ERA Means Test
3. ERA Means Test
- 3.1. Applicants receiving Centrelink
- 3.2. All other applicants
- 3.2.1. Income Test
- 3.2.2. Assets Test
- 3.3. Evidence of means
- 3.4. Household types
3.1 Applicants receiving Centrelink
An applicant receiving a Centrelink income support payment satisfies the ERA Means Test.
| Eligible income support payments | |
|---|---|
| Abstudy | Parenting Payment |
| Age Pension (including DVA Age Pensions) | Partner Allowance |
| Austudy | Sickness Allowance |
| Carer Payment | Special Benefit |
| Disability Support Pension | Widow Allowance |
| Farm Household Allowance | Wife Pension |
| JobSeeker Allowance | Youth Allowance |
3.2 All other applicants
The Means Test consists of two parts:
- Income Test
- Assets Test
In order to satisfy the Means Test, an applicant must satisfy both the Income Test and the Assets Test.
3.2.1 Income Test
An applicant satisfies the Income Test if their gross income is less than the eligible income limit for their household type. The eligible income limits for each household type are set out in the table below.
| Household type | Eligible Income Limit (Gross) | |
|---|---|---|
| Weekly | Annual | |
| Single person household | $1,157 | $61,700 |
| Couple only household | $1,365 | $71,000 |
| Single person with children | $1,757 | $91,360 |
| Couple with children | $1,980 | $102,890 |
If the applicant’s household is a ‘couple only’ or ‘couple with children’ household, the Income Test is applied to the income of the couple.
Income includes all money received on a regular basis including:
- salary and wages
- business income
- money received from investments
- child support
- Centrelink payments (such as Family Tax Benefit, Rent Assistance).
The only income not included is set out below.
| Excluded Centrelink allowances |
|---|
| Carer Allowance |
| Mobility Allowance |
| Double Orphan Pension |
| Assistance for Isolated Children Scheme payments |
3.2.2 Assets Test
An applicant satisfies the Assets Test if their cash assets are less than $10,000. Cash assets include all assets listed in the table below.
| Cash Assets |
|---|
| Bank, building society and credit union accounts |
| Cash |
| Term deposits |
| Managed funds |
Cash assets not included are:
| Excluded Cash Assets |
|---|
Victims compensation, recognition, redress and reparation payments (see Means Test Guideline 4.3.1 for list of schemes) |
| Insurance payments linked to flooding and/or fire |
| Any cash not available to the applicant, such as moneys in a trust account pending a final property settlement. |
If the applicant’s household is a ‘couple only’ or ‘couple with children’ household, the Assets Test is applied to the assets of the couple.
3.3 Evidence of means
Applicants must verify their means for ERA. Lawyers must retain copies of their client’s financial verification on the client's file. Legal Aid NSW requires the following forms of evidence of means:
| Applicants receiving Centrelink/DVA income support payments | All other applicants* |
|---|---|
|
|
* If the applicant’s household is a ‘couple only’ or ‘couple with children’ household, the applicant must provide evidence of the means of the couple.
Note: Lawyers must retain copies of their client’s financial verification on the client's file.
3.4. Household types
An applicant’s ‘household’ includes all people living together with the applicant as a family.
A person lives with the applicant if that person spends at least five nights a fortnight with the applicant.
A ‘couple household’ is a household which includes two adults who are married or in a de facto relationship.
Date last published: 01 May 2023