Veterans' Entitlements (Modification of Income Deprivation Rules) Principles 2002 (Cth)
Veterans' Entitlements (Modification of Income Deprivation Rules) Principles 2002
The Repatriation Commission formulates these Principles under section 52ZZZQ of the Veterans' Entitlements Act 1986.
Dated 11 February 2002
| NEIL JOHNSTON PRESIDENT | IAN CAMPBELL DEPUTY PRESIDENT | PAUL STEVENS COMMISSIONER |
__________________________________________________________________
THE REPATRIATION COMMISSION
Contents
Page
Part 1Preliminary
1Name of Principles 4
2Commencement 4
3Definitions 4
4Purpose 4
Part 2Disposal of ordinary income (on or after 1 January 2002) by individual
5Purpose of Part 2 5
6Definitions 5
7Transferor as sole attributable stakeholder 5
8Transferor as member of couple 5
9Transfer to company or trust with 2 or more attributable stakeholders 5
10Transfer to company or trust by individual who becomes attributable stakeholder 6
Part 3Disposal of ordinary income (on or after 1 January 2002) by company or trust
11Purpose of Part 3 7
12Disposal to attributable stakeholder 7
Part 4Disposal of ordinary income (before 1 January 2002) by attributable stakeholder
13Purpose of Part 4 8
14Definitions 8
15Application of Division 7 of Part IIIB of Act where value of property same or greater 8
16Application of Division 7 of Part IIIB of Act where value of property decreased after transfer 8
17Application of Division 7 of Part IIIB of Act where company or trust retains value of transferred property 9
18Transfer by member of couple 9
Part 5Disposal of ordinary income (before 1 January 2002) by individual whose spouse is attributable stakeholder
19Purpose of Part 5 10
20Definitions 10
21Application of Division 7 of Part IIIB of Act where value of property same or greater 10
22Application of Division 7 of Part IIIB of Act where value of property decreased after disposal 10
23Application of Division 7 of Part IIIB of Act where company or trust retains value of transferred property 11
Part 1 Preliminary
Name of Principles
These Principles are the Veterans' Entitlements (Modification of Income Deprivation Rules) Principles 2002.
Commencement
These Principles commence on gazettal.
Definitions
In these Principles:
Act means the Veterans' Entitlements Act 1986.
Purpose
These Principles set out decision-making principles with which the Commission must comply for the purposes of making a determination under subsection 52ZZZB (1), 52ZZZC (3), 52ZZZD (1) or 52ZZZE (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 Commission must comply in making a determination for subsection 52ZZZB (1) of the Act.
Definitions
In this Part:
individual means an individual who transfers property to a company or trust in accordance with subsection 52ZZZB (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 Commission 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 Commission 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 Commission 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 Commission 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 Commission must comply in making a determination for subsection 52ZZZC (3) of the Act.
Disposal to attributable stakeholder
The Commission must take into account whether, in relation to a transfer of ordinary income of a company or trust in accordance with subsection 52ZZZC (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 Commission must comply in making a determination for subsection 52ZZZD (1) of the Act.
Definitions
In this Part:
individual means an individual who transfers property to a company or trust in accordance with subsection 52ZZZD (1) of the Act.
Application of Division 7 of Part IIIB 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 Commission must consider whether, in all the circumstances, the application of Division 7 of Part IIIB of the Act would be unfair or unreasonable in relation to the individual.
Application of Division 7 of Part IIIB 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 Commission reasonably believes was intended to avoid the operation, or minimise the effect, of Division 11A of Part IIIB of the Act.
(2)The Commission must consider whether, in all the circumstances, the application of Division 7 of Part IIIB of the Act would be unfair or unreasonable in relation to the individual.
Application of Division 7 of Part IIIB 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 Commission must consider whether, in all the circumstances, the application of Division 7 of Part IIIB 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 Commission must consider whether, in all the circumstances, the application of Division 7 of Part IIIB 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 Commission must comply in making a determination for subsection 52ZZZE (1) of the Act.
Definitions
In this Part:
individual means an individual who transfers property to a company or trust in accordance with subsection 52ZZZE (1) of the Act.
Application of Division 7 of Part IIIB 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 Commission must consider whether, in all the circumstances, the application of Division 7 of Part IIIB of the Act would be unfair or unreasonable in relation to the individual.
Application of Division 7 of Part IIIB 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 Commission reasonably believes was intended to avoid the operation, or minimise the effect, of Division 11A of Part IIIB of the Act.
(2)The Commission must consider whether, in all the circumstances, the application of Division 7 of Part IIIB of the Act would be unfair or unreasonable in relation to the individual.
Application of Division 7 of Part IIIB 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 Commission must consider whether, in all the circumstances, the application of Division 7 of Part IIIB of the Act would be unfair or unreasonable in relation to the individual.
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