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6.5.6 Earnings policy prior to 13 July 1999

6.5.6.1There are many different types of earnings listed below. The information provided in the categories of commencement dates, variation dates and income were applicable prior to 13 July 1999. This information is also contained in DI B45/95.

Note:For information on how to treat earnings from 13 July 1999, please refer to DI C19/2004.

6.5.6.2Full time employment

  • Commencement date - from the day after earnings commenced, or the payday in which an earnings credit was exhausted if prior to 20 March 1997.
  • Variation dates - payday after date salary varied, or financial years if using ITRs.
  • Income - fortnightly rate is calculated based on actual earnings received as per payslips or ITRs. If using ITRs convert the annual amount to a fortnightly amount (divide total by 26).

6.5.6.3Part time employment

  • Commencement date - from the day after earnings commenced (or the payday in which an earnings credit was exhausted if prior to 20 March 1997).
  • Variation dates - payday after date salary varied, or financial years if using ITRs.
  • Income - fortnightly rate is calculated based on actual earnings received as per payslips or ITRs. If using ITRs convert the annual amount to a fortnightly amount (divide total by 26). The rules governing full time employment would also apply to part time employment.

6.5.6.4Casual employment (regular)

  • Commencement date - day after employment commenced.
  • Variation dates - in the first year payday after expiry of a 3 monthly period. Thereafter annually (i.e. the payday after anniversary of commencement) or, financial years if using ITRs.
  • Income - average earnings by dividing the total amount earned in the period by the number of fortnights in that period.

6.5.6.5Casual employment (regular - with breaks)

  • Commencement date - from the day after employment commencement (or on the payday in which an earnings credit was exhausted if prior to 20 March 1997).
  • Variation dates - the financial year (if using ITRs) or every 12 months on the anniversary of commencement.
  • Income - total amount earned in the previous 12 months are averaged out over 26 fortnights and held for the next 12 months.

6.5.6.6Casual employment (irregular)

  • Commencement date - the day after employment commenced.
  • Variation date - the financial year (if using ITRs) or every 12 months on the anniversary of commencement.
  • Income - actual amount earned is averaged out over period of employment. Where the period of employment is less than twelve months, average earnings over the whole period. However, where the period of employment is greater than twelve months, average earnings for each twelve monthly period, from date earnings commenced.

Example

  •       date of commencement 1 January 1993, therefore the amount earned in the period 1 January 1993 to 31 December 1993 is converted to a fortnightly amount and held in the re-assessment
  •       the new amount earned between 1 January 1994 and 31 December 1994 is converted to a fortnightly rate and held for that period etc.

6.5.6.7Contract workers

  • Commencement date - the day after the date of the contract.
  • Variation dates - nil.
  • Income - the amount of the contract is held for the period of the contract and converted to a fortnightly rate using the following formula ? total amount of contract divided by number of fortnights in the period of the contract.

6.5.6.8Self employed - drawing salary

  • Commencement date - the day after salary commenced to be drawn, (or on the payday in which an earnings credit was exhausted if prior to 20 March 1997).
  • Variation dates - the financial year as the effective date in the calculations (i.e. at the same time as business income).
  • Income - salary would be treated in the same manner as other full time regular earnings – i.e. fortnightly amount held on an ongoing basis. Total amount earned in the previous financial year converted to a fortnightly amount and held for the next 12 months period.

Note:For full details on the calculation of income from earnings prior to 13 July 1999 refer to DI B45/95 Calculation of Income.