Guideline Income Test

Income Test - National Means Test		Guideline: State Number: 29 (Part) Effective Date: 6/96
1.	THE INCOME TEST
	The income of an applicant is taken into account in determining whether or not assistance should be granted.
1.1	Definition of Income
	The income of an applicant for assistance is the weekly income from all sources including: pensions, benefits and allowances; income from paid work, including overtime; commissions and allowances (eg. car); periodic receipts of a capital nature including payments from investments, interest earned and payments of debts owed to the applicant; board or rent received; maintenance received; workers compensation or other insurance payments; and superannuation. Income does NOT include Basic Family Payment (as paid by the Department of Social Security) and is calculated net of business overheads/expenses reasonably incurred in or for the purposes of gaining or producing that income. NOTE: Such overheads/expenses shall 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. In some Commissions, income does not include rental relief.
1.2	Assessable Income
	The assessable income of the applicant is the income which is taken into consideration in determining whether legal assistance should be granted, and is the income which the applicant receives or of which the applicant has the benefit. "Benefit" may include housing costs, living expenses, car costs etc.
1.2.1	Definition of Assessable Income
	The assessable income of an applicant is the weekly income of the applicant and any financially associated person (less all allowable deductions), unless they are separated; the financially associated person has a contrary interest in the matter for which legal assistance is sought disclosure of the legal problem may damage the relationship; or there are other special reasons why the income of the financially associated person should be disregarded. This is the net income for the purposes of the means test.
1.2.2	Definition of Assessable Income of a Child
	The assessable income of a child applicant is: the income of that child where that child supports himself/herself from that income; and/or any government benefit received by that child in their own right; or the income of the parent(s) or guardian(s) who supports the child unless: a parent(s)/guardian(s) has a contrary interest in the matter; or disclosure of the matter to the parent(s)/Guardian(s) would damage the relationship; or the parent(s)/guardian(s) is genuinely unwilling or unable to assist the child in the matter, unless, due to policy or administrative reasons, the Commission decides not to assess the child's income.
1.2.3	Allowable deductions
	The following allowances should be deducted from the applicant's income: income tax, including Medicare levy; weekly housing costs, including rent, mortgage plus rates, or one half of board payments to a maximum as set out in Schedule B; childcare costs necessarily incurred to work or study by the applicant or other person whose income is included in the assessable income, to a maximum as set out in Schedule B; dependant allowance as set out in Schedule B ; a dependant allowance should be deducted for any dependent children and for a financially associated person; and maintenance payments up to the amount of the appropriate dependant allowance as set out in Schedule B.
1.3	Contribution on income
	Where an applicant's assessable income is greater than the amount set out in Schedule B , legal assistance may be granted on the condition that the applicant pays a contribution. The amount of the contribution may vary depending on the level of the assessable income and the likely cost of the matter for which assistance is sought.
1.4	Refusal where initial contribution exceeds likely costs
	An applicant should be refused legal assistance where the contribution on income is greater than the Commission's estimate of the costs of paying for the services from a private lawyer. The Commission has a discretion to grant assistance to an applicant who is not eligible on income in exceptional circumstances. Exceptional circumstances may exist where: there is not sufficient time for an applicant to raise the funds necessary to pay for a private lawyer; and/or the applicant could not reasonably be expected to borrow money to do so. The Commission will determine the person(s) or classes of person(s) in whom the discretion is vested. Where assistance is granted in these circumstances the applicant will be required to pay a full contribution. Payment of such a contribution may be secured by an equitable charge over any property owned by the applicant.

See Schedule A Income Test Benchmarks

Page Last Revised :Friday, November 14, 2003