Social Security (Modification of Income Deprivation Rules) Principles 2002 (Cth)
Social Security (Modification of Income Deprivation Rules) Principles 2002
I, LISA MARIAN PAUL, Acting Secretary of the Department of Family and Community Services, make these Principles under section 1209E of the Social Security Act 1991.
Dated 15 January 2002
Lisa Paul
Acting Secretary of the Department of Family and Community Services
Contents
Page
Part 1 Preliminary
1 Name of Principles 3
2 Commencement 3
3 Definitions 3
4 Purpose 3
Part 2 Disposal of ordinary income (on or after 1 January 2002) by individual
5 Purpose of Part 2 4
6 Definitions 4
7 Transferor as sole attributable stakeholder 4
8 Transferor as member of couple 4
9 Transfer to company or trust with 2 or more attributable stakeholders 4
10 Transfer to company or trust by individual who becomes attributable stakeholder 5
Part 3 Disposal of ordinary income (on or after 1 January 2002) by company or trust
11 Purpose of Part 3 6
12 Disposal to attributable stakeholder 6
Part 4 Disposal of ordinary income (before 1 January 2002) by attributable stakeholder
13 Purpose of Part 4 7
14 Definitions 7
15 Application of Division 3 of Part 3.10 of Act where value of property same or greater 7
16 Application of Division 3 of Part 3.10 of Act where value of property decreased after transfer 7
17 Application of Division 3 of Part 3.10 of Act where company or trust retains value of transferred property 8
18 Transfer by member of couple 8
Part 5 Disposal of ordinary income (before 1 January 2002) by individual whose spouse is attributable stakeholder
19 Purpose of Part 5 9
20 Definitions 9
21 Application of Division 3 of Part 3.10 of Act where value of property same or greater 9
22 Application of Division 3 of Part 3.10 of Act where value of property decreased after disposal 9
23 Application of Division 3 of Part 3.10 of Act where company or trust retains value of transferred property 10
Part 1 Preliminary
Name of Principles
These Principles are the Social Security (Modification of Income Deprivation Rules) Principles 2002.
Commencement
These Principles commence on gazettal.
Definitions
In these Principles:
Act means the Social Security Act 1991.
Purpose
These Principles set out decision-making principles with which the Secretary must comply for the purposes of making a determination under subsection 1208Q (1), 1208R (3), 1208S (1) or 1208T (1) of the Act.
Part 2 Disposal of ordinary income (on or after 1 January 2002) by individual
Purpose of Part 2
This Part sets out decision-making principles with which the Secretary must comply in making a determination for subsection 1208Q (1) of the Act.
Definitions
In this Part:
individual means an individual who transfers property to a company or trust in accordance with subsection 1208Q (1) of the Act.
Transferor as sole attributable stakeholder
(1) This section applies to an individual who is not a member of a couple.
(2) The Secretary must take into account whether the individual was the only attributable stakeholder of the company or trust, either before or after the transfer.
Transferor as member of couple
(1) This section applies to an individual who is a member of a couple.
(2) The Secretary must take into account whether:
(a) the individual was the only attributable stakeholder of the company or trust, either before or after the transfer; or
(b) both members of the couple were the only attributable stakeholders of the company or trust, either before or after the transfer.
Transfer to company or trust with 2 or more attributable stakeholders
(1) This section applies if, in relation to a transfer of property to a company or trust:
(a) the transfer is made by an attributable stakeholder of the company or trust; and
(b) before the transfer, there were 2 or more attributable stakeholders of the company or trust.
(2) This section also applies if, in relation to a transfer of property to a company or trust:
(a) the transfer is made by an attributable stakeholder of the company or trust; and
(b) after the transfer, there were 2 or more attributable stakeholders of the company or trust.
(3) The Secretary must take into account the income attribution percentage of each attributable stakeholder of the recipient company or recipient trust, before and after the transfer of the property.
Transfer to company or trust by individual who becomes attributable stakeholder
(1) This section applies if, in relation to a transfer of property to a company or a trust:
(a) the transfer is made by an individual who is not an attributable stakeholder of the company or trust; and
(b) as a result of the transfer, the individual is an attributable stakeholder.
(2) The Secretary must take into account the income attribution percentage of each attributable stakeholder of the company or trust, before and after the transfer of the property.
Part 3 Disposal of ordinary income (on or after 1 January 2002) by company or trust
Purpose of Part 3
This Part sets out decision-making principles with which the Secretary must comply in making a determination for subsection 1208R (3) of the Act.
