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Income Test

One element of the means test for income support pensions whereby the rate of pension payable to a pensioner reduces progressively as their income increases above a certain threshold known as the income free area (IFA).



Means testing is application of the income test and the assets test to determine a person's rate of pension.  The rate that is payable to a person is the lesser of the rates determined under each test.  All income support pensions paid by DVA are means tested.



The income free area is the amount of income that an income support pensioner may receive without suffering any reduction in pension under the income test.

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