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Means Test A - Assessing the applicant's net income
Assessable income - what is included?
Income from all sources is included in the assessment, including, but not limited to, the following:
- pensions, benefits and allowances
- income from paid work, including overtime
- periodic receipts of a capital nature including payments from investments, interest earned and payment of debts owed to the applicant
- board or rent received
- maintenance received
- workers' compensation or other insurance payments
- superannuation.
Income is calculated net of business overheads/expenses reasonably incurred in or for the purposes of gaining or producing that income.
NOTE: Such overheads/expenses will not be considered reasonably incurred merely because they have been, or are likely to be allowed or allowable deductions by the Commissioner of Taxation for the purposes of the Income Tax Assessment Act 1936.
Exemptions from income
The only exemptions from income are:
- Family Payment including any Guardian Allowance
- Child Disability Allowance
- Rent Assistance
How to calculate net assessable income
The means test guidelines on income are applied to the applicant's net assessable income.
Net assessable income is the applicant's weekly assessable income, less:
- income tax (including the Medicare levy)
- housing costs to a ceiling of $230 per week, for applicants residing in Sydney, and $175 per week for other applicants.
An applicant is a Sydney resident for the purposes of the means test if he or she lives in the area bounded by Cowan in the north; Richmond in the north-west; Emu Plains in the west, Menangle Park in the south-west and Waterfall in the south. This area is covered by the following postcodes:
- 2000-2249, 2555-2567, 2740-2753, 2759-2770
Housing costs include amounts paid for any style of housing as a place of residence on a regular basis and include rent, half board, mortagage instalments and municipal and water rates.
- child care costs necessarily incurred to work or study to a ceiling of $110 per week
- dependant allowance
(i) a dependant allowance is to be deducted for:
- each financially associated person whose income is included in assessable income whether or not that person is actually dependant on the applicant
- for all genuine dependants whether or not they reside with the applicant (except dependant children who do not reside with the applicant)
(ii) The amount to be deducted is $60 per week per dependant.
- maintenance payments made for children who do not reside with the applicant up to a ceiling of $60 per week per dependant
Income Guidelines
Applicants with a net assessable income
- of $190 or less are, subject to eligibility under the assets guidelines, eligible for legal aid and pay a contribution based on their income as set out in the table below.
- greater than $190 are only eligible for legal aid in exceptional circumstances (e.g. test cases).
Contributions on net assessable income
| (i) Civil, Administrative and Family Law matters | (ii) Criminal and Indictable matters and Criminal Appeals |
| Net assessable income | Contributions | Net assessable income | Contributions |
$128 or less
$129 - $140
$141 - $153
$154 - $165
$166 - $178
$179 - $190 | $40
$115
$190
$265
$340
$415 | $128 or less
$129 - $140
$141 - $153
$154 - $165
$166 - $178
$179 - $190 | $75
$150
$225
$300
$375
$450 |
Legal Aid available only in exceptional circumstances see Income guidelines above | Legal Aid available only in exceptional circumstances see Income guidelines above |
$191 - $203
$204 - $215
$216 - $228
$229 - $240 | $530
$685
$880
$1,115 | $191 - $203
$204 - $215
$216 - $228
$229 - $240 | $565
$720
$915
$1,150 |
plus $300 for every $10 of net assessable income in excess of $240. |
(iii) Additional contribution - criminal all grounds/appeals/criminal defended hearings |
In addition to the contribution assessed in (ii) a further $75 is payable for criminal:
- all grounds appeals
- defended hearings
The additional contribution is to be levied when:
- the application is determined, or
- as soon as it is apparent that
- an appeal is an all grounds appeal, or
- a matter will be the subject of a defended hearing.
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Total contribution
(i) The total contribution to be levied under the means test guidelines is the sum of the contributions levied on income and assets
(ii) If the total contribution exceeds the estimated cost of the proceedings, the applicant is ineligible for aid.
Exemption from contributions
Some matters are exempt from contributions. See Matters Exempt from Contribution. |
