Foreign income and assets 108-05020050

Discuss all of the income and assets updates the customer would like to make during their contact. For example, income stream, shares, foreign income. For assistance with coding income and assets that are not foreign, see Coding income and assets for Centrelink payments and services.

Referrals to the following specialist teams are to be completed before other income and asset updates:

• Centrelink International Services (CIS)
• Compensation Recovery team, or
• Complex Assessment Officer (CAO)

Once the specialised team completes their updates, any remaining income and asset updates can be completed.

What needs to be coded or requested:

• Current market value for assets
• The gross rate of foreign income
  Note: amounts deducted from the foreign income for bank fees and/or tax deductions cannot be taken into consideration for Centrelink purposes
• The period start and end date of the foreign income
• The frequency of payments. Find out how often the gross rate as above is received (for example, weekly, monthly)
• Currency of the payments. Do not assume that payment is issued in the currency of that country. Some countries pay with alternative currency (for example, US dollars)

If there are concerns about the details of the customer’s information, see Verifying income and assets.

Does the customer have all the required information?

• Yes, go to Step 4
• No, go to Step 3

Request all of the information they must provide, see Requesting information (CLK).

Ask for the information to be returned within 14 days.

Tell the customer that all information is needed before any change can be made to ensure correct payments are made.

Has the customer and/or their partner received a foreign lump sum payment?

• Yes, for:
• lump sum arrears of a Comparable Foreign Payment, see Comparable Foreign Payment (CFP) lump sum arrears debts
• other foreign lump sum payments, see Treatment of lump sums
• No, go to Step 5

Does the customer and/or their partner receive foreign compensation payment(s)?

Yes:

• Overseas compensation payments are treated in the same way as Australian compensation and are assessed under the usual compensation rules
• Refer the details to the Compensation Recovery team, see Role of staff outside Compensation Teams
• If there are other updates:
• gather the necessary information to make the referral
• place the activity on hold
• DOC the record, include details of the updates that are required to be action
• procedure end here until Compensation Recovery Team have completed their updates
• If there are no other updates, procedure end here

No, go to Step 6

Process Direct

If the customer and/or their partner has:

• foreign pension, other than overseas income stream products, see Foreign Pension coding
  Note: if there are other updates:
• gather the necessary information to make the referral
• place the activity on hold
• DOC the record, include details of the updates that are required to be actioned
• procedure ends here until Centrelink International Service have completed their updates
• foreign savings accounts including individual foreign bonds, see Table 2 > Item 1
• foreign shares, see Table 2 > Item 2
• foreign managed investments, see Table 2 > Item 3
• foreign income stream products, see Table 2 > Item 4
• foreign farm or business income, see Table 2 > Item 5
• for involvement in a foreign private trust or private company, see Identifying and making suitable referrals to the Complex Assessment Officer (CAO)
  Note: if there are other updates:
• gather the necessary information to make the referral
• place the activity on hold
• DOC the record, include details of the updates that are required to be actioned
• procedure ends here until Complex Assessment Officer (CAO) have completed their updates
• foreign real estate, see Table 2 > Item 6
• other foreign income and assets, see Table 2 > Item 7
• foreign employment income, see Table 2 > Item 8

Customer First

If the customer and/or their partner has:

• foreign pension, other than overseas income stream products, see Foreign Pension coding.
  Note: if there are other updates:
• gather the necessary information to make the referral
• place the activity on hold
• DOC the record, include details of the updates that are required to be actioned
• procedure ends here until Centrelink International Service have completed their updates
• foreign savings accounts including individual foreign bonds, see Table 3 > Item 1
• foreign shares, see Table 3 > Item 2
• foreign managed investments, see Table 3 > Item 3
• foreign income stream products, see Table 3 > Item 4
• foreign farm or business income, see Table 3 > Item 5
• for involvement in a foreign private trust or private company, see Identifying and making suitable referrals to the Complex Assessment Officer (CAO)
  Note: if there are other updates:
• gather the necessary information to make the referral
• place the activity on hold
• DOC the record, include details of the updates that are required to be actioned
• procedure ends here until Complex Assessment Officer (CAO) have completed their updates
• foreign real estate, see Table 3 > Item 6
• other foreign income, see Table 3 > Item 7
• foreign employment income, see Table 3 > Item 8

Foreign/overseas savings accounts and individually owned bonds (not bond funds where investors’ money is pooled, that is, managed investment funds) are coded on Direct Investments (SVDI).

Note: for foreign financial investments (except managed investments or shares), code 'OSA' in the Investment Type: field.

