It includes employment income received or earned in Australia or overseas. It does not include: profits from having ownership or an interest in a business or other business income; superannuation pensions; personal injury compensation; or employment related insurance payouts. To calculate income, the gross rate of earnings is used, before taxation or any personal deductions. 59.2.1 Assignment of earnings If a recipient assigns either all or part of their earnings to another person, the amount assigned is the recipient's income and IS treated as income for the purposes of the ABSTUDY Personal and Partner Income Tests. 59.2.2 Deductions for agency fees In some situations recipients may have employment agency fees deducted from their after tax earnings or be required to pay an agency a percentage of their gross income. Agency fees should be treated like any other employment expense and included in the recipient's gross income used for social security purposes. 59.2.3 Back pay paid to a person for a period of employment Arrears of pay can be treated as income IF the person had a 'present legal entitlement' to the payment of arrears at the time they were earned (for example, the person was underpaid due to administrative error on the part of the employer). A debt should be raised based on the under declared earnings. In situations, such as where a workplace agreement backdates a pay increase, 'present legal entitlement' exists from when the person becomes legally entitled to the back pay (i.e. from the date of decision to pay the back pay). A lump sum payment of back pay is remunerative and the amount is held as income for 52 weeks from the date the person first becomes legally entitled to receive payment. 59.2.4 Disputed wages Where a recipient has performed work but there is a dispute about who is to pay the wages, the recipient may not be paid for the work performed. This means the recipient has no present legal entitlement to be paid for the work and it cannot be said that the recipient has 'earned' the amount. The amount not paid is therefore NOT counted as Ordinary Income for that period. If an employee had no choice over whether or not their income was deferred, income is NOT assessed until he or she has received it.
It includes employment income received or earned in Australia or overseas. It does not include: profits from having ownership or an interest in a business or other business income; superannuation pensions; personal injury compensation; or employment related insurance payouts. To calculate income, the gross rate of earnings is used, before taxation or any personal deductions. 59.2.1 Assignment of earnings If a recipient assigns either all or part of their earnings to another person, the amount assigned is the recipient's income and IS treated as income for the purposes of the ABSTUDY Personal and Partner Income Tests. 59.2.2 Deductions for agency fees In some situations recipients may have employment agency fees deducted from their after tax earnings or be required to pay an agency a percentage of their gross income. Agency fees should be treated like any other employment expense and included in the recipient's gross income used for social security purposes. 59.2.3 Back pay paid to a person for a period of employment Arrears of pay can be treated as income IF the person had a 'present legal entitlement' to the payment of arrears at the time they were earned (for example, the person was underpaid due to administrative error on the part of the employer). A debt should be raised based on the under declared earnings. In situations, such as where a workplace agreement backdates a pay increase, 'present legal entitlement' exists from when the person becomes legally entitled to the back pay (i.e. from the date of decision to pay the back pay). A lump sum payment of back pay is remunerative and the amount is held as income for 52 weeks from the date the person first becomes legally entitled to receive payment. 59.2.4 Disputed wages Where a recipient has performed work but there is a dispute about who is to pay the wages, the recipient may not be paid for the work performed. This means the recipient has no present legal entitlement to be paid for the work and it cannot be said that the recipient has 'earned' the amount. The amount not paid is therefore NOT counted as Ordinary Income for that period. If an employee had no choice over whether or not their income was deferred, income is NOT assessed until he or she has received it.