Commonwealth Numbered Acts

SOCIAL SECURITY ACT 1991 No. 46, 1991 - SECT 11

11. (1) In this Act, unless the contrary intention appears:

"asset" means property (including property outside Australia);

"disposes of assets":

   (a)  has its ordinary meaning in Division 4 of Part 3.12 (pension loans
        scheme); and

   (b)  has the meaning given by section 1123 in the rest of the Act;

"exempt assets" means assets described in any of paragraphs 1118 (1) (a) to
(r);

"granny flat interest" has the meaning given by subsection (9);

"homeowner" has the meaning given by subsection (4);

"reasonable security of tenure" has the meaning given by subsection (8);

"pension year" has the meaning given by subsection (10);

"PLS assets", in relation to a person, means all the person's assets (other
than exempt assets):

   (a)  that cannot readily be sold; or

   (b)  that:

   (i)  the person does not wish to sell; and

   (ii) are not of a kind that the person could reasonably be expected to
        sell;
Note: this definition is relevant only to the pension loans scheme (Part 3.12,
Division 4).

"principal home" has the meaning given by subsections (5), (6) and (7);

"unrealisable asset" has the meaning given by subsections (12) and (13);

"value" has the meaning given by subsections (2) and (3).
Note: see also sections 1118 (certain assets to be disregarded in calculating
the value of a person's assets), 1121 (effect of charge or encumbrance on
value of property) and 1145-1157 (retirement villages).

(2) A reference in this Act to the value of a particular asset of a person is,
if the asset is owned by the person jointly or in common with another person
or persons, a reference to the value of the person's interest in the asset.

(3) A reference in this Act to the value of a charge or encumbrance on an
asset of a person is, if the asset is owned by the person jointly or in common
with another person or persons, a reference to the value of that charge or
encumbrance in so far as it relates to the person's interest in the asset.
Homeowner

(4) For the purposes of this Act:

   (a)  a person who is not a member of a couple is a homeowner if:

        (i)    the person has a right or interest in the person's
               principal home; and

        (ii)   the person's right or interest in the home:

                (A)  gives the person reasonable security of tenure in the
                     home; and

                (B)  is not a granny flat interest; and

   (b)  a person who is a member of a couple is a homeowner if:

        (i)    the person, or the person's partner, has a right or interest in
               one residence that is:

                (A)  the person's principal home; or

                (B)  the partner's principal home; or

                (C)  the principal home of both of them; and

        (ii)   the person's right or interest, or the partner's right or
               interest, in the home:

                (A)  gives the person or the person's partner reasonable
                     security of tenure in the home; and

                (B)  is not a granny flat interest; and

   (c)  a person (whether a member of a couple or not) is a homeowner if:

        (i)    the person has sold the person's principal home not more than
               12 months previously; and

        (ii)   the person is likely to apply some or all of the proceeds of
               the sale in acquiring another residence that is to be the
               person's principal home. Note: see also section 1145--1157
               (retirement villages). Principal home

(5) A reference in this Act to the principal home of a person includes a
reference to:

   (a)  if the principal home is a dwelling-house - the private land adjacent
        to the dwelling-house to the extent that the private land, together
        with the area of the ground floor of the dwelling-house, does not
        exceed 2 hectares; or

   (b)  if the principal home is a flat or home unit - a garage or storeroom
        that is used primarily for private or domestic purposes in association
        with the flat or home unit.
Note: for "private land" see subsection (6).

(6) A reference in subsection (5) to private land adjacent to a dwelling-house
is a reference to land that is adjacent to the dwelling-house and that is used
primarily for private or domestic purposes in association with that
dwelling-house.

(7) A residence of a person is to be taken to continue to be the person's
principal home during:

   (a)  any period (not exceeding 12 months) during which the person is
        temporarily absent from the residence; and

   (b)  any period (not exceeding 2 years) during which the person is:

        (i)    residing in a benevolent home or in premises at which
               accommodation is provided exclusively or principally for
               persons who have a mental disability; or

        (ii)   residing in a nursing home; or

        (iii)  a nursing-home type patient, within the meaning of
the Health Insurance Act 1973, of a hospital; Note: for "benevolent home" and

"nursing home" see subsection 23 (1).

(8) If a person has a right or interest in the person's principal home, the
person is to be taken to have a right or interest that gives the person
reasonable security of tenure in the home unless the Secretary is satisfied
that the right or interest does not give the person reasonable security of
tenure in the home. Granny flat interest

(9) A person has a granny flat interest in the person's principal home if:

   (a)  the residence that is the person's principal home is a private
        residence; and

   (b)  the person has acquired for valuable consideration or has retained:

        (i)    a right to accommodation for life in the residence; or

        (ii)   a life interest in the residence. Pension year - disposal of
               assets

(10) A reference in sections 1123 to 1128 (disposal of assets) to a pension
year, in relation to a person who is receiving:

   (a)  a social security or service pension; or

   (b)  a social security benefit; or

   (c)  a family allowance supplement; is a reference to:

   (d)  if the person is a member of a couple and the person and the person's
        partner were, immediately before they became members of that couple,
        receiving such a pension, benefit or allowance - the period of 12
        months commencing on the day on which they became members of that
        couple; or

   (e)  in a case (not being a case referred to in paragraph (d)) where the
        person is a member of a couple and the person's partner is receiving
        such a pension, benefit or allowance - the period of 12 months
        commencing on the day on which such a pension, benefit or allowance
        first became payable to the person or to the person's partner,
        whichever was the earlier; or

   (f)  in any other case - the period of 12 months commencing on the day on
        which such a pension, benefit or allowance first became payable; and
        to each succeeding and each preceding period of 12 months.

(11) The lending of money after 27 October 1986 is not a disposition of an
asset for the purposes of section 1123. Unrealisable asset

(12) An asset of a person is an unrealisable asset if:

   (a)  the person cannot sell or realise the asset; and

   (b)  the person cannot use the asset as a security for borrowing.

(13) For the purposes of the application of this Act to a social security
pension, an asset of a person is also an unrealisable asset if:

   (a)  the person could not reasonably be expected to sell or realise the
        asset; and

   (b)  the person could not reasonably be expected to use the asset as a
        security for borrowing.