Foreign shares are coded on the Shares and Investment (SIN) system. Shares that have already been entered into the SIN database appear on the Shares Summary Listed Securities (SILS) ASX code search. For help coding foreign shares, on the ASX code search, see Adding shares and securities.

Unit-based foreign managed investments are coded on the Managed Investments (MIN) system.

Account-based managed investments cannot be recorded on the Unregistered Managed Investments (MIUS) screen due to currency code system limitations and should be coded on Unlisted Securities (SIUS) as Investment Type: 'OS'. See Table 3 > Step1 in Adding shares and securities.

Foreign superannuation-like funds are treated as managed investments provided the person can access the funds.

For assistance to code foreign managed investments on MIP, see:

• Managed investments - updating existing investments, or
• Managed investments - adding a new investment

Overseas income stream products are:

• not subject to the income stream rules
• assessed under the ordinary income and assets test

Record the gross amount of income on Foreign Income/Asset Detail (FID) screen with SUP in the Investment Type: field.

Lump sum arrears of foreign income stream-like products are assessed and coded as if the person received the income for the period of the arrears. A debt may occur because of the coding, see Categories of debt raised under subsection 1223(1).

The asset value is the purchase price of the income stream.

For products that issue:

• one payment per year - the asset value should be re-assessed on each anniversary of the commencement date and reduced by the amount of annual income received
• two or more payments per year - the asset value should be reassessed every six months from the commencement date and reduced by the amount of income received in the preceding six-month period

Products not purchased on the market, for example income stream-like payments from employer schemes, have a nil asset value. Note: if the customer is able to commute and take a lump sum, the asset value is the amount the customer could obtain if they commuted.

Note: a manual review cannot be actioned in Process Direct. See Table 3 > Item 4 for coding instructions in Customer First.

Record the net amount of income on Foreign Income/Asset Detail (FID) screen with BUS in the Investment Type: field.

If the customer is eligible for Work Bonus, update the customer's Work Bonus Income % on the FID screen, see Work Bonus and balance for pensioners of Age Pension age.

Note: there is no field for percentage ownership on the Foreign income and assets screens. The customer and/or partner's percentage will need to be coded on each of their records separately.

If a recorded asset is no longer held or ongoing income is no longer received:

• Cease the coding by recording new details
• The date of event is the date the income ceased
• Zero the income amount recorded to end the assessment

Record net assessable income (gross income minus any allowable deductions) and asset values of overseas real estate (market value less any allowable loans or liabilities) on the Foreign Income/Asset Detail (FID) screen with REA in the Type: field.

Note: there is no field for percentage ownership on the Foreign income and assets screens. The customer and/or partner's percentage will need to be coded on each of their records separately.

Code the asset value in the relevant foreign currency and the system will convert it to $A. The asset value will be automatically updated with variations in exchange rates each month. A property ID number is not generated on the FID screen. See Valuation of real estate and other assets.

If a recorded asset is no longer held or ongoing income is no longer received:

• Cease the coding by recording new details
• The date of event is the date the asset was
• sold
• gifted or disposed of, or
• the date the income ceased
• Zero the asset value or the income amount recorded to end the assessment

Go to Foreign Income/Assets/Pension Summary (FIPS):

• If foreign income and assets are already coded, select the appropriate line
• If adding new income and/or assets, go to Foreign Income/Asset Detail (FID)

Note: there is no field for percentage ownership on the Foreign income and assets screens. The value of the customer and/or partner's percentage share will need to be determined and coded on each of their records separately.

On FID, code:

• Country of Payment: the country of origin of the income or asset
• Currency: a valid currency code for the currency of the income or asset
• Type: the type of foreign income or asset
  Note: foreign savings and investments cannot be coded on this screen
• Frequency: the frequency the customer receives the amount of other income
• For lump sums which are to be assessed for a 52 week period, use frequency 'ANN' - Annual. Do not use the frequency 'ONE' - One-off
• For ongoing income, record using the frequency that the customer receives the income, for example '1WE' - One Weekly, '2WE' - Two Weekly
• Reference/Description: the reference number or description of the source
• Start Date: the date of event (DOV)
• Income Amount: the amount of income received by the customer in the currency of the country of payment
• Asset Amount: the asset value in the currency of the country of investment
• Work Bonus Income %:- if the customer is eligible for the Work Bonus they will need to advise the percentage of their overseas business income that has been earned from personal exertion
• Channel code: will be displayed when the foreign employment income is attributed from the Foreign Employment Income Paid Details (FEIP) screen and displayed on the FID screen
• Pay ID: will be displayed for each non-continuous frequency and will be displayed on the FEIP and FID screens

There is no need to code an exchange rate, as the correct rate for that date of event will default.

