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How much can I earn before I lose my pension?
If you are a Sole Parent with one child, you can earn up to $1385.35 per fortnight before becoming ineligible for a part pension payment. This amount increases by $24.60 for each child in your care.
(Income Test for Pensions – “A guide to Australian Government Payments: 20 September – 31 December 2005”)
Although this is the figure stated in Centrelink Income Equivalent literature, I have found that when using the Centrelink Rate Estimator, the maximum amount you can earn and still keep your Pensioner Concession Card is slightly less. To err on the side of caution, I suggest you go by the following figures, which will definitely ensure that you continue to have access to your Pension Card.
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Maximum Income to Maintain Part Pension (per fortnight)
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Equivalent Weekly Income |
Equivalent Annual Income (wage only) |
| 1 Child |
$1,370.00 |
$685.00 |
$35,620 |
| 2 Children |
$1,395.00 |
$697.50 |
$36,270 |
| 3 Children |
$1,420.00 |
$710.00 |
$36,920 |
| 4 Children |
$1,440.00 |
$720.00 |
$37,440 |
| 5 Children |
$1,465.00 |
$732.50 |
$38,090 |
An excellent tool for working out how employment income will affect your benefit is Centrelink’s Rate Estimator at the following link. You can play around with different amounts and get a clear idea of just how much pension you will receive if you decide take on employment.
Centrelink Rate Estimator
How will working affect my Family Tax Benefit?
As long as you maintain a part payment of your Parenting Payment Single Pension, you will continue to receive the maximum Family Tax Benefit. This is because pensioners are exempt from income testing for Family Tax Benefit.
Once you earn over the Pension Income Threshold and are no longer entitled to Parenting Payment Single, your Family Tax Benefit Part A becomes income tested. This means that for every dollar earned over $33,361 per year, your FTB Part A decreases by 30 cents.
If you are considering employment that will take you off Parenting Payment Single, you can calculate how your FTB will be affected by using the Family Assistance Estimator also located on the link above.
Family Tax Benefit Part B is not income tested for Sole Parents. Regardless of your income, you will always receive this amount.
What about other benefits like Rent Assistance, Pensioner Education Supplement and Child Care Benefit?
As long as you maintain a part payment of your Parenting Payment Single Pension, your employment income will have no effect on Rent Assistance, Pensioner Education Supplement, Child Care Benefit or any other Centrelink Benefit or Allowance you may receive.
If you commence employment that takes you off Parenting Payment Single, you will automatically lose the Pensioner Education Supplement and your other benefits will become income tested (resulting in a reduction or loss of benefits).
In plain English…
As long as you maintain a part payment of your Parenting Payment Single Pension, you will continue to receive all of the other benefits you currently enjoy.
Examples
Jane is a sole parent with two primary school aged children. She lives in rented accommodation and pays $250pw in rent. Her current financial status is as follows:
Parenting Payment Single $488.90
Pharmaceutical Allowance $5.80
Family Tax Benefit Part A $274.12
Family Tax Benefit Part B $82.04
Rent Assistance $116.62
TOTAL $967.48
Scenario 1
Jane takes on a part-time job for 15 hours per week. She is paid at $17 per hour and earns a gross income of $255 per week
Parenting Payment Single $354.18
Pharmaceutical Allowance $5.80
Family Tax Benefit Part A $274.12
Family Tax Benefit Part B $82.04
Rent Assistance $116.62
Wages (NET – tax already paid) $409.67
Sub Total $1,242.43
Less – Out Of School Hours Care
Costs for 4 days per fortnight $65.00
Less – Travel/petrol Expenses $40.00
TOTAL $1,137.43
Additional NET Income $169.95
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