# 9.4.3.60 AoS - income requirements & family circumstances of potential assurer

## Family circumstances

The income test for both a mandatory AoS (security required) and a discretionary AoS (security not required) is incremented according to the number of assurers, the number of dependent children in the potential assurer's family and the number of adults to be supported under the AoS.

The income requirement is equal to the maximum annual basic rate for JSP for a single person with dependent children (JSP rate as at 1 July) for each of the adults involved in the AoS, whether they are an assurer or assuree. That is the JSP rate multiplied by the number of assurers giving the AoS (up to a maximum of 3 assurers) and the number of adults who are being supported under the AoS (up to a maximum of 2 assurees). This is to ensure that the assurer/s has sufficient income to support themselves and the assurees under the AoS.

The income requirement will apply to each person giving an AoS, whether the assurance is given by 1 or more people.

**Example (worked on the assumption that the applicable rate is $14,840.80 as at 1 July 2016):**

- if 1 person gives an AoS for 2 adults the income requirement will be $44,522.40, or
- if 2 people give an AoS for 2 adults the income requirement will be $59,363.20, or
- if 3 people give an AoS for 2 adults the income requirement will be $74,204.00.

**Note:** On 20 March 2020 JSP replaced NSA. Prior to 20 March 2020 the AoS income test was based on the maximum annual basic rate for NSA for a single person with dependent children.

Children of an assuree over 18 years are considered to be adults and will be required to have a separate AoS.

If the assurer's family includes children under 18 years of age the assurer's income threshold is increased by the annual base rate of FTB Part A (as indexed) plus the rate of FTB Part A supplement as at 1 July for each of the assurer's children. The following examples are provided to explain how the income threshold test above may apply.

**Example 1:** If a person with 2 children applies to give an AoS for a migrating family of 2 parents and 2 children on 1 July 2016, the minimum required income amount of the assurer is the total of:

- $44,522.40 (the applicable rate of $14,840.80 multiplied by the total number of adult assurers and adult assurees (3)), and
- $4,511.40 (the base FTB Part A rate and the applicable supplement amount of $2,255.70 multiplied by the total number of the assurers' children (2)).

The base FTB Part A rate and the applicable supplement are only added to the income requirement for the assurers' children. They do not apply to the children of the assurees.

**Example 2:** If an assurer (who has a partner and 2 children) gives an AoS jointly with the partner for a migrating family of 2 parents and 2 children, the combined minimum required income for both assurers is the total of:

- $59,363.20 (the applicable rate of $14,840.80 multiplied by the total number of adult assurers and adult assurees (4)), and
- $4,511.40 (the base FTB Part A rate and the applicable supplement amount of $2,255.70 multiplied by the total number of the assurers' children (2)).

The base FTB Part A rate and the applicable supplement are only added to the income requirement for the assurers' children. They do not apply to the children of the assurees.

No increases are required to the income requirement in respect of an assurer's partner if the partner is not giving an AoS. An assurer's partner may give an assurance in his or her own right provided they meet the income and other requirements.

Both members of a couple may jointly assure a person seeking assurance provided they meet the relevant income and other requirements.

**Note:** From 1 July 2016, if an individual's ATI (which includes the ATI of their partner if any) is more than $80,000 for the relevant income year, then the individual's FTB Part A supplement in relation to that year will be nil.

**Act reference:** SSAct Part 2C.4 Determinations