Change in assessable income

Assessable income can be reviewed when an applicable person has a change in income that is permanent (8 weeks or more).

Generally:

• a change in circumstances that will result in an increase in Income Related Rent will not be considered permanent until it has lasted 8 weeks or more
• a change in circumstances that will result in a decrease in Income Related Rent will be considered permanent when it is likely to last or has lasted 8 weeks or more

Some clients such as seasonal, self-employed, or casual workers can have varied or fluctuating income.

If a client has variable income the rate of the Income Related Rent does not need to be reviewed each time the client's or their partner's (if any) income changes, unless it is considered that the change in income:

• is a permanent change which lasts longer than 8 weeks and
• will make a material difference to the Income Related Rent when compared to the previous weekly estimate of assessable income

To determine if a change in a client's income is permanent when their weekly income is variable, their income from the last 16 weeks needs to be considered.

If their average weekly income from the most recent 8 weeks is different to the average weekly income for the 8 weeks before that, the change should be considered permanent.

For example, the change would be determined to be permanent when a client with variable earnings had an average income over the most recent 8 weeks of $580 per week, and their weekly income over the 8 weeks before that period was $510.

Benefit rates are reviewed and adjusted as soon as there is a change of income and this can be as frequently as a weekly adjustment. Assessable income for Income Related Rent purposes uses a future estimate of weekly income and is only adjusted when a change in circumstance is permanent and will make a material difference.

Where a client is receiving a benefit, the income charged against a benefit may not be the same income amount used as assessable income for calculating the rate of Income Related Rent at any given point in time.

At the time a review of the rate of Income Related Rent is completed, the current weekly benefit rate needs to be obtained. The rate that is included as assessable income depends on whether the client is getting income in addition to their benefit.

If a client is earning income:

• under the benefit income thresholds, the benefit rate to include is the benefit rate the client is getting or
• over the benefit income thresholds, the benefit rate to include is an average benefit rate (over an appropriate period)