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Partnered ISS Assessments with Employment Income

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Last amended: July 2019

What is the issue with partnered ISS assessments

Because the personal details of the partner of a war widow/er with ISS cannot be recorded in the war widow/er's ISS assessment, the Work Bonus may not be applied correctly where the partner of a war widow/er has employment and/or gainful work income and the income is recorded in the PIPS Earnings screen. Information regarding the correct owner of employment and/or gainful work income and the date of birth of the partner is not available for assessment processes to check eligibility for the Work Bonus.

When is the partner of an ISS recipient eligible for the Work Bonus

The following outlines eligibility for the Work Bonus in regard to the employment and/or gainful work income of the partner of a war widow/er receiving ISS.

If the partner of an ISS recipient with the employment and/or gainful work income:

  • does not receive SP, ISS or Centrelink payment – no work bonus applies;
  • receives SP or ISS – the Work Bonus applies if the partner is qualifying age (veteran pension age);
  • receives Centrelink payment – the Work Bonus applies if the partner is Social Security age pension age.
Recording employment income in ISS partnered assessments

Special care must be taken with partnered ISS assessments which involve employment and/or gainful work income to ensure that the income is not recorded in a way that will incorrectly apply, or fail to apply, the Work Bonus. The following procedures apply when recording employment and/or gainful work income in partnered ISS assessments:

 

1. If the recipient of the employment and/or gainful work income is the war widow/er :

  • Employment income and/or gainful work should be recorded in the Earnings screen

 

2. If the recipient of the employment and/or gainful work income is the partner of the war widow/er :

  • Employment and/or gainful work income should be recorded in the Other Direct Income screen

Note: Prior to the introduction of the Work Bonus Bank, employment income of the partner of an ISS recipient could be recorded on the Earnings screen in cases where both the ISS recipient and their partner qualified for the Work Bonus and only the partner had employment income. Following the introduction of the Work Bonus Bank only employment and/or gainful work income of the ISS recipient can be recorded in the Earnings screen to ensure that the ISS recipient's Work Bonus Bank is correctly calculated.

If the partner of the ISS recipient is eligible for the Work Bonus:

  • The fortnightly Work Bonus income concession must be manually calculated and applied manually to the employment and/or gainful work income recorded in Other Direct Income screen, i.e. the net employment and/or gainful work income after application of the Work Bonus income concession must be recorded
  • A record of the partner's Work Bonus Bank must be kept manually.
  • Any applicable depletion from the Work Bonus Bank must also be applied manually to the partner's employment and/or gainful work income in the Other Direct Income screen.

 

Format for recording employment income in partnered ISS assessments

Employment and/or gainful work income for partners of ISS recipients should be recorded in the PIPS Other Direct Income screen. Record in the following format, indicating that this is employment and/or gainful work income or that the Work Bonus is applied.

Examples

  • Myer (Mr C D Smith – Employment)
  • Dept of Education (Mr A E Jones – Work Bonus)
  • Sole Trader (Mr X Y Smyth)
  • Business Pty Ltd (Mr A B Johnson - Work Bonus)

Where employment and/or gainful work income of the ISS recipient is recorded in the Earnings screen, it should be made clear that the ISS recipient is the Owner.

Examples

  • David Jones (Mrs I E Smith)
  • Dept of Education (Mrs D C Jones)
  • Sole Trader (Ms E G Smyth)
  • Business Pty Ltd (Mrs C D Johnson - Work Bonus)
Partnered ISS assessments and the Work Bonus Bank

Manual record of Work Bonus Bank

It is important to remember when dealing with the employment and/or gainful work income of partners of ISS recipients that the Work Bonus Bank may apply. The Work Bonus Bank will not automatically be calculated or applied to the assessment of employment and/or gainful work income in these cases. In all cases where a partner of an ISS recipient has employment and/or gainful work income, and is eligible for the Work Bonus, their Work Bonus Bank will need to be maintained manually.

Employment and/or gainful work income under $300.00 per fortnight

Where the employment and/or gainful work income of the partner of an ISS recipient who is eligible for the Work Bonus is under $300.00 per fortnight, a record of accrual to the Work Bonus Bank must be maintained.

Employment and/or gainful work income increasing to over $300.00 per fortnight

Where employment and/ or gainful work income of the partner of an ISS recipient who is eligible for the Work Bonus increases to over $300.00 per fortnight, their Work Bonus Bank Balance will need to be calculated based on previous accrual and depletion of the Bank from the time of the commencement or increase in employment and/or gainful work income.

If the partner is entitled to disregarding of employment and/or gainful work income over $300.00 per fortnight because of their Work Bonus Bank Balance, the adjustment to employment and/or gainful work income must be applied manually and the depletion to the Work Bonus Bank Balance calculated manually.

Employment and/or gainful work income commences at over $300.00 per fortnight

Where the partner of an ISS recipient commences to receive employment and/or gainful work income at over $300.00 per fortnight, whether the partner has accrued a Work Bonus Bank Balance prior to commencing employment and/or gainful work must be considered. The Work Bonus Bank Balance due to previous accrual will need to be manually calculated.

If the partner is entitled to disregarding of employment and/or gainful work income over $300.00 per fortnight because of their Work Bonus Bank Balance, the adjustment to employment and/or gainful work income must be applied manually and the depletion of the Work Bonus Bank calculated manually.

Partnered ISS assessments – maintaining the Work Bonus Bank

A spreadsheet has been created titled “Work Bonus Bank Calculator” that should be used to keep a record of the Work Bonus Bank for partners of ISS recipients.    

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It will only be necessary to create a manual spreadsheet record of the Work Bonus Bank for ISS partners where the partner is eligible for the Work Bonus and has employment and/or gainful work income. When an ISS partner who is eligible for the Work Bonus (i.e. paid a pension by Centrelink and over Social Security pension age) commences employment after 28 June 2011 (or gainful work after 18 June 2019), their Work Bonus Bank Balance will need to be kept calculated up to the commencement of earnings and ongoing record kept.

The manual Work Bonus Bank spreadsheet must be updated every time the rate of employment and/or gainful work income changes, as this may affect the rate of accrual or depletion in the Work Bonus Bank.

Where the ISS partner is paid service pension or age pension by DVA, a correct record of the partner's Work Bonus Bank will be maintained by DVA systems under the person's own file number.

For all ISS partners, as the employment and/or gainful work income must be recorded in the Other Direct Income screen in PIPS, the effect of the fortnightly Work Bonus discount and any depletion from the Work Bonus Bank must be manually calculated and applied to the rate of income assessed.