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This is a Bill, not an Act. For current law, see the Acts databases.
1998-99
The Parliament of
the
Commonwealth of
Australia
HOUSE OF
REPRESENTATIVES
Presented and read a first
time
Social
Security Amendment (Disposal of Assets) Bill
1999
No. ,
1999
(Family and Community
Services)
A Bill for an Act to amend the
Social Security Act 1991 in relation to the effect on social security
benefits of the disposal of assets, and for related
purposes
ISBN: 0642 404232
Contents
A Bill for an Act to amend the Social Security Act
1991 in relation to the effect on social security benefits of the disposal
of assets, and for related purposes
The Parliament of Australia enacts:
This Act may be cited as the Social Security Amendment (Disposal of
Assets) Act 1999.
This Act commences, or is taken to have commenced, on 1 July
1999.
Each Act that is specified in a Schedule to this Act is amended or
repealed as set out in the applicable items in the Schedule concerned, and any
other item in a Schedule to this Act has effect according to its
terms.
1 Subsection 11(1)
Insert:
income year has the same meaning as in the Income Tax
Assessment Act 1997.
2 Before subsection 93U(1)
Insert:
(1A) This section applies only to disposals of assets made before 1 July
1999.
Note: The heading to section 93U is replaced by
“Disposal preclusion period—disposals before 1 July
1999”.
3 After section 93U
Insert:
(1) For the purposes of this Part, if:
(a) either:
(i) a person has, on or after 1 July 1999, disposed of an asset of the
person during an income year; or
(ii) the partner of a person has, on or after 1 July 1999, disposed of an
asset of the partner during an income year; and
(b) the amount of the disposition, or the sum of that amount and the
amounts (if any) of other dispositions of assets previously made by the person
and/or the person’s partner during the income year, exceeds
$5,000;
the person is subject to a disposal preclusion period
throughout the period of 5 years that starts on the day on which the disposition
took place.
Note: For income year see subsection
11(1).
(2) For the purposes of this Part, if:
(a) a person ceases to be a member of a couple (whether because of the
death of the person’s partner or for any other reason); and
(b) immediately before the cessation, the person was subject to a
particular disposal preclusion period that arose wholly because the
person’s partner disposed of a particular asset; and
(c) if the disposition had been disregarded, the person would not have
been subject to that disposal preclusion period;
then, despite subsection (1), that disposal preclusion period ends at the
cessation.
4 After subsection 198H(1)
Insert:
(1A) This section applies only to disposals of assets made before 1 July
1999.
5 After subsection 198HA(1)
Insert:
(1A) This section applies only to disposals of assets made before 1 July
1999.
6 After subsection 198HB(1)
Insert:
Disposals before 1 July 1999
(1A) This section applies only to disposals of assets made before 1 July
1999.
7 After subsection 198J(1)
Insert:
(1A) This section applies only to disposals of assets made before 1 July
1999.
8 After subsection 198JA(1)
Insert:
(1A) This section applies only to disposals of assets made before 1 July
1999.
9 After subsection 198JB(1)
Insert:
Disposals before 1 July 1999
(1A) This section applies only to disposals of assets made before 1 July
1999.
10 After section 198JB
Insert:
Application
(1) This section applies in determining whether a person (the
carer) who has been receiving a carer payment for caring for a
care receiver who:
(a) is a higher ADAT score adult; and
(b) is not a member of a couple;
continues to qualify for the pension.
Disposals on or after 1 July 1999
(2) This section applies only to disposals of assets made on or after 1
July 1999.
Increase in value of assets of higher ADAT score adult
(3) If:
(a) the care receiver has disposed of an asset of the care receiver during
an income year; and
(b) the amount of the disposition, or the sum of that amount and of the
amounts (if any) of other dispositions of assets previously made by the care
receiver during the income year, exceeds $5,000;
the lesser of the following amounts is to be included in the value of the
care receiver’s assets for the period of 5 years that starts on the day on
which the disposition takes place:
(c) the amount of the disposition;
(d) the amount by which the sum of the amount of the disposition, and of
the amounts (if any) of other dispositions of assets previously made by the care
receiver during the income year, exceeds $5,000.
Application
(1) This section applies in determining whether a person (the
carer) who has been receiving a carer payment for caring for a
care receiver who is a profoundly disabled child continues to qualify for the
pension.
