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SOCIAL SECURITY ACT 1991 - SECT 1126

Disposal of assets in pension years--members of couples

             (1)  Subject to subsections (3) and (4), if, on or after 1 March 1986 and before 1 July 2002:

                     (a)  a person who is a member of a couple has disposed of an asset of the person:

                              (i)  during a pension year of the person; or

                             (ii)  if the person is not receiving a pension, benefit or payment of a kind referred to in subsection 11(10) but the person's partner is receiving such a pension, benefit or payment or is receiving a youth training allowance--during a pension year of the person's partner; and

                     (b)  the amount of that disposition, or the sum of that amount and the amounts (if any) of other dispositions of assets previously made by the person or the person's partner during that pension year, exceeds disposal limit;

then, for the purposes of this Act:

                     (c)  there is to be included in the value of the person's assets for the period of 5 years that starts on the day on which the disposition takes effect:

                              (i)  50% of the amount by which the sum of the amount of the first-mentioned disposition and of the amounts (if any) of other dispositions of assets previously made by the person or the person's partner during the pension year exceeds disposal limit; or

                             (ii)  50% of the amount of the first-mentioned disposition;

                            whichever is the lesser amount; and

                     (d)  there is to be included in the value of the assets of the person's partner for the period of 5 years that starts on the day on which the disposition takes place:

                              (i)  50% of the amount by which the sum of the amount of the first-mentioned disposition and of the amounts (if any) of other dispositions of assets previously made by the person or the person's partner during the pension year exceeds disposal limit; or

                             (ii)  50% of the amount of the first-mentioned disposition;

                            whichever is the lesser amount.

Note 1:       For disposes of assets see section 1123.

Note 2:       For amount of disposition see section 1124.

             (3)  If:

                     (a)  amounts are included under subsection (1) in the value of a person's assets who is a member of a couple and in the assets of the person's partner because of a disposition of an asset by the person; and

                     (b)  the person and the person's partner cease to be members of the same couple;

any amount that was included in the value of the person's former partner's assets because of that disposition is to be included in the value of the person's assets.

             (4)  If:

                     (a)  an amount is included under subsection (1) in the value of the assets of a person who is a member of a couple and the value of the assets of the person's partner because of a disposition of an asset by the person; and

                     (b)  the person dies;

no amount is to be included in the value of the assets of the person's partner because of that disposition.

             (5)  If:

                     (a)  an amount is included under subsection (1) in the value of the assets of a person who is a member of a couple and the value of the assets of the person's partner because of a disposition of an asset by the person; and

                     (b)  the partner dies;

any amount that would, if the partner had not died, be included in the value of the partner's assets because of the disposition is to be included in the value of the person's assets.

             (6)  In this section:

"disposal limit" means:

                     (a)  in relation to assets disposed on or after 1 March 1986 and before 1 March 1991--$4,000; and

                     (b)  in relation to assets disposed of on or after 1 March 1991--$10,000.



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