If a recorded asset is no longer held or ongoing income is no longer received:

• Cease the coding by recording new details
• The date of event is the date the asset was:
• sold
• gifted or disposed of, or
• the date the income ceased
• Zero the asset value or the income amount recorded to end the assessment

Customers will report the gross foreign employment income they and/or their partner were paid by their employer in the entitlement period:

• on their regular reporting day, or
• when their foreign income amount changes if they are a notification reporter

Foreign employment income is recorded on the Foreign Income screen (FIPS, FPD, FID, FEIP).

In Process Direct, the FID (Foreign Income Details) table on the Foreign Income screen will include:

• FID (Foreign Income Details) table for income pre 7 December 2020 changes
• FEIP (Foreign Income Paid Details) table for income post 7 December 2020 changes

The date of event recorded will automatically determine the applicable table when recording new income.

If updating existing information, the relevant table can be updated based on the applicable date of event.

The following values will be recorded in the FID/FEIP table:

• Country of Payment: the country the employment income is paid from
• Currency: the currency the payment is made in
• Type: this field will only need to be recorded if adding new income details. Use code EAN - Earnings
• Frequency: DAY, 1WE, 2WE, MTE or LOP (DAY, MTE and LOP are only applicable for post 7 December 2020 changes)
• References/Description: name of the employer
• Income - Non Pension/Income Amount: amount of earning received in foreign currency. Up to two decimal places can be coded
• Start Date: when using LOP frequency the start date of the employment income pay period must be recorded
• End Date: when using LOP frequency the end date of the employment income pay period must be recorded
• Event Date:
• This is the date when foreign employment income is paid
• If continuous income has ceased, the event date is the date last paid plus 1

Note: there is no requirement to code a manual review, as income coding will only be apportioned for the number of days for which the income is paid.

If ongoing income is no longer received:

• Cease the coding by recording new details
• See determining the date of event for employment income for assistance with coding the event date
• Income is not required to be ceased for employment income recorded with a one off frequency
• Zero the income amount recorded to end the assessment

Foreign/overseas savings accounts and individual bonds (not bond funds) are coded on the Direct Investments (SVDI) screen.

Note: for foreign financial investments (except managed investments or shares), code 'OSA' in the Type: field.

Foreign shares are coded on the Shares and Investment (SIN) system. Shares that have already been entered into the SIN database appear on the Select Product (SIP) screen. For assistance in coding of foreign shares, including those that do not appear on the SIP screen, see Adding shares and securities.

Unit-based foreign managed investments are coded on the Managed Investments (MIN) system.

Account-based managed investments cannot be recorded on the Unregistered Managed Investments (MIUS) screen due to currency code system limitations and should be coded on the Unlisted Securities (SIUS) screen as Type: 'OS'. See Table 3 > Step 1 in Adding shares and securities.

Foreign superannuation-like funds are treated as managed investments provided the person can access the funds.

For assistance in coding of foreign managed investments on the MIP screen, see:

• Managed investments - updating existing investments, or
• Managed investments - adding a new investment

Overseas income stream products are not subject to the income stream rules. They are assessed under the ordinary Income and Assets Test. The gross amount of income is recorded on the Foreign Income/Asset Detail (FID) screen with 'SUP' in the Type: field.

Lump sum arrears of foreign income stream-like products are assessed and coded as if the person received the income for the period of the arrears. A debt may occur because of the coding, see Categories of debt raised under subsection 1223(1).

The asset value is the purchase price of the income stream.

For products that issue:

• one payment per year - the asset value should be re-assessed on each anniversary of the commencement date and reduced by the amount of annual income received
• two or more payments per year - the asset value should be reassessed every six months from the commencement date and reduced by the amount received in the preceding six-month period

Products not purchased on the market, for example income stream-like payments from employer schemes, have a nil asset value. Note: if the customer is able to commute and take a lump sum, the asset value is the amount the customer could obtain if they commuted.

In Customer First, create a manual review on the Review Registration (RVR) screen and complete the fields as follows:

• Service Reason: customer’s payment type
• Review Reason: ANN (Annuities - Check Assessment)
• Due Date:
• For foreign income streams that make one payment per year, use the applicable anniversary date
• For foreign income streams that make 2 or more payments per year, use the applicable six month reassessment date
• Source: INT
• Date of Receipt: today's date
• Notes: 'Customer in receipt of a foreign income stream from <insert country>. Return to OB 108-05020050 to review income stream.'
• Keywords: OSINCSTR
• Workgroup: leave blank
• Position: leave blank
• Transfer to Region: leave blank

The review will mature on the Due Date coded in the RVR activity. Workload Management will allocate the review for manual action.

