Commonwealth Numbered Acts

SOCIAL SECURITY LEGISLATION AMENDMENT ACT (No. 2) 1992 No. 229, 1992 - SECT 115

115. After section 1124 of the Principal Act the following section is
inserted: Disposal of assets in pre-pension years - individuals

"1124A.(1) Subject to subsection (2), if:

   (a)  a person is not a member of a couple when the person claims a pension,
        benefit or payment of a kind referred to in subsection 11(10A); and

   (b)  the person has, during a pre-pension year of the person, disposed of
        an asset of the person; and

   (c)  the amount of that disposition, or the sum of that amount and of the
        amounts (if any) of other dispositions of assets previously made by
        the person during that pre-pension year, exceeds the disposal limit;
        then, for the purposes of determining whether a pension, benefit or
        payment 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:

   (d)  the amount by which the sum of the amount of the first-mentioned
        disposition of assets and of the amounts (if any) of other
        dispositions of assets previously made by the person during that
        pre-pension year exceeds the disposal limit; or

   (e)  the amount of the first-mentioned disposition; whichever is the lesser
        amount. Note 1: for 'disposes of assets' see section 1123. Note 2: for
        'amount of disposition' see section 1124. Note 3: for the effect of a
        transaction that constitutes both a disposal of an asset and a
        disposal of ordinary income see section 1110. Note 4: if a pension,
        benefit or family payment is payable to the person, section 1125
        operates to determine the rate of payment and section 1124A ceases to
        apply to the person.

"(2) If:

   (a)  a person disposes of an asset before 1 March 1991; and

   (b)  an amount (the 'relevant amount') is included in the value of the
        person's assets under subsection (1) because of the disposition; the
        amount that is to be included in that value under that subsection is
        to be reduced, on each anniversary of the day on which the disposition
        took place, by an amount equal to 10% of the relevant amount. Note 1:
        for 'disposes of assets' see section 1123. Note 2: for 'amount of
        disposition' see section 1124.

"(3) In this section:
'disposal limit' means:

   (a)  in relation to assets disposed of on or after 1 March 1986 and before
        1 March 1991 - $2,000; and

   (b)  in relation to assets disposed of on or after 1 March 1991 -
        $10,000.".