Commonwealth Numbered Acts

SOCIAL SECURITY AND VETERANS' AFFAIRS LEGISLATION AMENDMENT ACT 1988 No. 135, 1988 - SECT 11

11. After section 4A of the Principal Act the following section is inserted:
Special provisions relating to residents of retirement villages

"4B. (1) Where:

   (a)  an unmarried person's principal home is in a retirement village; and

   (b)  the person's entry contribution was more than the extra allowable
        amount; the person shall be taken, for the purposes of this Act, to
        have a right or interest in his or her principal home to which
        subparagraph 4 (1) (a) (i) applies.

"(2) Where:

   (a)  an unmarried person's principal home is in a retirement village; and

   (b)  the person's entry contribution was equal to or less than the extra
        allowable amount; then, for the purposes of this Act, whether or not
        the person actually has any right or interest in relation to the
        person's principal home and whatever the value of any such right or
        interest:

   (c)  the person shall be taken not to have a right or interest in relation
        to the person's principal home;

   (d)  the person's property shall be taken to include property the value of
        which is equal to the amount of the person's entry contribution; and

   (e)  paragraph 4 (1) (a) and section 6 do not apply to the property that
        the person is, because of paragraph (d) of this subsection, taken to
        have.

"(3) Where:

   (a)  a married person's principal home is in a retirement village;

   (b)  the person shares that principal home with his or her spouse; and

   (c)  the person's entry contribution was more than the extra allowable
        amount; the person shall be taken, for the purposes of this Act, to
        have a right or interest in his or her principal home to which
        subparagraph 4 (1) (a) (ii) applies.

"(4) Where:

   (a)  a married person's principal home is in a retirement village;

   (b)  the person shares that principal home with his or her spouse; and

   (c)  the person's entry contribution was equal to or less than the extra
        allowable amount; then, for the purposes of this Act, whether or not
        the person actually has any right or interest in relation to the
        persons's principal home and whatever the value of any such right or
        interest:

   (d)  the person shall be taken not to have a right or interest in relation
        to the person's principal home;

   (e)  the person's property shall be taken to include property the value of
        which is equal to the amount of the person's entry contribution; and

   (f)  paragraph 4 (1) (a) and section 6 do not apply to the property that
        the person is, because of paragraph (e) of this subsection, taken to
        have.

"(5) Where:

   (a)  a married person's principal home is in a retirement village;

   (b)  a direction under subsection 33 (2) is in force in respect of the
        person or the person's spouse;

   (c)  the principal home of the persons's spouse is also in a retirement
        village; and

   (d)  the person's entry contribution, and the entry contribution of the
        person's spouse, were each more than the extra allowable amount
        concerned; then, for the purposes of this Act:

   (e)  the person shall be taken to have a right or interest in his or her
        principal home to which subparagraph 4 (1) (a) (ii) applies;

   (f)  any right or interest of the person in the principal home of the
        person's spouse shall be disregarded in calculating the actual value
        of the person's property for the purposes of this Act; and

   (g)  any right or interest of the person's spouse in his or her principal
        home, or in the person's principal home, shall be disregarded in
        calculating the actual value of the property of the person's spouse
        for the purposes of this Act.

"(6) Where:

   (a)  a married person's principal home is in a retirement village;

   (b)  a direction under subsection 33 (2) is in force in respect of the
        person or the person's spouse;

   (c)  the principal home of the person's spouse is also in a retirement
        village; and

   (d)  the person's entry contribution, and the entry contribution of the
        person's spouse, were each equal to or less than the extra allowable
        amount concerned; then, for the purposes of this Act, whether or not
        the person actually has any right or interest in relation to the
        person's principal home and whatever the value of any such right or
        interest;

   (e)  the person shall be taken not to have a right or interest in relation
        to the person's principal home;

   (f)  the person's property shall be taken to include property the value of
        which is equal to the amount of the person's entry contribution; and

   (g)  paragraph 4 (1) (a) and section 6 do not apply to the property that
        the person is, because of paragraph (f) of this subsection, taken to
        have.

