Skip to navigation Skip to content

Paid Parental Leave income test and previous financial year income estimate 108-05030070

Expand/Collapse all sectionsExpand all


Paid Parental Leave scheme entry hub

PPL Income evidence requirements

An attachment is available: Placed in front of links to attachmentsIncome evidence requirements for children born or entered care on or after 1 July 2023

Evidence that customers can provide for income estimates

Table 1

Item

Description

1

Evidence and Discretion

Evidence to support the customer's income should be enough to satisfy the Service Officer the estimate is reasonable according to the customer's circumstances.

Discretion is needed to make sure customers are not unnecessarily inconvenienced or paid Parental Leave Pay (PPL) when their income is more than the limit.

2

Taxable income

Salary and wages

  • payslips
  • letter from their employer confirming the taxable income the customer received during the financial year
  • letter from their employer stating leave entitlements and amounts paid within the 12 month assessment period
  • bank statements
  • Personal income tax return
  • letter from an accountant to support estimate provided
  • Payment Summary/Income Statement

Business or self-employment

  • profit and loss statements
  • last available tax return

Investments

  • share scripts
  • bank statements
  • Personal income tax return
  • letter from accountant

Real estate

  • real estate agent income statements
  • rent receipt records
  • lease agreements
  • bank statements
  • last available tax return
  • letter from accountant

Lump sum payments

  • documents supporting the lump sum amount and date the lump sum was received
  • separation letter from employer
  • property sale documents
  • letter from accountant identifying capital gains for the relevant period
  • bank statement

Other estimated taxable income

  • bank statements
  • records/receipts/statements of income paid
  • letter from provider specifying compensation payments with frequency and end date if applicable

3

Reportable fringe benefits

  • Payment Summary/Group Certificate
  • letter from employer identifying the amount of reportable fringe benefits (including exempt reportable fringe benefits, if any) the claimant/partner is entitled to
  • Personal income tax return
  • letter from accountant identifying the expected loss over the relevant 12 month period

4

Foreign income

  • bank statements
  • documents from the foreign income source stating the amount the claimant receives/will receive
  • Personal income tax return
  • letter from accountant

5

Tax exempt foreign income

  • bank statements
  • documents from the foreign income source stating the amount received/ to be received
  • Personal income tax return
  • letter from accountant

6

Net rental property loss

  • Personal income tax return
  • letter from accountant identifying the expected loss over the relevant 12 month period
  • profit and loss statement/record

7

Tax free pensions and benefits

  • Services Australia income support records
  • Income statement from Department of Veterans' Affairs or Services Australia specifying the amount of pension/benefit being received
  • annual/six-monthly Consumer Price Index (CPI) increase notice stating current and ongoing entitlements
  • bank statements

8

Maintenance expenditure (this reduces adjusted taxable income)

  • Child Support assessment notice
  • court order identifying amount of child support payable
  • private agreement specifying child support payable
  • Parenting Plan/Agreement specifying amount payable

9

Reportable superannuation contributions

  • payment summary/group certificate
  • Personal income tax return
  • individual employment contract outlining an increased super contribution
  • salary sacrifice agreement

Note: mandated employer paid superannuation contributions (superannuation guarantee) are not 'reportable employer superannuation contributions'.

Income for PPL claims for children born or adopted on or after 1 July 2023 - Individual and Family Income

The following scenarios provide guidance for when PPL claimants are to be assessed under the individual income limit or the family income limit, and when evidence is required to verify income.

2023-24 income limit and evidence requirements

Table 2

Assessment

2023-24 Income Limit

Evidence required if over:

Individual

$175,788

$158,209

Family

$364,350

$327,915

Assessment

2022-23 Income Limit

Evidence required if over:

Individual

$168,865

$151,978

Family

$350,000

$315,000

Partnered at time of claim scenarios for income year 2023-2024

Table: 3: Income limits are indexed annually on 1 July. Evidence is required if the customer and/or partner’s ATI is 90% or more of the relevant financial year income limit. The following scenarios are based on the 2023/2024 income limit amounts:

Scenario

Assessment

Outcome

Customer income - $130,000

Customer’s income is

  • below threshold to request evidence
  • below Income Limit

Online claim collects partner (Ptr) income? No

Ptr income? not provided

Request evidence from:

  • Customer - No
  • Ptr - Not required

Assess PPL income Test under:

  • Individual - Yes
  • Family - No

Reject claim INC - No

Customer has met the individual income test.

