The Guides to Social Policy Law is a collection of publications designed to assist decision makers administering social policy law. The information contained in this publication is intended only as a guide to relevant legislation/policy. The information is accurate as at the date listed at the bottom of the page, but may be subject to change. To discuss individual circumstances please contact Services Australia.

4.3.3.40 Employment income for allowees

Summary

This topic provides information about the following:

  • payments covered by this policy
  • income assessed for employees (1.1.E.87), and
  • exempt income.

Payments covered by this policy

This policy applies to the following benefit payments:

  • jobseeker payment
  • youth allowance
  • austudy payment, and
  • special benefit.

Income assessment for employees

The money (or other valuable consideration) paid for remunerative work done by the person as an employee in an employer/employee relationship is assessed as the person's income without any reductions. This income is called employment income (1.1.E.102) and includes, but is not limited to, commissions, salary, wages, employment-related fringe benefits, or a combination of these.

Act reference: SSAct section 8(1)-'employment income'

Seasonal work (1.1.S.60)

Special rules apply to the assessment of income from seasonal work (1.1.S.61).

Income from independent contracting

A contract OF service or labour indicates an employer/employee relationship. A contract FOR services to produce a result indicates self-employment.

Policy reference: SS Guide 4.3.3.20 Income from employment or independent contracting

Exempt income

Some income from employment is exempt from assessment.

Policy reference: SS Guide 4.3.2 Income exempt from assessment

Last reviewed: