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Obtaining an estimate of business income 043-03080020

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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.

Estimate of business income

This table describes the process of obtaining an estimate of business income from a customer when they have commenced a business.

Expand table

Step

Action

1

Type of employment

Is the customer self-employed or an employee?

If unsure, see Factors to determine self-employment.

  • If self-employed, tell the customer an estimate of income is required for assessment of income, when they have commenced a business, go to Step 2
  • If an employee, income will be assessed from payslips or other income documentation, not via a profit and loss statement. See Employment income. Procedure ends here

2

Issue modules

Issue either a Module F - Business details (Mod F) for sole trader and partnership businesses and a Profit and Loss Statement (SU580) or a Module PT - Private Trust (Mod PT), or both a Module PC - Private Company (Mod PC) and Mod PT, if appropriate. If the business operates through either a company or trust, also request an interim profit and loss statement for the relevant entity.

Make a request for information, see Requesting information (CLK), and record all of the details on a DOC.

3

Company or Trust

Is the customer involved in a company or trust?

  • Yes, refer these cases to a Complex Assessment Officer (CAO) who will determine the attribution to the customer by using the estimate provided. When the relevant paperwork is returned, scan for processing and make a CAO referral. The CAOs can then continue to apply the same principles to strike the current rate of income from the interim profit and loss statement
  • No, go to Step 4

4

Interim profit and loss statement

Processing Team: Typically done by specialised processing teams in a service centre or Smart Centre. Unless otherwise stated, staff may complete this step if they are trained.

Has the customer provided an interim profit and loss statement?

5

Documents supplied by the customer

Processing Team: Typically done by specialised processing teams in a service centre or Smart Centre. Unless otherwise stated, staff may complete this step if they are trained.

Is it possible to take an estimate of future income from any documents supplied by the customer?

  • Yes, go to Step 6
  • No, request the customer contact their accountant and have an interim profit and loss statement prepared so an estimate of future income can be assessed for Centrelink purposes

6

This information is to be used for assessing current income for the customer

Processing Team: Typically done by specialised processing teams in a service centre or Smart Centre. Unless otherwise stated, staff may complete this step if they are trained.

For more information, see Business structures and assessment.

7

Interim profit and loss statement provided

Processing Team: Typically done by specialised processing teams in a service centre or Smart Centre. Unless otherwise stated, staff may complete this step if they are trained.

If the customer's estimated business income and expenses appear reasonable for the type of business, the estimate can be accepted.

Tell the customer that verification of their income is required from their tax return and financial statements when prepared, and to notify immediately if the profit from the business increases.