Assessment of adjusted taxable income for family assistance and Paid Parental Leave scheme payments 007-07080000

When providing estimates, it is essential customers are asked about each income component to ensure their estimate includes all components.

Assessable income includes the following income components:

• taxable income
• exempt reportable fringe benefits
• reportable fringe benefits
• reportable superannuation contributions
• total net investment losses (which includes net rental property losses)
• foreign income
• tax exempt foreign income
• tax free benefits and pensions
• less child maintenance expenditure

Note: from 1 January 2017 the method of assessment of fringe benefits changed. Customers must advise if the fringe benefit amount is a reportable fringe benefit or an exempt reportable fringe benefit. See Assessing fringe benefits for family assistance and Paid Parental Leave scheme payments for more information.

A superannuation withdrawal under the First Home Super Saver (FHSS) Scheme is not counted towards taxable income.

There is no Assets Test for family assistance or Paid Parental Leave scheme payments.

FTB

Customers must estimate their (and their partner's) adjusted taxable income (ATI) for the full financial year.

A partner's ATI is included in the customer's combined ATI only for the period they were partnered to that person. If the partner dies during the relevant financial year, their ATI is converted to an annual amount.

CCS

Customers must also estimate their (and their partner's) ATI for the full financial year.

Where a customer was partnered for part of the relevant year, only the applicable proportion of the partner’s/ex-partner’s/deceased partner’s income, based on the period they were partnered, is included in the actual income used for assessment.

If the customer's partner died during the relevant financial year, the proportioning assessment also includes annualised actual income of the deceased partner for the period they were a couple. See Reconciliation of Child Care Subsidy.

If the person is required to lodge a tax return for the relevant financial year, actual income details transferred electronically from the Australian Taxation Office (ATO) are used for FTB/CCS reconciliation and lump sum claim assessment.

When claiming SBP for a stillborn child, customers must provide an estimate of their adjusted taxable income (ATI) for the 6 month period beginning on the day the stillborn child was delivered.

An estimate of their partner's ATI must also be provided if the customer is partnered on the day they claim.

For PPL claims for children born before 1 July 2023, an estimate of the primary carer's ATI is required for the financial year preceding the date of their claim or the date of the child's birth/entry into care.

For PPL claims for children born on or after 1 July 2023, a family income test may apply, in addition to the individual income test. If the customer does not meet the individual income test, then the family income test limit is applied. This applies to both single and partnered customers. An estimate of the claimant’s ATI is required for the financial year prior to the date of their claim or the date of the child's birth/entry into care.

See Paid Parental Leave income test and previous financial year income estimate