Part Part 4 - Veterans' Entitlements (Modification of Income Deprivation Rules) Principles 2025 - Disposal of ordinary income (before 1 January 2002) by attributable stakeholder

Part 4Disposal of ordinary income (before 1 January 2002) by attributable stakeholder

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13 Purpose of Part 4

This Part sets out decision-making principles with which the Commission must comply in making a determination for subsection 52ZZZD(1) of the Act.

14 Definitions

In this Part:

individual means an individual who transfers property to a company or trust in accordance with subsection 52ZZZD(1) of the Act.

15 Application of Division 7 of Part IIIB of Act where value of property same or greater

This section applies if:
property is transferred by an individual to a company or trust; and
on 1 January 2002, the property is owned or controlled by the company or trust; and
on 1 January 2002, the value of the property is the same as, or greater than, it was at the time of its transfer.
The Commission must consider whether, in all the circumstances, the application of Division 7 of Part IIIB of the Act would be unfair or unreasonable in relation to the individual.

16 Application of Division 7 of Part IIIB of Act where value of property decreased after transfer

This section applies if:
property is transferred by an individual to a company or trust; and
on 1 January 2002, the property is owned or controlled by the company or trust; and
on 1 January 2002, the value of the property is less than it was at the time of its transfer; and
the decrease in the value of the property is not attributable to any conduct that the Commission reasonably believes was intended to avoid the operation, or minimise the effect, of Division 11A of Part IIIB of the Act.
The Commission must consider whether, in all the circumstances, the application of Division 7 of Part IIIB of the Act would be unfair or unreasonable in relation to the individual.

17 Application of Division 7 of Part IIIB of Act where company or trust retains value of transferred property

This section applies if:
property is transferred by an individual to a company or trust; and
before 1 January 2002, the company or trust transferred the property to another individual or other entity in consideration of an arm’s length amount; and