Coding income and assets for Centrelink payments and services 108-04010000

The Social Security Act 1991 defines an asset as 'property'. Property is not defined, but has an established common law meaning - any possession, belongings or property owned solely or partly. It includes beneficial interests, and debts owed to a person.

Assets are assessed at their net market value. This is the amount likely to be received by selling the asset, less any deductions for loans/mortgages that are secured against the asset. As the asset value changes over time, a customer should tell Services Australia so that their record is updated to reflect the current market value.

Customers are not asked to get professional valuations. If considered necessary, Services Australia will arrange for specific items to be valued by an approved valuer.

If the asset is owned with another person, the asset value for a customer is determined using the proportion of their interest in the asset.

The income and assets of a customer (and their partner) must be recorded when:

• a claim is made
• an aged care means assessment has been requested
• a current customer has a change to their circumstances. Note: where there is a small change to asset values, determine whether the customer is required to notify

Update the details once all information needed for the update is available. Income and assets updates for a claim for payment are to be completed within the new claim activity. Refer to the relevant Operational Blueprint for details of how to locate and process claims.

Changes to a customer's income or assets are applied from the date of event (DOV). Generally, this is the date the change actually happens, for example, when:

• shares or other assets are purchased or sold
• there is a change to the customer's bank account
• the customer makes a gift

Some instances, such as a customer depreciating their assets or the application of relevant legislation, may result in a different DOV. See Process and Reference tabs for further information about coding changes and dates of event.

Do not delete the details unless it is clear that they were recorded in error, for example, doubled-up.

Date of event, date of receipt

To ensure payment correctness with a change in income and assets:

• all changes related to the event should be updated in the same activity,
• use the date of receipt the agency first became aware of the event. See Date of receipt
• use the same date of event (DOV) for all related updates
• For example, a managed fund is closed on 04/09/2019, however proceeds are not deposited into a bank account until 10/09/2019. Code the DOV as 10/9/2019 for both closure of the managed fund and update to the bank account balance

Some fields will not allow coding of decimals. In this case, round down to the nearest whole number. Complete any calculations using the total amounts before rounding down. For example, when apportioning mortgage or loans only round down the result.

For new claims, customers with:

• a partner who is a current Centrelink customer, the DOV is the date of the change
• a partner who is not a current Centrelink customer, or does not have a partner, the DOV is the date of grant
• Exception: for early claims, DOV is the date of receipt (DOR)

Changes since the date of grant are coded from the date the change occurred.

This depends on the payment or service the customer is claiming or getting, and the type of income or asset being updated.

Verification of income and asset information may be required. See Verifying income and assets changes or Documents required for Centrelink new claims.

If more information is needed to complete the update, see Requesting information.

These processes will generate a letter and update the activity status and the customer's online account.

Where ownership of an asset changes, for example when separating from a previous partner, an update to the record is required to reflect the change in ownership.

For some asset types, the ownership recorded for the existing asset can be edited to reflect the updated ownership. For other types that cannot be edited, the asset coding needs to be ceased and recoded, reflecting the updated ownership, from the same date. Changes in ownership should be recorded using the date the change occurred as the event date.

All updates should be made within the same activity ensuring there is no unintended gap in the assessment of the asset.

Note: if ownership of an asset has been relinquished without adequate financial consideration, ensure that the deprivation provisions are considered, see Assessing deprivation/gifting. Deprivation provisions may not apply where the change in ownership is a result of a property settlement, see Assessment of assets (CLK).

An exempt asset is one that is disregarded under the assets test. Its value does not matter.

An exempt asset is disregarded but may have assessable income. For example, the proceeds from the sale of the principal home are an exempt asset but the proceeds when invested are deemed for income purposes.

There are 4 broad categories of exempt income. Although exempt income is disregarded as income:

• the amount received may be an assessable asset, and
• if the funds are invested, the deeming provisions apply

While exempt for income support payments, certain assets such as the principal home and the Refundable Accommodation Deposit (RAD) for example, are not exempt for aged care means assessments.

For details on how to assess and record bank accounts or investments held in trust, see Trusts.

Security deposits include funds paid to a landlord or agent that are held until the person vacates the property. Once paid, the relevant Residential Tenancies Bond Authority usually hold these funds. Funds held for the purpose of a rental bond are not assessed under the assets test.

When making an unfavourable decision, speak to the customer:

• explain the decision
• give them a chance to provide more information or evidence
• advise their review and appeal rights, and record an application for a formal review of the decision if required

Make 2 genuine attempts to contact the customer before finalising the decision.