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Parenting Payment Single (PPS) income and assets tests 108-01010150



Examples

Applying the Income and Assets Test for PPS customers

This table describes examples of applying the income and assets test for PPS customers. Note: rates and limits used are for example only and may not reflect current rates.

Item

Description

1

View a summary of a Parenting Payment Single (PPS) customer's income + Read more ...

The Income and Assets Summary (PIAS) screen provides a list of the customer's income from all sources. Some of these include:

  • financial investments - deemed income
  • real estate and business
  • foreign income
  • other government payments, for example Department of Veterans' Affairs (DVA)

Note: Parental Leave Pay (PPL) for children born or entrusted to care on or after 1 October 2016 is counted as ordinary income however will not display on the PIAS screen.

To view details of the assessment results of a PPL claim go to the P1RCS screen, which includes:

  • a claim overview
  • Details of the PPL claim on the (P1RCD) table
  • PPL days calculation details summary on the (P1RCE) table

The amount of PPL will be included in the ‘Income total’ amount displayed on the Factors Affecting Rate (PFAR) screen.

2

View a summary of a PPS customer's assets + Read more ...

The Assessable Assets Summary (PAAS) screen provides a list of the customer's assets. Some of these include:

  • investments
  • business assets
  • foreign assets
  • trusts and companies assets

3

Income Test calculation example + Read more ...

Laura has 3 children. Laura's total ordinary income after applying the Working Credit rules is $450 per fortnight. Maximum rate used for example is $862.20.

Affecting income = (total income - allowable income) x 40%

($450 - $241.80) x 40% = $83.28

Laura's fortnightly PPS rate = maximum rate payable - affecting income

$862.20 - $83.28 = $778.92

4

Assets Test calculation example + Read more ...

George is a homeowner who has the following assets:

  • a rental property valued at $340,000 with no mortgage
  • a car valued at $37,000 with an outstanding car loan of $30,000
  • other personal assets, total value $11,000

Total value of assets is: $340,000 + $7,000 + $11,000 = $358,000.

Asset limit for single homeowner is $268,000, therefore PPS will be rejected as the value of George's assets is over the Assets Test limit.

However, George may be eligible to be considered under the assets hardship rules.