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Maintenance income: loan repayments 277-51100040

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For Families and Child Care trained staff only

This document outlines how loan repayments (including credit cards) are assessed as maintenance income (which can affect the rate of Family Tax Benefit (FTB) Part A) when provided as child support or spousal maintenance.

Application of Maintenance Income Test for loan repayments

This table describes the steps for Service Officers when a customer advises that loan repayments have been paid as child support or spousal maintenance.

Step

Action

1

Customer advises that loan repayments are paid as child support or spousal maintenance + Read more ...

For action at initial contact, or to determine if the loan repayments need to be manually assessed and recorded, see Non-cash maintenance income.

Is the asset or credit card available for them or their child to use?

  • Yes, go to Step 2.
  • No, do not assess as maintenance income. Procedure ends here.

2

Loan either solely or jointly in the customer's name + Read more ...

Is the loan either solely or jointly in the customer's name?

  • Yes, go to Step 3.
  • No, do not assess as child support income unless the customer has access to a credit card. In this case, go to Step 3 otherwise, procedure ends here.

3

Loan in the customer's name only + Read more ...

If joint loan, the asset is taken to be jointly owned.

Is the loan in the customer's name only?

4

Only assess the amount paid that benefits the customer + Read more ...

Only assess 50% of the loan repayments as maintenance income if the loan is in joint names.

Credit cards: if the payee has sole ongoing access to credit made available by the repayments, the full amount paid off the credit card can be assessed as child support, regardless of whose debt is being paid off.

See Recording private maintenance income.