SOCIAL SECURITY ACT 1991 - SECT 1126C Disposal of assets in income year--family members

SOCIAL SECURITY ACT 1991 - SECT 1126C

Disposals to which section applies

  (1)   This section applies to a disposal (the relevant disposal ) on or after 1   July 2002 of an asset by a person (the relevant person ) who is a family member of another person (the other person ) who has claimed or is receiving a youth allowance.

Increase in value of assets

  (2)   Subject to this section, if the amount of the relevant disposal, or the sum of that amount and the amounts (if any) of other disposals of assets previously made by the relevant person or the other person during the income year in which the relevant disposal took place, exceeds $10,000, then, for the purpose of determining whether a youth allowance is payable to the other person, the lesser of the following amounts is to be included in the value of the other person's assets for the period of 5 years starting on the day on which the relevant disposal took place:

  (a)   the amount of the relevant disposal;

  (b)   the amount by which the sum of the amount of the relevant disposal, and the amounts (if any) of other disposals of assets previously made by the relevant person or the other person during the income year in which the relevant disposal took place, exceeds $10,000.

Note:   See also section   1126E (about modification of this Division in respect of certain assets).

Effect of ceasing to be family member

  (3)   If:

  (a)   an amount is included under subsection   (2) in the value of the other person's assets because of a disposal of an asset by the relevant person; and

  (b)   the relevant person ceases to be a family member of the other person;

any amount that was included in the value of those assets because of the disposal ceases to be included in the value of those assets.

Effect of death

  (4)   If:

  (a)   an amount is included under subsection   (2) in the value of the other person's assets because of a disposal of an asset by the relevant person; and

  (b)   the relevant person dies;

any amount that was included in the value of those assets because of the disposal ceases to be included in the value of those assets.