Low Income Health Care Card (LIC) income test 101-06040030
Expand allCoding employment income for LIC claims
Table 1: This table describes examples of coding employment income and the provisions in backdating a claim.
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Example |
Details |
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1 |
New claim submitted on or after 7 December 2020 with income assessment period on or after 7 December 2020 Charlie submits a LIC new claim on 1 February 2021 advising income from employment at Big Jim with $491.00 paid every fortnight for the 8 week assessment period. Charlie is paid each second Thursday and provides payslips with the date paid for each week with a total income amount of $1,964.00. Code the Employment Income Paid Details (EAPP) screen as follows:
Code an assessment line for each paid date in the assessment period. Period 1
Period 2
Period 3
Period 4
Period 5 (not to be coded as not paid in income assessment period)
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2 |
New claim with employment income previously coded with income support payments Liam claims LIC on 11 February 2021. Liam's Income Support Payment cancelled 21 January 2021. The 8 week LIC assessment period 18 December 2020 - 11 February 2021 includes 5 weeks income support payment from 18 December 2020 to cancellation date 21 January 2021 incl. Liam declares employment income from Harry's Cafe for the 8 week assessment period as $250.00 per week. EAPP screen shows fortnightly employment income of $500.00 with frequency of 2we when Liam was receiving an income support payment. Employment income from the LIC claim shows on the EAPP screen as provisional with 8 separate weeks and frequency 1we. Code the Employment Income Paid Details (EAPP) screen as follows: Employer: Harry's Cafe (EAPP ISP)
Employer: Harry's Cafe (EAPP LIC claim remainder of 8 week Assessment) Period 1
Period 2
Period 3
Period 4 (not needed as not paid in period)
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3 |
New claim with employment income coded with a current income support payment Bob claims LIC on 11 February 2023. Bob is current on an income support payment that requires them to report their earnings fortnightly. The 8 week LIC assessment period 18 December 2022 - 11 February 2023. Bob declares employment income from Sally’s Hair Chop for the 8 week assessment period as $250.00 per week. EAPP screen shows fortnightly employment income of $500.00 with frequency of 2we. Employment income from the LIC claim shows on the EAPP screen as provisional with 8 separate weeks and frequency 1we. Updates will only need to be made to the EAPP screen if new claim employment income data differs from the income previously coded with income support payment. Amend the EAPP screen as follows: Employer: Sally’s Hair Chop (EAPP ISP)
Employer: Sally’s Hair Chop (EAPP LIC claim remainder of 8 week Assessment) Period 1
Period 2
Period 3
Period 4
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4 |
New claim submitted on or after 7 December 2020 with income assessment period pre and post 7 December 2020 Anne submits a LIC new claim on 12 January 2021 advising income from employment at Little Johnny with $310.00 paid every fortnight for the 8 week assessment period. Anne is paid on a Tuesday and provides payslips with the date paid for each fortnight with a total income amount of $1,240.00. Code employment income paid pre 7 December 2020 on the Earnings (EANS) screen as follows: Employer: Little Johnny
Code employment income paid on or after 7 December 2020 on the Employment income Paid Period (EAPP) screen as follows: Employer: Little Johnny Period 1
Period 2
Period 3
Period 4 (not needed as not paid in period)
A calculation will show in view mode only on the Earnings (EANS) screen with Channel Code CAL for any income coded pre 7 December 2020. |
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5 |
Backdating a claim (employment income and financial income coding only) Details on the coding of the start date and date of registration for backdated LIC claims is contained in Low Income Health Care Card (LIC) and Processing Low Income Health Care Card (LIC) claims. This example will relate to the coding of employment income only. Fred lodges a claim for LIC on 10 February 2021. Fred is residentially qualified for LIC. Fred provides evidence of a paid medical bill for treatment on 4 June 2020. Fred advises they are employed at The Hairy Cafe three days every week and earns $267.50. During the period 11 December 2020 to 7 January 2021, he worked additional days and hours and was paid $535.00 per week. For claim to be backdated:
Coding:
Employment income coding:
Any variation in employment or finances during the 36 weeks between backdated start date and original date of receipt of claim needs to be coded to make sure that income test is met for the entire period. |
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6 |
New claim submitted before 7 December 2020 For all LIC claims that have a date of receipt before 7 December 2020. Code all employment income which has a paid date after 7 December 2020 using the EAPP screen with all employment earnings paid to be coded using the LOP frequency with the Date of event (DOV) being the paid date and each pay period to have the start and end of the period coded. |
Date of Event (DOV) assessment of financial investments, self-employment and other income
Table 2: This table gives examples covering Date of Event (DOV) for financial investment, self-employment and other income updates, including when a customer’s income support payment has been Rejected, Cancelled or Assessed within the LIC 8 week income assessment period.
Assessment of leave, redundancy payments and income from royalties
Table 3: This table describes details about the assessment of leave and redundancy payments and income from royalties.
Assessing periodic and lump sum compensation payments
Table 4: This table describes an example covering details about assessing periodic and lump sum compensation payments.