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If an individual applicant does not meet the income test requirements for providing an AoS, the possibility of entering into a joint AoS arrangement is available.
In a joint AoS, up to 3 people sign the AoS, and are held equally liable for any social security debts that arise as a result of the AoS.
All assurers must be Australian residents who are over the age of 18 years.
Example 1: In February 2006 the income eligibility for the maximum rate of FTB Part A was $33,361 per annum.
Carol's income details are as follows: $24,000 in 2003-04, $25,000 in 2004-05 per year. Her current income for 2005-06 is $26,000. Carol wishes to provide an AoS for her sister, Pamela, who has applied for a visa with a mandatory (bonded) AoS provision. Carol does not meet the income test requirements of $33,361 per annum for a mandatory (bonded) AoS, so together with her friend Sarah, they decide to provide a joint AoS. Their income, when combined would total the following amount:
|
|
2003-04 |
2004-05 |
Current income (2005-06) |
|
Carol |
$24,000 |
$25,000 |
$26,000 |
|
Sarah |
$10,000 |
$11,000 |
$12,000 |
|
Total |
$34,000 |
$36,000 |
$38,000 |
Carol and Sarah meet the AoS income test requirement. They are both liable for the repayment of any social security debt if Pamela receives a social security payment during the AoS period. Centrelink will recover the money from either assurer or both of them.
In some instances one of the joint assurers may have zero income and no TNA for a particular financial year. However, as long as the total combined amount of income for both assurers is over the required income threshold for that year then the income test requirements are met.
Example 2: In February 2006 the income eligibility for the maximum rate of FTB Part A was $33,361 per annum. John and Mary wish to become joint assurers for their sister Raylene who has also applied for a visa with a mandatory (bonded) AoS provision. Their income when combined would total the following amount:
|
2003-04 |
2004-05 |
Current income (2005-06) | |
|
John |
$36,000 |
$25,000 |
$26,000 |
|
Mary |
$0 (No TNA) |
$11,000 |
$12,000 |
|
Total |
$36,000 |
$36,000 |
$38,000 |
John and Mary meet the AoS income test requirement. They are both liable for the repayment of any social security debt during the AoS period. Centrelink will recover the money from either assurer or both of them.
Example 3: In February 2006 the income limit for the LIC was $351 per week or $18,252 per year. Jemma, who is single and does not have any children, wishes to provide an AoS for Jane who has applied for a visa with a discretionary (unbonded) AoS provision. DIAC has decided that an AoS is required in this instance. Jemma's taxable income was $15,000 in 2003-04 and $23,000 in 2004-05. Her current income is $9,000. Jemma does not meet the income test requirement so together with her friend Norm they decide to provide a joint AoS. Their income when combined would total the following amount:
|
2003-04 |
2004-05 |
Current income (2005-06) | |
|
Jemma |
$15,000 |
$23,000 |
$9,000 |
|
Norm |
$1,000 |
$12,000 |
$10,000 |
|
Total |
$16,000 |
$35,000 |
$19,000 |
Jemma and Norm do not meet the income test requirement. In 2003-04 their joint taxable income of $16,000 fell below the prescribed limit of $18,252. Jemma would need to find another person to provide a joint assurance in order to meet the AoS income test requirement.
Example 4: In February 2006 the income eligibility for the maximum rate of FTB Part A was $33,361 per annum. Anton and Mai wish to become joint assurers for their friend Merindah who has applied for a visa with a mandatory (bonded) AoS provision. Mai has not worked in Australia for the last few years, she has been working overseas and has just returned to live in Australia. Their income would total the following amount:
|
2003-04 |
2004-05 |
Current income (2005-06) | |
|
Anton |
$65,000 |
$73,000 |
$80,000 |
|
Mai |
$0 (No TNA) |
$0 (No TNA) |
$0 (Not currently employed) |
|
Total |
$65,000 |
$73,000 |
$80,000 |
Anton and Mai jointly meet the AoS income test requirement. They are both liable for the repayment of any social security debt if Merindah receives a recoverable social security payment during the AoS period. Centrelink will recover the money from either assurer or both of them.
Act reference: SSAct Part 2C.4 Determinations, section 7 Australian residence definitions
Policy reference: SS Guide 3.9.1.70 Low Income HCC - Assessment of Income
FA Guide 3.1.1.20 Current FTB Rates & Income Test Amounts
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Last reviewed: 7 June 2010
