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VETERANS' ENTITLEMENTS ACT 1986 - SECT 52ZZX

Disposal of asset by company or trust

             (1)  If:

                     (a)  an individual is an attributable stakeholder of a company or trust; and

                     (b)  the company or trust disposes of an asset of the company or trust;

Subdivisions BA and BB of Division 11 and sections 45UT and 45UTA apply, and are taken to have applied, as if:

                     (c)  the individual had disposed of an asset of the individual; and

                     (d)  the amount of the disposition referred to in paragraph (c) were equal to the individual's asset attribution percentage of the amount of the disposition referred to in paragraph (b).

             (2)  Subsection (1) has effect subject to subsection (3).

Commission determinations

             (3)  The Commission may, by writing:

                     (a)  determine that the disposal of a specified asset is exempt from subsection (1); or

                     (b)  determine that subsection (1) has effect, in relation to the disposal of a specified asset, as if the reference in paragraph (1)(d) to the individual's asset attribution percentage were a reference to such lower percentage as is specified in the determination.

             (4)  A determination under subsection (3) has effect accordingly.

             (5)  In making a determination under subsection (3), the Commission must comply with any relevant decision-making principles.

General disposal

             (6)  For the purposes of subsection (1), a company or trust disposes of assets of the company or trust if:

                     (a)  on or after 1 January 2002, the company or trust, or an attributable stakeholder of the company or trust, engages in a course of conduct that directly or indirectly:

                              (i)  destroys all or some of the company's or trust's assets; or

                             (ii)  disposes of all or some of the company's or trust's assets; or

                            (iii)  diminishes the value of all or some of the company's or trust's assets; and

                     (b)  one of the following subparagraphs is satisfied:

                              (i)  the company or trust receives no consideration in money or money's worth for the destruction, disposal or diminution;

                             (ii)  the company or trust receives inadequate consideration in money or money's worth for the destruction, disposal or diminution;

                            (iii)  the Commission is satisfied that the purpose, or the dominant purpose, of the company, trust or stakeholder in engaging in that course of conduct was to obtain an income support advantage for an attributable stakeholder of the company or trust (who may be the first-mentioned stakeholder) or for a relative of an attributable stakeholder of the company or trust; and

                     (c)  in the case of a company--the disposal is not by way of making a distribution of capital or profits of the company to a shareholder of the company; and

                     (d)  in the case of a trust--the disposal is not by way of:

                              (i)  making a distribution (whether in money or in other property) to a beneficiary of the trust; or

                             (ii)  crediting an amount to a beneficiary of the trust.

             (7)  If a company or trust disposes of assets as mentioned in subsection (6), the amount of the disposition is:

                     (a)  if the company or trust receives no consideration for the destruction, disposal or diminution--an amount equal to:

                              (i)  the value of the assets that are destroyed; or

                             (ii)  the value of the assets that are disposed of; or

                            (iii)  the amount of the diminution in the value of the assets whose value is diminished; or

                     (b)  if the company or trust receives consideration for the destruction, disposal or diminution--an amount equal to:

                              (i)  the value of the assets that are destroyed; or

                             (ii)  the value of the assets that are disposed of; or

                            (iii)  the amount of the diminution in the value of the assets whose value is diminished;

                            less the amount of the consideration received by the company or trust in respect of the destruction, disposal or diminution.

Disposal by way of distribution

             (8)  For the purposes of subsection (1), if a company makes a distribution of capital or profits of the company to a shareholder of the company on or after 1 July 2000:

                     (a)  the company is taken to have disposed of an asset of the company; and

                     (b)  the amount of the disposition is equal to the amount or value distributed to the shareholder.

             (9)  For the purposes of subsection (1), if a trust:

                     (a)  makes a distribution (whether in money or in other property) to a beneficiary of the trust on or after 1 July 2000; or

                     (b)  credits an amount to a beneficiary of the trust on or after 1 July 2000;

then:

                     (c)  the trust is taken to have disposed of an asset of the trust; and

                     (d)  the amount of the disposition is equal to the amount or value distributed or credited to the beneficiary.

Obtaining an income support advantage

           (10)  For the purposes of this section, an entity has a purpose of obtaining an income support advantage for an individual (who may be the entity) if the entity has a purpose of:

                     (a)  enabling the individual to obtain any of the following:

                              (i)  a service pension;

                             (ii)  income support supplement;

                            (iii)  a social security pension;

                            (iv)  a social security benefit; or

                     (b)  enabling the individual to obtain any of the following at a higher rate than would otherwise have been payable:

                              (i)  a service pension;

                             (ii)  income support supplement;

                            (iii)  a social security pension;

                            (iv)  a social security benefit; or

                     (c)  ensuring that the individual would be eligible for benefits under Division 12 of this Part or fringe benefits under the Social Security Act.



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