Commencement of a new business or purchase of a business enterprise 043-03080010

Determine how the customer is going to operate the business:

• for a sole trader or a partnership, issue Business Details (MOD F)
• for a private company, issue Private Company (MOD PC)
• for a private trust, issue Private Trust (MOD PT)
• request an interim profit and loss statement, prepared by the customer or their accountant. The Profit and Loss Statement (SU580) can be issued to the customer if desired. The SU580 is not necessary if a profit and loss statement is available or will be available in some other form. Issue SU580 only if requested by the customer. To assess an interim profit and loss statement see Steps to assess an interim Profit and Loss Statement
• request an interim balance sheet for details on the assets of the business and to determine how the business was funded and set up
• request the information verbally or in writing and allow extra time for mail delivery

Check Office Locator for appointment options for the customer to attend the office to discuss the assessment of income. If the customer or their partner is receiving Self-Employment Allowance, update income details. For income assessment information, see:

• Self-Employment Assistance
• Exempt Income

Record details on a DOC.

Is the business ongoing or new?

• if ongoing, go to Step 3
• if new, go to Step 4

Request an estimate of anticipated income. Types of documents that can be supplied are:

• documents provided by the previous owner in support of the sale which indicate the past performance of the business. These usually always exist as it is very unlikely that a customer would purchase a business for which there are no existing trading figures. Sometimes due to change of management there will be differing projections prepared by the customer's accountant
• documents predicting future performance. These are sometimes provided by the previous owner in support of the sale of the business, or may have been prepared by the customer's accountant from information provided by the previous owner

Note: the assessable income must be reviewed as soon as possible after the end of the financial year.

Go to Step 5.

Request an estimate of anticipated income and current assets of the business. Types of documents that can be supplied are:

• a projected profit/loss statement which incorporates the current financial position of the business. The customer should also be requested to keep a record of business income and expenses to assist Centrelink in assessing correct entitlement
• an analysis of income and expenses for a successful tender for a contract
• determine the asset value of the business from the requested interim balance sheet for details on the assets of the business and to determine how the business was funded and set up

How is the customer going to run the business?

• as a sole trader, go to Step 6
• as a partner in a partnership, go to Step 7
• as a trust, go to Step 8
• as a company, go to Step 9

Anticipated income from estimate document supplied is used for assessment of income. See Assessing sole trader income.

Assets also need to be updated from the documentation supplied, see Assessing sole trader assets.

If the customer or their partner is receiving Self-Employment Allowance, update income details. For income assessment information, see:

• Self-Employment Assistance
• Exempt Income

Procedure ends here.

Customer's share of the partnership's anticipated income (percentage as specified in the partnership document) is used for assessment of income. For more information, see Assessing partnership income.

Assets also need to be updated from the documentation supplied, see Assessing partnership assets.

If the customer or their partner is receiving Self-Employment Allowance, update income details. For income assessment information, see:

• Self-Employment Assistance
• Exempt Income

Procedure ends here.

Service Officers must:

• scan all documents for processing
• refer all cases to a Complex Assessment Officer (CAO) for assessment

To refer to CAO:

• In Process Direct use > Referral or
• In Customer First - run the CAO Referral guided procedure and use region code CAO

For more information, see Assessment of income and assets from trusts and companies.

Procedure ends here.

Service Officers must:

• scan all documents for processing
• refer all cases to a Complex Assessment Officer (CAO) for assessment

To refer to CAO:

• In Process Direct use > Referral or
• In Customer First - run the CAO Referral guided procedure and use region code CAO

For more information, see Assessment of income and assets from trusts and companies.