Commonwealth Consolidated Acts

SOCIAL SECURITY ACT 1991 - SECT 1208V

  (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.