{"id":"F2017L00214","name":"Social Security (Modification of Income Deprivation Rules) Principles 2017","slug":"social-security-modification-of-income-deprivation-rules-principles-2017","collection":"legislative_instrument","jurisdiction":"commonwealth","status":"in_force","isInForce":true,"actNumber":null,"makingDate":null,"administeringDepartment":null,"currentVersion":{"id":439130,"registerId":"F2017L00214-fast-fetch-1775955258731","compilationNumber":null,"startDate":"2026-04-12","status":"InForce","reasons":null,"registeredAt":null},"sections":[{"sectionNumber":"1","sectionType":"section","heading":"Social Security (Modification of Income Deprivation Rules) 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 (Modification of Income Deprivation Rules) 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 Disposal of ordinary income (on or after 1 January 2002) by individual\n\n 5 Purpose of Part 2\n\n 6 Definitions\n\n 7 Transferor as sole attributable stakeholder\n\n 8 Transferor as member of couple\n\n 9 Transfer to company or trust with 2 or more attributable stakeholders\n\n 10 Transfer to company or trust by individual who becomes attributable stakeholder\n\n \n\nPart 3 Disposal of ordinary income (on or after 1 January 2002) by company or trust\n\n 11 Purpose of Part 3\n\n 12 Disposal to attributable stakeholder\n\n \n\n \n\n \n\nPart 1 Preliminary\n\n \n\n1 Name of Principles\n\n  These Principles are the Social Security (Modification of Income Deprivation Rules) 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\n4 Purpose\n\n  These Principles set out decision-making principles with which the Secretary must comply for the purposes of making a determination under subsection 1208Q (1) and 1208R (3) of the Act.\n\n\n\n\nPart 2 Disposal of ordinary income (on or after 1 January 2002) by individual\n\n5 Purpose of Part 2\n\n  This Part sets out decision-making principles with which the Secretary must comply in making a determination for subsection 1208Q (1) of the Act.\n\n6 Definitions\n\n  In this Part:\n\nindividual means an individual who transfers property to a company or trust in accordance with subsection 1208Q (1) of the Act.\n\nmember of a couple has the same meaning as in section 4 of the Act.\n\n7 Transferor as sole attributable stakeholder\n\n (1) This section applies to an individual who is not a member of a couple.\n\n (2) The Secretary must take into account whether the individual was the only attributable stakeholder of the company or trust, either before or after the transfer.\n\n8 Transferor as member of couple\n\n (1) This section applies to an individual who is a member of a couple.\n\n (2) The Secretary must take into account whether:\n\n (a) the individual was the only attributable stakeholder of the company or trust, either before or after the transfer; or\n\n (b) both members of the couple were the only attributable stakeholders of the company or trust, either before or after the transfer.\n\n9 Transfer to company or trust with 2 or more attributable stakeholders\n\n (1) This section applies if, in relation to a transfer of property to a company or trust:\n\n (a) the transfer is made by an attributable stakeholder of the company or trust; and\n\n (b) before the transfer, there were 2 or more attributable stakeholders of the company or trust.\n\n (2) This section also applies if, in relation to a transfer of property to a company or trust:\n\n (a) the transfer is made by an attributable stakeholder of the company or trust; and\n\n (b) after the transfer, there were 2 or more attributable stakeholders of the company or trust.\n\n (3) The Secretary must take into account the income attribution percentage of each attributable stakeholder of the recipient company or recipient trust, before and after the transfer of the property.\n\n10 Transfer to company or trust by individual who becomes attributable stakeholder\n\n (1) This section applies if, in relation to a transfer of property to a company or a trust:\n\n (a) the transfer is made by an individual who is not an attributable stakeholder of the company or trust; and\n\n (b) as a result of the transfer, the individual is an attributable stakeholder.\n\n (2) The Secretary must take into account the income attribution percentage of each attributable stakeholder of the company or trust, before and after the transfer of the property.\n\n\n\n\nPart 3 Disposal of ordinary income (on or after 1 January 2002) by company or trust\n\n11 Purpose of Part 3\n\n  This Part sets out decision-making principles with which the Secretary must comply in making a determination for subsection 1208R (3) of the Act.