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This topic provides information on income (section 8(1)-'income') from:
The following table shows how different gift situations are assessed as income for social security purposes.
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If the gift is … |
Then it… |
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a one-off payment, |
IS NOT treated as income. |
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received regularly from an immediate family member, Example: Brother, sister, mother, father, son or daughter. |
IS reduced to a fortnightly equivalent, AND: - treated as income for benefit purposes, and - NOT treated as income for pension purposes. |
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received regularly from another source, Example: A firm, union or friendly society. |
IS treated as income. |
Money received by way of a legacy or inheritance is NOT treated as income whether received as a lump sum or by instalments.
Explanation: All payments of a legacy are considered to be one-time, lump sum payments and not payments of a recurring nature.
The following table shows how different royalty payment situations are assessed as income for social security purposes.
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If the royalty payment is … |
Then it… |
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made directly to a self-employed person, Explanation: The person's income is assessed by adding income from royalties to the fees and other income earned from the self-employment and then deducting expenses to calculate a net profit. |
IS treated as income. |
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a lump sum amount paid to a person who is not self-employed, |
IS treated as income for 52 weeks from the date the person is entitled to receive that amount. |
The following table shows how different royalty payment situations, paid to Indigenous people, are assessed as income for social security purposes.
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If the royalty payment is … |
Then… |
| paid to an individual member of an Indigenous community, | it IS treated as income. |
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paid to a self-employed member of an Indigenous community, |
it IS treated as income. |
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paid directly to an Indigenous community and used by the community, Explanation: In most communities the royalties are paid into non-discretionary trusts administered by community leaders. |
it is NOT treated as income of the individual person. |
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- paid directly to an Indigenous community, AND - the Indigenous people's council subsequently made payments to a person from the royalty payments invested by the community, |
those payments ARE considered income. |
Act reference: SSAct section 8(8) Excluded amounts-general, section 8(11) An amount received by a person is an exempt lump sum if…, section 1067G-H21 Ordinary income includes certain periodical payments from relatives, section 1068-G5 Ordinary income includes certain periodical payments from relatives, section 1068B-D5 Ordinary income includes certain periodical payments from relatives
Policy reference: SS Guide 4.3.2.30 Income Exempt from Assessment-Legislated
It is likely that any payments resulting from successful native title claims will be made to communities rather than individuals. When a payment is made to a community, the compensation should be assessed like the treatment of royalties, listed in the table above.
Where individual people receive compensatory amounts, either from the community or the compensation payer, Centrelink Help Desks should refer the details to FaHCSIA Means Test Policy Section for guidance.
These compensatory payments ARE NOT assessed as compensation (1.1.C.240) for social security purposes.
Explanation: Only compensation for personal injury is assessed under the compensation provisions of the SSAct.
Act reference: SSAct section 17(2) Compensation
Policy reference: SS Guide 4.3.2.30 Income Exempt from Assessment - Legislated, 4.3.2.31 Income Exempt from Assessment - Specifically Approved, 4.13 Compensation
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Last reviewed: 1 March 2010
