What is What is Working Credit??

Working Credit helps people on some income support payments keep more of their payment when they start earning. When your income is low, you build up Working Credit. When you later earn more, you draw on that credit so less of your income counts against your payment.

You build Working Credit in any fortnight your income from work is below a set level. The unused amount adds to your Working Credit balance, up to a maximum. When you earn more than the income free area, your stored credit is used first before the taper reduces your payment.

Working Credit is for working-age payments such as JobSeeker, Youth Allowance for job seekers, and some others. Students on Youth Allowance or Austudy get the Income Bank instead, which works in a similar way.

How it affects your payment

Working Credit makes it easier to take on casual or short-term work without losing your whole payment straight away. It smooths the change from being on payment to earning, so a burst of income in one fortnight does not cut your payment as sharply.

It affects how the income test bites for JobSeeker and Youth Allowance for job seekers. Services Australia tracks your Working Credit balance and uses it automatically when your income rises.

Example

Suppose you are on JobSeeker and have not been working, so you have built up a Working Credit balance. You then get a few weeks of casual work. Your stored Working Credit is used to offset that income first, so more of your payment is protected than if you had no credit. Once your credit runs out, the normal income test applies to any further earnings.

Related terms

• Income Bank
• Income free area
• Taper rate

Rates current as of 17 July 2026. Source: DSS / Services Australia. Last checked 17 July 2026.