\n\n12 Disposal to attributable stakeholder\n\n  The Secretary must take into account whether, in relation to a transfer of ordinary income of a company or trust in accordance with subsection 1208R (1) of the Act, the transfer is to an individual who is an attributable stakeholder of the company or trust.\n","sortOrder":0}],"analysis":{"flash_summary":{"complexity_score":4,"scope_assessment":{"changed":false,"description":"The Principles set out decision-making factors for the Secretary's existing powers under ss.1208Q and 1208R and apply to disposals from 1 January 2002. The text does not indicate an expansion or contraction of the Act's substantive coverage; it prescribes how determinations are to be made rather than changing who is covered."},"complexity_factors":["Cross-reference to the Social Security Act (determinations under ss.1208Q(1) and 1208R(3)) — requires reading these Principles alongside the Act.","Reliance on externally defined concepts (eg. \"attributable stakeholder\", \"income attribution percentage\") that are not defined in this text and must be sourced from the Act.","Requirement to compare stakeholder status and attribution percentages before and after a transfer (ss.7–10) — creates factual and arithmetic tasks for administrators.","Different rules for individuals alone versus members of a couple (ss.7–8) — adds conditional complexity to assessments.","Separate treatment for transfers involving companies or trusts, including transfers that create new attributable stakeholders (Parts 2–3, ss.9–12) — requires entity-level analysis.","Administrative discretion vested in the Secretary to take specified matters into account (ss.4,5,11) — outcomes depend on exercise of judgment and evidence evaluation."],"plain_english_summary":"These Principles tell the Secretary of the Department of Social Services how to decide whether transfers of income or property count as depriving a person of income under ss.1208Q and 1208R of the Social Security Act. They require the Secretary to consider who the \"attributable stakeholders\" are, income-attribution percentages, and whether transfers change stakeholder status (including special rules for couples and for companies/trusts). They apply to disposals on or after 1 January 2002 and guide administrative counting of a claimant's income."},"flash_summary_failed":{"failed":true,"reason":"Unauthenticated. Configure AI_GATEWAY_API_KEY or use a provider module. Learn more: https://ai-sdk.dev/unauthenticated-ai-gateway","source":"analysis-cron"},"kimi_summary":{"content_quality":"ok","complexity_score":4,"scope_assessment":{"changed":false,"description":"The instrument remains tightly scoped to its original purpose: providing decision-making principles for income deprivation determinations involving companies and trusts. It does not expand beyond the specific subsections of the Social Security Act 1991 referenced in section 4."},"complexity_factors":["Heavy reliance on defined terms from the parent Act (Social Security Act 1991) — 'attributable stakeholder', 'member of a couple', 'income attribution percentage' — without defining them here","Cross-references to specific subsections of the Act (1208Q, 1208R, 1208E) that aren't reproduced in this instrument","Conditional logic requiring comparison of stakeholder status 'before and after' transfers","Nested scenarios: sole stakeholders, couples, multiple stakeholders, and transfers by non-stakeholders who become stakeholders","Short length (12 sections) masks conceptual density — each section triggers complex calculations under the parent Act"],"plain_english_summary":"These Principles tell Centrelink how to decide when transfers of income or assets to private companies or trusts should still be treated as belonging to a claimant for pension and benefit tests, preventing deliberate “deprivation” to boost entitlements.\n\nThey affect social security recipients who shift property or income and the Secretary of Social Services, who must weigh factors such as control, couple status, income attribution and new stakeholders. The rules stop hidden income from reducing entitlements and promote consistent decision-making."}},"importantCases":[],"_links":{"self":"/api/acts/social-security-modification-of-income-deprivation-rules-principles-2017","history":"/api/acts/social-security-modification-of-income-deprivation-rules-principles-2017/history","analysis":"/api/acts/social-security-modification-of-income-deprivation-rules-principles-2017/analysis","conflicts":"/api/acts/social-security-modification-of-income-deprivation-rules-principles-2017/conflicts","importantCases":"/api/acts/social-security-modification-of-income-deprivation-rules-principles-2017/important-cases","documents":"/api/acts/social-security-modification-of-income-deprivation-rules-principles-2017/documents"}}