Change in parental income
If an applicable parent's income increases, this can affect whether a young person meets the Parental Income Test. If an applicable parent's income decreases, this does not affect the income test. When parental income increases, MSD may review the young person's Jobseeker Support Student Hardship to determine if they still qualify.
Period to assess parental income
When an applicable parent's income increases, all income they get in the week of the increase is assessed to determine if it will last for the rest of the grant. The period starts on the day they get the increased income for the first time and ends 1 week later. For example, a parent gets their first payment of a salary increase on a Tuesday. The period starts on that Tuesday and ends at the end of the following Monday.
Disregarding income unlikely to last
A parent may get a one-off income payment, or their income may increase temporarily. Any income a parent gets during the assessment period that is unlikely to last for the rest of the grant may be disregarded.
To decide if income is unlikely to last, consider whether:
- the income was a one-off payment that will not or is unlikely to be paid again e.g. cashed-up annual leave or a lump-sum payment of time in lieu
- the income is the result of a temporary change e.g. covering extra shifts for a limited period or getting a salary increase while covering another role
Note a one-off payment may be a capital payment and not considered income.
If a parent gets income from multiple sources or more than 1 type of income during the period, only income that is unlikely to last for the rest of the grant can be disregarded. Any income that is likely to last must be included in the Parental Income Test. If none of the income the parent gets during the period is likely to last for the rest of the grant, all income can be disregarded.
Parental Income Test
Any income that was not disregarded must be combined with the income of the other applicable parent (if any). The combined parental income must be compared against the parental income limit.
If it is more than the parental income limit, the young person does not meet the Parental Income Test. If they are single or in a relationship and they are the primary client, their benefit must be cancelled. If they are included in another client's benefit as a partner, they must be excluded.
Example 1
Hemi's father has started a new permanent role, and his income has increased. Because the role is permanent, the income is likely to last for the remaining 5 weeks of Hemi's benefit grant. His father's income is $38,480 which puts Hemi over the parental income limit when combined with his mother's income of $30,000. Hemi does not meet the Parental Income Test and is no longer eligible for Jobseeker Support Student Hardship.
Example 2
Rowena's mother is covering a manager role for 6 weeks and gets a Higher Duties Allowance. Based on the allowance and the regular salary payment she got last week, her income would be $72,974. Rowena's benefit is not due to expire for another 8 weeks. Because the Higher Duties Allowance will not last for the rest of the benefit grant, it is disregarded. This means Rowena's parental income is $58,631 because she only has 1 applicable parent. She meets the Parental Income Test and continues to be eligible for Jobseeker Support Student Hardship.
For more information see:
Legislation
- Discretionary review of entitlement to, or rate of, benefit granted subpart 3 part 6, Social Security Act 2018
- Jobseeker support: parental income requirement sections 23A to 23I Social Security Act 2018
