Total Net Investment Losses for family assistance and Paid Parental Leave scheme payments 007-07080040

• Yes, go to Step 2
• No, no net investment loss needs to be included in the customer's income estimate. Procedure ends here

• Yes, the individual's share of the partnership net investment loss that is included in the personal income tax return is included in the customer's adjusted taxable income. Go to Step 3
• No, go to Step 3

If the customer has both a financial investment and a rental property, add together the net losses for each investment type.

Note: income from a financial investment cannot be offset against a loss from a rental property and vice versa. However if the customer has multiple financial investments or multiple rental properties they can offset income from one investment or property against a loss from another investment or property. Resources contains examples.

• Yes, the amount of the loss is to be included in the estimate of total net investment losses. Go to Step 4
• No, do not include as net investment loss, but check that the customer includes any profit in their estimate of taxable income. Procedure ends here

• For the current financial year for FTB or FTB + CCS customers, update the customer's income estimate. To record the net investment loss estimate manually, go to Step 5
• For a previous financial year for FTB (2009-10 or later), go to Step 7
• For Child Care Subsidy (CCS) only customers, update the details in Process Direct. Go to Step 8
• For Stillborn Baby Payment (SBP) claims, the net investment loss estimate is to be included in the customer's estimate of combined adjusted taxable income for the 6 month period beginning on the day the stillborn child was delivered. Procedure ends here
• For a Parental Leave Pay (PPL) claim, see Paid Parental Leave income test and previous financial year income estimate. Procedure ends here

For customers receiving FTB, or FTB and CCS go to the FAO Total Net Investment Loss (FNR) screen:

This screen is not included in the New Claim Screen flow. The FNR screen needs to be selected via the Total Net Investment Loss field on the FAO Income Task Selector (FITS) screen or keyed in the Nxt: field.

If the FNR screen does not exist for the current financial year, type 'I'nsert in the Action: field and press [Enter]. Then type the relevant year in the Financial Year: field.

If the FNR screen does exist for the current financial year this screen must be used.

Some data is protected when:

• it is supplied by the Australian Taxation Office (ATO)
• a customer and their partner become unlinked, the partner's details will be protected
• a page has been created for a financial year

An estimate can either be inserted, corrected or deleted.

'I'nsert on the first available blank line a change in circumstance that results in a change to the customer's and/or partner's net rental property loss or total net investment losses.

'C'orrect should only be used when the original entry is incorrect. It can be used to correct any item except Date of Event (DOV). Correct cannot be used to correct the Date of Effect (DOE) or Date of Event. If a DOE or DOV needs to be corrected, the incorrect entry should be 'D'eleted and the correct one inserted.

'D'elete a line only when the details should not have been recorded on a customer's record. Note: all lines, including deleted lines, will still display.

Record the details in either the customer's or partner's fields:

• Event Date: field: the date of event of the change of Net Investment Loss
• Amt A$: field: the estimated amount in Australian dollars (must be in whole dollars)
• Type: field: 'EST'imate
• From: field: 'CUS'tomer
• press [Enter]

Once all components of the estimate have been recorded finalise the activity on Assessments Results (AR) screen.

Record details of property and action taken on a DOC.

Procedure ends here.

Actual net investment loss details transferred by ATO:

• For an ATO lump sum FTB claim, details can be viewed on the ATO Claimant Income Details (ATOCID) screen and the ATO Spouse Income Details (ATOSID) screen
• Information can also be viewed or the customer's estimate updated on the FAO Income for Previous Years (FIPY) screen. The amount cannot be updated if it has been transferred by the ATO. The customer may ask the ATO to amend their income tax assessment. If the ATO revises the amount, they will transfer the new details to Centrelink and the customer's entitlement for that year will be automatically recalculated
• At reconciliation or for a previous year lump sum claim, income assessment details can be viewed on the FAO Income Component Summary (FICS) screen

For CCS only customers, record net rental property losses in Process Direct.

• Go to the FAO Taxable Income (FTI) screen:
• Select Add
• Start Date - the date the customer notified of the change
• Income Source - defaults to Customer Provided
• Total Net Investment Losses - enter the estimated net investment losses in Australian dollars
• Financial Year - select the relevant year. For example, select 2019 for the 2018/19 financial year
• Update any other income fields as advised by the customer (i.e. taxable income, foreign income, reportable fringe benefits etc.)
• Select Save then Assess
• Complete the Update Header Data - Receipt Date and Channel and select Save
• Select Finalise

Note: if the customer is partnered, and their details require updating, select the partner from and update the FAO Taxable Income table with income details as above.

For CCS purposes, the new income estimate will take effect from the start of the next CCS fortnight.

Advise the customer of their new CCS subsidy percentage as a result of their updated income estimate.