11Assets test definitions

#### 11 Assets test definitions (1) In this Act, unless the contrary intention appears: > accommodation bond has the same meaning as in the Aged Care Act 2024. > accommodation bond balance has the same meaning as in the Aged Care Act 2024. > accommodation charge has the same meaning as in the Aged Care Act 2024. > asset means property or money (including property or money outside Australia). > charge exempt resident has the same meaning as in the Aged Care (Transitional Provisions) Act 1997 (as in force immediately before the commencement of the Aged Care Act 2024). > daily accommodation contribution has the same meaning as in the Aged Care Act 2024. > daily accommodation payment has the same meaning as in the Aged Care Act 2024. > disposes of assets has the meaning given by section 1123. > exempt assets means assets described in subsection 1118(1). > fishing operations means: (a) operations relating directly to the taking or catching of fish, turtles, crustacea, oysters or other shellfish; or (b) oyster farming; or (c) pearling operations; but does not include: (d) whaling; or (e) operations conducted otherwise than for the purposes of a business. > forest operations means: (a) the planting or tending in a plantation or forest of trees intended for felling; or (b) the felling of trees in a plantation or forest; but does not include operations conducted otherwise than for the purposes of a business. > homeowner has the meaning given by subsection (4). > income year has the same meaning as in the Income Tax Assessment Act 1997. > pension year has the meaning given by subsections (10) and (10AAA). > primary producer means a person whose principal occupation is primary production. > primary production means production resulting directly from: (a) the cultivation of land; or (b) the maintenance of animals or poultry for the purpose of selling them or their bodily produce, including natural increase; or (c) fishing operations; or (d) forest operations; and includes the manufacture of dairy produce by the person who produced the raw material used in that manufacture. > principal home has the meaning given by section 11A. > reasonable security of tenure has the meaning given by subsection 11A(10). > refundable deposit has the same meaning as in the Aged Care Act 2024. > refundable deposit balance has the same meaning as in the Aged Care Act 2024. > unrealisable asset has the meaning given by subsections (12) and (13). > value of a charge or encumbrance on an asset has the meaning given by subsection (3). > value of a liability has the meaning given by subsection (3A). > value of a particular asset has the meaning given by subsection (2). > Note: see also sections 1118 (certain assets to be disregarded in calculating the value of a person’s assets), 1121 (effect of charge or encumbrance on value of property) and 1145‑1157 (retirement villages). (2) A reference in this Act to the value of a particular asset of a person is, if the asset is owned by the person jointly or in common with another person or persons, a reference to the value of the person’s interest in the asset. (3) A reference in this Act to the value of a charge or encumbrance on an asset of a person is, if the asset is owned by the person jointly or in common with another person or persons, a reference to the value of that charge or encumbrance in so far as it relates to the person’s interest in the asset. (3A) A reference in this Act to the value of a liability of a person is, if the liability is shared by the person with another person, a reference to the value of the person’s share of the liability. (3AA) To avoid doubt, a refundable deposit balance in respect of a refundable deposit paid by a person is taken to be an asset of the person. (3B) To avoid doubt, an accommodation bond balance in respect of an accommodation bond paid by a person is taken to be an asset of the person. (3C) To avoid doubt, a person’s entitlement to be paid a pension bonus or pension bonus bereavement payment is taken not to be an asset of the person for the purposes of this Act. (3D) Subsection (3C) is to be disregarded in determining whether any other entitlement is an asset for the purposes of this Act. Homeowner (4) For the purposes of this Act: (a) a person who is not a member of a couple is a homeowner if: (i) the person has a right or interest in the person’s principal home; and (ii) the person’s right or interest in the home gives the person reasonable security of tenure in the home; and (b) a person who is a member of a couple is a homeowner if: (i) the person, or the person’s partner, has a right or interest in one residence that is: (A) the person’s principal home; or (B) the partner’s principal home; or (C) the principal home of both of them; and (ii) the person’s right or interest, or the partner’s right or interest, in the home gives the person, or the person’s partner, reasonable security of tenure in the home; and (c) a person (whether a member of a couple or not) is a homeowner while: (i) the whole or a part of the proceeds of the sale of the person’s principal home are disregarded under subsection 1118(2); or (ii) the value of a residence, land or a structure is disregarded under subsection 1118(2). > Note: See also section 1145‑1157 (retirement villages). Pension year—disposal of assets (10) A reference in sections 1123 to 1128 (disposal of assets) to a pension year, in relation to a person who is receiving: (a) a social security or service pension, income support supplement or a veteran payment; or (b) a social security benefit; is a reference to: (d) if the person is a member of a couple and, immediately before the person and the person’s partner became members of that couple, the person was receiving a pension, supplement, payment or benefit referred to in paragraph (a) or (b) or a job search allowance and the person’s partner was receiving such a pension, supplement, payment or benefit or a job search allowance—the period of 12 months beginning on the day on which they became members of that couple; or (e) if: (i) the person is a member of a couple but paragraph (d) does not apply; and (ii) the person’s partner is receiving a pension, supplement, payment or benefit referred to in paragraph (a) or (b) or a job search allowance; the period of 12 months beginning on the day on which: (iii) the pension, supplement, payment or benefit referred to in paragraph (a) or (b) or the job search allowance first became payable to the person; or (iv) the pension, supplement, payment or benefit referred to in paragraph (a) or (b) or the job search allowance first became payable to the person’s partner; whichever was the earlier; or (f) otherwise—the period of 12 months beginning on the day on which a pension, supplement, payment or benefit referred to in paragraph (a) or (b) or a job search allowance first became payable to the person; and to each following and each preceding period of 12 months. No pension year to extend beyond 30 June 2002 (10AAA) No period after 30 June 2002 is, or is a part of, a pension year of a person. If, apart from this subsection, a period beginning before 1 July 2002 and ending on or after that date would be a pension year of a person, the part of that period that ends immediately before that date is taken to be a pension year of the person. (10AA) References in subsection (10) to a social security benefit include references to a non‑benefit PP (partnered) and a non‑benefit parenting allowance. Pre‑pension year—disposal of assets (10A) A reference in sections 1124A and 1125A (disposal of assets) to a pre‑pension year, in relation to a person who is claiming: (a) a social security or service pension or income support supplement; or (b) a social security benefit; or (d) a non‑benefit PP (partnered); or (e) a non‑benefit parenting allowance; is a reference to the period of 12 months finishing on the day that is the person’s start day and each preceding period of 12 months. No pre‑pension year to extend beyond 30 June 2002 (10B) No period after 30 June 2002 is, or is a part of, a pre‑pension year of a person. If, apart from this subsection, a period beginning before 1 July 2002 and ending on or after that date would be a pre‑pension year of a person, the part of that period that ends immediately before that date is taken to be a pre‑pension year of the person. Unrealisable asset (12) An asset of a person is an unrealisable asset if: (a) the person cannot sell or realise the asset; and (b) the person cannot use the asset as a security for borrowing. (13) For the purposes of the application of this Act to a social security pension (other than a pension PP (single)), an asset of a person is also an unrealisable asset if: (a) the person could not reasonably be expected to sell or realise the asset; and (b) the person could not reasonably be expected to use the asset as a security for borrowing.