Disposal of assets in 5 year period—lower ADAT score adult and child or children
198JH Disposal of assets in 5 year period—lower ADAT score adult and child or children
Application
This section also has effect in determining whether a person (the carer) who has been receiving a carer payment for caring for care receivers who are a lower ADAT score adult and one or more multiple care children, or a lower ADAT score adult and a dependent child, continues to qualify for the payment.
Disposals to which section applies
This section applies to a disposal (the relevant disposal) on or after 1 July 2002 of an asset of any of the following persons (each of whom is called a qualifying person):
the lower ADAT score adult;
each multiple care child or dependent child;
if the adult is a member of a couple—the adult’s partner and any FTB child of the adult or of the partner;
if the adult is not a member of a couple—any FTB child of the adult.
Increase in value of assets of lower ADAT score adult
Subject to subsection (4), if:
the sum of the amount of the relevant disposal and the amounts of any previous disposals during the rolling period of assets of any of the qualifying persons;
less
the sum of any amounts included in the value of the assets of the lower ADAT score adult during the rolling period under section 198JG or any previous application or applications of this section;
exceeds $30,000, then, for the purposes of this Act, an amount equal to the excess is to be included in the value of the assets of the lower of the ADAT score adult for the period of 5 years starting on the day on which the relevant disposal took place.
Effect of ceasing to be member of couple or death of FTB child after disposal of assets
If:
an amount is included under subsection (3) in the value of the assets of the lower ADAT score adult because of the relevant disposal; and
if the lower ADAT score adult is a member of a couple—either:
the adult ceases to be a member of that couple (either because his or her partner dies or for another reason); or
any of the FTB children dies; and
if the lower ADAT score adult is not a member of a couple—any of the FTB children dies;
then, for the purposes of subsection (3), the following are to be disregarded:
in a subparagraph (b)(i) case—the partner and any FTB child of the partner and any disposal of their assets; or
in a subparagraph (b)(ii) or paragraph (c) case—the FTB child and any disposal of his or her assets.
Rolling period
For the purposes of this section, the rolling period is the period comprising the income year in which the relevant disposal took place and such (if any) of the 4 previous income years as occurred after 30 June 2002.
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