Commonwealth Consolidated Acts

SOCIAL SECURITY ACT 1991 - SECT 1185S

Meaning of total net value

             (1)  For the purposes of subsections 1185R(1) and (2), the total net value of a sugarcane farm, or sugarcane farms, and relevant sugarcane farm assets, the eligible interests in which have been transferred, is to be calculated as follows:

where:

"market value of sugarcane farm assets" means the total of the market values of the sugarcane farm, or sugarcane farms, and relevant sugarcane farm assets immediately before the transfer of the eligible interests.

"sugarcane farm debts" means the total of any amounts of money that:

                     (a)  had been borrowed for the purposes of undertaking one or more sugarcane farm enterprises on the sugarcane farm or sugarcane farms; and

                     (b)  had not been repaid before the transfer of the eligible interests.

Note:          The total net value of a sugarcane farm, or sugarcane farms, and relevant sugarcane farm assets is not affected by the number of persons who have interests in them.

             (2)  Subsection (1) has effect subject to subsections (3), (4) and (5).

Value of farm reduced by value of transferee's interest

             (3)  If:

                     (a)  a person transfers eligible interests that the person has in a sugarcane farm, or sugarcane farms, and relevant sugarcane farm assets; and

                     (b)  immediately before the transfer by the person of his or her eligible interests in the farm, or farms, and relevant farm assets, the transferee had an eligible interest in the farm, or one of those farms, or a relevant farm asset;

then, the total net value of the farm, or farms, and relevant farm assets is the amount worked out under subsection (1) reduced by the value of the transferee's eligible interest in the farm or relevant farm asset at that time.

Value of farm affected by previous transaction

             (4)  If:

                     (a)  a person transfers his or her eligible interests in a sugarcane farm, or sugarcane farms, and relevant sugarcane farm assets; and

                     (b)  at any time after 29 April 2004 the person making the transfer entered into a transaction or transactions; and

                     (c)  the result of the transaction or transactions was that the total net value (worked out in accordance with subsection (1)) of the farm, or farms, and relevant farm assets immediately before the transfer is less than the total net value that that farm, or those farms, and relevant farm assets would have had immediately before the transfer if the person had not entered into the transaction or transactions (the unreduced value );

then, the total net value of the farm, or farms, and relevant farm assets is taken to be an amount equal to the unreduced value.

Life interest retained in principal home on farm

             (5)  If:

                     (a)  a person transfers eligible interests that the person has in a farm by way of gift; and

                     (b)  the person retains a freehold estate, a leasehold interest or a life interest in the dwelling‑house on the farm, and any adjacent area of land used primarily for private or domestic purposes in association with that dwelling‑house, that constitute the person's principal home;

then:

                     (c)  for the purposes of subsections 1185R(1) and (2), the person is taken to have transferred the whole of his or her eligible interest in the farm by way of gift; and

                     (d)  in assessing the market value of the farm for the purposes of subsection (1), the value of the dwelling‑house and any adjacent area of land used primarily for private or domestic purposes in association with that dwelling‑house is not to be included.

Note:          For eligible interest, relevant sugarcane farm asset , sugarcane farm and transfer see subsection 17B(1).