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Means Test B - Assessing the applicant's net income
What is included?
Income from all sources is included in the assessment, including, but not limited to, the following:
- pensions, benefits and allowances
- income from paid work, including overtime
- periodic receipts of a capital nature including payments from investments, interest earned and payment of debts owed to the applicant
- board or rent received
maintenance received
workers' compensation or other insurance payments
superannuation.
Income is calculated net of business overheads/expenses reasonably incurred in or for the purposes of gaining or producing that income.
NOTE: Such overheads/expenses will not be considered reasonably incurred merely because they have been, or are likely to be allowed or allowable deductions by the Commissioner of Taxation for the purposes of the Income Tax Assessment Act 1936.
Exemptions from income
The only exemptions from income are:
- Family Payment including any Guardian allowance
- Child Disability Allowance
- Rent Assistance.
How to calculate net assessable income
The means test guidelines on income are applied to the applicant's net assessable income which is the applicant's weekly assessable income, less:
- income tax (including the Medicare levy)
- housing costs to a ceiling of $230 per week, for applicants residing in Sydney, and $175 per week for other applicants.
An applicant is a Sydney resident for the purposes of the means test if he or she lives in the area bounded by Cowan in the north; Richmond in the north-west; Emu Plains in the west, Menangle Park in the south-west and Waterfall in the south. This area is covered by the following postcodes:
- 2000-2249, 2555-2567, 2740-2753, 2759-2770
Housing costs include amounts paid for any style of housing as a place of residence on a regular basis and are:
- rent
- half-board
- mortgage instalments
- municipal and water rates.
- child care costs necessarily incurred to work or study to a ceiling of $110 per week
- dependant allowance
(i) a dependant allowance is to be deducted for:
- each financially associated person whose income is included in assessable income whether or not that person is actually dependant on the applicant
- for all genuine dependants whether or not they reside with the applicant
(ii) The amount to be deducted is $60 per week per dependant. The exception is where dependants do not reside with the applicant. Then the actual amount of maintenance paid up to a ceiling of $60 per dependant is to be deducted.
Income Guidelines
Applicants with a net assessable income
- of $190 or less are, subject to eligibility under the assets guidelines, eligible for legal aid.
- greater than $190 are ineligible for legal aid.
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