4.10.4.10 Historical widow class A, sole parent benefit & PPS means test limits
Summary
This topic contains historical means test limits for widow class A, sole parent benefit and PPS from July 1942 to present. In 1989, sole parent pension replaced class A widow's pension. In 1998 the sole parent pension was replaced by PPS.
This topic contains the following 3 tables:
| Table Number | Explanation |
|---|---|
| 1 | Means test - July 1942 to October 1958 |
| 2 | Merged means test - March 1961 to December 1983 |
| 3 | Income and assets (1.1.A.290) test - March 1985 to present date |
Act reference: SSAct section 8(1)-'income'
Table 1: Means test - July 1942 to October 1958
The table shows amounts in dollars. Income is shown in dollars per annum.
| Date Note A | Permissible income | Limit of property | Property exemption | Income deduction for children |
|---|---|---|---|---|
| 27/07/1942 | 65 | 2,000 | 100 | - |
| 13/08/1946 | 104 | 2,000 | 100 | - |
| 08/07/1947 | 104 | 2,000 | 100 | 26 or 52 Note B |
| 26/10/1948 | 156 | 2,000 | 200 | 26 or 52 |
| 06/11/1951 | 156 | 2,500 | 300 | 26 Note C |
| 07/10/1952 | 156 | 2,500 | 300 | 52 |
| 05/11/1953 | 208 | 3,000 | 300 | 52 |
| 19/10/1954 | 364 | 3,500 | 400 | 52 |
| 28/10/1958 | 364 | 4,500 | 400 | 52 |
Notes for Table 1
| Note | Explanation |
|---|---|
| A | Dates on which the rates applied. |
| B | The income of a widow with children was reduced by an amount of $26.00 per year in respect of the first child under 16 years in her custody, care and control and by $52.00 per year in respect of each additional child under 16 years. The maximum deduction was reduced by any payment (for example, family allowance, state assistance) received in respect of the child and/or children. |
| C | Deductions from income were allowed in respect of dependent children (1.1.D.70) under 16 years. Income was reduced to $26.00 per year for each child in the widow's custody, care and control. The maximum deduction was reduced by any payment other than family allowance received in respect of the child. |
Table 2: Merged means test - March 1961 to December 1983
The table shows amounts in dollars. Income is shown in dollars per annum.
| Date Note D | Means as assessed | Property exemption | Income deduction for children |
|---|---|---|---|
| 14/03/1961 | 364 Note E | 2,000 | 52 |
| 08/10/1963 | 364 | 2,000 | 52 Note F |
| 19/10/1965 | 364 | 2,000 | 52 Note G |
| 04/10/1966 | 364 | 2,000 | 156 Note H |
| 02/05/1967 | 520 | 2,000 | 156 |
| 30/09/1969 | 520 Note I | 2,000 | 208 |
| 10/10/1972 | 1,040 | 2,000 | 312 |
| 27/03/1973 | 1,040 | 2,000 | 312 Note J |
| 25/11/1976 | 1,040 | abolished Note K | 312 |
| 04/11/1982 | 1,560 | - | - |
| 01/12/1983 | 1,560 | - | 312 Note L |
Notes for Table 2
| Note | Explanation |
|---|---|
| D | Dates on which the rates applied. |
| E | Merged means test was introduced. Maximum pension was reduced by the amount by which 'means as assessed' (income plus property component) exceeds $364.00. If property is $4,500, or less, property component is 'nil'. If property exceeds $4,500, the property component is $2.00 for each $20.00 of property over $2,000. Fixed disqualifying limit of property was abolished, except to the extent that, if a recipient has more than one child, no pension was payable if the property component was equal to or exceeded the maximum rate of pension (excluding additional pension for children) plus $364.00. |
| F | The deduction from income of $52.00 per year in respect of each child in the widow's custody, care and control was extended to include a child over 16 years until the end of the calendar year in which he or she reached 18 years if the child was dependent on the widow and receiving full-time education. |
| G | The period for which the deduction from income was allowed in respect of a student child was further extended until the date of his or her 21st birthday. |
| H | The maximum deduction from income for each child under 16 years or dependent full-time student under 21 years in the widow's custody, care and control was increased by $104.00 per year to $156.00 per year. The amount of war pension, service pension or education allowance paid by DVA was no longer a reduction from the maximum income deduction allowed. |
| I | A tapered means test was introduced. The maximum rate of pension was reduced by half of the amount by which means as assessed exceeds permissible means as assessed. |
| J | The age limit of 21 years for dependent full-time student children was removed thereby enabling the income deduction to be continued indefinitely, where suitable. |
| K | The property test was abolished. The means test became an income test only with property excluded. However, any monies received by, for example, rental of the property, were included as income. As from 9 November 1978 payment of additional pension in respect of a dependent full-time student ceased at an upper age limit of 25 years. |
| L | Eligibility for supporting parent's benefit extended to a person caring for a child, who lives apart from the partner indefinitely due to the partner's ill health. |
Table 3: Income & assets test - March 1985 to present date
The table shows amounts in dollars. Income is shown in dollars per annum.
