Assessing returned gifts 108-06010020

Is the customer only advising of a returned gift?

• Yes, go to Step 3
• No, go to Step 2

Discuss all of the income and assets updates the customer would like to make during their contact. If the customer contacts with multiple updates, for example, income stream, shares and foreign income, only proceed with the coding if all updates required are able to be completed.

Note: if the customer has information which can be coded at point of contact and other information a processing team must code, then all information is to be sent to the processing team to code on the customer’s record.

Can the customer provide all the information required and are all updates for this contact able to be coded?

• Yes, go to Step 3
• No, go to Step 4

The following must be coded or requested:

• date of return
• description of item
• value at date of return
• ownership details
• event date

Documentation is not required. Further contact should only be requested if the customer is unable to provide all information.

Does the customer have all required information?

• Yes, go to Step 5
• No, go to Step 4

Tell the customer the information they must provide.

Tell the customer all information is required before any change can be made to ensure they receive correct entitlement.

Request all of the information they must provide. See Requesting information (CLK).

Procedure ends here until documents returned.

A customer advises Centrelink a gift which is recorded on their record, has been, or is expected to be returned.

The Income and Assets Update workflow in Process Direct can be used to update gifting.

• Access the customers record in Process Direct Customer Summary
• Use Super Key field to navigate to screens
• Key START into the Super key
• Select the Income and Assets Update workflow from the Task Selector
• Select:
• Gifts and Deprived Assets (GIFTS)
• Savings (SVP/SVDI)
• Select Start to initiate the workflow

Note: any additional Income and Assets types required for the update being completed can be selected from the Income and Assets Update workflow at the same time.

Obtain details of item returned, or to be returned:

• date of return
• description of item
• value at date of return
• ownership details

Has the gift been returned in full?

• Yes, go to Step 6
• No, partial return of gift, go to Step 7

Check on Gifts and Deprived Asset (GIFT, GIFTS) to see when it was originally gifted and what amount was being assessed due to the deprivation of this item (usually the value when gifted less $10,000 but it may be different if consideration was received or some of the free area had already been used).

Delete this entry. Select next to go to the Savings (SVS, SVP, SVDI) screen in the same activity, select Add to add the Direct Investments Accounts (SVDI):

Header Details:

• Investment Type Code: OTH - Direct Investment
• Investment Name key, 'Returned Gift less $ (free area)'
• Customer'
• Owned % key, as per Gifts and Deprived Asset (GIFTS)
• Partner owned %: as per Gifts and Deprived (GIFTS)

Item Details

• Event Date key, date of original gift as per Gifts and Deprived Asset (GIFT)
• Balance Amount: the amount that was being assessed

After selecting Assess, check the Entitlements (ELD) screen that this will not generate arrears, an overpayment, or a rate change.

If the asset:

• has been returned, or could be said to be owned by the customer again even if not in their possession (but not where documentation states otherwise), go to Step 8
• was a gift but it will now be returned at some time in the future, if it is a financial asset or there exists documentation showing it is still not yet owned again by the customer, it is now considered a loan. Go to Step 9

Delete the original gift from the Gifts and Deprived Asset (GIFT, GIFTS) screen. Then Adda new gift with the amount not returned, and the Direct Investment Account (SVDI) with the amount returned.

On the Gifts and Deprived Asset (GIFTS) screen select Add to access the Create Gift Details screen and update the following:

• Start Date: date of original gift
• Type of Gift: type of original gift
• Gift Value: amount of gift not returned
• Consideration Amount: amount of original consideration
• Customer Owned %
• Partner Owned %

Use the next navigation to go to the Savings (SVS, SVP, SVDI) screen in the same activity, select Add from the Direct Investment Account (SVDI).

Header Details:

• Investment Type Code: 'OTH - Direct Investment'
• Investment Name 'Partial Return of Gift'
• Customer owned %: as per Gifts and Deprived Asset (GIFTS)
• Partner Owned%: as per Gifts and Deprived Asset (GIFTS)
• Event date: date of original gift as per Gifts and Deprived Asset (GIFTS)
• Balance: the amount that has been returned

After selecting Assess, check the Entitlements (ELD) screen that this will not generate arrears, an overpayment, or a rate change.

