{"id":"F2017L00222","name":"Social Security (Attributable Stakeholders and Attribution Percentages) Principles 2017","slug":"social-security-attributable-stakeholders-and-attribution-percentages-principles-2017","collection":"legislative_instrument","jurisdiction":"commonwealth","status":"in_force","isInForce":true,"actNumber":null,"makingDate":null,"administeringDepartment":null,"currentVersion":{"id":439134,"registerId":"F2017L00222-fast-fetch-1775955260837","compilationNumber":null,"startDate":"2026-04-12","status":"InForce","reasons":null,"registeredAt":null},"sections":[{"sectionNumber":"1","sectionType":"section","heading":"Social Security (Attributable Stakeholders and Attribution Percentages) Principles 2017","content":"---\nmeta-content-style-type: text/css\nmeta-content-type: application/xhtml+xml; charset=utf-8\n---\n\n?xml version=\"1.0\" encoding=\"utf-8\" standalone=\"no\"?>\n\n![](image.001.png)\n\nSocial Security (Attributable Stakeholders and Attribution Percentages) Principles 2017\n\nI, FINN PRATT, Secretary of the Department of Social Services, formulate these Principles under section 1209E of the Social Security Act 1991.\n\nDated       8 March  2017\n\nFinn Pratt\n\nSecretary of the Department of Social Services\n\nContents\n\nPage\n\nPart 1 Preliminary\n\n 1 Name of Principles\n\n 2 Commencement\n\n 3 Definitions\n\n 4 Purpose\n\nPart 2 Determination that individual is not attributable stakeholder\n\n 5 Purpose\n\n 6 Application\n\n 7 Circumstances affecting relationship with company or trust\n\n 8 Contribution to company or trust\n\n 9 Past benefit from distributions by company or trust\n\n 10 Future benefit from distributions by company or trust\n\n 11 Benefit from assets and income of company or trust\n\n 12 Existing attribution to individual\n\n \n\n \n\n 13 Other circumstances\n\nPart 3 Determination of asset attribution percentage\n\n 14 Purpose\n\n 15 Application\n\n 16 Circumstances affecting relationship with company or trust\n\n 17 Contribution to company or trust\n\n 18 Past benefit from distributions by company or trust\n\n 19 Future benefit from distributions by company or trust\n\n 20 Benefit from assets and income of company or trust\n\n 21 Existing attribution to individual\n\n 22 Other circumstances\n\nPart 4 Determination of income attribution percentage\n\n 23 Purpose\n\n 24 Application\n\n 25 Circumstances affecting relationship with company or trust\n\n 26 Contribution to company or trust\n\n 27 Past benefit from distributions by company or trust\n\n 28 Future benefit from distributions by company or trust\n\n 29 Benefit from assets and income of company or trust\n\n 30 Existing attribution to individual\n\n 31 Other circumstances\n\n \n\n \n\nPart 1 Preliminary\n\n \n\n1 Name of Principles\n\n  These Principles are the Social Security (Attributable Stakeholders and Attribution Percentages) Principles 2017.\n\n2 Commencement\n\n  These Principles commence on 1 April 2017.\n\n3 Definitions\n\n  In these Principles:\n\nAct means the Social Security Act 1991.\n\ncompany means a controlled private company.\n\ncontribution means:\n\n (a) a transfer of property or services, to a company or trust, at any time, whether before or after 7.30 pm, by standard time in the Australian Capital Territory, on 9 May 2000; and\n\n (b) any other kind of contribution:\n\n (i) in the case of a company — to either the capital or income of the company; and\n\n (ii) in the case of a trust — to either the corpus or income of the trust.\n\ntrust means a controlled private trust.\n\n4 Purpose\n\n  These Principles set out decision-making principles with which the Secretary must comply in making a determination, under section 1207X of the Act, that:\n\n (a) an individual is not an attributable stakeholder of a company or trust; or\n\n (b) a specified percentage, lower than 100%, is the asset attribution percentage, or income attribution percentage, of an attributable stakeholder of a company or trust.\n\n\n\n\nPart 2 Determination that individual is not attributable stakeholder\n\n \n\n5 Purpose\n\n  This Part sets out decision-making principles with which the Secretary must comply in making a determination, under paragraph 1207X (1) (a) or (2) (c) of the Act, that an individual is not an attributable stakeholder of a company or trust.\n\n6 Application\n\n (1) This Part applies if, but for a determination by the Secretary, the individual would be an attributable stakeholder of the company or trust.\n\n (2) The Secretary must consider the relationship between the individual and the company or trust having regard to:\n\n (a) the reason why, but for a determination, the individual would be an attributable stakeholder; and\n\n (b) the circumstances mentioned in this Part.\n\n (3) In particular, the Secretary must consider whether the effect of one or more of the circumstances mentioned in this Part, in relation to the individual and the company or trust, provides a sufficient basis on which to determine that the individual is not an attributable stakeholder of the company or trust.