2.2.3.20 Adjusted Taxable Income (ATI) for PLP

Introduction

ATI is used in the FTB, CCS and PPL income tests when assessing an individual's eligibility for these payments. While the income tests are different for the PPL scheme and family assistance payments, such as FTB and CCS, ATI is used to assess eligibility for each payment.

An individual's ATI is:

  • the sum of the following amounts for the relevant income year:
    • taxable income, and
    • the value of any adjusted fringe benefits (1.1.A.30), and
    • target foreign income (1.1.T.10), and
    • total net investment losses (1.1.T.80), and
    • tax free pension or benefit, and
    • reportable superannuation contributions (1.1.R.40), and
  • less 100% of the individual's deductible child maintenance expenditure.

Note: This is the same definition as applies to family assistance law (FAAct schedule 3), except that subclause 2(2) relating to when an individual dies and clauses 3, 3AA and 3A relating to members of a couple - have no application to PLP.

See FA Guide Part 3 for detail relating to the above amounts.

Assessment of ATI

In determining whether an individual meets the income test, Centrelink uses either:

  • the individual's taxable income as assessed by the Tax Commissioner, plus the additional components of ATI, for the reference income year, or
  • a statement of ATI in the relevant financial year, provided by the individual and assessed as reasonable by Centrelink.

Individual's taxable income

The claimant must provide details of their taxable income as assessed by the Tax Commissioner for the full reference income year. The claimant must also provide information on the additional components of ATI, where such assessment is available.

Calculation provided by the individual

If the claimant cannot provide the details of their ATI during the reference income year as assessed by the ATO, they can provide their own calculation of their ATI. The claimant must support their calculation with relevant documentation, including wage slips, bank statements, previous years' tax returns or other financial information.

Reasonable calculation of income

If the claimant has calculated their ATI, Centrelink must determine if the calculation is reasonable. If Centrelink considers the calculation to be reasonable, the applicant will be eligible for PLP or DAPP, subject to other eligibility criteria. If Centrelink does not consider the calculation reasonable, and hence cannot be satisfied that the claimant meets the income test, the claimant has no entitlement to PLP or DAPP.

Review of an income determination

If it has been determined that a person is eligible for PLP and that determination took into account the income of the person, and the person did not knowingly make a false or misleading statement about their income, a review of the eligibility determination may not vary the income determination or substitute a new determination that the person did not meet the income test.

Where claimants have made a reasonable and honest effort to correctly calculate their ATI and their actual income differs from the calculated amount, PLP will still be payable.

Treatment of income if the applicant/recipient is a member of a couple

Only the claimant's income is subject to the income test. The income of the claimant's partner is not assessed.

Act reference: PPLAct section 37 When a person satisfies the income test, section 38 A person's adjusted taxable income, section 39 The reference income year, section 40 The relevant PPL income limit, section 41 The PPL income limit, section 273 Certain income test determinations not to be changed on review

PPL Rules

Policy reference: PPL Guide 2.2.1 PLP Eligibility Overview

Last reviewed: 2 July 2018