As a single parent, it can be tough to make ends meet. Knowing how much you can earn before it affects your single parent pension is crucial in helping you to plan for your financial future. This article will provide an overview of how much you can earn before it affects your single parent pension.
How Much Can I Earn?
The amount you can earn before it affects your single parent pension will depend on the type of pension you are receiving. If you are receiving Parenting Payment Single (PPS) you can earn up to $104 per fortnight before your rate of payment is reduced. If you are receiving Newstart Allowance, you can earn up to $104 per fortnight before your rate of payment is reduced.
In addition to the fortnightly income threshold, you may also be eligible for an annual income free area. This is an area of income that you can earn each financial year before it affects your single parent pension. The amount you can earn in the annual income free area will depend on your individual circumstances.
Impact on Single Parent Pension
If you earn more than the fortnightly or annual income free area, your rate of payment will be reduced. This reduction will be applied in the form of a taper rate. The taper rate is the amount that is deducted from your rate of payment for every dollar you earn over the income free area.
For example, if you are receiving PPS and earn $104.01 per fortnight, your rate of payment will be reduced by 50 cents for every dollar earned over $104. If you earn $200 per fortnight, your rate of payment will be reduced by $50.
Knowing how much you can earn before it affects your single parent pension is important in helping you to plan for your financial future. The amount you can earn before it affects your single parent pension will depend on the type of pension you are receiving. If you are receiving PPS or Newstart Allowance, you can earn up to $104 per fortnight before your rate of payment is reduced. If you earn more than the income free area, your rate of payment will be reduced by a taper rate.
With the cost of living and rising living expenses, single parent pensioners on a fixed income need to be aware of how much they can earn before the money they receive is affected.
The amount of income you can earn and keep your single parent pension is dependent on the income test, assets test, and mutual obligation rules.
Under the income test, income from employment is deducted from your payments at a rate of 50 cents for every dollar earned. The maximum income you can have before your payments are reduced is $755 per fortnight if you have one child or $919 per fortnight if you have two or more children. Remember, you can also earn income before your payments are affected if you get other government payments or other income sources such as rent, tax return, and dividends.
Under the assets test, assets are considered to include things such as real estate, shares, term deposits, and other financial investments. Single parents need to be mindful that the more assets you own, the lower your payments may be. Your asset limit will depend on the number of children you have and the amount of money you receive each fortnight. The maximum amount of assets you can have before payments are affected is $248,500 for one child or $304,500 for two or more children.
Finally, single parents on the pension must meet mutual obligation requirements such as attending job interviews, training, or other activities when asked by Centrelink. If you fail to comply with these requirements, you may be liable to have your payments reduced or cancelled.
In conclusion, single parent pensioners have several considerations to make when determining how much they can earn before their payments are affected. It is essential to be aware of the income test, the assets and means test, and the mutual obligation requirements set out by Centrelink and the government. Understanding these limitations will help ensure you are able to continue to receive the payments you are entitled to.
