Carer Allowance (CA) income test - acceptable evidence of income 009-18090457

What evidence is required?

• Current year estimate, go to Step 2
• Account-based income stream, go to Step 3
• Verification of Adjusted Taxable Income (ATI) components, go to Step 4

If the carer's ATI for the past year they selected was too high (or their and their partner's combined ATI was too high), the carer's CA qualification may be assessed using a current year estimate of income subject to certain conditions.

Note: coronavirus (COVID-19) impacts are now considered an acceptable reason. See CA income test - determining reference tax year and assessable income components for more information.

Procedure ends here.

Deemed income from account-based income streams is included in the CA income test. The carer or their partner must provide a Details of income stream product (SA330) form or similar schedule from their provider. This is required before a new account-based income stream can be added or (in some cases) an existing account-based income stream can be updated.

For more information about when account-based income streams are included in the CA income test, see CA income test - determining reference tax year and assessable income components.

For manual coding of account-based income streams, see the Process review table in CA income review processing.

Procedure ends here.

If a review is not auto-completed or in the case of online claims, Service Officers must carefully consider the information provided, especially if income is close to the limit.

Service Officers may request verification of individual ATI components from the carer only if there is reason to believe declared income should be verified. Situations may include:

• a previous rejection or cancellation due to excess income or estimate not accepted
• actual income declared for this claim or review differs greatly

If more information is required, select the More Options icon at the bottom right hand corner of Process Direct in the carer's claim or review application.

Is there reason to believe declared ATI details should be verified?

• Yes, go to Step 5
• No, procedure ends here

If there is reason to believe declared ATI details must be verified, ATI components can be verified using the documents listed below:

Current year estimate

The online and paper CA claim and/or online and paper CA income review, prompts the carer to provide:

• an explanation of the change of circumstances and how it has or will affect their current year income
• documents to verify their change of circumstances

Account-based income stream

SA330 form or similar schedule from the provider

Verification of ATI components

Verification of ATI components is only required if a Service Officer has reason to believe declared ATI details should be verified.

The following documentation may be requested from the carer and their partner:

• Taxable income:
• Taxation Notice of Assessment, or
• For customers not required to lodge an income tax return (ITR), other relevant documents
• Target foreign income:
• ITR, or
• For customers not required to lodge an ITR, other relevant documents
• Total net investment loss:
• ITR, or
• For customers not required to lodge an ITR, other relevant documents
• Employer provided fringe benefits in excess of $1,000:
• PAYG Payment Summary

Reportable superannuation contributions

• Reportable Employer Superannuation Contributions:
• PAYG Payment Summary
• Personal Superannuation Contributions:
• ITR Supplementary Section, or
• For customers not required to lodge an ITR, other relevant documents
• Tax-free government pensions and benefits:
• ITR
• For customers not required to lodge an ITR, other relevant documents
• Child support paid:
• ITR
• For customers not required to lodge an ITR, other relevant documents

For more information, see CA income test - determining reference tax year and assessable income components.

Copies are acceptable and original documents do not need to be supplied.

If the carer has provided a copy of their NOA, it only needs to be scanned if the income declared on the claim differs from that on the NOA.

Other verification of income documents must be scanned for all cases. If the originals were received by post and the carer has not indicated whether they are to be returned, return the documents. See Sighting, recording and returning original documents.

Launch Process Direct and locate the carer's record and/or CA income review (Online Intervention) for action.

Before updating the CA record:

• check the Customer and Interaction Details screen is correct
• select Process

Once in the carers record, go to the CAATI screen:

• On the SAP Warning and Errors (SWP) screen select the Task Selector
• Select the CAATI screen and select Next
• Select the Edit icon for the Financial Year Estimate to be updated within the Actual ATI table

On the CAATI screen update the following fields:

• Date of Effect:
• Use the date the NOA was issued
• For carers not required to lodge an income tax return, the date they advised the ATO of this, or
• For carers providing a current year estimate use the date of notification
• Reference Tax Year: enter the financial year of the NOA or relevant tax year for a non-lodger. Note: this cannot be more than 2 financial years before the current financial year. The most recent NOA should be used. Members of a couple must provide income details for the same reference tax year. Use the year the financial year ended, that is, for 2018 code 2017/2018
• Has Lodged Tax Return: Yes (if NOA exists)
• Taxable Income:
• Taxable Income $ (code one of the following):
• Enter the amount from the NOA or, for carers who have been granted an ATO lodgement extension, an estimate of their taxable income
• The current year estimate, or
• The carer's income below the tax lodgement threshold. For carer's whose estimate for the current financial year has been accepted, record on the CAATI screen their verified income over the income limit from either of the last 2 financial years. After recording the estimate, record the NOA using the date the NOA was issued
• Target Foreign Income $: is optional, only complete if applicable to carer. Enter the Australian dollar value
• Net Investment Loss $: is optional, only complete if applicable to carer. Enter details from income tax return
• Employer Provided Benefits $: (also known as fringe benefits) is optional, only complete if applicable to carer
• Reportable Super Contributions $: is optional, only complete if applicable to the carer. Enter details from payment summary or income tax return
• Tax Free Pensions/Benefits $: is optional, only complete if applicable to the carer. Enter details from payment summary or income tax return
• Child Support Paid $: is optional, only complete if applicable to the carer, enter details from income tax return
• Receipt Financial Year: is mandatory, and is the financial year the information is received. For an Actual ATI change for financial year 2015/2016 that is received in 2017/2018, the year will be 2017/2018

Once all updates are complete, select Save.

Income stream details

For coding instructions, see Adding or updating an account-based income stream.

The CAATI screen includes a Deemed Income Amount field, This is protected and cannot be updated manually.

Go to the SWE screen using the Super Key.

• Select Access to go to the AR screen:
• Select Finalise
• Record details on a Note