Commonwealth Consolidated Acts Commonwealth Consolidated Acts(1) In calculating the value of a person's assets for the purposes of this Act (other than sections 198F to 198MA (inclusive), Division 1B of Part 3.10, Division 2 and sections 1133 and 1135A), disregard the following:
(a) if the person is not a member of a couple--the value of any right or interest of the person in the person's principal home that is a right or interest that gives the person reasonable security of tenure in the home;
(b) if the person is a member of a couple--the value of any right or interest of the person in one residence that is the principal home of the person, of the person's partner or of both of them that is a right or interest that gives the person or the person's partner reasonable security of tenure in the home;
(c) the value of any life interest of the person other than:
(i) a life interest in the principal home of the person, of the person's partner or of both of them; or
(ii) a life interest created by the person, by the person's partner or by both of them; or
(iii) a life interest created on the death of the person's partner;
(d) the value of any asset - test exempt income stream of the person, other than a partially asset - test exempt income stream;
(da) half of the value of any partially asset - test exempt income stream of the person;
(e) any amount that is:
(i) received by the person within the immediately preceding period of 90 days; and
(ii) is excluded from the definition of income in subsection 8(1) by subsection 8(4) or (5);
(f) the value of the person's investment in:
(i) a superannuation fund; or
(ii) an approved deposit fund; or
(iv) an ATO small superannuation account;
until the person:
(v) reaches pension age; or
(vi) starts to receive a pension or annuity out of the fund;
(g) if:
(i) the person has a granny flat interest in the person's principal home; and
(ii) the granny flat interest gives the person reasonable security of tenure in the home; and
(iii) the person acquired or retained the granny flat interest before 22 August 1990;
the value of the granny flat interest;
(ga) if:
(i) the person has a granny flat interest in the person's principal home; and
(ii) the person is a person to whom subsection 1150(2), 1151(2), 1152(2), 1152(5), 1153(2), 1154(2), 1155(2), 1156(2) or 1157(2) applies;
the value of the granny flat interest;
Note: A person described in subparagraph (ii) will have acquired or retained the granny flat interest on or after 22 August 1990 (see section 1145A).
(gb) if:
(i) the person is a sale leaseback resident; and
(ii) the person is a person to whom subsection 1150(2), 1151(2), 1152(2), 1152(5), 1153(2), 1154(2), 1155(2), 1156(2) or 1157(2) applies;
the value of any right or interest of the person in the sale leaseback home;
(h) the value of any contingent, remainder or reversionary interest of the person (other than an interest created by the person, by the person's partner or by both of them);
(j) the value of any assets (other than a contingent, remainder or reversionary interest) to which the person is entitled from the estate of a deceased person but which has not been, and is not able to be, received;
(k) the value of any medal or other decoration awarded (whether to the person or another person) for valour that is owned by the person otherwise than for the purposes of investment or a hobby;
(m) the value of:
(i) any cemetery plot acquired by the person for the burial of the person or the person's partner; and
(ii) any funeral expenses paid in advance by the person in respect of the funeral of the person or the person's partner;
(ma) an amount invested in an exempt funeral investment and any return on the investment;
(n) if:
(i) personal property of the person is designed for use by a disabled person; and
(ii) the person, the person's partner, a dependent child of the person or a dependent child of the person's partner is disabled;
the value of the property;
(p) if:
(i) personal property of the person is modified so that it can be used by a disabled person; and
(ii) the person, the person's partner, a dependent child of the person or a dependent child of the person's partner is disabled;
the part of the value of the property that is attributable to the modifications;
(q) if the person is provided with a motor vehicle under the scheme administered by the Commonwealth known as the gift car scheme--the value of that motor vehicle;
(r) if the person has sold a residence that was the principal home of the person on terms and has purchased, also on terms, another residence that is the principal home of the person--so much of the balance due to the person in respect of the sale as will be applied by the person in respect of the purchase of the other residence;
(s) the amount of any insurance or compensation payments received by the person because of the loss of or damage to buildings, plant or personal effects within the immediately preceding 12 months or such longer period as the Secretary determines for any special reason for a particular payment;
(sa) if subsection (1AB) applies (application of insurance etc. payments to rebuilding etc.)--the amount worked out under that subsection, during the period mentioned in subsection (1AC);
(sb) if a person has received an NDIS amount--the amount worked out under subsection (1AD);
(t) the value of any native title rights and interests of the person, or of a community or group of which the person is a member;
(u) the amount of any accommodation bond balance in respect of an accommodation bond paid by the person;
(v) the amount of any refundable deposit balance in respect of a refundable deposit paid by the person.
Note 1: For granny flat interest see subsection 12A(2).
Note 2: For principal home see section 11A.
Note 3: For reasonable security of tenure see subsection 11A(10).
Note 4: For exempt funeral investment see section 19E.
Application of insurance etc. payments to rebuilding etc.
(1AA) Subsection (1AB) applies if:
(a) a person receives any insurance or compensation payments because of loss of or damage to a building (including the person's principal home) or plant; and
(b) either:
(i) if the building or plant was lost--the person applies the whole or a part of those payments to build another building or plant to replace the building or plant that was lost; or
(ii) if the building or plant was damaged--the person applies the whole or a part of those payments to rebuild, repair or renovate the building or plant.
