Disposal of ordinary income—members of couples
1109 Disposal of ordinary income—members of couples
Subject to subsections (1A), (1B), (2), (3) and (4), if a person who is a member of a couple has disposed of ordinary income of the person:
50% of the amount of the disposition is to be included in the person’s ordinary income; and
50% of the amount of the disposition is to be included in the person’s partner’s ordinary income.
For disposes of ordinary income see section 1106.
For amount of disposition see section 1107.
Subject to subsection (3), for the purposes of the application of this Act in relation to a person’s rate of social security benefit, if:
a person who is a member of a couple has disposed of ordinary income of the person; and
the amount of the disposition is not greater than the least amount that, if added to the person’s ordinary income (disregarding this section), would cause the person’s rate of benefit to be reduced to nil;
the amount of the disposition is to be included in the person’s ordinary income.
Subject to subsection (3), for the purposes of the application of this Act in relation to a person’s rate of social security benefit, if:
a person who is a member of a couple has disposed of ordinary income of the person; and
the amount of the disposition is greater than the least amount that, if added to the person’s ordinary income (disregarding this section), would cause the person’s rate of benefit to be reduced to nil;
then:
the second of the amounts referred to in paragraph (b) is to be included in the person’s ordinary income; and
the difference between the 2 amounts referred to in paragraph (b) is to be included in the person’s partner’s ordinary income.
If:
amounts are included under subsection (1) in the ordinary income of a person who is a member of a couple and in the person’s partner’s ordinary income because the person has disposed of ordinary income; and
the person and the person’s partner cease to be members of the same couple;
any amount that was included in the ordinary income of the person’s former partner because of the disposition is to be included in the person’s ordinary income.
If:
amounts are included under subsection (1) in the ordinary income of a person who is a member of a couple and in the person’s partner’s ordinary income because the person has disposed of ordinary income; and
the person dies;
no amount is to be included in the ordinary income of the person’s partner because of the disposition.
If:
an amount is included under subsection (1) in the ordinary income of a person who is a member of a couple and in the person’s partner’s ordinary income because the person has disposed of ordinary income; and
the person’s partner dies;
any amount that would, if the person’s partner had not died, be included in the ordinary income of the person’s partner because of the disposition is to be included in the person’s ordinary income.
For ordinary income see subsection 8(1): ordinary income includes investment income but does not include maintenance income.
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