Disposal of assets in pre‑pension years—members of couples
52GA Disposal of assets in pre‑pension years—members of couples
Subject to subsections (3), (4) and (5), if:
a person disposes of an asset; and
the person is a member of a couple when the person or the person’s partner claims a service pension, an income support supplement or a social security pension; and
the person disposes of the asset:
during a pre‑pension year of the person; or
if the person does not claim a service pension, an income support supplement or a social security pension but the person’s partner claims such a pension—during a pre‑pension year of the person’s partner; and
the amount of that disposition, or the sum of that amount and the amounts (if any) of other dispositions of assets previously made by the person or the person’s partner during that pre‑pension year, exceeds $10,000;
then, for the purposes of determining whether the pension is payable to the person:
there is to be included in the value of the person’s assets for the period of 5 years that starts on the day on which the disposition took place:
50% of the amount by which the sum of the amount of the first‑mentioned disposition and of the amounts (if any) of other dispositions of assets previously made by the person or the person’s partner during that pre‑pension year exceeds $10,000; or
50% of the amount of the first‑mentioned disposition;
whichever is the lesser amount; and
there is to be included in the value of the assets of the person’s partner for the period of 5 years that starts on the day on which the disposition took place:
50% of the amount by which the sum of the amount of the first‑mentioned disposition and of the amounts (if any) of other dispositions of assets previously made by the person or the person’s partner during that pre‑pension year exceeds $10,000; or
50% of the amount of the first‑mentioned disposition;
whichever is the lesser amount.
For disposes of assets see section 52E.
For amount of disposition see section 52F.
If a pension is payable to the person, section 52H operates to determine the rate of payment and section 52GA ceases to apply to the person.
If:
amounts are included under subsection (1) in the value of the assets of a person who is a member of a couple and in the value of the assets of the person’s partner because of a disposition of an asset by the person; and
the person and the person’s partner cease to be members of the same couple;
any amount that was included in the value of the person’s former partner’s assets because of that disposition is to be included in the value of the person’s assets.
If:
an amount is included under subsection (1) in the value of the assets of a person who is a member of a couple and in the value of the assets of the person’s partner because of a disposition of an asset by the person; and
the person dies;
an amount is not to be included in the value of the assets of the person’s partner because of that disposition.
If:
an amount is included under subsection (1) in the value of the assets of a person who is a member of a couple and in the value of the assets of the person’s partner because of a disposition of an asset by the person; and
the partner dies;
any amount that would, if the partner had not died, be included in the value of the partner’s assets because of the disposition is to be included in the value of the person’s assets.
This Act’s bill:Second reading speech
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