Estimating and adjusting net weekly income

A client's assessable income is their estimated net weekly income (ie income after tax) from all sources after the deduction of any Accident Compensation Corporation (ACC) premiums or levies. This includes income from assessable assets.

When estimating a client's net weekly income, the estimated total net income for the period will be averaged over:

• 52 weeks or
• a shorter period where appropriate

Note weekly income cannot be estimated from a period longer than 52 weeks.

If it is appropriate, you can use a period that is less than 52 weeks to estimate weekly income.

If a shorter period is used to estimate the client's weekly income, the best available estimate of total assessable income received from all sources over the period must be divided to get the net weekly amount.

Calculate the assessable income as follows:

• estimate the net income over the shorter period
• divide by the shorter period = weekly rate of assessable income

For example, if there is evidence of a permanent increase or decrease in pay, the total assessable income received since the permanent change could be divided to get an estimate of the weekly income.

If any part of an applicable person's income has not been reduced by the appropriate amount of income tax, ACC premium or ACC levy, you will need to adjust the weekly income to account for the estimated amount payable.

For example, if a client is paying a higher tax rate than necessary, you should adjust the income to what would be the correct net amount.