• If the asset has been returned, or could be said to be owned by the customer again even if not in their possession (but not where documentation states otherwise), go to Step 8
• If it was a gift but it will now be returned at some time in the future, if it is a financial asset or there exists documentation showing it is still not yet owned again by the customer, it is now considered a loan. Go to Step 9

Asset has been returned, or could be said to be owned by the customer again even if not in their possession (but not where documentation states otherwise).

On the Savings (SVS, SVP, SVDI) screen, select on the appropriate Direct Investment Account (SVDI) product. From the Direct Investment Account balances line, select Add to access the Create Direct Investment Account balances options.

Item Details:

• Event Date: date gift returned (or 18 October 2007 if later)
• Balance Amount, nil
• in the same activity, key the asset on the relevant screen (unless it is exempt) also from the date it was returned (or 18 October 2007 if later)

For assistance with coding, see Coding income and assets for Centrelink payments and services procedure. Go to Step 9.

Note: if the returned gift is an asset previously owned by an attributed trust or company of the customer and the gift was manually determined (TRM), the Trust or Company assets must be updated for the return of the asset and the TAC activity rippled as started to customer record in Customer First. The SVDI can then be updated to nil within the rippled TAC activity in Customer First or Customer Record.

If the return is a distributed amount which that has already been assessed as a gift (auto), an amended income tax return for the Trust or Company and an amendment/reassessment of the gift is required. See Step 9 in Table 2 of Trust and companies - calculating a gift amount.

If an asset was gifted but it will be returned at some time in the future, if it is a financial asset or there exists documentation showing it is still not yet owned again by the customer, it is now considered a loan.

On the Savings (SVS, SVP, SVDI), expand the appropriate Direct Investment Account (SVDI) product. From the Direct Investment Account balances line, select Add to access the Create Direct Investment Account balances options.

Item Details:

• Event Date: the date it was realised the gift should be considered a loan (or 18 October 2007 if later)
• Balance Amount: nil

In the same activity, select Add to add a new entry on the Direct Investment Account (SVDI).

Header Details:

Investment Type Code: 'LON – Loan'

• Customer owned %: as per Gifts and Deprived Asset (GIFTS)
• Partner owned %: as per Gifts and Deprived Asset (GIFTS)

Item Details:

• Event date: as above, the date it was realised the gift should be considered a loan (or 18 October 2007 if later)
• Balance Amount: the current value of the asset

Note: if the returned gift relates to an asset that was owned by an attributed trust or company of the customer and the gift was been manually determined (TRM), the Trust or Company assets must be updated for the return of the asset and the activity rippled to customer record. The SVDI can then be updated to nil within the rippled TAC activity.

Explain to the customer, the:

• effect of returning gift on the customer's payments, and
• possible effect of future deprivation in this or later years
• Select Assess
• Check the payment outcome on the Entitlements (ELD) screen and select Finish
• If the Service Officer has used the Process Direct Income and Assets workflow, NOTES will be prepopulated automatically and display for review when Finish is selected.
• At this point any additional information can be added, as per Online Document Recorded (ODR).

Once NOTES are complete, Finalise. The transaction will complete and NOTES replicate to the Document List (DL). Record the details on a DOC.

Is the customer only advising of a returned gift?

• Yes, go to Step 3
• No, go to Step 2

Discuss all of the income and assets updates the customer would like to make during their contact. If the customer contacts with multiple updates, for example, income stream, shares and foreign income, only proceed with the coding if all updates required are able to be completed.

Note: if the customer has information which can be coded at point of contact and other information a processing team must code, then all information is to be sent to the processing team to code on the customer’s record.

Can the customer provide all the information required and are all updates for this contact able to be coded?

• Yes, go to Step 3
• No, go to Step 4

The following must be coded or requested:

• date of return
• description of item
• value at date of return
• ownership details
• event date

Documentation is not required. Further contact should only be requested if the customer is unable to provide all information.

Does the customer have all required information?

• Yes, go to Step 5
• No, go to Step 4

Tell the customer the information they must provide.

Tell the customer all information is required before any change can be made to ensure they receive correct entitlement.

Request all of the information they must provide. See Requesting information (CLK).

Procedure ends here until documents returned.

A customer advises Centrelink a gift which is recorded on their record, has been, or is expected to be returned.

