Parenting Payment

Reproduced from Centrelink's "A Guide to Australian Government Payments 1 July - 19 September 2010"

Basic Conditions of Eligibility
Residence Requirements
Basic Rates
Rent Assistance
Assets Test
Income Test

Basic Conditions of Eligibility

  • Must have qualifying child under six if you are partnered, aged under eight if you are single or aged under 16 if you have been in receipt of Parenting Payment prior to 1 July 2006.

  • Can be paid to only one member of a couple.

  • When youngest qualifying child is aged six or over, must enter into an Employment Pathway Plan allowing participation in a broad range of activities.

Note: Recipients who were granted Parenting Payment before 1 July 2006 will (subject to continuing eligibility) remain on this payment until their youngest child turns 16 and will have participation requirements when their youngest child turns seven.

Residence Requirements

  • Must be in Australia as an Australian resident for a period of, or periods totalling, 104 weeks, or arrived in Australia as a refugee, or became a single parent while an Australian resident (for Parenting Payment Single only), or has a qualifying residence exemption.

  • Can be paid for up to 13 weeks for a temporary absence from Australia. The length of your last return to Australia may affect your entitlement during the absence from Australia.

  • Different rules apply is a person is covered by an International Social Security Agreement.


Basic Rates

  • Single Parents: Up to $601.30* per fortnight.
    *A Pension Supplement amount is included included in this fortnightly rate. For those under Age Pension age it is currently $19.60. A higher Pension Supplement amount may be paid if the person has reached Age Pension age.

  • Partnered Parents: Up to $417.70 per fortnight (up to $500.70 if separated by illness or respite care, or partner in prison).

  • A Pension Supplement is paid to recipients of Parenting Payment (Partnered) who have reached Age Pension age.

  • Pharmaceutical Allowance is paid to Parenting Payment (Single) recipients; it may be paid to Parenting Payment (Partnered) recipients.

  • Education Entry Payment of $208 may be payable. Until 30 June 2010, a temporary supplement of $950 will be paid to eligible customers when Education Entry Payment is made.

  • Pensioner Education Supplement may be paid to Parenting Payment (Single) recipients.

  • Mobility Allowance may be paid to Parenting Payment recipients.

  • Training Supplement of $41.60 per fortnight may be payable for the duration of an approved course of study or training commencing prior to 30 June 2011.

  • Job seekers undertaking Work for the Dole (including Full-Time Work for the Dole and Drought Force), Green Corps activities and the Language, Literacy and Numeracy Program may be eligible for an additional supplement of $20.80 per fortnight.


Rent Assistance

  • Normally paid with Family Tax Benefit Part A.

Income Test

Single Parents:

  • For maximum payment, the customer's income must be no more than $170.60 per fortnight, plus $24.60 for each additional child. Income over this amount reduces the rate of payment by 40 cents in the dollar.

  • A part payment may be available if the customer's income is less than $1673.85 per fortnight, plus $24.60 for each additional child.


Partnered Parents:

Partner is not a pensioner

  • For maximum payment, the person's income must be no more than $62 per fortnight and the partner's income must be no more than $790 per fortnight.

  • The person's income reduces the rate by 50 cents for each dollar between $62 and $250, and by 60 cents for each dollar above $250 per fortnight.

  • Partner's income up to $790 per fortnight has no effect. Income over this amount reduces the rate by 60 cents for each extra dollar.

  • A part payment may be available provided all the following conditions are met:

    • the person's income must be less than $787.50 per fortnight; and

    • partner's income must be less than $1,486.17 per fortnight; and

    • the combined income of the couple must be less than $1,579.50 per fortnight.

  • These conditions are a guide only. Some people who meet these conditions will not be eligible for a payment. Eligibility can only be confirmed following a full assessment of a couple's income under the relevant income test.

  • Different limits apply if the partner receives Youth Allowance or Austudy payment.

Partner is a pensioner

  • For maximum payment the couple's combined income must be no more than $124 per fortnight.

  • Couple's combined income reduces payment by 25 cents for each dollar between $124 and $500, and by 30 cents for each dollar above $500 per fortnight.

