Obtaining an estimate of business income 043-03080020

This document outlines information about obtaining an estimate of business income from a customer when they have commenced a business. The income received from a business, whether operated as a sole trader, partnership, or through a private trust or private company, will be used for assessment of income purposes and may affect the customer's rate of payment. Therefore the customer should be asked to provide an estimate of the likely income to be earned from the business.

Reasonable estimates

When assessing if the estimated income and expenses provided by the customer are reasonable, the nature of the business, the likely income to be earned and expenses incurred by the business should be taken into account.

If the customer is unable to provide an estimate immediately, they should be asked to provide one as soon as possible.

The information required usually takes the form of an interim profit and loss statement. An interim profit and loss statement contains details of the type and amount of gross income earned and the type and amount of each expense incurred for the period from the commencement of the business.

If the business is being operated through a private trust or private company, the case must be referred to the Complex Assessment Officer (CAO) for assessment. The CAO will determine the attribution to the customer from the controlled private trust or company and examine the estimated income for the entity.

Related links

The profit and loss statement

Income and expenses of a business

Identifying and making suitable referrals to the Complex Assessment Officer (CAO)

Assessment of employment income for Centrelink payments

Factors to determine self-employment

Steps to assess an interim profit and loss statement

Business structures and assessment