Raising Parental Income Test (PIT) debts 107-09120040

Example

Description

1

Legally recoverable debt for Youth Allowance (YA)

On 1 February 2018 a customer provides a copy of their parent's Taxation Notice of Assessment (TNA) for the previous financial year (that is, for the 2016-17 year). The NOA is dated 1 November 2017. There is an increase in the actual income from the 2015-16 financial year to the 2016-17 financial year. The increase meets the 125% rules.

The debt start date is the Entitlement Period Start Date (EPSD) of the period that ends on or after 1 October. In this case, the customer's is pay code 4, so the start date is 23 September 2017. The system applies the actual income from 23 September 2017. This generates a debt from 23 September 2017 to 31 January 2018.

The portion of the debt that is legally recoverable is from the first day of the period that includes 1 January to 31 January 2018. For this customer, the date would be 30 December 2017 as this is the EPSD of the first period that includes 1 January 2018.

See Finalised 'no debt' (FND) or 'zeroing' debts that are not legally recoverable.