\n\n7 Circumstances affecting relationship with company or trust\n\n (1) The Secretary must consider whether there are relevant circumstances that make it inappropriate for the individual to be an attributable stakeholder of the company or trust.\n\n (2) For subsection (1), relevant circumstances include the extent to which the relationship between the individual and the company or trust is affected by any of the following circumstances:\n\n (a) circumstances arising from the legal structure of the company or trust;\n\n (b) circumstances arising from the administrative arrangements of the company or trust;\n\n (c) whether, having regard to the relationship between the individual and the company or trust, the individual can reasonably be expected to exercise effective control in relation to the company or trust.\n\n \n\n8 Contribution to company or trust\n\n  If the individual has made a contribution to the company or trust, the Secretary must consider the circumstances in which the contribution was made and, in particular:\n\n (a) the value of the contribution; and\n\n (b) the proportion that the value of the contribution has to the total assets of the company or trust at the time of the contribution; and\n\n (c) the effect of the contribution on the financial position of the company or trust; and\n\n (d) if the individual received consideration for the contribution, the amount of consideration.\n\n9 Past benefit from distributions by company or trust\n\n (1) The Secretary must consider whether the individual has received a benefit from a distribution made by the company or trust.\n\n (2) If an individual has received a benefit, the Secretary must also consider:\n\n (a) the value of the benefit; and\n\n (b) if the individual has received a benefit on more than 1 occasion, the frequency with which the individual has received benefits.\n\n (3) For this section, a distribution includes distributions:\n\n (a) in the case of a distribution by a company — of the capital or income, or both, of the company; and\n\n (b) in the case of a distribution by a trust — of the corpus or income, or both, of the trust.\n\n10 Future benefit from distributions by company or trust\n\n (1) The Secretary must consider whether it is reasonably foreseeable that the individual may receive a benefit from a future distribution by the company or trust.\n\n (2) If subsection (1) applies, the Secretary must also consider the likely value of the benefit.\n\n (3) For this section, the Secretary must have regard to:\n\n (a) the constituent documents of the company; or\n\n (b) documents, if any, establishing the terms of the trust.\n\n (4) For this section, a distribution includes distributions:\n\n (a) in the case of a distribution by a company — of the capital or income, or both, of the company; and\n\n (b) in the case of a distribution by a trust — of the corpus or income, or both, of the trust.\n\n11 Benefit from assets and income of company or trust\n\n (1) The Secretary must consider whether the individual receives or derives any kind of benefit (other than a benefit mentioned in section 9 or 10) from the assets or income, or both, of the company or trust.\n\n (2) For this section, benefit:\n\n (a) is not limited to a benefit to which the individual has a legal or equitable entitlement; and\n\n (b) includes benefits received or derived in the form of property or services.\n\n12 Existing attribution to individual\n\n (1) The Secretary must consider whether the individual is:\n\n (a) under the Act — an attributable stakeholder of any other company or trust; or\n\n (b) under the Veterans’ Entitlements Act 1986 — an attributable stakeholder of the company or trust, or of any other company or trust.\n\n (2) If subsection (1) applies, the Secretary must also consider:\n\n (a) the asset attribution percentage attributed to the individual, if any; and\n\n (b) the income attribution percentage attributed to the individual, if any.\n\n13 Other circumstances\n\n  The Secretary must consider any other circumstance that affects the involvement of the individual with the activities or the administration of the company or trust.\n\n\n\n\nPart 3 Determination of asset attribution percentage\n\n \n\n14 Purpose\n\n  This Part sets out decision-making principles with which the Secretary must comply in making a determination, under subparagraph 1207X (1) (b) (ii) or (2) (d) (ii) of the Act, that an attributable stakeholder’s asset attribution percentage, in relation to a company or a trust, is a specified percentage lower than 100%.\n\n15 Application\n\n (1) This Part applies if, but for a determination by the Secretary, the asset attribution percentage of the attributable stakeholder, in relation to the company or trust, would be 100%.\n\n (2) The Secretary must consider the relationship between the individual and the company or trust, having regard to the circumstances mentioned in this Part.\n\n (3) In particular, the Secretary must consider whether the effect of one or more of the circumstances mentioned in this Part, in relation to the individual and the company or trust, provides a sufficient basis on which to determine a percentage lower than 100% as the asset attribution percentage.