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SOCIAL SECURITY ACT 1991 - SECT 1208V

Individual ceases to be an attributable stakeholder of trust--receipt of remuneration or other benefits from trust during asset deprivation period

             (1)  For the purposes of this section, if:

                     (a)  an individual ceases to be an attributable stakeholder of a trust on or after 1 January 2002; and

                     (b)  immediately after the cessation, the trust was a concessional primary production trust in relation to the individual; and

                     (c)  under section 1208M, as a result of the cessation, Division 2 of Part 3.12 and sections 198F to 198MA (inclusive) have effect as if the individual had disposed of an asset of the individual; and

                     (d)  under Division 2 of Part 3.12 or sections 198F to 198MA (inclusive), as a result of the disposition, a particular amount is included in the value of the individual's assets for the period of 5 years that starts on the day on which the disposition took place;

then:

                     (e)  the period referred to in paragraph (d) is the asset deprivation period in relation to the individual and the trust; and

                      (f)  throughout the asset deprivation period, the trust is a special primary production trust in relation to the individual; and

                     (g)  each one of the 5 years that constitutes the asset deprivation period is an asset deprivation year in relation to the individual and the trust.

             (2)  If:

                     (a)  a trust (the first trust ) is a special primary production trust in relation to an individual; and

                     (b)  the individual and/or the individual's spouse received one or more benefits (the first benefits ) from the trust during a period that is an asset deprivation year (the first asset deprivation year ) in relation to the individual and the trust;

subparagraph 1208U(1)(n)(ii) does not apply to the first benefits, so long as the sum of the following amounts is less than the amount specified in clause 38N of Schedule 1 to the A New Tax System (Family Assistance) Act 1999 (subject to any indexation under Schedule 4 to that Act):

                     (c)  the total of the amount or value of the first benefits;

                     (d)  if:

                              (i)  another trust is a special primary production trust in relation to the individual; and

                             (ii)  the asset deprivation period in relation to the individual and that other trust overlaps, in whole or in part, the first asset deprivation year; and

                            (iii)  the individual and/or the individual's spouse received one or more benefits (the second benefits ) from that other trust during the period of the overlap;

                            the total of the amount or value of the second benefits;

                     (e)  if:

                              (i)  another trust is a special primary production trust in relation to the individual's spouse; and

                             (ii)  the asset deprivation period in relation to the individual's spouse and that other trust overlaps, in whole or in part, the first asset deprivation year; and

                            (iii)  the individual's spouse and/or the individual received one or more benefits (the third benefits ) from that other trust during the period of the overlap;

                            the total of the amount or value of the third benefits.

             (3)  Subsection (2) does not apply to any of the following benefits:

                     (a)  food that:

                              (i)  is derived from the first primary production enterprise referred to in section 1208U; and

                             (ii)  is for the personal consumption of the individual or the individual's spouse;

                     (b)  residential accommodation for the individual or the individual's spouse, where that accommodation is the principal home of the individual;

                     (c)  if paragraph (b) applies--water, fuel, gas or electricity for use in that residential accommodation;

                     (d)  any other non-cash benefit that is minor and provided on a basis that is infrequent and irregular.

             (4)  In this section:

"benefit" , in relation to a trust, means any remuneration or other benefit received from the trust otherwise than in the capacity of beneficiary of the trust.



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