The partner income test

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If you have a partner, their income can affect how much Austudy you receive, even if your own income is low. Services Australia assesses you as a couple: your personal income test runs first on your own earnings, and then your partner's income is tested on top of that. The two tests together decide your final rate, and the lower result of the income and assets tests is the one that applies.

How the partner test works

Services Australia states that there is a maximum amount your partner can earn before your payment starts to reduce, and that this amount depends on your circumstances. Once your partner's income passes that point, your payment falls by 60 cents for every dollar your partner earns over it. Services Australia does not publish a single partner free area for Austudy in the same way it publishes the $539 personal free area, because the partner threshold varies with your family situation — including whether you have dependent children and what your own income is. Do not borrow a partner threshold quoted for a different payment: partner tests differ between payments, and a figure for one payment can be wrong for Austudy.

Why the order matters

Because your own income is tested first, a couple where both partners work can face two reductions stacking on the one payment. Suppose your own earnings already reduce your Austudy to a part rate; your partner's earnings above their threshold then reduce that part rate further, by 60 cents in the dollar. This is also why a partner's pay rise, a partner starting work, or a partner moving from part-time to full-time hours must be reported promptly — the change may not affect your own payslip at all, but it can still change your payment.

What counts as partner income

Partner income means gross income before tax, in the same way as your personal income test. Wages, self-employed earnings, and other assessable income all count. If your partner receives their own income support payment, the interaction is handled under the couple rules rather than by simply adding two full rates together. If your relationship status changes — you separate, your partner moves out, or a new partner moves in — that is itself a change of circumstances that must be reported within 14 days, because it can change which test applies and how your rate is calculated.

A practical checklist for couples

Before you claim, gather both partners' recent payslips, any self-employment or business income details, and asset information for both of you. During the claim, answer the partner questions with gross figures, not net pay. After you are paid, set a habit of reporting both incomes each fortnight, and tell Services Australia promptly about job changes, hour changes, or relationship changes on either side. Couples who report only their own income and forget their partner's are among the most common sources of overpayment debt.

Separation does not end the test automatically. If you separate, tell Services Australia straight away and ask to be reassessed as a single person. Until your record is updated, your payment may still be calculated on a couple basis.

Sources: Services Australia, Austudy pages (income tests for Austudy; assets test for allowances); Department of Social Services, Guide to Social Policy Law (Austudy current rates, last reviewed 2 January 2026).

General information only. This page explains Austudy in plain English. It is General information only, not legal/financial/medical advice. It cannot decide whether you qualify. Only Services Australia can decide a claim. Rules, rates, and limits change over time, so always confirm the current position with Services Australia before you act on it. Contact: hello [at] tapetoolhq.com.