This definition applies to all payments.
Employment income is income from remunerative work undertaken by the person as an employee in an employer or employee relationship. The defining aspect of this definition is the employer or employee relationship. This is the opposite concept of a person running a business, in which case, certain income and asset test concessions are available to discount their business income.
Employment income includes (but is not limited to):
Employment income DOES NOT include:
Policy reference: SS Guide 126.96.36.199 Determining the Rate of Income for Pensioners of Age Pension Age from 20/09/2009, 188.8.131.52 Income from Employment or Independent Contracting, 184.108.40.206 Employment Income for Pensioners of Age Pension Age from 20/09/2009
Employment income of a partner attributed to a person (and vice versa) in the combined income test for couples retains its employment income character in the hands of the person. This includes employment income earned by age pension age people.
Explanation: Partners of age pension age recipients may have access to working credit that allows depletion of working credit in the presence of employment income, regardless of which member of the couple undertakes the employment.
From 20 September 2009 a work bonus applies to pensioners of age pension age.
Act reference: SSAct section 8(1) Income test definitions, section 8(1A) A reference in this Act to employment income…, section 8(1B) For the avoidance of doubt, if…, section 8(1C) For the purposes of paragraph (1A)(e), a leave payment…, section 1073A Employment income attribution over..., section 1073B Daily attribution of employment income, section 1073C Fortnightly or yearly expression of attributed..., section 1073AA Work bonus
Policy reference: SS Guide 220.127.116.11 Working Credit Accrual, 18.104.22.168 Working Credit Depletion, 22.214.171.124 General Provisions for Income from Employment, 126.96.36.199 Income from Employment or Independent Contracting, 3.1.14 Work Bonus
Last reviewed: 2 August 2010