Notional income on unrealisable assets 108-04120070
Expand allThis page contains examples to illustrate the calculation of the notional income to be assessed on unrealisable assets. These calculations are examples only and may not reflect the current rates or limits.
Examples of calculations of notional income
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1 |
Customer's son and daughter-in-law, Lou and Emmi, are sole occupants (no children) + Read more ... The net farm income is $26,000 a year and Emmi earns $19,000 a year from casual employment. The net value of the property is $240,000. The Family Tax Benefit (FTB) Part A income free area limit is $44,165.
Notional income $417.50 Note: if actual rent paid is more than $417.50 a year no notional income is maintained; only the rental income received by the customer is assessed in relation to the property. |
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2 |
Customer's son (Vincent), daughter-in-law (Debbie) and two children are sole occupants + Read more ... The net farm income is $30,000 a year. Vincent earns $20,000 a year from off-farm employment. The value of the property is $240,000. There is a mortgage of $60,000 outstanding on the property. For this example, the FTB Part A income free area is $44,165.
Commercial lease value (CLV) of the farm (CLV as per approved valuer $11,900 - applicable interest $3,900) $8,000 Half of the amount of income in excess of the FTB Part A income free area $2,917.50 - ($30,000 + $20,000 = $50,000); ($50,000 - $44,165)/2 = $2,917.50 Notional income - $2,917.50 Note: 'Income' for the purposes of the calculation is ordinary income. The income of the family member and partner (if any) is to be taken into account. Therefore it cannot be assumed, just because Vincent and Debbie receive more than base rate FTB Part A, that their income is below the applicable FTB limit. This is because FTB is assessed on 'taxable income' not 'ordinary income' and may include non-allowable deductions such as income equalisation and land conservation expenses. |