2.3.2 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
  • the value of any adjusted fringe benefits (1.1.A.30)
  • target foreign income (1.1.T.10)
  • total net investment losses (1.1.T.80)
  • tax free pension or benefit, and
  • reportable superannuation contributions (1.1.R.40)
• 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 ATO, 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.

Centrelink may request the claimant to provide details of their taxable income as assessed by ATO, as well as information on the additional components of ATI, where such assessment is available.

If the claimant cannot provide the details of their taxable income during the reference income year as assessed by the ATO, they can provide their own calculation of their ATI.

Reasonable calculation of income

If the claimant has calculated their ATI, Centrelink will determine if the calculation is reasonable. If Centrelink does not consider the calculation reasonable, the claimant has not satisfied the income test and therefore the claimant has no entitlement to PLP.

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 claimant is a member of a couple

The income of a claimant’s partner will be included in an assessment if they are being assessed against the relevant family PPL income limit. It will not be included if being assessed against the relevant individual PPL income limit.