(1AB) For the purposes of paragraph (1)(sa), the amount that may be disregarded is:
(a) the value of the building or plant that is being built, rebuilt, repaired or renovated, to the extent that those payments are so applied; and
(b) if a building whose value is being disregarded under paragraph (a) of this subsection is to be the person's principal home:
(i) the value of the land on which the building is being built, rebuilt, repaired or renovated to the extent that, once the building becomes the person's principal home, the land will, under section 11A, be included in a reference to the principal home ; and
(ii) the value of any other structure, on that land, that is to be the person's principal home to the extent that the structure was built before the person began applying the payments.
(1AC) For the purposes of paragraph (1)(sa), the amount worked out under subsection (1AB) may be disregarded during the period:
(a) beginning when the payments are received; and
(b) ending at the earlier of the following times:
(i) 12 months, or such longer period as the Secretary determines for any special reason, after that time;
(ii) when the building, rebuilding, repair or renovation of the building or plant is complete.
NDIS amounts
(1AD) For the purposes of paragraph (1)(sb), the amount that may be disregarded is the value of the sum of:
(a) the NDIS amounts received by the person; and
(b) any return on those amounts that the person earns, derives or receives;
less the sum of the amounts spent by the person in accordance with an NDIS plan (whether in the person's capacity as an NDIS participant or as a person managing the funding under an NDIS plan for an NDIS participant).
(1A) In this section:
"native title rights and interests" means:
(a) native title rights and interests within the meaning of section 223 of the Native Title Act 1993 ;
(b) any rights and interests of a similar nature under any law of a State, a Territory or a foreign country (whether or not the rights and interests relate to land or waters outside Australia);
but, to avoid any doubt, does not include any right or interest in a lease or licence, or in a freehold estate.
"partially asset-test exempt income stream" means:
(a) an asset - test exempt income stream that:
(i) is an income stream (other than a defined benefit income stream or a military invalidity pension income stream) covered by subsection 9A(1) or (1A), 9B(1) or 9BA(1); and
(ii) has a commencement day during the period from 20 September 2004 to 19 September 2007 (both dates inclusive); and
(iii) is not covered by principles (if any) determined for the purposes of this subparagraph, by legislative instrument, by the Secretary; or
(b) an income stream that:
(i) has a commencement day happening on or after 20 September 2007; and
(ii) is covered by principles determined for the purposes of this subparagraph, by legislative instrument, by the Secretary.
Application of proceeds of sale of principal home
(1B) Subsection (2) applies if:
(a) a person sells the person's principal home; and
(b) either:
(i) the person does not have a right or interest in a principal home; or
(ii) the person has a right or interest in a principal home that the Secretary is satisfied does not give the person reasonable security of tenure in the home; and
(c) before the end of 24 months, or any longer period determined under subsection (2B), after the sale, one or more of the following applies:
(i) the person intends to apply the whole or a part of the proceeds of the sale to build, rebuild, repair or renovate another residence that is to be the person's principal home;
(ii) the person applies the whole or a part of the proceeds of the sale to build, rebuild, repair or renovate another residence that is to be the person's principal home;
(iii) the person intends to apply the whole or a part of the proceeds of the sale to purchase another residence that is to be the person's principal home.
(2) For the purposes of this Act (other than Division 1B of Part 3.10):
(a) if subparagraph (1B)(c)(i) applies--disregard the proceeds, to the extent that the person intends to apply those proceeds to build, rebuild, repair or renovate the other residence, until the earlier of the following times:
(i) the period mentioned in paragraph (1B)(c) ends;
(ii) the Secretary becomes satisfied that the person has ceased to have that intention; or
(b) if subparagraph (1B)(c)(ii) applies--disregard the value of the following, until the end of the period mentioned in paragraph (1B)(c), to the extent that the person applies those proceeds to build, rebuild, repair or renovate that other residence:
(i) the value of the other residence;
(ii) the value of the land on which the other residence is being built, rebuilt, repaired or renovated to the extent that, once the building becomes the person's principal home, the land will, under section 11A, be included in a reference to the principal home ;
(iii) the value of any other structure, on that land, that is to be the person's principal home to the extent that the structure was built before the person began applying those proceeds; or
(c) if subparagraph (1B)(c)(iii) applies--disregard the proceeds, to the extent that the person intends to apply those proceeds to purchase the other residence, until the earlier of the following times:
(i) the period mentioned in paragraph (1B)(c) ends;
(ii) the Secretary becomes satisfied that the person has ceased to have that intention.
(2A) Subsection (2) does not apply to the calculation of the value of a person's assets for the purposes of sections 198F to 198MA or 1123 to 1128 (disposal of assets).
(2B) For the purposes of subsection (1B), the Secretary may determine, in writing, a period of up to 36 months if:
(a) a person who has sold his or her principal home is making reasonable attempts to purchase, build, repair or renovate another residence; and
(b) the person has been making those attempts within a reasonable period after selling the principal home; and
(c) the person has experienced delays beyond his or her control in purchasing, building, repairing or renovating the other residence.
Value of certain personal effects of less than $10,000
(3) For the purposes of this section, if:
(a) the value of any assets of a person or, if the person is a member of a couple, of the person and the person's partner, that consists of the contents of a principal home and of other personal effects that are used primarily within the principal home does not exceed $10,000; and
(b) the assets are used primarily for private or domestic purposes;
the value of the assets is to be taken to be $10,000 unless the person satisfies the Secretary that the value of the assets is less than $10,000.
This section subject to sections 1145A to 1157
(4) This section has effect subject to sections 1145A to 1157 (special residences).