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

Item

Description

1

Credit cards that have been prepaid

A positive balance on a credit card is a financial asset as the available balance can be used to purchase goods in the same way as cash. The only exception to this is if the customer has already purchased other goods thereby reducing the available balance indicated.

Example: The customer's credit card statement shows they previously paid $5,000 more than the outstanding balance. They can prove that since then, the card has been used to purchase $3,500 worth of goods (which are recorded elsewhere as appropriate). Services Australia would therefore only assess $1,500 as a financial asset because the customer now only has access to this amount of their own money paid onto the card - if any more money is spent it will be on credit.

Item

Description

1

Where multiple documents are provided (for example, several bank statements covering periods in the past) and customer’s rate of payment is likely to be impacted

Where the customer’s rate of payment is likely to be impacted or the impact is uncertain, update each change to the customer’s overall financial investments exceeding a $2,000 difference, from the date of the change in value. Record a summary of the details in a DOC.

If bank statements show transfers greater than $2,000, between multiple accounts, each account balance is to be updated with matching event dates.

If the statements show frequent fluctuations due to income and expenses, below the notifiable threshold, the account balances do not require an update every time a transaction is made.

Example: The customer provides statements covering the last 3 months for all their accounts. The statements show some funds being transferred between accounts and others spent on living costs. The opening balance on one account is $12,500. After 4 days the balance decreases to $11,900 and then decreases to $8,500 after 5 days. The account balance is recorded as $12,500 from the opening date of the statement and then $8,500 from the date the balance decreased to this amount. Repeat this for each account.

2

Where documents are provided (for example, several bank statements covering periods in the past) and customer’s rate of payment is not impacted

If the documents show a notifiable event, such as receipt of a lump sum or sale of an asset, update the bank balance from the applicable event date.

Example: The customer receives a lump sum inheritance of $25,000, increasing bank balance to $26,000 then 2 days later purchases a new car for $20,000 decreasing bank balance to $6,000. The account balance is recorded as $26,000 from date of notifiable event and then $6,000 from date 2 days later along with recording the new vehicle as an asset (see Process table 4, Coding other assets).

Item

Description

1

Single customer owns a vehicle

Kelly purchases a car in her own name valued at $15,000

Total asset value field: $15,000

Customer owned % field: 100%

Assessable asset $15,000

2

Partnered couple own asset jointly

Rana and Ross own a caravan valued at $45,000

Total asset value field: $45,000

Customer owned % field: 50%

Partner owned % field: 50%

Assessable asset value for the couple combined $45,000

3

Single customer owns a shared asset with 3 friends

Nick and his 3 friends purchase a boat valued at $40,000

Total asset value field: $40,000

Customer owned % field: 25%

Assessable asset $10,000

4

Partnered couple own asset separately

Jack owns a motorbike in his own name valued at $12,000 and Verity owns a vehicle in her name valued at $20,000

Jack’s motor bike

Total asset value field: $12,000

Customer owned % field: 100%

Partner owned % field: 0%

Assessable asset value for the couple combined $12,000

Switch to Verity’s record to complete the following update

Verity’s vehicle

Total asset value field: $20,000

Customer owned % field: 100%

Partner owned % field: 0%

Assessable asset value for the couple combined $20,000

Assessable assets combined for both the motorbike and vehicle $32,000

5

Member of a couple separates

Jessica and Jarrod have separated and Jessica needs to update her assets following their relationship breakdown.

The couple have household and personal effects valued at $10,000 recorded with 50% ownership each, they have split their assets and Jessica is advising her household and personal effects is now $5,000

Update Jessica’s household and personal effects from the date of separation ensuring the date aligns with what has been recorded on the MS screen

Total asset value field $5,000

Customer asset owned % field should be updated from 50% to 100%