(1)

This section applies to a Veterans' Affairs customer if, on one or more occasions in the period covered by the 2 qualifying years, the Commission worked out the customer's ordinary income on a yearly basis for the purpose of determining the customer's entitlement to any payment under the Veterans' Entitlements Act 1986 .

(2)

If the Commission worked out the amount on only one such occasion, the customer's annual retirement income and annual savings and investment income for the purposes of this Part are worked out in accordance with subsections (3) and (4).

(3)

The customer's annual retirement income is the amount of the ordinary income on a yearly basis that would have been worked out on the occasion if:

(a)

any payment under the Veterans' Entitlements Act 1986 , to the extent that it was not exempt from income tax under a relevant income tax law, were included in ordinary income; and

(b)

any amount taken by Division 3 of Part IIIB of the Veterans' Entitlements Act 1986 to be ordinary income on a financial asset that is a deprived asset were disregarded; and

Note: Any actual return on the deprived asset is also disregarded: see subsection 46K(1) of the Veterans' Entitlements Act 1986 .

(c)

the customer were not a member of a couple.

(4)

The customer's annual savings and investment income is worked out as follows:

Method statement

Step 1. Work out under subsection (3) what would be the customer's annual retirement income if, in addition to making the assumptions in that subsection, it were assumed that the below threshold rate (within the meaning of the Veterans' Entitlements Act 1986 ) were the same as the above threshold rate (within the meaning of that Act). Step 2. Work out how much of the Step 1 amount is attributable to savings and investments. The result is the customer's annual savings and investment income .

(5)

If the Commission worked out the customer's ordinary income on a yearly basis on 2 or more occasions during the period covered by the 2 qualifying years, the customer's annual retirement income and annual savings and investment income for the purposes of this Part are worked out as follows:

Method statement

Step 1. Apply subsections (3) and (4) to work out the 2 amounts for each of the occasions. Step 2. Work out for each occasion the amount of aged persons savings bonus payment to which the customer would be entitled on the basis of the 2 amounts. Step 3 . The customer's annual retirement income and annual savings and investment income are the 2 amounts for any occasion that results in the greatest bonus payment or, if the bonus payments for all of the occasions are the same, the 2 amounts for any occasion.