Disposals on or after 1 July 1999
(2) This section applies only to disposals of assets made on or after 1
July 1999.
Increase in value of assets of profoundly disabled child
(3) If:
(a) the carer has disposed of one or more of the disabled child’s
assets during an income year; and
(b) the amount of the disposition, or the sum of that amount and of the
amounts (if any) of other dispositions of the disabled child’s assets
previously made during the income year, exceeds $5,000;
the lesser of the following amounts is to be included in the value of the
disabled child’s assets for the period of 5 years that starts on the day
on which the disposition takes place:
(c) the amount of the disposition;
(d) the amount by which the sum of the amount of the disposition, and of
the amounts (if any) of other dispositions of assets previously made during the
income year, exceeds $5,000.
Application
(1) This section applies 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 a dependent child continues to
qualify for the pension.
Disposals on or after 1 July 1999
(2) This section applies only to disposals of assets made on or after 1
July 1999.
Increase in value of assets of lower ADAT score adult
(3) Subject to subsection (4), if:
(a) there has been a disposal, during an income year, of an asset of any
of the following persons (a qualifying person):
(i) the lower ADAT score adult;
(ii) the dependent child;
(iii) if the adult is a member of a couple—the adult’s partner
and any FA child of the adult or of the partner;
(iv) if the adult is not a member of a couple—any FA child of the
adult; and
(b) the amount of the disposition, or the sum of that amount and the
amounts (if any) of other dispositions of assets of any of the qualifying
persons during the income year exceeds $5,000;
the lesser of the following amounts is to be included in the value of the
assets of the lower ADAT score adult, for a period of 5 years that starts on the
day on which the disposition took place:
(c) the amount of the disposition;
(d) the amount by which the sum of the amount of the disposition and of
the amounts (if any) of other dispositions of assets of the qualifying persons
during the income year exceeds $5,000.
Effect of ceasing to be member of couple or death of FA child after
disposal of assets
(4) If:
(a) an amount is included under subsection (3) in the value of the assets
of the lower ADAT score adult because of the disposition of an asset of any of
the qualifying persons; and
(b) if the lower ADAT score adult is a member of a
couple—either:
(i) the adult ceases to be a member of that couple (either because his or
her partner dies or for another reason); or
(ii) any of the FA children dies; and
(c) if the lower ADAT score adult is not a member of a couple—any of
the FA children dies;
then, for the purposes of subsection (3), the following are to be
disregarded:
(d) in a subparagraph (b)(i) case—the partner and any FA child of
the partner and any disposition of their assets; or
(e) in a subparagraph (b)(ii) or paragraph (c) case—the FA child and
any disposition of his or her assets.
11 After subsection 198K(1)
Insert:
(1A) This section applies only to disposals of assets made before 1 July
1999.
12 After subsection 198L(1)
Insert:
(1A) This section applies only to disposals of assets made before 1 July
1999.
13 After section 198L
Insert:
(1) This section applies in determining whether a person (the
carer) who has been receiving a carer payment for caring for a
higher ADAT score adult who is a member of a couple continues to qualify for the
payment.
(2) This section applies only to disposals of assets made on or after 1
July 1999.
(3) Subject to subsections (4) and (5), if:
(a) the care receiver or the care receiver’s partner disposed of an
asset during an income year; and
(b) the amount of the disposition, or the sum of that amount and the
amounts (if any) of other dispositions of assets previously made by the care
receiver or the care receiver’s partner during the income year, exceeds
$5,000;
the lesser of the following amounts is to be included in the value of both
the assets of the care receiver and the assets of the partner for the period of
5 years that starts on the day on which the disposition took place:
(c) 50% of the amount of the disposition;
(d) 50% of the amount by which the sum of the amount of the disposition
and of the amounts (if any) of other dispositions of assets previously made by
the care receiver or the care receiver’s partner during the income year
exceeds $5,000.
(4) If:
(a) an amount is included under subsection (3) in the value of both the
assets of the care receiver and the assets of the care receiver’s partner
because of a disposition of an asset by the care receiver; and
(b) the care receiver and the partner cease to be members of the same
couple (either because the partner dies or for another reason);
the amount that was included in the value of the partner’s assets
because of the disposition is to be included in the value of the assets of the
care receiver.
