Commonwealth Numbered Acts

SOCIAL SECURITY AND VETERANS' AFFAIRS LEGISLATION AMENDMENT ACT (No. 2) 1990 No. 119, 1990 - SECT 21

21. (1) After section 50A of the Principal Act the following section is
inserted: Income from loans

"50B. (1) In this section: `interest', in relation to a loan, includes any
payment for the use of the money lent; `loan rate' means 10% or, if there is a
lower rate determined under subsection 4C (7) of the Social Security Act 1947,
that lower rate.

"(2) For the purposes of this section, there is a loan by a person if, but not
only if, the person has debentures, bonds or other securities.

"(3) For the purposes of this section, there is no loan by a person because
the person has money in an account with a bank, building society or credit
union.

"(4) For the purposes of this Act, where:

   (a)  there is a loan by a person; and

   (b)  the person is paid interest on the loan; and

   (c)  the rate per year of the interest is less than the loan rate; the rate
        per year of the interest is taken to be the loan rate.

"(5) For the purposes of this Act, where interest paid on a loan is not
received, or accounted for, at least as frequently as each anniversary of the
making of the loan, interest on the loan is taken to be received by the lender
on each such anniversary.

"(6) For the purposes of this Act, where:

   (a)  there is a loan by a person; and

   (b)  the person is not paid interest on the loan; the person is taken to
        receive on each anniversary of the making of the loan interest on the
        loan at the loan rate per year.

"(7) Where this section applies, Division 1A of Part III does not apply.".

(2) The amendment made by subsection (1) applies to loans by a person entered
into, or acquired, by the person after 21 August 1990.