Changes to the definition of income
1 July 2009
From 1 July 2009 there are changes to how income is defined for family assistance
The amount of family assistance you receive depends in part on your income. Changes to how the Family Assistance Office defines income may affect the way your family assistance is calculated.
It is important to remember that what the Family Assistance Office defines as assessable income is not always the same as what the Australian Tax Office defines as taxable income.
Income is any money, profits or valuable consideration you may earn, derive or receive over a financial year. This may include goods, services or some other benefits that you receive in exchange for an item, action or promise.
From 1 July 2009, assessable income for family assistance purposes also includes:
- Reportable Superannuation Contributions; and
- Total net investment loss (losses from rental property and/or financial investment losses).
If you have any Reportable Superannuation Contributions or net losses from rental property or investment income you must declare this income to the Family Assistance Office as part of your income estimate.
If you receive an income support payment you may also be affected by these changes. Please contact Centrelink if this applies to you.
Reportable Superannuation Contributions
The Family Assistance Office will include any Reportable Superannuation Contributions as income for family assistance purposes.
Reportable Superannuation Contributions include discretionary contributions and can also be referred to as concessional or before-tax contributions. Examples of these include:
- Voluntary salary sacrificed contributions, made by you or on your behalf by your employer. These contributions are above those required by law such as an industrial award or the Superannuation Guarantee.
- Total superannuation contributions made by you as a self-employed person, for which you can claim a tax deduction.
Total Net Investment Loss
The Family Assistance Office already includes net losses from rental properties as income. It also includes net losses from financial investments. Together, net losses from rental properties and net losses from investments are known as total net investment losses.
If you expect to make a loss from rental property income, investment income or both, you need to give the Family Assistance Office details of the total amount of losses for financial investments. It is important you only record losses from investment earnings, not capital losses.
If you have net investment losses, you must declare this income to the Family Assistance Office as part of your income estimate.
More information
If you are unsure if any of these changes apply to you, you should contact your accountant, financial advisor or the Australian Tax Office. You can also contact Centrelink’s Financial Information Service for information about financial matters on 13 2300.
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