If your clients have ever or will ever apply for certain tax offsets or concessions or a government benefit of some kind, they may very well be asked to provide their “adjusted taxable income” (ATI).
ATI is used to assess eligibility for certain offsets and other entitlements (typically items T4, T5 and T6 but also M1 and A3), and is also used by the Department of Human Services to assess entitlement to Family Tax Benefit (both A and B), the Child Care Benefit and Child Care Subsidy, Parental Leave Pay and Dad and Partner Pay.
Eligibility for the Commonwealth Seniors Health Card is also based on ATI thresholds (although deemed income from account-based income streams are now included) and the government’s private health insurance rebate also takes into account ATI for its thresholds, as does the Medicare Levy Surcharge.
Learn more at https://taxandsupernewsroom.com.au/adjusted-taxable-income-explainer/
