and the full amount of any income over $50.00 pw.

01/11/1982

$10.00 pw

Benefit reduced by half the amount by which income exceeds $10.00 pw up to $60.00 pw and the full amount of any income over $60.00 pw.

01/03/1984

Note D

$20.00 pw

Benefit reduced by half the amount by which income exceeds $20.00 pw up to $70.00 pw and the full amount of any income over $70.00 pw.

01/05/1986

$30.00 pw

Benefit reduced by half the amount by which income exceeds $30.00 pw up to $70.00 pw and the full amount of any income over $70.00 pw.

01/12/1987

Note E

$60.00 per fortnight (pf)

Weekly rates of benefit reduced by one quarter of the amount by which income exceeds $60.00 pf up to $140.00 pf and one half of the amount of any income over $140.00 pf.

Date

Permissible income

Income test

20/09/1990

$60.00 pf plus an additional $30.00 pf if one works or $60.00 pf if both work.

The allowance income test for married couples is applied after the earnings free area is applied. The earnings free area does not apply to single recipients, or pensioner partners.

20/09/1993

$60.00 pf plus an additional $30.00 pf for a single allowee for earned income, or $50.00 pf if one partner works or $100.00 pf if both partners work.

The allowance income test is applied after applying the earnings free area - the earnings free area does not apply to pensioner partners.

20/03/1994

Earnings Credit Scheme with a maximum balance of $500 each for recipients and partners. Single people accrue earnings credit at $90.00 pf. A member of a couple accrues at $80.00 pf (no changes in permissible income for the income test).

Earnings are offset against the Earnings Credit Scheme (when income affects the rate of payment) before the income test is applied to remaining income. Recipients paid at a maximum rate will accrue a credit. Recipients cannot use earnings credit when income results in a nil payment under the income test.

Date

Permissible income

Income test

01/07/1995

The removal of the additional free area for earned income.

Replacement of the 100% withdrawal rate for income over $140 pf, with a 70% withdrawal rate.

Removal of the joint income test (except for pensioner/allowee couples) and the introduction of the personal and partner income tests.

The allowance income test is firstly applied based on the ordinary income of the person and will not affect their partner's rate of allowance unless the income is above the cut-out point.

01/07/1995

Note F

The accrual rate of earnings credit is $60.00 pf for single allowees and for each member of a couple.

Each fortnight that the recipient's own ordinary income is below the ordinary income free area ($60.00), an earnings credit will accrue unless the recipient has accrued the maximum amount.

01/07/2000

Note G

Income free area moves from $60.00 pf to $62.00 pf with the introduction of the New Tax System.

Income threshold of $140.00 pf moves to $142.00 pf.

No changes to ordinary income test tapering.

01/07/2006

Income threshold of $142 pf is increased to $250 pf.

Taper rate on income between $62 and $250 a fortnight is 50%. Taper rate for income above $250 becomes 60%. Partner excess income taper rate becomes 60%.

A

Before 1 November 1977 partner's income did not affect the rate of sickness benefit payable for the claimant, i.e. the maximum single rate of sickness benefit plus additional benefit for any children could be paid irrespective of the partner's income.

B

Partner's income in excess of the rate of the additional benefit payable for the partner, reduced the rate of additional benefit for partner on a dollar for dollar basis.

C

Savings provisions apply to sickness benefit cases granted before 1 November 1977.

D

Before 1 August 1984 the special income test for recipients whose partner received a 'prescribed pension' did not apply.

E

The single rate of sickness benefit for recipients without dependents was not increased. The amount payable remained at the 15 December 1986 rate as a result of the decision to standardise the single unemployment and sickness benefit rates from 13 December 1987 (i.e. instalments falling due on or after that date). The full income test was then applied to this rate.

F

From 20 March 1997 the Earnings Credit Scheme was abolished for all allowance and pension payments. There was no savings provision for this change. As of 20 March 1997 income was assessed using an income free area and the appropriate taper rates.

G

As part of the changes introduced with the New Tax System at 1 July 2000 - income and asset free areas were generally increased by 2.5%.