Customer income - $160,000

Customer’s income is:

  • above threshold to request evidence
  • below individual income limit

Customer chooses not to provide partner’s income at time of claim

Online claim collects partner (Ptr) income? No (optional)

Ptr income? not provided

Request evidence from:

  • Customer - Yes
  • Ptr - Not required

Assess PPL income Test under:

  • Individual - Yes
  • Family – No*

Reject claim INC - No

If evidence confirms the customer’s income is:

  • under the individual income limit, they meet the individual income test
  • *over the individual income limit, request partner’s income to assess under the family income test

Customer income - $160,000

Customer’s income is:

  • above threshold to request evidence
  • below individual income limit

Customer provides partner’s income with claim.

Partner income - $100,000

Combined income - $260,000

It is below family income evidence threshold.

Online claim collects partner (Ptr) income? Yes (optional)

Request evidence from:

  • Customer - No
  • Ptr - No

Assess PPL income Test under:

  • Individual - Yes
  • Family - No

Reject claim INC - No

Even though the customer’s income is above the individual evidence threshold, evidence is not requested.

Customer and partner’s combined income is under the family income evidence threshold and therefore evidence is not required.

Claim is assessed under the individual income test based on customer’s income below the income limit.

Customer has met the individual income test

Customer income - $165,000

Customer’s income is:

  • above threshold to request evidence
  • below individual income limit

Customer provides partner’s income with claim.

Partner income - $175,000

Combined income - $340,000

  • above family income evidence threshold
  • below family income limit

Online claim collects partner (Ptr) income? Yes (optional)

Request evidence from:

  • Customer - Yes
  • Ptr - Yes

Assess PPL income Test under:

  • Individual or Family based on evidence see Outcome

Reject claim INC - No

If evidence confirms the customer’s income is:

  • under the individual income limit, they meet the individual income test
  • over the individual income limit, check partner’s income to assess under the family income test

If the partner's evidence confirms the combined income is under the family income limit, then the customer has met the family income test.

Customer income - $165,000

Customer’s income is:

  • above threshold to request evidence
  • below individual income limit

Customer provides partner’s income with claim.

Partner income - $315,000

Combined income - $480,000

It is above family income limit

Online claim collects partner (Ptr) income? Yes (optional)

Request evidence from:

  • Customer - Yes
  • Ptr - No

Assess PPL income Test under:

  • Individual - Yes
  • Family - No

Reject claim INC - No

If customer’s evidence confirms their income is

  • under the individual income limit, then customer meets the individual income test
  • over the individual limit, then the customer does not meet either individual or the family income test.

Customer income - $180,000

Customer’s income is:

  • above individual income limit
  • but below the family income limit

Customer must provide partner’s income.

Partner's income - $100,000

Combined income - $280,000

It is below

  • family income limit
  • family income evidence threshold

Online claim collects partner (Ptr) income? Yes (mandatory)

Request evidence from:

  • Customer - No
  • Ptr - No

Assess PPL income Test under:

  • Individual - No
  • Family - Yes

Reject claim INC - No

Customer’s income is over the individual income test limit.

Claim is assessed under the family income test.

Combined income is under the threshold to request evidence under the family income test.

Customer has met the family income test.

Customer income - $180,000

Customer’s income is:

  • above individual income limit
  • but below the family evidence threshold limit

Customer must provide partner’s income.

Partner's income - $160,000

Combined income - $340,000

Combined income is

  • below family income limit
  • above family evidence threshold

Online claim collects partner (Ptr) income? Yes (mandatory)

Request evidence from:

  • Customer - Yes
  • Ptr - Yes

Assess PPL income Test under:

  • Individual - No
  • Family - Yes

Reject claim INC - No

Customer’s income is over the individual income test limit.

Claim is assessed under the family income test.

If customer and partner income evidence confirms combined income is under the family income test limit, the customer has met family income test.

Customer income - $180,000

Customer’s income is:

  • above individual income limit
  • but below the family evidence threshold

Customer must provide partner’s income.

Partner's income - $315,000

Combined income - $495,000

Combined income is above family income limit

Online claim collects partner (Ptr) income? Yes (mandatory)

Request evidence from:

  • Customer - No
  • Ptr - No

Assess PPL income Test under:

  • Individual - No
  • Family - No

Reject claim INC - Yes (auto)

Customer’s income is over the individual income test limit.

Claim is assessed under the family income test.

Combined income is over the family income test limit.

Evidence is not required.

Customer does not meet the family income test.

Customer income - $330,000

Customer’s income is:

  • above individual income limit
  • above family evidence threshold
  • but below the family income test limit

Customer must provide partner’s income.

Partner's income - $15,000

Combined income - $345,000

Combined income is

  • above family evidence threshold
  • below family income limit

Online claim collects partner (Ptr) income? Yes (mandatory)

Request evidence from:

  • Customer - Yes
  • Ptr - Yes

Assess PPL income Test under:

  • Individual - No
  • Family - Yes

Reject claim INC - No

Customer’s income is over the individual income test limit.