Manual coding is required. The Income/Assets Update and Reviews Script cannot be used to return gifts.

Obtain details of item returned, or to be returned:

• date of return
• description of item
• value at date of return
• ownership details

Has the gift been returned in full?

• Yes, go to Step 6
• No, partial return of gift, go to Step 7

Check on Gifted/Deprived Asset (GIFT) screen to see when it was originally gifted and what amount was being assessed due to the deprivation of this item (usually the value when gifted less $10,000 but it may be different if consideration was received or some of the free area had already been used).

Delete this entry and in the same activity code on the Direct Investments (SVDI) screen:

• Investment Name key, 'Returned Gift less $ (free area)'
• Type key, 'OTH'
• Balance key,the amount that was being assessed
• % owned C/P key, as per GIFT screen
• Event Date key, date of original gift as per GIFT screen

Check on the Activity Results (AR) screen that this will not generate arrears, an overpayment, or a rate change.

If the asset:

• has been returned, or could be said to be owned by the customer again even if not in their possession (but not where documentation states otherwise), go to Step 8
• was a gift but it will now be returned at some time in the future, if it is a financial asset or there exists documentation showing it is still not yet owned again by the customer, it is now considered a loan. Go to Step 9

Delete the original gift from the GIFT screen. In the same activity, code a new GIFT screen with the amount not returned and the SVDI screen with the amount returned.

Go to the GIFT screen and in the following fields:

• Gift Date key, date of original gift
• Gift Type key, type of original gift
• Gift Amount key, amount of gift not returned
• Consideration Amount key, amount of original consideration
• % Owned Customer/Partner key details

On the SVDI screen, in the following fields:

• Investment Name key, 'Partial Return of Gift'
• Type key, 'OTH'
• Balance key, the amount that has been returned
• % owned C/P key, as per GIFT screen
• Event date key, date of original gift as per GIFT screen

Check on the AR screen this will not generate arrears, an overpayment, or a rate change.

If the asset has been returned, or could be said to be owned by the customer again even if not in their possession (but not where documentation states otherwise), go to Step 8.

If it was a gift but it will now be returned at some time in the future, if it is a financial asset or there exists documentation showing it is still not yet owned again by the customer, it is now considered a loan. Go to Step 9.

Asset has been returned, or could be said to be owned by the customer again even if not in their possession (but not where documentation states otherwise).

Update the entry on the SVDI screen. In the following fields:

• Balance key, nil
• Event Date key, date gift returned (or 18 October 2007 if later)
• in the same activity, key the asset on the relevant screen (unless it is exempt) also from the date it was returned (or 18 October 2007 if later)

For assistance with coding, see Coding income and assets for Centrelink payments and services procedure. Go to Step 9.

Note: if the returned gift is an asset previously owned by an attributed trust or company of the customer and the gift was manually determined (TRM), the Trust or Company assets must be updated for the return of the asset and the TAC activity rippled as started to customer record. The SVDI can then be updated to nil within the rippled TAC activity.

If the return is a distributed amount that has already been assessed as a gift (auto), an amended income tax return for the Trust or Company and an amendment/reassessment of the gift is required. See Step 9 in Table 2 of Trust and companies - calculating a gift amount.

If an asset was gifted but it will be returned at some time in the future, if it is a financial asset or there exists documentation showing it is still not yet owned again by the customer, it is now considered a loan.

Update the entry on the SVDI screen. In the following fields:

• Balance key, nil
• Event Date key, the date it was realised the gift should be considered a loan (or 18 October 2007 if later)

In the same activity, code a new entry on the SVDI screen. In the following fields:

• Asset Details, key details
• Type, key 'LON'
• Balance key, the current value of the asset
• % Owned C/P, key as per GIFT screen
• Event Date, key as above, the date it was realised the gift should be considered a loan (or 18 October 2007 if later)

Note: if the returned gift relates to an asset that was owned by an attributed trust or company of the customer and the gift was been manually determined (TRM), the Trust or Company assets must be updated for the return of the asset and the activity rippled to customer record. The SVDI can then be updated to nil within the rippled TAC activity.

Explain to the customer, the:

• effect of returning gift on the customer's payments, and
• possible effect of future deprivation in this or later years

Record the details on a DOC.