Post by bear on May 12, 2022 8:25:19 GMT 7
Centrelink's partner income test is leaving some lower-income couples feeling they'd be better off apart
When Meg Honner and Andy McIntyre got together in 2019, it was almost like a return to the past.
Some people need to tell Centrelink via a form whether they're having sex to help determine whether they're part of a couple.(Screenshot)
In some cases, lengthy questionnaires need to be filled out to help the government decide whether an applicant is part of a couple.
Some questions include whether the two people live together, share household chores and have joint assets — though others, such as one asking whether the pair is having sex, have been described by welfare advocates as invasive.
The thresholds at which Centrelink supports are tapered or cut varies by payment and situation.
For those on the DSP, once a couple’s combined income hits $320 per fortnight, the payment decreases by 50 cents for every subsequent dollar.
Once the combined income for a couple aged 21 or over living together reaches $3,297.60 per fortnight, the DSP is cut off entirely.
"Income tests are generally about making sure that payments [are] targeted at those that most need them," Grattan Institute economic policy program director Brendan Coates said.
But partner income tests, he said, can “erode the functions” of Centrelink payments in insuring people from unexpected things like losing a job or acquiring a disability.
'It doesn't reflect how people live their lives'
Welfare advocates say the partner income test is too rigid and based on an outdated view of relationships.
"The idea that sits behind this 'couple rule' is that the cost of living is lower if you're partnered and you're pooling your resources," Economic Justice Australia chief executive Leanne Ho said.
"But when you look at modern relationships, that just doesn't reflect how people live their lives.
"It makes people financially dependent much earlier than they would otherwise have chosen to be.”
The partner income cut-off threshold for JobSeeker was briefly raised in the early days of the pandemic, ensuring thousands more Australians could access the payment, before it reverted back at the same time the coronavirus supplement was scrapped at the end of March 2021.
"[They should] individualise people a bit more … just have it that there is an option there for people not to feel so disheartened," he said.
When Meg Honner and Andy McIntyre got together in 2019, it was almost like a return to the past.
Key points:
When people in relationships apply for welfare payments, their partner’s income is also assessed as part of their eligibility
There is concern the assessment, known as the partner income test, is too rigid
The Coalition says means testing is central to Australia's income support system
Decades earlier they had grown up in the same circles in Maitland, about two hours west of Adelaide on South Australia's Yorke Peninsula. After years of living in the city, they decided to return to Maitland in early 2020, just before the beginning of the COVID pandemic.
The timing could not have been worse.
"It was tough," Meg said.
"Because of the pandemic, we didn't know where income was coming from."
Meg's work dried up, but for Andy, the situation was a little more complicated.
A decade's worth of health complications after a heart operation had left Andy unable to work.
After more than a year of bureaucratic wrangling, Andy was accepted onto the Disability Support Pension (DSP) in 2013.
But it was terminated last year after Andy told Centrelink he had been in a relationship with Meg — her income as a freelance art director had put them just over the fortnightly income cut-off.
"It was about $400 over the cap [of $3,297.60 per fortnight] … and they were pretty adamant that was the end of Andy's DSP," Meg said.
Because Andy did not inform Centrelink about Meg as they began their relationship, he was hit with debts for overpayment dating back to early 2020.
From June 2020 to July 2021 — when the impact of the COVID pandemic hit many industries — Meg earned about $22,000, and the couple had to take out personal loans to pay the bills.
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While today Meg's income has recovered — ensuring she earns too much for Andy to reapply for the DSP — she is still struggling to pay off the loans and is "robbing Peter to pay Paul every fortnight".
Andy also takes numerous medications to treat his disabilities and conditions that cost at least $500 a month.
For Andy, the loss of the DSP was devastating, and it has left him entirely financially reliant on Meg.
"When I was on disability income, you felt like you had [your] independence. You could help with the groceries for the week, or you could help with something," he said.
$250 cost-of-living payment is 'not going to do anything'
The federal budget included a one-off $250 cost-of-living bonus, but there were widely held concerns it wouldn’t go far for those on low incomes.
"As soon as that was gone, you felt useless."
Andy said he and Meg would be "better off apart".
"I would get my disability [pension], Meg would get her wage, and she wouldn’t have so much debt." he said.
"I could do that tomorrow," Meg said.
"Move back to Adelaide and say we've broken up — and Andy would definitely be better off.
"But of course we want to be together, so it's not an option."
What is the partner income test?
When Australians claim income support, they’re asked to provide the government with their relationship status.
If they are part of a couple, their partner's income is also assessed, affecting their access to payments and how much they can get.
It is a way of making sure the most financially vulnerable Australians can still access welfare while also ensuring fair and equitable use of taxpayer dollars.
If a recipient's relationship status changes, it needs to be relayed to the government within a fortnight of the relationship starting or debts, like those incurred by Andy, can be issued for overpayment.
A Centrelink form with various questions, including one asking two people whether they're having sex (in link)
Some people need to tell Centrelink via a form whether they're having sex to help determine whether they're part of a couple.(Screenshot)
In some cases, lengthy questionnaires need to be filled out to help the government decide whether an applicant is part of a couple.
Some questions include whether the two people live together, share household chores and have joint assets — though others, such as one asking whether the pair is having sex, have been described by welfare advocates as invasive.
The thresholds at which Centrelink supports are tapered or cut varies by payment and situation.
For those on the DSP, once a couple’s combined income hits $320 per fortnight, the payment decreases by 50 cents for every subsequent dollar.
Once the combined income for a couple aged 21 or over living together reaches $3,297.60 per fortnight, the DSP is cut off entirely.
"Income tests are generally about making sure that payments [are] targeted at those that most need them," Grattan Institute economic policy program director Brendan Coates said.
But partner income tests, he said, can “erode the functions” of Centrelink payments in insuring people from unexpected things like losing a job or acquiring a disability.
'It doesn't reflect how people live their lives'
Welfare advocates say the partner income test is too rigid and based on an outdated view of relationships.
"The idea that sits behind this 'couple rule' is that the cost of living is lower if you're partnered and you're pooling your resources," Economic Justice Australia chief executive Leanne Ho said.
"But when you look at modern relationships, that just doesn't reflect how people live their lives.
"It makes people financially dependent much earlier than they would otherwise have chosen to be.”
The partner income cut-off threshold for JobSeeker was briefly raised in the early days of the pandemic, ensuring thousands more Australians could access the payment, before it reverted back at the same time the coronavirus supplement was scrapped at the end of March 2021.
"[They should] individualise people a bit more … just have it that there is an option there for people not to feel so disheartened," he said.
Most of all, they think doing the right thing – telling Centrelink they were a couple – has left them worse off.
"I feel like Centrelink look at everyone as though they're lying to them," Meg said.
"We were being honest about our situation, but there was no regard for us in any of their system."
www.abc.net.au/news/2022-05-11/centrelink-partner-test-better-off-apart/101049134
www.abc.net.au/news/2022-05-11/centrelink-partner-test-better-off-apart/101049134