Recording and correcting employment income details 108-07010010

Encourage customers to report and update employment income paid using self service See Accessing and using Centrelink self service.

Genuine attempts must be made to transition customers to report via self service options before assisted reporting is completed, unless an Exception applies.

If there has been a self service failure, resolve the issue wherever possible and encourage customers back to self service. See Reporting employment income self service troubleshooting.

Customers can update their employment income details online using the Report employment income service. This is done through their Centrelink online account or the Express Plus Centrelink mobile app.

Youth Allowance (student), Austudy, ABSTUDY Living Allowance, Age Pension, Carer Payment (CP), Disability Support Pension and Parenting Payment (PP) customers without mutual obligations or participation requirements who commence employment, can report their, or their partner's, paid employment income through the Report Employment Income service via their online account. The customer will be automatically placed on statement reporting and can continue reporting their or their partner's employment income through service channels.

For information about options available to customers online, see Reporting employment income online.

Note: when a DSP customer uses the Report employment income service and records more than 30 hours in a week the update will not be successful. The customer will be advised to contact Services Australia and a work item will be created. Staff should complete the update and advise the customer of their options.

Australian employers reporting payroll data to the Australian Taxation Office (ATO) via Single Touch Payroll (STP) enabled software, can report employment income, leave and redundancy payments and employment cessation details. Services Australia can access this data for mutual clients.

Customers reporting via self service (Centrelink phone self service, Centrelink online account, or Express Plus Centrelink mobile app) are required to check, confirm or change any pre-filled STP data.

Staff may be presented with pre-filled STP data when assisting customers to report employment income using the Earnings and Reporting workflow in Process Direct. Staff must discuss the pre-filled details with the customer and make any changes as advised by the customer, where it does not match their payslip. It is the customer’s responsibility to check, confirm or change the employer reported data.

Once STP employment income is accepted by the customer, the confirmed data is automatically loaded onto the appropriate screens on the customer's record.

Further information regarding the pre-fill of employment details is located in Single Touch Payroll.

From 7 December 2020, employment income is coded on the Employment Income Paid Details (EAPP) screen with the appropriate frequency (for example: IOP, LOP, MTE).

Employment income not coded with MTE frequency will be attributed from the EPSD of the entitlement period in which it was paid and for a length of time determined by the period for which the employment income was paid.

The Employment Income Details (EAN) screen will then show the attribution of the income recorded on EAPP. These attributed amounts are readily identified with a channel of 'CAL' to indicate the data is calculated. A Pay ID is also assigned.

If the Pension Monthly Exception Rule is met and ongoing income is recorded using the MTE frequency, attribution of this income is as follows:

MTE amount recorded is multiplied by 12 and divided by 364 to get a daily amount. This daily amount will be applied to each day from the Date of Event (DOV) onwards until a change is coded.

Ongoing assessment of employment income recorded with an MTE frequency commences from the date the income is paid, not the first day of the entitlement period in which the amount is paid. If the DOV is part way through an entitlement period, the income for that period is determined only for the days from the DOV to EPED, this income is then attributed across the whole entitlement period evenly.

See Resources for an example of employment income attribution and how this appears on both EAPP and EANS screens.

Employment income nil rate period

If a customer would receive nil payment due to the Income Test and some of the income is from their (or their partner's) employment, the customer can remain current at nil rate for up to 12 consecutive fortnights if they meet all other qualifications for their income support payment. See Employment income nil rate period.

MOB customers who also receive DSP, JSP, YA (Jobseeker) or Parenting Payment

Mobility Allowance (MOB) customers who also receive Disability Support Pension (DSP), Parenting Payment (PP), JobSeeker Payment (JSP) or Youth Allowance (YA) jobseeker are entitled to a higher rate per fortnight if they work for 15 hours or more a week, at or above the relevant minimum wage.

Family assistance customers

Family assistance and income support reporting obligations are different. Service Officers must discuss family income estimate requirements at every opportunity. Update both actual income for income support payments and income estimates for Commonwealth family assistance payments when required.

Family assistance paid as fortnightly instalments is calculated on an annual income estimate. Income Support Payments are calculated on the actual gross employment income paid to customers and/or their partners during their entitlement period. Do not use the family assistance estimate to calculate income support entitlement.

See Updating income estimates for the current financial year for more information about what income is included in the Family assistance estimate and how to update the customer's estimate.

Note: if a customer or partner is in receipt of Parental Leave Pay, the amount they are paid must be counted in the income test for any Income Support Payment they might receive from Centrelink. The customer/partner does not need to declare this income as it will be automatically assessed.

Job Seeker improved reporting of changes in income

When an Employment Service Provider places a job seeker in employment, they create and electronically transmit a transaction to Services Australia. If a job seeker receiving a Working Age payment do not declare income, the system prompts Service Officers to have a discussion with the job seeker. Only work which has started in the 14 days before the advice to the agency will require follow-up.

The Earnings and Reporting workflow prompts a discussion for stimulus reporters. For job seekers without statement reporting requirements, an Urgent Issue will show. Record an outcome for the discussion; this may involve clarification with the employer or employment service provider.

See Employment Services Provider reports job seeker commenced employment but income not declared for more details.

There are currently 2 system limitations relating to PPP customers.

• If an NSS partner, for example: JSP, YA, Special Benefit (SpB), of a PPP customer is suspended, any income recorded on the NSS partner record may not give the correct rate for the PPP customer. This is because no excess partner income can be calculated
• If a PEN partner of a PPP customer is suspended, any income recorded on the PEN partner's record will be incorrectly assessed using the Pension Income Test. The correct Income Test used for the PPP customer must be the partner not on pension, Austudy or YA Income Test

In both circumstances, do not restore the partner's record. A manual rate must be applied.

Note: Smart Centre staff must contact Local Peer Support (LPS) who will escalate the details to a Service Support Officer (SSO) who will:

• calculate the rate, and
• record details and reasons for manual rate on the DOA DOC. See Manual rates of payment

If a customer has reported income as employment income that is later determined to be self-employment, a Business Details (MOD F) should be completed by the customer (or MOD PT or PC depending on the structure of the business).

Note: customers may receive employment income from a private trust or private company they are involved in. Care must be taken to make sure each type of income is recorded in the correct way.

Staff must take care to only remove the employment income in the same activity as the self-employment income is recorded.