"(7) Where:

   (a)  a married person's principal home is in a retirement village;

   (b)  a direction under subsection 33 (2) is in force in respect of the
        person or the person's spouse;

   (c)  the principal home of the person's spouse is also in a retirement
        village; and

   (d)  the person's entry contribution was more than the extra allowable
        amount and the entry contribution of the person's spouse was equal to
        or less than the extra allowable amount; the following provisions
        apply for the purposes of the application of this Act to the person
        and to the person's spouse:

   (e)  the person shall be taken to have a right or interest in his or her
        principal home to which subparagraph 4 (1) (a) (ii) applies;

   (f)  for the purposes of this Act, whether or not the person's spouse
        actually has any right or interest in relation to the spouse's
        principal home and whatever the value of any such right or interest:

        (i)    both the person, and the person's spouse, shall be taken not to
               have a right or interest in relation to the spouse's principal
               home;

        (ii)   the property of the person's spouse shall be taken to include
               property the value of which is equal to the amount of the
               spouse's entry contribution; and

        (iii)  paragraph 4 (1) (a) and section 6 do not apply to the property
               that the person's spouse is, because of subparagraph (ii) of
               this paragraph, taken to have;

   (g)  any right or interest of the person's spouse in the person's principal
        home shall be disregarded in calculating the actual value of the
        property of the person's spouse for the purposes of this Act;

   (h)  for the purpose of determining under section 8 whether a pension
        reduction amount is applicable to the person, or the person's spouse,
        that section shall have effect as if the amount specified in each of
        paragraphs 8 (1) (c) and (d) were the amount worked out using the
        formula:
C + D
2
where:
C is the amount specified in paragraph 8 (1) (c);
D is the amount specified in paragraph 8 (1) (d).

"(8) Where:

   (a)  a married person's principal home is in a retirement village;

   (b)  a direction under subsection 33 (2) is in force in respect of the
        person or the person's spouse;

   (c)  the principal home of the person's spouse is not in a retirement
        village; (d) the right or interest of the person's spouse in his or
        her principal home is to be disregarded because of subparagraph 4 (1)
        (a) (ii); and

   (e)  the person's entry contribution was more than the extra allowable
        amount; then:

   (f)  for the purposes of this Act, the person shall be taken to have a
        right or interest in his or her principal home to which subparagraph 4
        (1) (a) (ii) applies;

   (g)  any right or interest of the person in the principal home of the
        person's spouse referred to in paragraph (d) shall be disregarded in
        calculating the actual value of the person's property for the purposes
        of this Act; and

   (h)  any right or interest of the person's spouse in the person's principal
        home shall also be disregarded in calculating the actual value of the
        property of the person's spouse for the purposes of this Act.

"(9) Where:

   (a)  a married person's principal home is in a retirement village;

   (b)  a direction under subsection 33 (2) is in force in respect of the
        person or the person's spouse;

   (c)  the principal home of the person's spouse is not in a retirement
        village; (d) the right or interest of the person's spouse in his or
        her principal home is to be disregarded because of subparagraph 4 (1)
        (a) (ii); and

   (e)  the person's entry contribution was equal to or less than the extra
        allowable amount; the following provisions apply for the purposes of
        the application of this Act to the person and to the person's spouse:

   (f)  for the purposes of this Act, whether or not the person actually has
        any right or interest in relation to the person's principal home and
        whatever the value of any such right or interest:

        (i)    both the person, and the person's spouse, shall be taken not to
               have a right or interest in relation to the person's principal
               home;

        (ii)   the person's property shall be taken to include property the
               value of which is equal to the amount of the person's entry
               contribution; and

        (iii)  paragraph 4 (1) (a) and section 6 do not apply to the property
               that the person is, because of subparagraph (ii) of this
               paragraph, taken to have;

   (g)  any right or interest of the person in the principal home of the
        person's spouse referred to in paragraph (d) shall be disregarded in
        calculating the actual value of the person's property for the purposes
        of this Act;

   (h)  for the purposes of determining under section 8 whether a pension
        reduction amount is applicable to the person, or the person's spouse,
        that section shall have effect as if the amount specified in each of
        paragraphs 8 (1) (c) and (d) were the amount worked out using the
        formula:
C + D
2
where:
C is the amount specified in paragraph 8 (1) (c);
D is the amount specified in paragraph 8 (1) (d).