If the customer is eligible for Work Bonus the customer's Work Bonus Income % will need to be recorded on the FID screen, see Work Bonus and balance for pensioners of Age Pension age for more information.

Note: there is no field for percentage ownership on the Foreign income and assets screens. The customer and/or partner's percentage will need to be coded on each of their records separately.

If a recorded asset is no longer held or ongoing income is no longer received:

• Cease the coding by recording new details
• The date of event is the date the income ceased
• Zero the income amount recorded to end the assessment

Record net assessable income (gross income minus any allowable deductions) and asset values of overseas real estate (market value less any allowable loans or liabilities) on the Foreign Income/Asset Detail (FID) screen with REA in the Type: field.

Note: there is no field for percentage ownership on the Foreign income and assets screens. The customer and/or partner's percentage will need to be coded on each of their records separately.

Code the asset value in the relevant foreign currency and the system will convert it to $A. The asset value will be automatically updated with variations in exchange rates each month. A property ID number is not generated on the FID screen. See Valuation of real estate and other assets.

For general coding advice for the Foreign Income/Asset Detail (FID) screen, go to Item 7.

If a recorded asset is no longer held or ongoing income is no longer received:

• Cease the coding by recording new details
• The date of event is the date the asset was
• sold
• gifted or disposed of, or
• the date the income ceased
• Zero the asset value or the income amount recorded to end the assessment

For Foreign Employment Income, go to Item 8

Go to Foreign Income/Assets/Pension Summary (FIPS):

• If foreign income and assets are already coded, select the appropriate line
• If adding new income and/or assets, go to Foreign Income/Asset Detail (FID)

Note: there is no field for percentage ownership on the Foreign income and assets screens. The customer and/or partner's percentage will need to be coded on each of their records separately.

On the FID screen, code the following fields:

• Country of Payment: the country of origin of the income or asset
• Type: the type of foreign income or asset. Note: foreign savings and investments cannot be coded on this screen
• Reference/Description: the reference number or description of the source
• Event Date: the date of event
• Currency: a valid currency code for the currency of the income or asset
• Income Amount: the amount of income received by the customer in the currency of the country of payment
• Frequency: the frequency the customer receives the amount of other income
• For lump sums which are to be assessed for a 52 week period, use the frequency 'ANN' - Annual. Do not use the frequency 'ONE' - One-Off
• For ongoing income, record using the frequency that the customer receives the income, for example '1WE' - One Weekly, '2WE' Two Weekly
• Asset Amount: the asset value in the currency of the country of payment.
• Work Bonus Income %:- if the customer is eligible for the Work Bonus they will need to advise the percentage of their overseas business income that has been earned from personal exertion
• Source: and DOR:

There is no need to code an exchange rate, as the correct rate for that date of event will default.

If a recorded asset is no longer held or ongoing income is no longer received:

• Cease the coding by recording new details
• The date of event is the date the asset was:
• sold
• gifted or disposed of, or
• the date the income ceased
• Zero the asset value or the income amount recorded to end the assessment

Will be coded on the Foreign Employment Income Paid Details (FEIP) screen. Customers will report the gross foreign employment income they and/or their partner were paid by their employer in the entitlement period:

• on their regular reporting day, or
• when their foreign income amount changes if they are a notification reporter

The following values will be recorded on the FEIP screen:

• Country of Payment: as required
• Reference/Description: name of the employer
• Currency: source currency
• Event Date:
• This is the date when foreign employment income is paid
• If continuous income has ceased, the event date is the date last paid plus 1
• Income Amount: amount of earnings received in foreign currency. Up to two decimal places can be coded
• Frequency: DAY, 1WE, 2WE, MTE or LOP (must have start and end dates)
• Start Date: when using LOP frequency the start date of the employment income must be recorded
• End Date: when using LOP frequency the end date of the employment income must be recorded

Note: If updating existing income details on the FIPS screen:

• use ‘S’ to navigate to the Foreign Income/Asset Detail (FID) screen (pre-7 December 2020 details)
• use ‘P’ to navigate to the Foreign Employment Income Paid Details (FEIP) screen (post-7 December 2020 details)

There is no requirement to code a manual review, as income coding will only be apportioned for the number of days for which the income is paid.

For recording foreign employment income prior to 7 December 2020 changes, code on the FID screen and select type EAN.

If ongoing income is no longer received:

• Cease the coding by recording new details
• See determining the date of event for employment income for assistance with coding the event date

Income is not required to be ceased for employment income recorded with a one off frequency

• Zero the income amount recorded to end the assessment