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SOCIAL SECURITY ACT 1991 - SECT 1126A

Disposal of assets in pre-pension year--family members

          (1A)  This section applies only to disposals of assets that took place before 1 July 2002.

             (1)  Subject to this section, if:

                     (a)  a person (the relevant person ) has disposed of an asset; and

                     (b)  the relevant person is a family member of another person (the other person ) when the other person claims a youth allowance; and

                     (c)  the relevant person disposed of the asset during a pre-pension year of the other person; and

                     (d)  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 relevant person or the other person during that pre-pension year, exceeds $10,000;

then, for the purpose of determining whether a youth allowance is payable to the other person, there is to be included in the value of the other person's assets for the period of 5 years that starts on the day on which the disposition took place:

                     (e)  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 relevant person or the other person during that pre-pension year exceeds $10,000; or

                      (f)  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.

             (2)  If:

                     (a)  amounts are included under subsection (1) in the value of the other person's assets because of a disposition of an asset by the relevant person; and

                     (b)  the relevant person ceases to be a family member of the other person;

any amount that was included in the value of the other person's assets because of the disposition ceases to be included in the value of those assets.

             (3)  If:

                     (a)  an amount is included under subsection (1) in the value of the assets of the other person because of a disposition of an asset by the relevant person; and

                     (b)  the relevant person dies;

any amount that was included in the value of those assets because of the disposition ceases to be included in the value of those assets.



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