(5) If:
(a) an amount is included under subsection (3) in the value of both the
assets of the care receiver and the assets of the care receiver’s partner
because of the disposition of an asset by the partner; and
(b) the care receiver and the partner cease to be members of the same
couple (either because the partner dies or for another reason);
the amount that was included in the value of the care receiver’s
assets because of the disposition is no longer to be included in the value of
the assets of the care receiver.
14 Paragraph 1110(1)(a)
After “1984”, insert “and before 1 July
1999”.
Note: The heading to section 1110 is altered by inserting
“before 1 July 1999” after
“transactions”.
15 Before subsection
1124A(1)
Insert:
(1A) This section applies only to disposals of assets made before 1 July
1999.
16 Subsection 1125(1)
After “1986”, insert “and before 1 July
1999”.
Note: The heading to section 1125 is replaced by
“Disposal of assets in pension
years—individuals”.
17 Before subsection
1125A(1)
Insert:
(1A) This section applies only to disposals of assets made before 1 July
1999.
18 Subsection 1126(1)
After “1986”, insert “and before 1 July
1999”.
Note: The heading to section 1126 is replaced by
“Disposal of assets in pension years—members of
couples”.
19 After section 1126
Insert:
If, on or after 1 July 1999:
(a) a person who is not a member of a couple disposes of an asset of the
person during an income year; and
(b) the amount of the disposition, or the sum of that amount and of the
amounts (if any) of other dispositions of assets previously made by the person
during the income year, exceeds $5,000;
then, for the purposes of this Act, 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 takes place:
(c) the amount by which the sum of the amount of the disposition, and of
the amounts (if any) of other dispositions of assets previously made by the
person during the income year, exceeds $5,000; or
(d) the amount of the disposition;
whichever is the lesser amount.
(1) Subject to this section and section 1126C, if, on or after 1 July
1999:
(a) a person who is a member of a couple disposes of an asset of the
person during an income year; and
(b) the amount of the 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 the income year (whether before or after
they became members of the couple), exceeds $5,000;
then, for the purposes of this Act:
(c) 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 takes
place:
(i) 50% of the amount by which the sum of the amount of the disposition
and of the amounts (if any) of other dispositions of assets previously made by
the person or the person’s partner during the income year exceeds $5,000;
or
(ii) 50% of the amount of the disposition;
whichever is the lesser amount; and
(d) 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 takes place:
(i) 50% of the amount by which the sum of the amount of the disposition
and of the amounts (if any) of other dispositions of assets previously made by
the person or the person’s partner during the income year exceeds $5,000;
or
(ii) 50% of the amount of the disposition;
whichever is the lesser amount.
(2) If:
(a) 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
(b) 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 assets of the
person’s former partner because of the disposition is taken not to have
been so included and, instead, is to be included in the value of the
person’s assets.
(3) If:
(a) 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
(b) the person dies;
no further amount is to be included in the value of the assets of the
person’s partner because of the death of the person.
(4) If:
(a) 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
(b) the partner dies;
no further amount is to be included in the value of the assets of the
person because of the death of the partner.
(1) This section applies if:
(a) 2 persons are members of the same couple; and
(b) before they became members of the couple, either or both of them
disposed of an asset or assets in the income year in which they became members
of the couple.
(2) If the value of the asset, or the total of the values of the assets,
disposed of exceeded $5,000, the amount, or the sum of the amounts, referred to
in paragraph 1126B(1)(b) in respect of the income year is taken to be reduced by
the excess.
(3) If an amount is included in the value of the assets of either of the
persons because of a disposition made by the person concerned before they became
members of the couple, the amount, or the sum of the amounts, referred to in
paragraph 1126B(1)(b) is taken to be increased by the amount so
included.
20 Schedule 1A
Insert in the appropriate numerical position:
If:
(a) the Budget Measures 1999 Legislation Amendment (Social
Security—Disposal of Assets) Act 1999 does not receive the Royal
Assent before 1 July 1999; and
(b) an amount that is paid to a person under this Act on or after that
date and before the day on which that Act receives the Royal Assent would not
have been payable if that Act had been in force when the amount was
paid;
the amount is not recoverable from the person.