Social Security Act 1991

If section 1129 applies to a person, the value of:

any unrealisable asset of the person; and

any unrealisable asset of the person’s partner;

If section 1129 applies to a person, there is to be deducted from the person’s social security pension maximum payment rate an amount equal to the person’s adjusted annual rate of ordinary income.

A person’s adjusted annual rate of ordinary income is an amount per year equal to the sum of:

the person’s annual rate of ordinary income (other than income from assets); and

the person’s annual rate of ordinary income from assets that are not assets tested; and

either:

the person’s annual rate of ordinary income from unrealisable assets; or

the person’s notional annual rate of ordinary income from unrealisable assets;

an amount per year equal to $19.50 for each $250 of the value of the person’s assets (other than disregarded assets); and

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

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

A person’s notional annual rate of ordinary income from unrealisable assets is:

the amount per year equal to 2.5% of the value of the person’s and the person’s partner’s unrealisable assets; or

the amount per year 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;

If:

an unrealisable asset is a farm; and

the farm is operated by a person who is a family member of the person to whom this section applies; and

it is not reasonable to expect the farm to be used for another purpose;

If:

section 1129 applies to a person; and

the person, or the person’s partner, owns residential premises; and

the premises are an unrealisable asset; and

a family member of the person, or of the partner, lives at the premises; and

one of the following conditions is satisfied:

the family member previously provided substantial care for the person or the partner at the premises at a time when the premises were the principal home of the person or the partner;

the family member has resided at the premises for a period of, or periods that add up to, 10 years or more;

the family member is:

a child of the person or the partner; and

disabled;

it is not reasonable to expect the premises to be sold or otherwise used to provide income support for the person;

For family member see subsection 23(1).

Subsections (6) and (6A) do not limit the matters to which the Secretary may have regard in exercising the powers under paragraph (5)(b).

Subsection (2) applies:

subject to subsection (10); and

despite section 1064.

If:

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

the Secretary has made a determination under subparagraph 1129(1)(b)(ii) in relation to the disposition;

If the sum of the rate of pension that would, apart from this subsection, be payable to a person and the annual rate of ordinary income of the person exceeds the maximum payment rate, the rate so payable is to be reduced by the amount per annum of the excess.