\n\n16 Circumstances affecting relationship with company or trust\n\n (1) The Secretary must consider whether there are relevant circumstances that make it inappropriate for the individual to have an asset attribution percentage of 100%.\n\n (2) For subsection (1), relevant circumstances include the extent to which the relationship between the individual and the company or trust is affected by any of the following circumstances:\n\n (a) circumstances arising from the legal structure of the company or trust;\n\n (b) circumstances arising from the administrative arrangements of the company or trust;\n\n (c) whether, having regard to the relationship between the individual and the company or trust, the individual can reasonably be expected to exercise effective control in relation to the company or trust and, if so, the extent of that control.\n\n17 Contribution to company or trust\n\n  If the individual has made a contribution to the company or trust, the Secretary must consider the circumstances in which the contribution was made and, in particular:\n\n (a) the value of the contribution; and\n\n (b) the proportion that the value of the contribution has to the total assets of the company or trust at the time of the contribution; and\n\n (c) the effect of the contribution on the financial position of the company or trust; and\n\n (d) if the individual received consideration for the contribution, the amount of consideration.\n\n18 Past benefit from distributions by company or trust\n\n (1) The Secretary must consider whether the individual has received a benefit from a distribution made by the company or trust.\n\n (2) If an individual has received a benefit, the Secretary must also consider:\n\n (a) the value of the benefit; and\n\n (b) if the individual has received a benefit on more than 1 occasion, the frequency with which the individual has received benefits.\n\n (3) For this section, a distribution includes distributions:\n\n (a) in the case of a distribution by a company — of the capital or income, or both, of the company; and\n\n (b) in the case of a distribution by a trust — of the corpus or income, or both, of the trust.\n\n19 Future benefit from distributions by company or trust\n\n (1) The Secretary must consider whether it is reasonably foreseeable that the individual may receive a benefit from a future distribution by the company or trust.\n\n (2) If subsection (1) applies, the Secretary must also consider the likely value of the benefit.\n\n (3) For this section, the Secretary must have regard to:\n\n (a) the constituent documents of the company; or\n\n (b) documents, if any, establishing the terms of the trust.\n\n (4) For this section, a distribution includes distributions:\n\n (a) in the case of a distribution by a company — of the capital or income, or both, of the company; and\n\n (b) in the case of a distribution by a trust — of the corpus or income, or both, of the trust.\n\n20 Benefit from assets and income of company or trust\n\n (1) The Secretary must consider whether the individual receives or derives any kind of benefit (other than a benefit mentioned in section 18 or 19) from the assets or income, or both, of the company or trust.\n\n (2) For this section, benefit:\n\n (a) is not limited to a benefit to which the individual has a legal or equitable entitlement; and\n\n (b) includes benefits received or derived in the form of property or services.\n\n21 Existing attribution to individual\n\n (1) The Secretary must consider whether the individual is:\n\n (a) under the Act — an attributable stakeholder of any other company or trust; or\n\n (b) under the Veterans’ Entitlements Act 1986 — an attributable stakeholder of the company or trust, or of any other company or trust.\n\n (2) If subsection (1) applies, the Secretary must also consider:\n\n (a) the asset attribution percentage attributed to the individual, if any; and\n\n (b) the income attribution percentage attributed to the individual, if any.\n\n22 Other circumstances\n\n  The Secretary must consider any other circumstance that affects the involvement of the individual with the activities or the administration of the company or trust.\n\n\n\n\nPart 4 Determination of income attribution percentage\n\n \n\n23 Purpose\n\n  This Part sets out decision-making principles with which the Secretary must comply in making a determination, under subparagraph 1207X (1) (c) (ii) or (2) (e) (ii) of the Act, that an attributable stakeholder’s income attribution percentage, in relation to a company or trust, is a specified percentage lower than 100%.\n\n24 Application\n\n (1) This Part applies if, but for a determination by the Secretary, the income attribution percentage of the attributable stakeholder, in relation to the company or trust, would be 100%.\n\n (2) The Secretary must consider the relationship between the individual and the company or trust, having regard to the circumstances mentioned in this Part.\n\n (3) In particular, the Secretary must consider whether the effect of one or more of the circumstances mentioned in this Part, in relation to the individual and the company or trust, provides a sufficient basis on which to determine a percentage lower than 100% as the income attribution percentage.