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.
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Example |
Details |
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1 |
New claim submitted with employment income Charlie submits a LIC new claim on 1 February 2025 advising income from employment at Jim’s Pet Supplies with $491.00 paid every fortnight for the 8 week LIC income 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. Key the Employment Income Paid Details (EAPP) screen as follows:
Key an assessment line for each paid date in the assessment period. Period 1
Period 2
Period 3
Period 4
Period 5 (not to be keyed as not paid in income assessment period)
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2 |
New claim with employment income previously coded with an income support payment (ISP) Liam claims LIC on 11 February 2023. Liam's ISP cancelled 21 January 2023. The 8 week LIC income assessment period 18 December 2022 - 11 February 2023 includes 5 weeks ISP from 18 December 2022 to cancellation date 21 January 2023 (inclusive). Liam declares employment income from Harry's Cafe for the 8 week LIC income assessment period as $250.00 per week. The EAPP screen shows fortnightly employment income of $500.00 with frequency of 2we when Liam was receiving an ISP. Employment income from the LIC claim shows on the EAPP screen as provisional with 8 separate weeks and frequency 1we. Key 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 ISP Bob claims LIC on 11 February 2023. Bob is current on an ISP that requires them to report their earnings fortnightly. The 8 week LIC income assessment period 18 December 2022 - 11 February 2023. Bob declares employment income from Sally’s Hair Chop for the 8 week LIC 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 ISP. 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 |
Apportionment of income for LIC Bella submits a LIC new claim on 5 June 2023, advising their income from employment at Belinda’s Pots & Pans is:
Bella’s EPED is code E (see Entitlement Delivery (RAD) screen) and the 8 week LIC income assessment period is 11 April to 5 June. Employment income is coded as LOP and apportioned as follows:
Total employment income used for LIC assessment is $8,100. |
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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 2025. 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 2024 to 7 January 2025, 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. |
Income coding provisions for claims lodged before or after 7 December 2020
Table 2: This table gives examples of coding income and the provisions for backdating a claim.
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Item |
Description |
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1 |
New claim submitted from 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 Gems 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 Gems
Code employment income paid on or after 7 December 2020 on the Employment income Paid Period (EAPP) screen as follows: Employer: Little Gems 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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2 |
Backdating a claim (employment income and financial income coding only) See Low Income Health Care Card (LIC) and Processing Low Income Health Care Card (LIC) claims for details on coding of the start date and date of registration for backdated LIC claims. This example relates 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 3 days every week and earns $267.50. During the period 11 December 2020 to 7 January 2021, Fred worked additional days and hours and was paid $535.00 per week. For the claim to be backdated, Fred must provide proof of income for these periods:
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 the income test is met for the entire period. |
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3 |
New claim submitted before 7 December 2020 For all LIC claims that have a date of receipt before 7 December 2020:
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Date of Event (DOV) assessment of financial investments, self-employment, and other income
Table 3: 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 (ISP) has been Rejected, Cancelled or Assessed within the 8 week LIC income assessment period.
Assessment of leave, redundancy payments and income from royalties
Table 4: This table describes details about the assessment of leave and redundancy payments and income from royalties.
Assessing periodic and lump sum compensation payments
Table 5: This table describes an example covering details about assessing periodic and lump sum compensation payments.