6.1.2.50 Reviews - Business, Sole Traders & Partnerships

Summary

This topic contains information on reviews resulting from possible changes in circumstances for income support recipients who are operating a business as a sole trader or a partnership, and covers:

  • business and self-employment reviews,
  • primary production reviews,
  • revaluation of real estate and businesses, and
  • conducting the revaluation review.

Policy reference: SS Guide 6.1.1.10 General Provisions for Income & Assets Reviews, see Variations in income

Business & self-employment reviews

The following table shows the review action required for self-employed income support recipients operating a business as a sole trader or partnership.

If… Then their entitlement is reviewed…
an income support recipient is self-employed, at least annually, AFTER their tax return and TNA is available. Copies of these documents are needed.

the business has only recently started, OR

no tax return is available,

based on the business records held by the income support recipient, pending the availability of the tax return.

an income support recipient advises that their business has declined by a significant degree during the year, AND

applies for an increase in their payment rate,

based on the business records available.

Example: Profit and loss statements, ledger books.

Assuming an early lodgement of the tax return, it generally takes at least until the end of September for the TNA to be issued. To allow an accurate assessment, assessors usually need to consider all attachments lodged with the tax return. Deductions allowed by the ATO are not always acceptable to Centrelink.

Policy reference: SS Guide 4.7 Business Structures, Primary Production & pre-01/01/2002 Assessment of Trusts & Private Companies

Primary production reviews

Information in this section also applies to reviews of primary producers who are operating as sole traders or partnerships.

Policy reference: SS Guide 4.7 Business Structures, Primary Production & pre-01/01/2002 Assessment of Trusts & Private Companies

Revaluation of real estate & businesses

Age, WP and WidB income support recipients with real estate can be reviewed either manually or when identified through profiling.

An annual review should be conducted of the value of any real estate (except Age, WP and WidB income support recipients) or business that is considered as an asset (1.1.A.290) for:

  • asset-tested income support recipients, and
  • income-tested income support recipients, who have total assets within $10,000 of the allowable assets limit.

An income support recipient may seek a revaluation of real estate or a business at any time.

Real estate and businesses can be re-valued when a review is conducted due to a change in the value of OTHER assets.

A date for review should be noted in the system for benefit cases paid under the assets test hardship provision. This facilitates a revaluation in line with the annual asset test review of real estate.

Policy reference: SS Guide 4.6.5.30 Assessing Property, Real Estate & Unit Trusts, 4.6.7 Asset Hardship Rules, 6.5 Profiling Reviews

Conducting the revaluation review

To conduct the review, a delegate needs to:

  • consider the information supplied under the module R,
  • consider whether to request a valuation from a professionally qualified valuer, and (where applicable)
  • request a valuation from a professionally qualified valuer, and
  • obtain any supporting evidence held by the income support recipient and pass this on to the valuers.

Example: Supporting evidence from a real estate agent.

The revised value of the real estate or business asset applies from the date the revised valuation is received.

Last reviewed: 11 August 2014