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FAMILY AND COMMUNITY SERVICES AND VETERANS' AFFAIRS LEGISLATION AMENDMENT (FURTHER ASSISTANCE FOR OLDER AUSTRALIANS) ACT 2001 NO. 42, 2001 - SCHEDULE 1

- Beneficial treatment of superannuation assets for people aged between 55 and pension age

Social Security Act 1991

1 Subsection 8(1) (definition of income)

Omit ", (7A)".

2 Subsections 8(7A) and (7B)

Repeal the subsections (including the notes).

3 After paragraph 8(8)(a)

Insert:

(b)
any return on a person's investment in:

(i)
a superannuation fund; or
(ii)
an approved deposit fund; or
(iii)
a deferred annuity; or
(iv)
an ATO small superannuation account;
until the person:

(v)
reaches pension age; or
(vi)
starts to receive a pension or annuity out of the fund;

4 Paragraph 9(1B)(d) (note)

Omit "by persons who are neither prescribed pre-pension age persons nor persons who have reached pension age", substitute "before pension age is reached".

5 Paragraph 9(1B)(e) (note)

Omit "by persons who are neither prescribed pre-pension age persons nor persons who have reached pension age", substitute "before pension age is reached".

6 Paragraph 9(1B)(f) (note)

Omit "by persons who are neither prescribed pre-pension age persons nor persons who have reached pension age", substitute "before pension age is reached".

7 Paragraph 9(1B)(g) (note)

Omit "by persons who are neither prescribed pre-pension age persons nor persons who have reached pension age", substitute "before pension age is reached".

8 Paragraph 9(1C)(a)

Omit "is not a prescribed pre-pension age person and has not yet turned", substitute "has not yet reached".

9 Paragraph 9(1C)(b)

Omit "is not a prescribed pre-pension age person and has not yet turned", substitute "has not yet reached".

10 Paragraph 9(1C)(c)

Omit "is not a prescribed pre-pension age person and has not yet turned", substitute "has not yet reached".

11 Paragraph 9(1C)(ca)

Omit "is not a prescribed pre-pension age person and has not yet turned", substitute "has not yet reached".

12 Subsection 9(1C) (note 1)

Repeal the note.

13 Subsection 23(1) (definition of prescribed pre-pension age person)

Repeal the definition.

14 Paragraph 1096(aa)

Omit "is not a prescribed pre-pension age person and has not reached pension age", substitute "has not turned 55".

15 Section 1096 (notes)

Repeal the notes.

16 At the end of section 1096

Add:

(2) However, if the person turns 55 before the end of the period of 12 months, this section does not apply to the person in relation to:

(a)
the week, during that period, in which the person turns 55; and

(b)
any later weeks during that period.

17 After paragraph 1118(1)(e)

Insert:

(f)
the value of the person's investment in:

(i)
a superannuation fund; or
(ii)
an approved deposit fund; or
(iii)
a deferred annuity; or
(iv)
an ATO small superannuation account;
until the person:

(v)
reaches pension age; or
(vi)
starts to receive a pension or annuity out of the fund;

18 Section 1118A

Repeal the section (including the note).



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