Why use this calculator
Understanding your potential Centrelink entitlements helps you plan your finances during periods of unemployment, study, or retirement. The income test can significantly affect your payment amount, and knowing how much you will receive helps with budgeting. This calculator provides approximate estimates for the major payment types so you can understand how your income affects your entitlement.
How to use it
Select your payment type (JobSeeker, Youth Allowance, or Age Pension), indicate whether you are single or partnered, and enter your fortnightly income from employment or other sources. The calculator applies the income test to estimate your fortnightly payment amount.
The formula
Estimated Payment = Maximum Rate - (Income Above Free Area x Taper Rate). The income free area and taper rate vary by payment type. Generally, the first $150 per fortnight of income does not affect your payment, and income above this reduces your payment by 50 cents per dollar.
Worked examples
Single JobSeeker with $500 fortnightly income
Maximum rate of $793.10 reduced by $175 (50% of $350 above threshold), estimated payment of $618.10
Single Age Pensioner with $300 fortnightly income
Maximum rate of $1,116.30 reduced by $48 (50% of $96 above threshold), estimated payment of $1,068.30
When people use it
- Estimating income support during job searching
- Planning retirement income with the Age Pension
- Understanding how part-time work affects Centrelink payments
- Budgeting during study while receiving Youth Allowance
Tips
- These are estimates only - actual payments depend on many factors including assets tests
- Report your income to Centrelink every fortnight to avoid overpayments and debts
- The income test has different thresholds and taper rates for different payment types
- Partner income is also assessed and can affect your payment rate
Questions people ask
- Are these estimates exact?
- No. These are simplified estimates based on the income test only. Actual Centrelink payments also depend on the assets test, your living situation, number of dependents, rent assistance eligibility, and other supplements. Always check with Services Australia for your specific circumstances.
- What is the income free area?
- The income free area is the amount you can earn per fortnight without it affecting your payment. For JobSeeker and Youth Allowance, this is generally $150 per fortnight. For the Age Pension, it is $204 for singles and $360 for couples combined.
- What happens if I earn too much?
- If your income exceeds the level where your payment reduces to zero, your payment will be cancelled. However, you may remain on a zero-rate payment for up to 6 fortnights, allowing your payment to restart if your income decreases again.