4.2.6 SpB Income Test & Limits

Summary

This section contains one topic covering a description of the direct deduction income test for SpB, sometimes referred to as the 'dollar for dollar' test.

Direct deduction income test

The direct deduction income test reduces the rate of SpB by the amount of ALL gross income. There is no allowable income free area and no taper. Payment to the partner (1.1.P.85) of an SpB recipient is assessed as if the SpB recipient received any other benefit or allowance.

Exception: PA partners of SpB recipients are ALSO subject to the direct deduction income test.

Explanation: This is because PA is being paid solely due to the primary beneficiary being in receipt of SpB, and therefore the SpB income test applies to both members of the couple (1.1.M.120).

Act reference: SSAct section 771KE Rate of partner allowance if partner receiving SpB

Policy reference: SS Guide 4.2.1.10 Pensions income test, 4.2.2 Benefits Income Test & Limits

Last reviewed: 1 July 2016