Charging income
The abatement rules for Young Parent Payment are different based on the type of income young parents are getting.
General abatement rules
Young people who get most types of income (i.e., income from salary, wages or non-information share Child Support payments) can only get a limited amount of income before their Young Parent Payment will stop.
Note these rules do not apply to information share Child Support payments.
Young parents (and their partner if any) can get up to $284.70 gross income per week (as at 1 April 2026) before it will affect their benefit.
If a young person (and their partner if any) is only getting other income (i.e. not getting information share Child Support payments), the abatement rules are:
For a young parent who is single:
- their benefit will reduce by $1.00 for every $1.00 of income over $284.70 gross a week until their income is $334.70 (as at 1 April 2026)
- if their income is more than $334.70 per week their benefit will stop
For young people who are married, in a civil union or de facto relationship and both are getting Young Parent Payment in their own right:
- each of their benefits will reduce by 50 cents for every $1.00 of the combined income of the young person and their partner over $284.70 gross a week until their combined income is $384.70 (as at 1 April 2026)
- if their combined income is more than $384.70 per week their benefits will stop
For young people who are married, in a civil union or de facto relationship and only one of them is getting Young Parent Payment:
- the Young Parent Payment will reduce by 50 cents for every $1.00 of the combined income of the young person and their partner over $284.70 gross a week until their income is $384.70 (as at 1 April 2026)
- if their combined income is more than $384.70 per week the Young Parent Payment will stop
For an example of an income assessment, see:
When a young person is applying for Young Parent Payment and declares any income you need to:
- determine the source and the amount of income
- check the young person qualifies for the Young Parent Payment and is meeting the youth activity obligations
For information on how to charge specific types of income for example, Accident Compensation Payments see: Types of income
Also see:
- Processing standards Income and asset details [no link find out why]
- Changes and reviews Treatment of income
Income period
It is important to distinguish between income a client gets for a period before the entitlement date of benefit and income that is ongoing after a client's benefit has commenced.
Income received before the entitlement date of benefit must be considered when calculating the Initial stand-down period.
Income received for a period after commencement, must be charged against their ongoing Young Parent Payment.
When a young person works during an initial stand-down period the commencement date of their Young Parent Payment will need to be reassessed, see: Employment during stand-down
Note information share Child Support payments have different income charging rules.
Income from overseas pensions
Income from overseas pensions is generally treated as a direct deduction from the benefit rate and requires a separate calculation to charging other types of income.
For more information see:
- To or from overseas Payments from overseas
Childcare costs exemption
If a young person getting Young Parent Payment has to pay childcare costs because they are working they can get an additional income exemption.
For more information see:
Legislation
- Calculation of income Schedule 3, clauses 11-14 Social Security Act 2018
- income (definition) Schedule 2 Social Security Act 2018
- Young parent payment: basic criteria sections 56-57 Social Security Act 2018
- Rates and component of youth payment and young parent payment, and criteria for incentive payments Schedule 4, Part 6 Social Security Act 2018
