Social Security (Pension Loans Scheme—Market Value) Determination 2022

accredited as a certified practising valuer by the Australian Property Institute; or

a professional member of the Royal Institution of Chartered Surveyors who is entitled to be described as a Chartered Valuation Surveyor; or

registered or otherwise authorised, under the laws of the State or Territory in which the property is situated, to value that kind of property.

For the purposes of subparagraphs 1144AA(5)(a)(i) and (b)(i) of the Act, the market value of real assets or real property, at the time (the event time) the event mentioned in paragraph 1144AA(1)(c) or (2)(c) of the Act occurs in relation to the debt concerned, is the market value worked out under subsection (2).

The market value of the real assets or real property is:

if the assets are sold, or the property is sold, before the event time—the sale price of the assets or property; or

if paragraph (a) does not apply and the Secretary and the person seeking to repay the debt, or the person from whom the Commonwealth seeks to recover the debt, agree to a value of the assets or property—the agreed value; or

if paragraphs (a) and (b) do not apply and the Secretary is satisfied that:

the market value of the assets or property for one or more days (each of which is a valuation day) within the period of 3 months before the event time has been determined by an accredited valuer or valuers; and

there has been no material change in circumstances affecting the market value since the most recent valuation day;

if paragraphs (a), (b) and (c) do not apply—the market value, at the event time, as determined by an accredited valuer.

However, if the Secretary reasonably believes the sale price of the real assets or real property under paragraph (2)(a) is reduced because the assets are undervalued, or the property is undervalued, due to:

the sale not being conducted in good faith; or

the sale not being conducted on fair and reasonable terms; or

the sale being conducted between parties who were not dealing with each other at arm’s length; or

any other circumstances;

For the purposes of subparagraphs 1144AA(5)(a)(ii) and (b)(ii) of the Act, the market value of the real assets or real property worked out under this section is reduced by the total value of any charges or encumbrances over the assets or property, other than any charge referred to in paragraph 1133(3)(c) or section 1138 of the Act, worked out:

if the assets are sold, or the property is sold, before the event time—immediately before the assets are sold or the property is sold; or

if paragraph (2)(b) applies—at the time of the agreement; or

if paragraph (2)(c) applies—at the end of the most recent valuation day; or

if paragraph (2)(d) applies—at the event time.