330 Working out the value of an individual’s assets
(1) Subject to this section, the value of an individual’s assets is the value worked out in accordance with Division 1 of Part 3.12 of the Social Security Act 1991, reduced by any compensation payments received by the person under:
(a) the Compensation (Japanese Internment) Act 2001; or
(b) the Veterans’ Entitlements (Compensation—Japanese Internment) Regulations 2001; or
(c) Part 2 of the Veterans’ Entitlements (Clarke Review) Act 2004; or
(d) Schedule 5 to the Social Security and Veterans’ Affairs Legislation Amendment (One‑off Payments and Other 2007 Budget Measures) Act 2007.
Asset value where income stream and service pension, income support supplement or veteran payment
(2) If an individual who is receiving a service pension, an income support supplement or a veteran payment has an income stream (within the meaning of the Veterans’ Entitlements Act 1986) that was purchased on or after 20 September 2007, the value of the individual’s assets:
(a) is taken to include the amount that the System Governor determines to be the value of that income stream that would be included in the value of the individual’s assets if Subdivision A of Division 11 of Part IIIB of the Veterans’ Entitlements Act 1986 applied for the purposes of this Act; and
(b) is taken to exclude the amount that the System Governor determines to be the value of that income stream that would not be included in the value of the individual’s assets if Subdivision A of Division 11 of Part IIIB of the Veterans’ Entitlements Act 1986 applied for the purposes of this Act.
Asset value where income stream and no service pension, income support supplement or veteran payment
(3) If an individual who is not receiving a service pension, an income support supplement or a veteran payment has an income stream (within the meaning of the Social Security Act 1991) that was purchased on or after 20 September 2007, the value of the individual’s assets:
(a) is taken to include the amount that the System Governor determines to be the value of that income stream that would be included in the value of the individual’s assets if Division 1 of Part 3.12 of the Social Security Act 1991 applied for the purposes of this Act; and
(b) is taken to exclude the amount that the System Governor determines to be the value of that income stream that would not be included in the value of the individual’s assets if Division 1 of Part 3.12 of the Social Security Act 1991 applied for the purposes of this Act.
Other amounts included
(4) The value of an individual’s assets is taken to include the amount that the System Governor determines to be the amount:
(a) if the individual is receiving a service pension, an income support supplement or a veteran payment—that would be included in the value of the individual’s assets if Subdivisions B and BB of Division 11 and Subdivision H of Division 11A of Part IIIB of the Veterans’ Entitlements Act 1986 applied for the purposes of this Act; and
(b) otherwise—that would be included in the value of the individual’s assets if Division 2 of Part 3.12 and Division 8 of Part 3.18 of the Social Security Act 1991 applied for the purposes of this Act.
Note 1: Subdivisions B and BB of Division 11 of Part IIIB of the Veterans’ Entitlements Act 1986, and Division 2 of Part 3.12 of the Social Security Act 1991, deal with disposal of assets.
Note 2: Subdivision H of Division 11A of Part IIIB of the Veterans’ Entitlements Act 1986, and Division 8 of Part 3.18 of the Social Security Act 1991, deal with the attribution to individuals of assets of private companies and private trusts.
(5) If an individual has paid a refundable deposit, the value of the individual’s assets is taken to include the amount of the refundable deposit balance.
Excluding value of home
(6) In working out the value at a particular time of the assets of an individual who is or was a homeowner, disregard the value of a home that, at the time, was occupied by:
(a) the partner or a dependent child of the individual; or
(b) a carer of the individual who:
(i) had occupied the home for the past 2 years; and
(ii) was eligible to receive an income support payment at the time; or
(c) another close relation of the individual who:
(i) had occupied the home for the past 5 years; and
(ii) was eligible to receive an income support payment at the time.
(7) In working out the value at a particular time of the assets of an individual who is or was a homeowner, disregard the value of a home to the extent that it exceeded the amount prescribed by the rules in force at that time.
(8) For subsection (7), the value of a home is the value worked out after applying subsections (1), (12) and (13).
Other amounts excluded
(9) The rules may prescribe amounts that are to be taken, in relation to specified kinds of individuals, to be excluded from a determination under paragraph (2)(a) or (b) or (3)(a) or (b) or subsection (4).
Couples
(10) The value of the assets of an individual who is a member of a couple is taken to be 50% of the sum of:
(a) the value of the individual’s assets; and
(b) the value of the assets of the individual’s partner.
Joint ownership etc.
(11) A reference to the value of the assets of an individual is, in relation to an asset owned by the individual jointly or in common with one or more other people, a reference to the value of the individual’s interest in the asset.
Application of Social Security Act provisions
(12) The following provisions of Division 1 of Part 3.12 of the Social Security Act 1991 do not apply for the purposes of working out the value of the individual’s assets:
(a) paragraphs 1118(1)(a), (b) and (g), subparagraphs 1118(1)(ga)(ii) and (gb)(ii), paragraphs 1118(1)(u) and (v) and subsection 1118(4) (Certain assets to be disregarded in calculating the value of a person’s assets);
(b) section 1118AB (Value of person’s assets reduced: certain transactions to do with aged care accommodation bonds);
(c) section 1118AC (Value of person’s assets reduced: refunds to charge exempt residents).
(13) Also, subsection 1121(1) of the Social Security Act 1991 does not apply, for the purposes of working out the value of the individual’s assets, to a charge or encumbrance over the amount of any refundable deposit balance in respect of a refundable deposit paid by the individual.
(14) If a determination under this section is in writing, it is not a legislative instrument.