Assessing weekly income
Income limits for Housing Support Products are determined based on a client's weekly income. MSD has discretion to determine the period that weekly income relates to. When working out which period of income to use, MSD may consider:
- how much income was earned during the period
- how income the client expects to receive for that period, (e.g. investment interest was accrued but has not yet paid)
- the period for which income was received by the client
Generally, MSD will base the client and their partner's (if any) weekly income on the average income over the previous four weeks, unless MSD considers a different timeframe is appropriate (for example the client has been earning for a shorter or longer time). This means the last four weeks of income is totalled and then divided by four.
In some cases, MSD can use a different period to calculate the weekly income period, to consider the client's circumstances, including whether the client or their partner's income:
- has been inconsistent over the previous four weeks
- is variable week by week
- has either increased or decreased recently
- will increase or decrease in the immediate future (in the next four weeks)
- future income is uncertain, including where there is a history of the employer not paying wages or paying late
- has been earned but not paid (e.g. the client earned income but not been paid on time)
Example 1 - variable income
Piper works in a casual role in a supermarket. Their employment started 3 weeks ago, they have no set weekly hours and their income will change from week to week, depending on the number of hours they will work. Their employer has indicated they should receive a minimum of 20 hours work per week at $24 per hour ($480 per week) but this is not set out in Piper's employment agreement. Piper's 3-week income so far has been:
Week 1 = $400
Week 2 = $200
Week 3 = $300
In this case, Piper's income will be estimated using the average wage over the previous three weeks as they do not have four weeks of income to assess. The calculation is:
$400 + $200 + $300 = $900
$900/3 (weeks) = $300.
Example 2 - recent income change
Moana has been earning $900 per week over the previous 12 months. However, Moana has changed from a full-time role to a part-time role due to starting study.
Moana started earning $300 a week starting last week. When calculating Moana's weekly income for a Housing Support Product, MSD bases this on $300 per week as this will be her income going forward.
