Average weekly income
Clients can choose an income assessment period of either 26 or 52 weeks to calculate their average weekly income for the initial stand-down. Therefore you will need to calculate the average weekly income for both 26 weeks and 52 weeks.
Income (before tax) can include, but is not limited to:
- normal salary/wages
- bonus payments paid at the time of termination
- Child Support received
- earnings-related accident insurance payments
- gross income from investments
- holiday pay
- interest from savings or investments
- other benefit payments
- Paid Parental Leave payments
- pay in lieu of notice
- pay in lieu of accumulated leave
- payments dependent on the completion of a fixed term contract
- redundancy payments
- rent
- retirement payments
- Student Allowance and student Accommodation Benefit and
- any other income (for example family trust income)
To calculate the average weekly income over a 26 week period, divide by 26, the total amount of income received by the client in the 26 week period immediately before their entitlement date. If this is the one week minimum, then the stand-down period is one week, otherwise calculate the average weekly income over a 52 week period.
To calculate the average weekly income over a 52 week period, divide by 52, the total amount of income received by the client in the 52 week period immediately before their entitlement date.
You should use the calculation that gives the client a lesser stand-down period.
Note any overseas earnings received by the client before their entitlement date must be included in the calculation of the client's average weekly income.
Partners
When the client has a partner who has been working or is still working, use the higher of their two incomes over the previous 26 or 52 weeks to calculate the stand-down.
Do not combine their incomes.
However, if the other partner's wages or holiday pay continues beyond the commencement date, charge this income against the benefit in the usual way.
For more information see:
Legislation
- Period of benefit stand down: interpretation regulation 182 Social Security Regulations 2018
