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Unexpected downturn of a business 043-03130070

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This document outlines how to assess income for a customer involved in a business, when they advise of a reduction in business activity following a particular event. The event must not be part of the normal cycle of activity for the business nor a complete cessation of the business.

Business has ceased trading temporarily

A business may temporarily cease trading but this is not considered a downturn in business. If the customer's business has ceased trading (even temporarily), see Business has ceased or has been sold.

Current rate of income

The principle is to use the current rate of income earned by a customer from a business. The usual approach is to base the assessment of a business upon the most recently available financial statements and taxation return.

Where there is a change in circumstances and the previous financial statements no longer provide an accurate indication of the current rate of income, a reassessment may be made on the available evidence.

A revised or interim profit and loss statement which incorporates the change to the business and reflects the current financial position of the business is required. Where a customer has difficulty in providing this information, it can be suggested they seek assistance from their accountant.

If the business is run through a private trust or private company, Service Officers must refer the case to a Complex Assessment Officer (CAO).

Obtaining an estimate of business income

Steps to assess an interim profit and loss statement

Steps to assess an interim balance sheet

Assessment of income and assets from business structures for Centrelink payments

Income and expenses of a business

Eligibility for JobSeeker Payment (JSP) and Youth Allowance (job seeker) when self-employed

Business has ceased or has been sold

Assessing and coding the Business details for sole traders and partnerships MOD F