"(10) Where:

   (a)  a married person's principal home is in a retirement village;

   (b)  a direction under subsection 33 (2) is in force in respect of the
        person or the person's spouse;

   (c)  the principal home of the person's spouse is not in a retirement
        village; (d) the person's spouse does not have a right or interest in
        his or her principal home that is to be disregarded because of
        subparagraph 4 (1) (a) (ii); and

   (e)  the person's entry contribution was more than the extra allowable
        amount; the following provisions apply for the purposes of the
        application of this Act to the person and to the person's spouse:

   (f)  for the purposes of this Act, the person shall be taken to have a
        right or interest in his or her principal home to which subparagraph 4
        (1) (a) (ii) applies;

   (g)  any right or interest of the person's spouse in the person's principal
        home shall be disregarded in calculating the actual value of the
        property of the person's spouse for the purposes of this Act;

   (h)  for the purpose of determining under section 8 whether a pension
        reduction amount is applicable to the person, or the person's spouse,
        that section shall have effect as if the amount specified in each of
        paragraphs 8 (1) (c) and (d) were the amount worked out using the
        formula:
C + D
2
where:
C is the amount specified in paragraph 8 (1) (c);
D is the amount specified in paragraph 8 (1) (d).

"(11) Where:

   (a)  a married person's principal home is in a retirement village;

   (b)  a direction under subsection 33 (2) is in force in respect of the
        person or the person's spouse;

   (c)  the principal home of the person's spouse is not in a retirement
        village; (d) the person's spouse does not have a right or interest in
        his or her principal home that is to be disregarded because of
        subparagraph 4 (1) (a) (ii); and

   (e)  the person's entry contribution was equal to or less than the extra
        allowable amount; then, whether or not the person or the person's
        spouse actually has any right or interest in relation to the person's
        principal home and whatever the value of any such right or interest,
        the following provisions apply for the purposes of the application of
        this Act to the person and to the person's spouse:

   (f)  both the person, and the person's spouse, shall be taken not to have a
        right or interest in relation to the person's principal home;

   (g)  the person's property shall be taken to include property the value of
        which is equal to the amount of the person's entry contribution; and

   (h)  paragraph 4 (1) (a) and section 6 do not apply to the property that
        the person is, because of paragraph (g) of this subsection, taken to
        have.

"(12) In this section, a reference to the actual value of a married person's
property is a reference to the value of the property that is actually property
of the person rather than the person's spouse, that is, the value of the
person's property that would be used to determine the value of the person's
property, or of the property of the person's spouse, under paragraph 3 (5)
(a).

"(13) In this section:
'entry contribution', in relation to a person whose principal home is in a
retirement village, means:

   (a)  in the case of an unmarried person-the amount, or the sum of all the
        amounts, paid or agreed to be paid to obtain for the person a right to
        live in the retirement village;

   (b)  in the case of a married person who shares his or her principal home
        with his or her spouse-an amount equal to half of:

        (i)    the amount; or

        (ii)   the sum of all the amounts;
paid or agreed to be paid to obtain for the person and his or her spouse a
right to live in the retirement village; or

   (c)  in the case of a married person in respect of whom, or in respect of
        whose spouse, a direction under subsection 33 (2) is in force-the
        amount, or the sum of all the amounts, paid or agreed to be paid to
        obtain for the person a right to live in the retirement village;
other than amounts that are rent within the meaning of this Act;
'extra allowable amount' means:

   (a)  in relation to a person who became entitled to take up residence in a
        retirement village before 12 June 1989:

        (i)    where the person is an unmarried person, or a married person in
               respect of whom, or in respect of whose spouse, a direction
               under subsection 33 (2) is in force-the amount that is the
               difference between the amount set out in paragraph 8 (1) (a) as
               in force immediately before that date and the amount worked out
               under paragraph 8 (1) (b) as so in force; or

        (ii)   in any other case-the amount that is the difference between the
               amounts set out in paragraphs 8 (1) (c) and (d) as in force
               immediately before that date; and

   (b)  in relation to a person who became entitled to take up residence in a
        retirement village on or after 12 June 1989:

        (i)    where the person is an unmarried person, or a married person in
               respect of whom, or in respect of whose spouse, a direction
               under subsection 33 (2) is in force-the amount that is the
               difference between the amount set out in paragraph 8 (1) (a) as
               in force when the person became so entitled and the amount
               worked out under paragraph 8 (1) (b) as so in force; or

        (ii)   in any other case-the amount that is the difference between the
               amounts set out in paragraphs 8 (1) (c) and (d) as in force
               when the person became so entitled.". Commencement: 12 June
               1989