How much can I earn before it affects my single-parent pension? 

Different rules apply depending on your circumstances. For instance, your Parenting Payment won’t be affected if you earn less than $202.60 per fortnight and have one child, but those who make more than that will receive a reduced rate. 

Let’s take a closer look at the Parenting Payments thresholds and how Centrelink calculates the amount you receive.

What Is the Parenting Payment?

The Parenting payment is an income support payment issued by the government and is given to eligible parents to cover the cost of raising children. It is primarily designed as a financial support system to help families with low income. 

Single parents and couples may be eligible for a Parenting Payment, with single parents usually being entitled to a higher amount, although this depends on your personal circumstances. 

Who can get the Parenting Payment in Australia?

Only one parent or guardian can claim the Parenting Payment, i.e. the primary carer of the child. Being the principal carer means you carry out most of the daily responsibilities surrounding the care, development and welfare of the child. For couples who share responsibilities, a principal carer should be nominated. 

Other conditions include:

How much is the single-parent pension?

The amount you get varies according to your circumstances and your eligibility under the income and assets tests. 

  • The child must be under eight years old if you are a single parent or younger than six years if you have a partner; You must meet residence rules, i.e. be an Australian resident and be in the country on the day you claim the payment;You cannot claim the payment before the birth of the child—the claim must be submitted no longer than 4 weeks after the birth or the date when the child has come into your care;You have to meet the assets and Parenting Payment income test.

Did you know that 87% of child support recipients in Australia are single mothers?

One-parent families receive $915.40 a fortnight, including a pension supplement of $26.20, the latest figures from September 2022 show. 

Couples get $608.70 if they are together, while those who are separated due to illness, prison or respite care receive $718.60 from the government every two weeks.

Bear in mind that these numbers are to be used as a guide only.  You could be entitled to less or more than this depending on your situation and circumstances. 

Note: Parenting payments are a taxable Centrelink payment, although you can claim a tax deduction to offset some of the cost.

How Much Can I Earn Before It Affects My Single-Parent Pension?

To get the Parenting Payment in full, your gross income needs to be within certain limits, defined by how many children you have. 

Related reading:

  • How to save on taxWhat is the difference between a tax offset and tax deduction

The current income thresholds for single parents are:

Single parents earning over the threshold can claim a partial payment. In other words, if you make more, your single-parent payment from Centrelink will be reduced by 40 cents for every dollar of income you earn over the limit. 

  • One child: $202.60 per fortnight,Two children: $227.20 per fortnight,Three children: $251.80 per fortnight, andMore than three children: $251.80 plus $24.60 for every child.

Recipients of the Age Pension may have different income limits. For instance, your pension will not reduce if you get up to $190 in income (plus $24.60 for each dependent child) every fortnight. However, your Age pension will reduce by 50 cents for every extra dollar of income over the $190 limit. 

How much can I earn on single parenting payment?

The current cut-off is $2,536.60 a fortnight. Single parents who earn more than this amount will not be able to claim the Parenting Payment. 

Centrelink typically uses the gross amount you earn (before taxes and deductions), but should you get income from a business or real estate, they will use the net amount. 

Note: Different rules apply to couples. You can find more information here. 

The value of your assets also influences your eligibility.  

The assets test takes into account all assets you partly or fully own (home or overseas), such as investments, vehicles, personal possessions, real estate, superannuation pension, income streams, companies and trusts you have ownership of. Centrelink also considers items and property you have an interest in and debts owed to you.

The current cut-off limit is $280,000 if you own a home and $504,500 if you don’t. If your assets are worth more than that, your Parenting Payment will be cancelled. 

What else does the Parenting Payment involve?

Bear in mind that once you start receiving the Parenting Payment you will be required to: 

You may also be required to meet either mutual obligation requirements or participation requirements.

  • Inform Centrelink about any changes in your circumstances. This should be done before the next payment is issued;Report your income, even if you don’t have any. You can report your income through your myGov account, the Express Plus Centrelink mobile app or by calling 133 276 (13 EARN);  Those who claim Family Tax Benefit or Child Care Subsidy might need to update their family income estimate.

These requirements refer to tasks you need to do once your youngest child turns 6 and include looking for work and accepting suitable paid job offers, among other obligations. You can find all the details in your Job Plan. 

Compulsory ParentsNext participants do not have to look for work, but they may need to have meetings with the ParentsNext provider or take part in certain activities. 

If you cannot meet these requirements, you must apply for an exemption, otherwise, you may face penalties and demerits. You need to notify Centrelink whether you are meeting your mutual obligation requirements when you report your income. 

Note: At the moment, mutual obligation and participation requirements are paused for residents of flood-affected areas of New South Wales, Victoria and Tasmania.

What Am I Entitled to as a Single Parent in Australia?

Single parents eligible for the Parenting Payment will also get the Energy Supplement, to help with rising electricity bills.

Other benefits you may be eligible for include:

  • Rent Assistance—you do not need to claim for Rent Assistance as Centrelink will determine your eligibility when you apply for the Parenting Payment;The Pensioner Education Supplement, helping with study costs;Education Entry Payment, an annual payment when you start studies; Telephone Allowance (if you are under the Age Pension age)—a quarterly payment created to help cover telephone and internet costs;Pharmaceutical Allowance (if you are under the Age Pension age) to help with the cost of medicine.

Single-parent families may also be eligible for the Family Tax Benefit. 

As many as 32.1% of all single-parent families with young children are unemployed!

This is a two-part payment created to cover some of the cost of raising kids. Part A targets all families, whereas Part B is designed for single parents/carers or couples with just one main income. 

To qualify for Family Tax Benefit A, you need to be responsible for a dependent child or a full-time secondary student (between 16 and 19 years of age) who is not claiming Youth Allowance, a pension or other government benefits.  

To be eligible for Family Tax Benefit B, you must be a single parent or carer of a dependant under 18 (who must also meet  study requirements if they are between 16 and 18). You could also be part of a couple with one income and responsible for a dependant under 13.

Other criteria apply as well as income and asset tests to determine the amount payable. Contact Services Australia for more information. 

Note: There are other payments you can claim as a single parent. It is best to contact Centrelink directly or use their payments and services finder and inquire about what kind of financial support system is available in your state or territory. 

If you earn less than $2,536 you can continue getting the Parenting Payment, although the rate might be reduced depending on your gross income and how many children you have.

Keep in mind that once approved for the payment you will have to notify Centrelink of any changes to your income.

These rules can be hard to navigate, so if you change jobs, lose your position or get promoted, contact Centrelink to find out how the change in income will affect your payments.

Recipients of the Parenting Payment can work for at least 30 hours a fortnight. This includes self-employment and approved voluntary work, but casual work may not count. 

A single mother can get $915.40 a fortnight from Centrelink, which includes a pension supplement of $26.20. Members of a couple get less than that, or $608.70 per fortnight. 

3. How much can I earn before it affects my single-parent pension in Australia?

Your Parenting Payment will be reduced by 40 cents for every dollar if your fortnightly income exceeds $202.60 and you have one child (the threshold increases by $24.60 for every other child).