\n\n25 Circumstances affecting relationship with company or trust\n\n (1) The Secretary must consider whether there are relevant circumstances that make it inappropriate for the individual to have an income attribution percentage of 100%.\n\n (2) For subsection (1), relevant circumstances include the extent to which the relationship between the individual and the company or trust is affected by any of the following circumstances:\n\n (a) circumstances arising from the legal structure of the company or trust;\n\n (b) circumstances arising from the administrative arrangements of the company or trust;\n\n (c) whether, having regard to the relationship between the individual and the company or trust, the individual can reasonably be expected to exercise effective control in relation to the company or trust and, if so, the extent of that control.\n\n \n\n26 Contribution to company or trust\n\n  If the individual has made a contribution to the company or trust, the Secretary must consider the circumstances in which the contribution was made and, in particular:\n\n (a) the value of the contribution; and\n\n (b) the proportion that the value of the contribution has to the total assets of the company or trust at the time of the contribution; and\n\n (c) the effect of the contribution on the financial position of the company or trust; and\n\n (d) if the individual received consideration for the contribution, the amount of consideration.\n\n27 Past benefit from distributions by company or trust\n\n (1) The Secretary must consider whether the individual has received a benefit from a distribution made by the company or trust.\n\n (2) If an individual has received a benefit, the Secretary must also consider:\n\n (a) the value of the benefit; and\n\n (b) if the individual has received a benefit on more than 1 occasion, the frequency with which the individual has received benefits.\n\n (3) For this section, a distribution includes distributions:\n\n (a) in the case of a distribution by a company — of the capital or income, or both, of the company; and\n\n (b) in the case of a distribution by a trust — of the corpus or income, or both, of the trust.\n\n28 Future benefit from distributions by company or trust\n\n (1) The Secretary must consider whether it is reasonably foreseeable that the individual may receive a benefit from a future distribution by the company or trust.\n\n (2) If subsection (1) applies, the Secretary must also consider the likely value of the benefit.\n\n (3) For this section, the Secretary must have regard to:\n\n (a) the constituent documents of the company; or\n\n (b) documents, if any, establishing the terms of the trust.\n\n (4) For this section, a distribution includes distributions:\n\n (a) in the case of a distribution by a company — of the capital or income, or both, of the company; and\n\n (b) in the case of a distribution by a trust — of the corpus or income, or both, of the trust.\n\n29 Benefit from assets and income of company or trust\n\n (1) The Secretary must consider whether the individual receives or derives any kind of benefit (other than a benefit mentioned in section 27 or 28) from the assets or income, or both, of the company or trust.\n\n (2) For this section, benefit:\n\n (a) is not limited to a benefit to which the individual has a legal or equitable entitlement; and\n\n (b) includes benefits received or derived in the form of property or services.\n\n30 Existing attribution to individual\n\n (1) The Secretary must consider whether the individual is:\n\n (a) under the Act — an attributable stakeholder of any other company or trust; or\n\n (b) under the Veterans’ Entitlements Act 1986 — an attributable stakeholder of the company or trust, or of any other company or trust.\n\n (2) If subsection (1) applies, the Secretary must also consider:\n\n (a) the asset attribution percentage attributed to the individual, if any; and\n\n (b) the income attribution percentage attributed to the individual, if any.\n\n31 Other circumstances\n\n  The Secretary must consider any other circumstance that affects the involvement of the individual with the activities or the administration of the company or trust.\n\n \n","sortOrder":0}],"analysis":{"flash_summary":{"complexity_score":7,"scope_assessment":{"changed":false,"description":"These Principles do not alter the statutory categories in the Social Security Act; they prescribe the decision‑making principles the Secretary must follow when exercising the existing statutory powers in section 1207X to determine attributable stakeholder status and to set asset and income attribution percentages (s 4; Parts 2–4). They apply to controlled private companies and trusts and list factors the Secretary must consider, rather than expanding or narrowing the Act's substantive definitions."