Commonwealth Consolidated Acts

SOCIAL SECURITY ACT 1991 - SECT 1132

Value of unrealisable asset to be disregarded

  (1)   If section   1131 applies to a person, the value of:

  (a)   any unrealisable asset of the person; and

  (b)   any unrealisable asset of the person's partner;

is to be disregarded in working out whether a social security benefit is payable to the person.

Deduction from social security benefit maximum payment rate

  (2)   If section   1131 applies to a person, there is to be deducted from the person's social security benefit maximum payment rate an amount equal to the person's adjusted fortnightly rate of ordinary income.

Note:   For maximum payment rate , see, for example, Step 4 of the Method statement in point 1068 - A1.

Adjusted fortnightly rate of ordinary income

  (3)   The person's adjusted fortnightly rate of ordinary income is an amount per fortnight equal to the sum of:

  (a)   the person's fortnightly rate of ordinary income (other than income from assets); and

  (b)   the person's fortnightly rate of ordinary income from assets that are not assets tested; and

  (c)   either:

  (i)   the person's fortnightly rate of ordinary income from unrealisable assets; or

  (ii)   the person's notional fortnightly rate of ordinary income from unrealisable assets;

    whichever is the greater; and

  (d)   an amount per fortnight equal to $1 for each $250 of the value of the person's assets (other than disregarded assets); and

  (e)   any amounts that are not income of the person because of paragraph   8(8)(zp).

Assets tested asset

  (4)   For the purposes of paragraph   (3)(b), an asset is not assets tested if the value of the asset is to be disregarded under subsection   1118(1).

Notional fortnightly rate of ordinary income from unrealisable assets

  (5)   A person's notional fortnightly rate of ordinary income from unrealisable assets is:

  (a)   the amount per fortnight equal to one twenty - sixth of 2.5% of the value of the person's and the person's partner's unrealisable assets; or

  (b)   the amount per fortnight that could reasonably be expected to be obtained from a purely commercial application of the person's and the person's partner's unrealisable assets;

whichever is the less.

  (6)   Subsection   (2) applies:

  (a)   subject to subsection   (8); and

  (b)   despite sections   733, 1067G, 1067L and 1068.

  (7)   If:

  (a)   a person has disposed of assets and section   1125, 1126, 1126AA, 1126AB, 1126AC, 1126AD or 1126E (so far as section   1126E relates to section   1126AA, 1126AB, 1126AC or 1126AD) applies to the disposition; and

  (b)   the Secretary has made a determination under paragraph   1131(1)(d) in relation to the disposition;

this section applies to the person as if the person had not disposed of the assets.

  (8)   If the sum of the rate of benefit that would, apart from this subsection, be payable to a person and the fortnightly rate of ordinary income of the person exceeds the maximum payment rate, the rate so payable is to be reduced by the amount per fortnight of the excess.