Recording other income on the Other Income (OIN) screen 108-05020010

Description

Coding income to be assessed in the period of receipt

Some types of ordinary income are assessed only in the entitlement period in which the income is received (in the period of receipt). Usually this will be for 14 days, however, if the entitlement period is a short period, then the income is assessed for the number of days in the short entitlement period.

To code income to be assessed in the period of receipt on the Other Income (OIN) screen:

• Determine the number of days in the entitlement period in which the income is received
• Multiply the daily income amount by 14
• Record the amount using the '2WE' - Two Weekly income frequency
  • Where the entitlement period is a short period, the amount recorded will be more than the value of the income actually received, however the correct amount of income will be assessed for each day of the short entitlement period
• The event date for the coding is the Entitlement Period Start Date (EPSD) of the period in which the income is received

Note: the income must be ceased from the following Entitlement Period Start Date (EPSD) to ensure that the income is only assessed for one entitlement period.

Full length entitlement period example:

Entitlement period dates are 1 April to 14 April (14 days) and income of $1,400 was received on 10 April.

• Event date is 1 April
• Amount is the actual income amount of $1,400 as the entitlement period is 14 days long
• Frequency is '2WE' - Two Weekly
• Income ceased from 15 April

$1,400 will be assessed across the entitlement period.

Short entitlement period example:

Entitlement period dates are 8 April to 14 April (7 days) due to a new claim granted part way through entitlement period and income of $1,400 was received on 10 April.

• Event date is 8 April
• Amount is $2,800 as the entitlement period is 7 days long ($1,400/7 x 14 = $2,800)
• Frequency is '2WE' - Two Weekly
• Income ceased from 15 April

Even though the amount recorded is more than the income received, only $1,400 will be assessed across the entitlement period ($200 of daily income for 7 days).

Converting periodic income to '2WE' - Two Weekly

When recording periodic income on the Other Income (OIN) screen that doesn’t match an existing frequency option, the income amount must be converted so that it can be recorded.

To do this:

Determine the number of days the payment frequency represents

• Divide the amount paid by the number of days determined to get a daily rate of income
• Multiple the daily rate of income by 14 to get a fortnightly rate of income
• Code the fortnightly rate of income using the ‘2WE’ – Two Weekly frequency

Example:

• The customer is paid $2,100 in income protection payments every 3 weeks
• There are 21 days in a 3-week period
• $2,100/21 = $100
• $100 is the daily rate of income
• $100 x 14 = $1,400
• $1,400 is the fortnightly rate of income
• $1,400 is recorded using the ‘2WE’ – Two Weekly frequency