},"complexity_factors":["Discretionary determinations by the Secretary requiring judgment on control and foreseeability (ss 6(2)(b), 7(2)(c), 10(1), 19(1), 28(1)).","Many qualitative and quantitative factors to weigh (value, proportion, effect, frequency, consideration) across Parts 2–4 (ss 8,9,17,18,26,27).","Parallel but distinct frameworks for (a) excluding an individual as an attributable stakeholder, (b) setting an asset attribution percentage, and (c) setting an income attribution percentage (Parts 2–4).","Broad definition of 'contribution' including transfers before or after 9 May 2000 and to capital/corpus or income (s 3).","Wide notion of 'benefit' not limited to legal entitlement and including property or services (ss 11(2),20(2),29(2)).","Cross-references to the Social Security Act 1991 and the Veterans’ Entitlements Act 1986 for existing attributions, creating interactional complexity (ss 4,12(1),21(1),30(1)).","Need to examine constituent documents and administrative arrangements to assess likely future distributions and control (ss 10(3),19(3),28(3),7(2)(b)).","Potential overlapping attributions across multiple companies/trusts and historical transactions that must be considered (ss 12,21,30).","No numerical formula for percentage determinations; Secretary sets specified percentages below 100% by reasoned assessment (ss 14–15,23–24)."],"plain_english_summary":"*Secretary of the Department of Social Services.* These Principles tell the *Secretary of the Department of Social Services* how to decide if a person connected with a controlled private company or trust is an attributable stakeholder and what share of that entity’s assets or income should be attributed for means‑testing (ss 4,14,23). They affect people with ties to such entities because attribution changes what is counted for benefit entitlements. The Secretary must weigh contributions, past and likely future distributions, benefits from assets/services, legal/administrative structure and effective control (ss 6–12,16–31)."},"flash_summary_failed":{"failed":true,"reason":"A positive credit balance is required for all requests, including BYOK, so fallback providers remain available. Add credits at https://vercel.com/d?to=%2F%5Bteam%5D%2F%7E%2Fai%3Fmodal%3Dtop-up to continue.","source":"analysis-cron"},"kimi_summary":{"content_quality":"ok","complexity_score":4,"scope_assessment":{"changed":false,"description":"The legislation appears consistent with its original purpose. It implements the decision-making framework authorized by section 1209E of the Social Security Act 1991, which was inserted by earlier amendments to provide discretionary powers regarding attribution of company and trust interests. The Principles cover the specific determinations contemplated by section 1207X (non-attribution and reduced attribution percentages) without apparent expansion beyond that statutory mandate."},"complexity_factors":["Highly repetitive structure: Parts 2, 3, and 4 contain nearly identical sections (7-13, 16-22, 25-31) with only minor variations in wording to distinguish between 'not being an attributable stakeholder' vs 'asset percentage' vs 'income percentage'","Extensive cross-referencing to the Social Security Act 1991 (sections 1207X, 1209E) and Veterans' Entitlements Act 1986, requiring external knowledge to fully understand the framework","Abstract, open-ended criteria throughout (e.g., 'relevant circumstances', 'reasonably foreseeable', 'effective control', 'sufficient basis') requiring significant administrative discretion and case-by-case interpretation","Only 4 defined terms in section 3 ('Act', 'company', 'contribution', 'trust'), but these terms themselves reference complex definitions in the parent Act ('controlled private company', 'controlled private trust')","Conditional logic requiring multi-step assessments: first determining if attribution would apply, then considering multiple discretionary factors, then determining if those factors provide 'sufficient basis' for a determination"],"plain_english_summary":"This instrument tells Centrelink how to decide whether someone connected to a private company or trust should be treated as an “owner” for social security, and if so what proportion of that entity’s assets or income should count against their pension. It gives Centrelink discretion to attribute 0–100% instead of automatically treating a connected person as owning everything.\n\nIt affects people with formal links (directors, shareholders, beneficiaries) who may not actually control or benefit, and requires assessing real control, contributions, distributions, foreseeable benefits and other relevant circumstances."}},"importantCases":[],"_links":{"self":"/api/acts/social-security-attributable-stakeholders-and-attribution-percentages-principles-2017","history":"/api/acts/social-security-attributable-stakeholders-and-attribution-percentages-principles-2017/history","analysis":"/api/acts/social-security-attributable-stakeholders-and-attribution-percentages-principles-2017/analysis","conflicts":"/api/acts/social-security-attributable-stakeholders-and-attribution-percentages-principles-2017/conflicts","importantCases":"/api/acts/social-security-attributable-stakeholders-and-attribution-percentages-principles-2017/important-cases","documents":"/api/acts/social-security-attributable-stakeholders-and-attribution-percentages-principles-2017/documents"}}