4.2.8.40 Independent YA - Partner Income Test & Limits

Summary

This topic covers the following matters:

  • exemptions from the partner income test, and
  • the partner income test.

Exemptions from the partner income test

A dependent YA recipient in a member of a couple relationship, and their partner (1.1.P.85), are EXEMPT from the partner income test. This includes:

  • new YA recipients not yet receiving payment (see example), and
  • members of a couple (1.1.M.120) whose partner is a dependent YA recipient.

Example: A YA recipient serving a waiting period.

This does NOT include a person whose claim has been rejected.

Example: Due to high parental income.

Explanation: The reason is that a dependent YA recipient is subject to the parental income test and therefore should not also be subject to the partner income and assets tests, or the partner's liquid assets or compensation (1.1.C.240) payments. For consistency, as the partner's income and assets, liquid assets or compensation are not taken into account for the YA recipient, the YA recipient's income and assets, liquid assets and compensation are not taken into account for the partner.

Act reference: SSAct section 14A-'liquid assets'

Partner income test

The partner income test applies where an independent YA recipient is a member of a couple (1.1.M.120). A recipient's rate of YA is reduced by 60 cents for each dollar of their partner's ordinary income (1.1.O.30) that exceeds the partner income free area. The partner income free area is the same as for the benefits income test.

Exception: If the recipient's partner is receiving a pension, both partners income is added together. Each partner is then assessed on half the combined income.

Act reference: SSAct section 1067C Member of a YA couple

Policy reference: SS Guide 1.1.M.130 Member of a YA Couple (YA), 4.2.2 Benefits Income Test & Limits

Last reviewed: 21 March 2016