1.1.A.63 Adjusted taxable income (LIS)

Definition

For the purposes of LIS, an individual's ATI for the income year is:

• the sum of the following amounts for that year:
  • taxable income,
  • the value of any adjusted fringe benefits,
  • target foreign income (including tax exempt foreign employment income),
  • total net investment loss (within the meaning of the Income Tax Assessment Act 1997),
  • tax free pensions or benefits, and
  • superannuation income stream benefits that are non-assessable non-exempt income (within the meaning of the Income Tax Assessment Act 1997),
• less 100% of the individual's deductible child maintenance expenditure.

Act reference: SSAct section 916C(3) A person's adjusted taxable income

FAAct Schedule 3 clause 2 Adjusted taxable income

Policy reference: FA Guide 1.1.A.20 Adjusted taxable income (ATI), 3.2.6 Tax Free Pensions or Benefits

Accepted ATI

A person has an accepted ATI for LIS if they have a TNA, and for each of the other components of the person's ATI, either the Taxation Commissioner holds information about the component, or a reasonable estimate of the component is accepted by the Secretary.

Where a person does not have a TNA, an estimate of their ATI may be accepted. The estimate will only be accepted where the person's estimated taxable income is less than the tax-free threshold for the income year and that the estimate of the person's ATI components are deemed reasonable, and the person has not lodged and is not required to lodge an income tax return for the income year.

Act reference: SSAct section 916C(4) Accepted adjusted taxable income

Policy reference: SS Guide 3.15.3 LIS - Qualification & Payability

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Last reviewed: 1 June 2012