| Date | Permissible income - not including additional dependent child amount (per annum) | Additional dependent child amount (per annum) | Total permissible income | Allowable assets | |
|---|---|---|---|---|---|
| homeowner | non-homeowner | ||||
| 21/03/1985 | 1,560 | 312.00 | 1,872 | 70,000 | 120,000 Note N |
| 01/05/1986 | 1,560 | 312.00 | 1,872 | 75,750 | 129,750 |
| 25/06/1987 | 1,560 | 312.00 | 1,872 | 83,250 | 143,250 |
| 09/07/1987 | 2,080 Note O | 624.00 | 2,704 | 83,250 | 143,250 |
| 23/06/1988 | 2,080 | 624.00 | 2,704 | 89,250 | 153,250 |
| 22/06/1989 | 2,080 Note P | 624.00 | 2,704 | 96,000 | 164,500 |
| 21/06/1990 | 2,080 | 624.00 | 2,704 | 103,500 | 177,500 |
| 01/07/1991 | 2,184 | 624.00 | 2,808 | 110,750 | 190,250 |
| 01/07/1992 | 2,236 | 624.00 | 2,860 | 112,500 | 193,000 |
| 01/07/1993 | 2,288 | 624.00 | 2,912 | 112,750 | 193,250 |
| 01/07/1994 | 2,340 | 624.00 | 2,964 | 115,000 | 197,000 |
| 01/07/1995 | 2,444 | 624.00 | 3,068 | 118,000 | 202,000 |
| 01/07/1996 | 2,548 | 624.00 | 3,172 | 124,000 | 212,500 |
| 01/07/1997 | 2,600 | 624.00 | 3,224 | 125,750 | 215,750 |
| 01/07/1998 | 2,600 | 624.00 | 3,224 | 125,750 | 215,750 |
| 01/07/1999 | 2,652 | 624.00 | 3,276 | 127,750 | 219,250 |
| 01/07/2000 | 2,756 | 639.60 | 3,395.60 | 133,250 | 228,750 |
| 01/07/2001 | 2,912 | 639.60 | 3,551.60 | 141,000 | 242,000 |
| 01/07/2002 | 3,016 | 639.60 | 3,655.60 | 145,250 | 249,750 |
| 01/07/2003 | 3,120 | 639.60 | 3,759.60 | 149,500 | 257,500 |
| 01/07/2004 | 3,172 | 639.60 | 3,811.60 | 153,000 | 263,500 |
| 01/07/2005 | 3,224 | 639.60 | 3,863.60 | 157,000 | 270,500 |
| 01/07/2006 | 3,328 | 639.60 | 3,967.60 | 161,500 | 278,500 |
| 01/07/2007 | 3,432 | 639.60 | 4,071.60 | 166,750 | 287,750 |
| 01/07/2008 | 3,588 | 639.60 | 4,227.60 | 171,750 | 296,250 |
| 01/07/2009 | 3,692 | 639.60 | 4,331.60 | 178,000 | 307,000 |
| 01/07/2010 | 3,796 | 639.60 | 4,435.60 | 181,750 | 313,250 |
| 01/07/2011 | 3,900 | 639.60 | 4,539.60 | 186,750 | 321,750 |
| 01/07/2012 | 3,952 | 639.60 | 4,591.60 | 192,500 | 332,000 |
| 01/07/2013 | 4,056 | 639.60 | 4,695.60 | 196,750 | 339,250 |
| 01/07/2014 | 4,160 | 639.60 | 4,799.60 | 202,000 | 348,500 |
| 01/07/2015 | 4,212 | 639.60 | 4,851.60 | 202,000 Note Q | 348,500 Note Q |
| 01/07/2016 | 4,264 | 639.60 | 4,903.60 | 202,000 Note Q | 348,500 Note Q |
| 01/01/2017 | 4,264 | 639.60 | 4,903.60 | 250,000 Note R | 450,000 Note R |
| 01/07/2017 | 4,264 Note S | 639.60 | 4,903.60 | 253,750 | 456,750 |
| 01/07/2018 | 4,264 Note S | 639.60 | 4,903.60 | 258,500 | 465,500 |
| 01/07/2019 | 4,264 Note S | 639.60 | 4,903.60 | 263,250 Note: From 25 March to 25 September 2020, as part of the Coronavirus response, the assets test for allowance payments, including PPS, was waived | 473,750 Note: From 25 March to 25 September 2020, as part of the Coronavirus response, the assets test for allowance payments, including PPS, was waived |
| 01/07/2020 | 4,368 | 639.60 | 5,007.60 | 268,000 Note: From 25 March to 25 September 2020, as part of the Coronavirus response, the assets test for allowance payments, including PPS, was waived | 482,500 Note: From 25 March to 25 September 2020, as part of the Coronavirus response, the assets test for allowance payments, including PPS, was waived |
| 01/07/2021 | 4,420 | 639.60 | 5,059.60 | 270,500 | 487,000 |
| 01/07/2022 | 4,628 | 639.60 | 5,267.60 | 280,000 | 504,500 |
| 01/07/2023 | 4,940 | 639.60 | 5,579.60 | 301,750 | 543,750 |
| 01/07/2024 | 5,096 | 639.60 | 5,735.60 | 314,000 | 566,000 |
| 01/07/2025 | 5,200 | 639.60 | 5,839.60 | 321,500 | 579,500 |
Notes for Table 3
| Note | Explanation |
|---|---|
| M | Dates on which the rates applied. |
| N | The assets test was introduced on 21 March 1985. Non-homeowners are allowed extra assets. There is no increase in the allowable assets amounts for children. |
| O | Allowable income for married supporting parents (Note L) was increased to $1,820. |
| P | In March 1989 supporting parent's benefit and class A widow's pension were amalgamated under a new title of sole parent's pension. |
| Q | Indexation of the assets test for PPS was paused for 2 years from 1 July 2015. |
| R | On 1 January 2017, the assets test thresholds were increased in line with changes to the pension assets test. |
| S | Indexation of the PPS income test was paused for 3 years from 1 July 2017. |