Disposal to attributable stakeholder
The Secretary must take into account whether, in relation to a transfer of ordinary income of a company or trust in accordance with subsection 1208R (1) of the Act, the transfer is to an individual who is an attributable stakeholder of the company or trust.
Part 4 Disposal of ordinary income (before 1 January 2002) by attributable stakeholder
Purpose of Part 4
This Part sets out decision-making principles with which the Secretary must comply in making a determination for subsection 1208S (1) of the Act.
Definitions
In this Part:
individual means an individual who transfers property to a company or trust in accordance with subsection 1208S (1) of the Act.
Application of Division 3 of Part 3.10 of Act where value of property same or greater
(1) This section applies if:
(a) property is transferred by an individual to a company or trust; and
(b) on 1 January 2002, the property is owned or controlled by the company or trust; and
(c) on 1 January 2002, the value of the property is the same as, or greater than, it was at the time of its transfer.
(2) The Secretary must consider whether, in all the circumstances, the application of Division 3 of Part 3.10 of the Act would be unfair or unreasonable in relation to the individual.
Application of Division 3 of Part 3.10 of Act where value of property decreased after transfer
(1) This section applies if:
(a) property is transferred by an individual to a company or trust; and
(b) on 1 January 2002, the property is owned or controlled by the company or trust; and
(c) on 1 January 2002, the value of the property is less than it was at the time of its transfer; and
(d) the decrease in the value of the property is not attributable to any conduct that the Secretary reasonably believes was intended to avoid the operation, or minimise the effect, of Part 3.18 of the Act.
(2) The Secretary must consider whether, in all the circumstances, the application of Division 3 of Part 3.10 of the Act would be unfair or unreasonable in relation to the individual.
Application of Division 3 of Part 3.10 of Act where company or trust retains value of transferred property
(1) This section applies if:
(a) property is transferred by an individual to a company or trust; and
(b) before 1 January 2002, the company or trust transferred the property to another individual or other entity in consideration of an arm’s length amount; and
(c) the company or trust retained the amount or value of the consideration.
(2) The Secretary must consider whether, in all the circumstances, the application of Division 3 of Part 3.10 of the Act would be unfair or unreasonable in relation to the individual.
Transfer by member of couple
(1) This section applies if:
(a) an individual, who is a member of a couple, transfers property to a company or trust before 1 January 2002; and
(b) as a result of the transfer:
(i) the individual is the only attributable stakeholder, on 1 January 2002, of the company or trust; or
(ii) both members of the couple are the only attributable stakeholders, on 1 January 2002, of the company or trust.
(2) The Secretary must consider whether, in all the circumstances, the application of Division 3 of Part 3.10 of the Act would be unfair or unreasonable in relation to the individual.
Part 5 Disposal of ordinary income (before 1 January 2002) by individual whose spouse is attributable stakeholder
Purpose of Part 5
This Part sets out decision-making principles with which the Secretary must comply in making a determination for subsection 1208T (1) of the Act.
Definitions
In this Part:
individual means an individual who transfers property to a company or trust in accordance with subsection 1208T (1) of the Act.
Application of Division 3 of Part 3.10 of Act where value of property same or greater
(1) This section applies if:
(a) property is transferred by an individual to a company or trust; and
(b) on 1 January 2002, the property is owned or controlled by the company or trust; and
(c) on 1 January 2002, the value of the property is the same as, or greater than, it was at the time of its transfer.
(2) The Secretary must consider whether, in all the circumstances, the application of Division 3 of Part 3.10 of the Act would be unfair or unreasonable in relation to the individual.
Application of Division 3 of Part 3.10 of Act where value of property decreased after disposal
(1) This section applies if:
(a) property is transferred by an individual to a company or trust; and
(b) on 1 January 2002, the property is owned or controlled by the company or trust; and
(c) on 1 January 2002, the value of the property is less than it was at the time of its transfer; and
(d) the decrease in the value of the property is not attributable to any conduct that the Secretary reasonably believes was intended to avoid the operation, or minimise the effect, of Part 3.18 of the Act.
(2) The Secretary must consider whether, in all the circumstances, the application of Division 3 of Part 3.10 of the Act would be unfair or unreasonable in relation to the individual.
Application of Division 3 of Part 3.10 of Act where company or trust retains value of transferred property
(1) This section applies if:
(a) property is transferred by an individual to a company or trust; and
(b) before 1 January 2002, the company or trust transferred the property to another individual or other entity in consideration of an arm’s length amount; and
(c) the company or trust retained the amount or value of the consideration.
(2) The Secretary must consider whether, in all the circumstances, the application of Division 3 of Part 3.10 of the Act would be unfair or unreasonable in relation to the individual.
0
0
0