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6.5.4 Business income

Note: Amendments to this section will be considered to reflect any changes arising from the review of DVA's earnings policy.

6.5.4.1Income from property - rental income (full time)

  • Commencement date – prior to 13 July 1999, date of effect is the day after rental commenced; from 13 July 1999, date of effect is the day rental commenced or the day after the end of the notification period as applicable.
  • Variation dates - use the financial year – i.e. from July to June - as the variation dates during the overpayment period. If the pensioner lodges formal estimates of gross income and expenses for shorter periods, the appropriate payday following lodgement (or day of lodgement, from 13 July 1999) of the estimate should be used.
  • Income - using tax returns and Notice of Assessment, annual net income is converted to a fortnightly amount (total amount divided by 26), and held in the assessment of income support pension for the next financial year.

6.5.4.2Income from property - rental income (part time)

  • Commencement date – prior to 13 July 1999, date of effect is the day after rental commenced; from 13 July 1999, date of effect is the day rental commenced or the day after the end of the notification period as applicable.
  • Variation dates - use the financial year – i.e. from July to June - as variation dates during the overpayment period. If the pensioner lodges formal estimates of gross income and expenses for shorter periods, the appropriate payday following lodgement (or day of lodgement, from 13 July 1999) of the estimate should be used.
  • Income - using tax returns and Notice of Assessment, annual net income is converted to a fortnightly amount (total amount divided by 26), and held in the assessment of income support pension for the next financial year. If rental is seasonal, for example a Ski Lodge which is rented for a specific period total net rent received for the period is averaged out over the period of rental, and held in the re-assessment of the income support pension for that period.

Example

  •       a ski lodge is rented for 2 months (4 pays) at a gross rental of $3,000
  •       net rental after expenses totals $2,000
  •       this is averaged out over period of rental – i.e. $2,000 divided by 4 pays equals $500 per fortnight
  •       $500 per fortnight is held in the re-assessment of service pension for the duration of the rental period.

6.5.4.3Private company/private trust

  • Cases identified relating to private companies or private trusts should be immediately forwarded to the Trusts and Companies Team, Income Support Branch, National Office. If a claimant is involved in a private trust or company then the claim is processed by the Trusts and Companies Review Team. For filing a claim refer to P2/C1/S4 of the CLIK Procedure Library – Where the Claim Form Goes.