Completing Parent(s)/Guardian(s) details for the Base Tax Year and Current Tax Year (MOD JY) 106-07100080

Item

Description

1

Do you receive a payment paid by the Department of Veterans' Affairs?

Yes, the customer may be exempt from the Parental Income Test (PIT).

2

Has your (and your partner's) income decreased since the BASE tax year?

This question is for current tax year assessment only.

Complete an assessment using the current tax year when:

• there has been a substantial decrease in parental income, and
• the decrease is likely to continue for at least 2 years

Request documents when required. Accept estimates of income until a Tax Notice of Assessment is available.

When a decrease is reported a long way in advance, check the estimate for the current year is still accurate.

3

What was/is your taxable income for the tax year?

The base tax year

Assessments normally use the parental income for the base tax year.

Customers must attached the Tax Assessment Notice for that year.

A current tax year assessment

Complete an assessment using the current tax year when:

• there has been a substantial decrease in parental income, and
• the decrease is likely to continue for at least 2 years

Accept estimates of income until a Tax Notice of Assessment is available.

Complete a current tax year income assessment when parental income exceeds the following by more than 25%:

• the base tax year income, and
• the parental income free area

This assessment applies from:

• for Youth Allowance, the start of the pay period that ends after 30 September
• for ABSTUDY, 1 October

Customers must provide details for both the base tax year and the current tax year at each question when:

• applying for a current tax year income assessment, or
• the agency has asked for details for a current tax year income assessment

Customers not subject to a current tax year assessment can provide just base tax year details at each question.

4

During the relevant tax year, did you receive (or expect to receive) any income or make a loss in any of the areas listed below?

Foreign income

Includes any foreign income earned, derived or received from sources outside Australia. It also includes periodical payments or benefits by the way of gifts or allowances received from a source outside Australia.

Note: do not include foreign income declared on an Income tax return here as it is collected at Q19.

Foreign income is collected for the same period as the Australian financial year (1 July to 30 June). Evidence of foreign income can be accepted but is not normally required.

Fringe benefits

Include reportable fringe benefits from an employer greater than $2,000 (in the tax year) as income for the PIT. If less than $2,000, do not include here and do not code.

Customers must include the total gross amount of reportable fringe benefits, from their Payment Summary (Group Certificate).

For PIT purposes, only include the non-grossed up amount as income. Convert using the Fringe Benefit Tax rate for the financial year to determine an adjusted amount of fringe benefits.

For example, in the 2017/18 financial year, the Fringe Benefit Tax rate is 49 per cent. If a gross amount of $5,000 in fringe benefits is reported, deduct 49 per cent and assess as $2,550.

Net investment losses

Total net investment losses include net losses from rental property and non-property passive income investments such as shares. Add back the value of these losses to the income in the PIT assessment.

Request a copy of the parent/s TNA when:

• in doubt, or
• if assessor deems the figure provided is unreasonable (for example, large discrepancy form previous years)

See the References page for total net investment loss policy.

Reportable superannuation contributions

Customers need to include details about reportable superannuation contributions for both current and base tax year records.

Reportable superannuation contributions include:

• discretionary employer superannuation contributions
• voluntary salary sacrificed amounts, and
• tax deductible superannuation contributions if self-employed

Tax free pensions and benefits

These include certain non-taxable pensions or benefits received in the relevant tax year from:

• the agency
• the Department of Veterans' Affairs, or
• the Military Rehabilitation and Compensation Commission

It includes:

• Disability Support Pension
• Carer Payment
• Wife Pension and
• Similar pensions or benefits

It does not include:

• Family Tax Benefit
• Child Care Benefit
• Child Care Rebate
• Child Care Subsidy
• Carer Allowance, or
• Mobility Allowance

5

During the relevant tax year did you pay or do you expect to pay any maintenance (including child support)?

Maintenance paid:

Deduct the following (paid in the relevant tax year) from parent's income:

• maintenance paid for a child from a previous relationship, and/or
• spousal maintenance

6

What is the amount of maintenance you (and/or your partner) receive for this child per day, week, fortnight, month or calendar year?

This question asks parent(s)/guardian(s) to provide details of any voluntary maintenance income they receive for the customer.

For more information on when and how to code voluntary maintenance, See Maintenance Income Test (MIT) for ABSTUDY and Youth Allowance (YA).

7

Are there any other dependent children in your family?

Note: do not include the Youth Allowance (YA) or ABSTUDY customer.

To be considered dependent, a child must:

• be in care and receiving the payment as a dependant (that is, their payment is also subject to the PIT), or
• meet the definition of a Family Tax Benefit or, Regular Care Child. The References page contains a link to the Guide, explaining these definitions.

See Determining a dependent child for inclusion in the family pool for the Parental Income Test (PIT).

8

Parent(s)/guardian(s) are asked for their Tax File Numbers (TFN) for data matching with:

• the ATO, and
• other government departments

If they do not give the agency their TFN(s) within 28 days from the date of the claim:

• the YA applicant may not get paid, or
• YA may be cancelled

Parents can:

• provide the TFN on the form
• authorise the agency to use a previously provided TFN for this claim, or
• ask the agency to help them apply for their TFN from the ATO