Recording attribution income 043-04050020

Unrelated businesses:

Each business type will need to be coded on a separate Trust/Company Income Details (TRID) screen. The net result from each business will be shown.

Necessarily related businesses:

Each business would be combined as just one business on the TRID screen (with an appropriate note in the Txt: field).

The system will combine the income amounts from each business activity within the trust or company to determine the assessable income of the organisation.

An accounting loss will be displayed as a negative amount on the business screen where income and non-allowable expenses are detailed, but a zero value will be used when calculating the assessable income.

Don’t code the TRID screen for type F95 (fixed trusts pre-9/5/00) because only actual distributions are assessable.

Note: any income derived from a foreign trust or company should be coded using the TRID screen. Convert and enter amounts in Australian dollar values. The Foreign Income/Asset Detail (FID) screen should not be used for trust and company processing.

Different rules apply to an approved Special Disability Trust (SDT). For more information, see Special Disability Trust (SDT).

Does the trust or company control more than one business?

• Yes, go to Step 3
• No, go to Step 8

Do any of the businesses derive income from another business that it has an interest in?

• Yes, go to Step 4
• No, go to Step 5

To avoid double counting, income should only be coded against the business that originally earned the income.

Go to Step 5.

• Yes, go to Step 7
• No, go to Step 6

Code a separate Trust/Company Income Details (TRID) screen for each business.

Go to Step 8.

The details for all necessarily related businesses, related to the trust or company, should be combined and coded on the same Trust/Company Income Details (TRID) screen.

Go to Step 8.

• Income Source/Description: field allows a unique identifier for each separate income source to be recorded, e.g. interest from term deposit, type of income, name of business, etc
• Accounting profit and loss: field allows each income source's accounting profit and loss figure to be recorded. A negative figure can be coded
• Non-allowed deductions: field, non-allowable deductions are broken into four separate fields:
• Donations
• Capital Expenditure
• Excess (e.g. Salary, Interest, Superannuation)
• Other (The total of individual non-allowable deductions for the income source is recorded under the appropriate category)
• Assessable Income: this is a display only field. The total of the non-allowable deductions will be added back on to the accounting profit and loss figure, the result being the assessable income of the income source
• Txt: field - Can be used to give details about non allowable deductions, related businesses etc

Service Officers and CAOs must use the correct date of event for business income and assets.

Is any linked customer of Age Pension age and is claiming or is in receipt of an income support payment (other than Parenting Payment single (PPS))?

• Yes, go to Step 11
• No, go to Step 12

An update to the Work Bonus income percentage is needed when:

• the trust or company is assessed for the first time
• a percentage has not been previous recorded
• a change in income earned from the customer's personal exertion has been identified. For example, the trust or company now has an employee who is undertaking work previously done by the customer

Is an update required?

• Yes:
  • go to the Trust and Companies Income and Assets Summary (TRCIAS) screen
  • select the entity by entering s in the field next to the entity name and press enter
  • enter the customer and partner’s (if applicable) Work Bonus Income % as advised by the customer
  • enter the Work Bonus Event Date – this is the date the Work Bonus income % applies from. The date cannot be before the first instance of income from the trust or company for the customer
  • enter the source and date of receipt
  • note: the TRCIAS screen is able to be updated outside of any other outstanding activities on the customer’s record (for example new claims)
• No, go to Step 12

From 1 July 2017, YA (independent), ABSTUDY (independent) and Austudy customers (students, job seekers and apprentices) who are involved in a private trust or company may have their share of the income and assets in those trusts or companies assessed under the personal income and assets test.

From 1 January 2016, dependent YA customers are exempt from the assets test.