From 20 February 2026, Australians receiving Centrelink income-tested payments will face a significant change in how their income is assessed. The long-standing “multiple job tests” — where income from multiple part-time or casual jobs was combined and assessed under complex rules — will be replaced by a streamlined approach intended to simplify reporting, reduce administrative burdens, and provide greater transparency for claimants. This reform marks one of the most important updates to Centrelink’s income assessment framework in recent years, affecting millions of recipients across the country.
Here’s what you need to know about the new rule, how it works, who it affects, and what steps you should take to prepare.
Why the Change Is Happening
For decades, Centrelink’s income tests have posed challenges for people juggling work across several jobs. The existing framework required complex calculations and frequent reporting, particularly when earnings changed from week to week. Many recipients faced unexpected fluctuations in their payment rates because of delayed reporting or confusion about how different jobs were treated.
The new income assessment rule is designed to:
- Simplify income reporting for individuals with multiple jobs
- Ensure assessments better reflect actual earnings patterns
- Reduce errors and overpayment risks
- Streamline Centrelink processes and administrative costs
Services Australia says this change aligns with broader efforts to modernise welfare assessments and reduce red tape for Australians on income-tested payments.
What the “Multiple Job Tests” Were
Under the previous income system, Centrelink combined incomes from all jobs held by an individual to determine their total fortnightly income. This total was then assessed against income thresholds that could affect payments such as:
- JobSeeker Payment
- Youth Allowance
- Austudy and ABSTUDY
- Parenting Payments
- Disability Support Pension (when subject to income tests)
Because different jobs paid at varying rates and may have inconsistent pay cycles, recipients often had difficulty calculating and reporting their income accurately. The system also required frequent updates via myGov or Centrelink service centres, which could result in penalties or repayment debts when assessments were incorrect.
The New Income Assessment Rule Explained
From 20 February 2026, Centrelink will adopt a single aggregated income-averaging approach across all jobs rather than a multiple separate test framework. This new rule works as follows:
1. Fortnightly Aggregated Income
All earnings from multiple jobs will still be combined, but assessed on a consistent fortnightly average basis. This means:
- Total earnings across all jobs for the fortnight are used to determine income test impact
- Fluctuations due to variable hours or pay cycles are smoothed out over the assessment period
2. Predictable Assessment Thresholds
Instead of separate tests for each job, the combined income amount will be compared against one income threshold per payment type. Payment adjustments will then be calculated based on the difference between actual fortnightly earnings and the relevant threshold.
3. Standardised Reporting Requirements
Recipients will report total earnings for the fortnight, rather than itemising each job separately. This reduces complexity and helps Centrelink process assessments faster.
Who Is Affected
The new rule affects anyone on a Centrelink payment that is subject to an income test, including but not limited to:
- JobSeeker Payment
- Parenting Payment
- Youth Allowance
- Austudy / ABSTUDY
- Some cases of the Disability Support Pension
- Other income-tested benefits
People who work a single job with consistent hours may see little practical change. However, those with multiple part-time roles, casual jobs, or varying weekly hours should benefit most from simplified reporting and fewer calculation errors.
Examples: How the New Rule Works
Case 1: Multiple Casual Jobs
Before 20 February 2026:
A claimant worked three casual roles with different pay cycles. Centrelink required separate figures for each job, often resulting in mismatches and confusion.
From 20 February 2026:
All earnings for the fortnight are combined, averaged, and assessed against the income test. Payment adjustments are calculated on this single aggregate, making the process clearer and more consistent.
Case 2: Part-Time Worker With Variable Hours
Before:
Variable hours from week to week made accurate reporting difficult and often delayed.
Now:
Fortnightly income averaging smooths out the highs and lows, reducing surprise changes to payment rates.
What You Need to Do Before 20 February 2026
Although the new assessment approach will take effect automatically, Centrelink recipients should prepare in advance:
Update Your Earnings Records
Keep clear records of all employment income — pay slips, employer statements, and any irregular payments. These records help ensure accurate reporting under the new system.
Review Your myGov and Centrelink Details
Confirm that all personal details, contact information, and linked bank accounts are up to date. Incorrect details can delay income reporting and assessments.
Learn the New Reporting Process
Familiarise yourself with how to report total fortnightly earnings under the updated rule. Services Australia will provide guidance and forms closer to implementation.
Contact Centrelink for Clarification
If you are unsure how the new rule applies to your situation, contact Services Australia well before 20 February 2026 to discuss your circumstances.
Benefits of the New Assessment Rule
The shift to aggregated fortnightly income assessment offers several advantages:
- Greater transparency — Easier to understand how income affects payments
- Reduced administrative burden — Less frequent and complicated reporting
- Fairer assessments — Income fluctuations across jobs are smoothed out
- Fewer errors and overpayment risks — Less manual calculation required by claimants
Possible Challenges and How to Manage Them
Adjusting to New Reporting Requirements
Some recipients may initially find the transition unfamiliar. Taking time to understand the reporting process and using Centrelink support services can help.
Income Variation Still Matters
While averaging reduces volatility, total earnings still affect payment rates. Jobseekers and part-time workers should plan income and work hours to maximise entitlements where appropriate.
Access Support if Needed
If verification, technology or accessibility issues arise, Services Australia offers assistance through service centres, phone support and online resources.
Final Word
The end of separate “multiple job tests” and the introduction of a single aggregated income assessment from 20 February 2026 will make a real difference for many Centrelink recipients. By simplifying income reporting and smoothing out earnings fluctuations, the new rule aims to deliver a fairer, more transparent system that reflects how modern work patterns actually operate.
Preparing ahead, updating documentation, and understanding how the new assessment works will ensure a smoother transition and reduce the risk of payment delays or errors. For millions of Australians juggling multiple jobs, this change promises a more manageable and predictable Centrelink income test experience.