Claim is assessed under the family income test.

Combined income is over the family evidence threshold and under family income test limit.

If customer and partner evidence confirms combined income is under the family income test limit, then the customer has met the family income test.

Customer income - $315,000

Customer’s income is:

  • above individual income limit
  • above family evidence threshold
  • but below the family income test limit

Customer must provide partner’s income.

Partner's income - $50,000

Combined income - $365,000

Combined income is

  • above family income limit

Online claim collects partner (Ptr) income? Yes (mandatory)

Request evidence from:

  • Customer - No
  • Ptr - No

Assess PPL income Test under:

  • Individual - No
  • Family - No

Reject claim INC - Yes (auto)

Customer’s income is over the individual income test limit.

Claim is assessed under the family income test.

Combined income is over the family income test limit.

Evidence is not required.

Customer does not meet the family income test.

Customer income - $370,000

Customer’s income is:

  • above individual income limit
  • above the family income test limit

Partner's income will not be requested

Online claim collects partner (Ptr) income? Not required

Request evidence from:

  • Customer - No
  • Ptr - No

Assess PPL income Test under:

  • Individual - No
  • Family - No

Reject claim INC - Yes (auto)

Customer does not meet the individual income test or family income test.

Single at time of claim scenarios for income year 2023-2024

Table 4

Scenario

Assessment

Outcome

Customer income - $130,000

Customer’s income is

  • below individual threshold to request evidence
  • below individual income test limit

Request evidence: No

Assess PPL income Test under:

  • Individual - Yes
  • Family - No

Reject claim INC - No

Collect partner income if later found to be partnered at claim: No

Customer has met the individual income test.

Customer income - $165,000

Customer’s income is

  • above threshold to request evidence
  • below individual income test limit

Request evidence: No

Assess PPL income Test under:

  • Individual - Yes
  • Family - No

Reject claim INC - No

Collect partner income if later found to be partnered at claim: No

Even though the customer’s income is above threshold to request evidence under the individual test, they are below the family income test limit as a single customer.

Customer is assessed under individual income test based on customer’s income

Customer income - $185,000

Customer’s income is

  • above individual income test limit
  • below family evidence threshold

Request evidence: No

Assess PPL income Test under:

  • Individual - No
  • Family - Yes

Reject claim INC - No

Collect partner income if later found to be partnered at claim: Yes - see outcome

Customer’s income is over the individual income test limit.

Customer’s income is under the threshold to request evidence under the family income test limit.

Evidence is not required.

Assess under the family income test.

If later found to be partnered at claim, partner income is required.

Evidence will be required for customer and partner if the combined income is above the threshold to request evidence under the family income test but under family income test limit.

Customer income - $335,000

Customer’s income is

  • above individual income test limit
  • above family evidence threshold
  • below family income test limit

Request evidence: Yes

Assess PPL income Test under:

  • Individual - No
  • Family - Yes

Reject claim INC - No

Collect partner income if later found to be partnered at claim: Yes - see outcome

Customer’s individual income is over the individual income test limit.

Assessed under the family income test.

Customer’s income is over the threshold to request evidence under the family income test but is under the family income test limit.

If the customer’s evidence confirms their income is under the family income test limit, the customer has met the family income test.

If later found to be partnered at claim, partner income is required.

Evidence will also be required for the partner and assess if combined income is under family income test limit.

Customer income - $380,000

Customer’s income is

  • above individual income test limit
  • above family income test limit

Request evidence: No

Assess PPL income Test under:

  • Individual - No
  • Family - No

Reject claim INC - Yes auto

Collect partner income if later found to be partnered at claim: No

Customer has NOT met the individual income test or family income test

Example of PPL claim spanning 2 financial years

Table 5

Item

Description

1

PPL claim spanning across 2 years

Jane lodges a Parental Leave Pay (PPL) pre-birth claim on 1 May 2024 for a child with an expected date of birth of 28 June 2024. In this claim, Jane provides previous year income details (2022-23 financial year). Jane's claim is assessed PPL/ASS-PCB, pending proof of the child's birth.

Jane delivers a healthy baby on 4 July 2024.

On 22 July 2024, Jane completes the Add Newborn mobile application service to provide proof of the child's birth and finalise the claim for PPL.

Although Jane delivered the child in the 2024/25 financial year, there is no requirement to provide additional income details for 2023/24.

Note: any incidences of the system requesting previous financial year income in scenarios mirroring the above circumstances must be reported to ICT for further investigation.

External websites

Australian Taxation Office – First Home Super Saver (FHSS) Scheme