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SOCIAL SECURITY ACT 1991 - SECT 1126D

Disposals of assets in 5 year period--family members

Disposals to which section applies

             (1)  This section applies to a disposal (the relevant disposal ) on or after 1 July 2002 of an asset by a person (the relevant person ) who is a family member of another person (the other person ) who has claimed or is receiving youth allowance.

Increase in value of assets

             (2)  If:

                     (a)  the amount of the relevant disposal, or the sum of that amount and the amounts (if any) of other disposals of assets made during the rolling period by the relevant person or the other person;

less

                     (b)  the sum of any amounts included in the value of the other person's assets during the rolling period under section 1126C or any previous application or applications of this section;

exceeds $30,000, then, for the purposes of this Act, the lesser of the following amounts is to be included in the value of the other person's assets for the period of 5 years starting on the day on which the relevant disposal took place:

                     (c)  an amount equal to the excess;

                     (d)  the amount of the relevant disposal.

Note:          See also section 1126E (about modification of this Division in respect of certain assets).

Effect of ceasing to be family member

             (3)  If:

                     (a)  amounts are included under subsection (2) in the value of the other person's assets because of a disposal 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 those assets because of the disposal ceases to be included in the value of those assets.

Effect of death

             (4)  If:

                     (a)  an amount is included under subsection (2) in the value of the other person's assets because of a disposal 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 disposal ceases to be included in the value of those assets.

Rolling period

             (5)  For the purposes of this section, the rolling period is the period comprising the income year in which the relevant disposal took place and such (if any) of the 4 previous income years as occurred after 30 June 2002.



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