Commonwealth Consolidated Acts Commonwealth Consolidated Acts(1) This section applies to a person who is not a member of a couple.
(2) A person who has financial assets is taken, for the purposes of this Act, to receive ordinary income on those assets in accordance with this section.
(3) If the total value of the person's financial assets is equal to or less than the person's deeming threshold, the ordinary income the person is taken to receive per year on the financial assets is the amount worked out by multiplying the value of those assets by the below threshold rate.
(3A) If the total value of the person's financial assets exceeds the person's deeming threshold, the ordinary income that the person is taken to receive is worked out as follows:
Method statement
Step 1. Multiply the person's deeming threshold by the below threshold rate.
Note 1: For deeming threshold see subsection 1081(1).
Note 2: For below threshold rate see subsection 1082(1).
Step 2. Subtract the deeming threshold from the total value of the person's financial assets.
Note: For deeming threshold see subsection 1081(1).
Step 3. Multiply the remainder worked out at Step 2 by the above threshold rate.
Note: For above threshold rate see subsection 1082(2).
Step 4. The total of the amounts worked out at Steps 1 and 3 represents the ordinary income the person is taken to receive per year on the financial assets.
(3B) However, if subsection 1118(2) applies in relation to the person and:
(a) the person has financial assets that are proceeds:
(i) from the sale of the person's principal home; and
(ii) described in paragraph 1118(2)(a) or (c); and
(b) the earlier of the times mentioned in that paragraph has not occurred for the person and the proceeds;
then:
(c) those financial assets are to be disregarded for the purposes of working out the ordinary income the person is taken to receive under subsection (3) or (3A); and
(d) the ordinary income the person is taken to receive per year on those financial assets is the amount worked out by multiplying the value of those financial assets by the below threshold rate.
(4) The person is taken, for the purposes of this Act, to receive one fifty - second of the sum of the amount calculated under subsection (3) or (3A) and the amount (if any) calculated under paragraph (3B)(d) as ordinary income of the person during each week.