Assessable income is what we consider when we assess:
- if you can get a payment
- how much to pay you.
If you or your partner get directors fees, you must include them when you report your employment income to us. This helps us pay you the right amount.
You must do this even if the income is reinvested into your business.
When to report them
Directors fees are usually paid as salary, wages or lump sums.
You should report them as follows, whichever comes first:
- in the reporting period you or your partner get them
- when you are first able to get them.
How much to report
You must report the gross amount of your payment. That is the amount you get before tax and other deductions.
How we treat your income
Salaries and wages are assessed for the period of time the payment is for. For example, wages paid for a 12 week period will count in your income test over the next 12 weeks from the start of the period it was paid in.
Lump sums are treated differently depending on what they are for, and whether they are a regular payment or not.
Read more about how we assess lump sums in your income test.