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.

6.1.1.20 Causes & types of income & assets reviews

Summary

This topic explains the main types and causes of income and asset (1.1.A.290) reviews. This topic covers the following matters:

  • the purpose of income and asset reviews
  • the causes of income and asset reviews
  • the timing of a review
  • income reviews versus income AND asset reviews
  • automatic and manual issue of reviews, and
  • the result of a review.

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

Purpose of income & asset reviews

Centrelink conducts income and assets reviews to ensure that recipients continue to receive their correct pension entitlement. A review generally involves reassessing a recipient's circumstances in the same way as the original claim was assessed, although in some cases other provisions are specified.

Causes of income & asset reviews

A review is conducted when a person's circumstances change. Centrelink initiates a review when it becomes aware of a person's changed circumstances from one of the following sources:

  • a person, or someone on their behalf, OR
  • a third party (see example), OR
  • automatically produced by the system, OR
  • data matching and profiling, OR
  • follow-up of a manually recorded review, usually identified as needed at an earlier assessment.

Example: Through information, from say the Australian Federal Police, or through public denunciation.

Policy reference: SS Guide 6.1.2 Change in Circumstance Reviews, 6.5 Profiling reviews

Income reviews versus income AND asset reviews

The following table shows the 2 main types of reviews conducted when a person's circumstances change and when each type is used.

A review of a person's … occurs with a change in their …

income

income ONLY.

TOTAL income and assets

asset value that approaches the relevant asset limit.

Explanation: Asset changes that do NOT affect a person's asset value limit are usually only recorded, with no review action taken.

Timing of review

A review can be conducted immediately and/or at a specified date in the future.

Automatic & manual issue of reviews

The following table shows which reviews are generated automatically by the system, or manually by staff. A subsequent manual review is coded for a later date whenever any outstanding issues need to be clarified or reviewed.

A review is issued … for …

automatically by the system
  • asset reviews, for recipients (with the exception of Age recipients) paid under the assets test, AND
  • asset value reviews of financial investments (1.1.F.135), although these can also be requested on the system, AND
  • Centrelink valuation reviews, although these can also be requested on the system, AND
  • pensioners (Age and PPS recipients) identified through profiling, AND
  • income and asset reviews of private trusts and private companies, AND
  • overseas selective pensioner entitlement reviews, AND
  • 6-month overseas reviews.

automatically by the system, AFTER action by staff
  • asset reviews of hardship and HEAS (formerly PLS) recipients, AND
  • tax return reviews for sole traders and partnerships, AND
  • reviews of future entitlement to a lump sum or assets from superannuation, compensation (1.1.C.240), or a deceased estate, AND
  • principal home (1.1.P.420) reviews for sale of the home or absence due to nursing home (1.1.N.140) admission.

manually, after a system prompt
  • data matching reviews of the records of the ATO, Department of Home Affairs, and state corrective services departments, AND
  • National Selective Review System (NSRS) -reviews for local initiatives, office referrals, public information, and profiling reviews.

manually by staff, as needed
  • recipient requested reviews, AND
  • qualification (1.1.Q.10) reviews, AND
  • fluctuating income or casual earnings reviews.

Result of a review

Once a recipient's circumstances have been re-assessed, there may or may not be an effect on their payment. This will depend on the qualification and payability rules for the specific payment.

Policy reference: SS Guide Part 3 Qualification & payability, 4.2.1.10 Pensions income test, 4.2.3 Pensions & benefits assets tests, 6.5 Profiling reviews

Last reviewed: