Commonwealth Consolidated Acts

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SOCIAL SECURITY ACT 1991 - SECT 1106

Disposal of ordinary income

  (1)   For the purposes of this Act, a person disposes of ordinary income of the person if:

  (a)   the person engages in a course of conduct that directly or indirectly:

  (i)   destroys the source of the income; or

  (ii)   disposes of the income or the source of the income; or

  (iii)   diminishes the income; and

  (b)   one of the following subparagraphs is satisfied:

  (i)   the person receives no consideration in money or money's worth for the destruction, disposal or diminution;

  (ii)   the person receives inadequate consideration in money or money's worth for the destruction, disposal or diminution;

  (iii)   the Secretary is satisfied that the person's purpose, or the person's dominant purpose, in engaging in that course of conduct was to obtain a social security advantage.

  (2)   For the purposes of subsection   (1), a person has a purpose of obtaining a social security advantage if the person has a purpose of:

  (a)   obtaining, or enabling the person's partner to obtain, a social security pension, a social security benefit, a youth training allowance, a service pension, income support supplement or a veteran payment; or

  (b)   obtaining, or enabling the person's partner to obtain, a social security pension, a social security benefit, a youth training allowance, a service pension, income support supplement or a veteran payment at a higher rate than that which would otherwise have been payable; or

  (c)   ensuring that the person or the person's partner would be qualified for fringe benefits for the purposes of this Act or the Veterans' Entitlements Act.

  (3)   Paragraph   (1)(a) does not apply if:

  (a)   the source of the income is a deprived asset, or

  (b)   the income is earned, derived or received from a transaction involving a deprived asset.

Note:   For amount of disposition see section   1107.


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