  • For part payment, the couple's combined income must be less than $1,579.00 per fortnight.


Assets Test

Assets Test for Homeowners

Family Situation For Full Pension
/ Allowance*
For Part Pension # †
Single** Up to $181,750 Less than $649,250
Partnered (combined) Up to $258,000 Less than $963,000
Illness separated couple (combined) Up to $258,000 Less than $1,193,000
One partner eligible Up to $258,000 Less than $963,000

Transitional Homeowner

Family Situation For Full Pension
/ Allowance*
For Part Pension # †
Single Up to $181,750 Less than $604,750
Partnered (combined) Up to $258,000 Less than $941,500
Illness separated couple (combined) Up to $258,000 Less than $1,104,000
One partner eligible Up to $258,000 Less than $941,500

Assets Test for Disability Support Pensioners Under 21 - Homeowners

Family Situation For Full Pension
/ Allowance*
For Part Pension # †
Aged Under 21 Single - not independent  
16 - 17 years Up to $181,750 Less than $394,500
Partnered (combined) Up to $181,750 Less than $422,500
Aged Under 21 Single - independent  
  Up to $181,750 Less than $508,250
Aged Under 21 - Couple (combined)  
One partner eligible Up to $258,000 Less than $907,000

Assets Test for Non-Homeowners

Family Situation For Full Pension
/ Allowance*
For Part Pension # †
Single** Up to $313,250 Less than $755,000
Partnered (combined) Up to $389,500 Less than $1,094,500
Illness separated couple (combined) Up to $389,500 Less than $1,324,500
One partner eligible Up to $389,500 Less than $1,094,500

Transitional Non-Homeowner

Family Situation For Full Pension
/ Allowance*
For Part Pension # †
Single Up to $313,250 Less than $726,250
Partnered (combined) Up to $389,500 Less than $1,073,000
Illness separated couple (combined) Up to $389,500 Less than $1,235,500
One partner eligible Up to $389,500 Less than $1,073,000

Assets Test for Disability Support Pensioners Under 21 - Non-Homeowners

Family Situation For Full Pension
/ Allowance*
For Part Pension # †
Aged Under 21 Single - not independent  
16 - 17 years Up to $313,250 Less than $526,000
Partnered (combined) Up to $313,250 Less than $554,000
Aged Under 21 Single - independent  
Illness separated couple (combined) Up to $313,250 Less than $639,750
Aged Under 21 - Couple (combined)  
One partner eligible Up to $389,500 Less than $1,038,500

Some assets are deemed to earn income, while certain assets are not included in the assets test; see Deeming - Financial Investments or contact Centrelink for more information.

Note: The rate of payment is calculated under both the income and assets tests. The test that results in the lower rate (or nil rate) will apply.

# Limits will increase if Rent Assistance is paid with your pension.
*

Assets over these amounts reduce pension by $1.50 per fortnight for every $1,000 above the limit (single and couple combined).

Newstart Allowance, Widow Allowance, Partner Allowance, Sickness Allowance, Special Benefit, Parenting Payment, Youth Allowance and Austudy Payment and Mature Age Allowance are not payable if assets exceed these amounts.

** For Disability Support Pension recipients, these limits apply if aged over 21 only. For those under 21 the same income/assets test applies, but with different limits. See your nearest Centrelink Customer Service centre for more information.
Asset and Income limits for Transitional Rate and saved case customers apply to customers who are resident in Australia, or are not absent for more than 13 weeks only. For other cases, contact Centrelink for more information.

Extra Allowable amount for Retirement Village and Granny Flat Residents
If your Entry Contribution is equal to or less than the Extra Allowable Amount, you are assessed as a non-homeowner. Your Entry Contribution will count as an asset. You may qualify for Rent Assistance. The Extra Allowable Amount is the difference between the non-homeowner and homeowner test limits, currently $131,500.

Hardship Provisions
If you have assets but little or no income you are expected to rearrange your affairs to provide for yourself. In some cases that is not possible. If you are in "severe financial hardship" you may be able to get a social security payment. Different tests apply to such cases.

  • Hardship provisions may apply.

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