Historical recording and correcting employment income details (prior to 07/12/2020) 108-22063045
This document specifically concerns recording employment income earned before the 7 December 2020 Changing the Social Security Income Assessment Model (CAM) changes. Before 7 December 2020, employment income was assessed under the earned income model.
Employment income paid from 7 December 2020
For employment income paid on or after 7 December 2020, see Recording and correcting employment income details.
Date of Event and reporting under the earned income model
Date of event (DOV) and Date of effect (DOE)
It is important to understand the difference between the DOV and the DOE:
- DOV is the date the event actually occurred
- DOE is the date a particular change first affects the customer's entitlement
Notification or statement reporter
When determining the DOV, first determine whether the customer was a notification reporter or a statement reporter:
- a notification reporter is a customer who has to report any income or other changes within 14 days. Under the earned model, the customer was required to advise within 14 days when they or their partner started work
- a statement reporter is a customer who reports via a Reporting Statement. Under the earned model, the customer was required to advise any employment income they or their partner earned in each entitlement period on their Entitlement Period End Day (EPED) before their income support payment could be paid
Assessment of employment income under the earned income model
Before the 7 December 2020 changes, people receiving a social security income support payment generally had their employment income assessed in the entitlement period in which it was earned.
Employment income earned during an entitlement period was then spread evenly over each day in that entitlement period by dividing the total amount of the employment income by the number of days in the entitlement period.
This means if a customer started work on the 10th day of their entitlement period and earned $200 for the remaining 4 days in that entitlement period, the $200 would affect their income support payment or ABSTUDY Living Allowance over the full 14 days, not just the last 4 days. This assessment of income was the same whether or not the income recorded was a continuous value, for example 2 weekly (2WE), income for one period (IOP) or foreign income for one period (ONE).
Employment income (including foreign employment income) may have been subject to Working Credit (WC), Work Bonus (WB) or Income Bank (SIB) rules.
The Resources page contains examples of how to calculate and code income for shorter income periods (due to a change to the customer's delivery day) for variable lodgement statement reporters.
Related links
Recording and correcting employment income details
Assessment of employment income for Parenting Payment Partnered (PPP) customers over Age Pension age
Determining the Date of Event for employment income
Estimating income for family assistance and Parental Leave pay scheme payments
Assessment of employment income for Centrelink payments
Commencing or returning to work
Employment income nil rate period
Coding income from the Supported Wage System (SWS)