SSAct s14A. Social security benefit liquid assets test definitions

SSAct Contents Title Page Reader's Guide Chapter 1 - Introductory Chapter 2 - Pensions, Benefits and Allowances Chapter 2A - Benefits and concessions other than payments Chapter 2B - Student financial supplement scheme Chapter 2C - Assurances of support Chapter 3 - General provisions relating to payability and rates Chapter 4 - International agreements and portability Chapter 5 - Overpayments and debt recovery Schedules NOTES Section Index Definition Index

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14A. Social security benefit liquid assets test definitions

14A.(1) In Parts 2.11, 2.11A, 2.12, 2.14 and 2.23A:

"liquid assets", in relation to a person, means the person's cash and readily realisable assets, and includes:

(a): the person's shares and debentures in a public company within the meaning of the Corporations Law; and

(b): amounts deposited with, or lent to, a bank or other financial institution by the person (whether or not the amount can be withdrawn or repaid immediately); and

(c): amounts due, and able to be paid, to the person by, or on behalf of, a former employer of the person;

but does not include:

(d): a roll‑over superannuation benefit (within the meaning of the Income Tax Assessment Act 1997); or

(da): an amount of an AGDRP that the person received, if the Secretary is satisfied that the length of time since receiving the payment is still reasonable in the circumstances; or

(daa): a superannuation lump sum (within the meaning of that Act) that is a contributions‑splitting superannuation benefit (within the meaning of that Act); or

(dab): a directed termination payment (within the meaning of section 82‑10F of the Income Tax (Transitional Provisions) Act 1997); or

(e): in the case of a person who:

(i): has claimed or is receiving a youth allowance or an austudy payment; and

(ii): is undertaking a tertiary course of education in any year or part of a year;

an amount necessary to cover the reasonable expenses incurred, or likely to be incurred, by the person in that year or that part of a year and that are directly related to his or her undertaking the course, including:

(iii): up front course fees; and

(iv): HECS payments; and

(v): union fees; and

(vi): costs of text books; and

(vii): costs of any tools or equipment required to undertake the course, including computer software; and

(viii): expenses directly related to any field trips undertaken for the purposes of the course; and

(ix): such other expenses as are approved by the Secretary.

Note 1: the Corporations Law is set out in section 82 of the Corporations Act 1989.

"maximum reserve", in relation to a person, means:

(a): if the person is not a member of a couple and does not have a dependent child–$2,500; or

(b): in any other case–$5,000.

History

S.14A(1) inserted by Act No. 68, 1991, by s. 5;

liquid assets amended by Act No. 175, 1991, by s.36;

liquid assets amended by Act No. 36, 1993, by s.77 as set out in Part 1 of Schedule 3;

liquid assets amended by Act No. 45, 1998, by s.3, Schedule 9, Part 1(17);

liquid assets (paragraph (da)) inserted by Act No. 82, 2006, by s.3, Schedule 4, Part 2(10);

liquid assets (paragraph (d)) repealed and substituted by Act No. 15, 2007, by s.3, Schedule 1, Part 2(294);

liquid assets (paragraph (daa)) inserted by Act No. 15, 2007, by s.3, Schedule 1, Part 2(294);

liquid assets (paragraph (dab)) inserted by Act No. 15, 2007, by s.3, Schedule 1, Part 2(294);

liquid assets (note 2) repealed by Act No. 15, 2007, by s.3, Schedule 1, Part 2(295);

maximum reserve amended by Act No. 175, 1991, by s.36;

maximum reserve (Note) omitted by Act No. 36, 1993, by s.77 as set out in Part 1 of Schedule 3;

maximum reserve amended by Act No. 1, 1996, by s.3(1) as set out in Schedule 5;

maximum reserve amended by Act No. 84, 1996, by s. 3, Schedule 7, Part 1(65 and 66);

S.14A(1) amended by Act No. 45, 1998, by s.3, Schedule 9, Part 1(16);

S.14A(1) amended by Act No. 152, 1999, by s.3, Schedule 4, Part 1(1)

14A.(2) For the purposes of Parts 2.11, 2.11A, 2.12, 2.14 and 2.23A, a person's liquid assets are to be taken to include:

(a): the liquid assets of the person's partner; and

(b): the liquid assets of the person and the person's partner.

History

S.14A(2) inserted by Act No. 68, 1991, by s.5;

S.14A(2) amended by Act No. 175, 1991, by s.36;

S.14A(2) amended by Act No. 1, 1996, by s.3(1) as set out in Schedule 5;

S.14A(2) amended by Act No. 45, 1998, by s.3, Schedule 9, Part 1(16);

S.14A(2) amended by Act No. 152, 1999, by s.3, Schedule 4, Part 1(2);

14A.(3) If:

(a): during the 4 weeks immediately before a person claims youth allowance, austudy payment, newstart allowance or sickness allowance, the person or the person's partner transfers liquid assets to a person of any age who is the natural or adopted child of the person or the partner; and

(b): either:

(i): the person transferring receives no consideration or inadequate consideration, in money or money's worth for the transfer; or

(ii): the Secretary is satisfied that the purpose, or the dominant purpose, of the transfer was to enable the claimant to obtain, youth allowance, austudy payment, newstart allowance or sickness allowance;

then the transfer is to be taken, for the purposes of this section, not to have occurred.

History

S.14A(3) inserted by Act No. 68, 1991, by s.5;

S.14A(3)(a) amended by Act No. 175, 1991, by s.106 as set out in Part 1 of the attached Schedule;

S.14A(3)(b)(ii) amended by Act No. 175, 1991, by s.106 as set out in Part 1 of the attached Schedule;

S.14A(3) amended by Act No. 1, 1996, by s.3(1) as set out in Schedule 5;

S.14A(3)(b)(ii) amended by Act No. 1, 1996, by s.3(1) as set out in Schedule 5;

S.14A(3)(a) amended by Act No. 45, 1998, by s.3, Schedule 9, Part 1(18);

S.14A(3)(b)(ii) amended by Act No. 45, 1998, by s.3, Schedule 9, Part 1(18);

14A.(4) If:

(a): a person sells the person's principal home; and

(b): the person is likely, within 12 months, to apply the whole or part of the proceeds of the sale in acquiring another residence that is to be the person's principal home;

so much of the proceeds of the sale as the person is likely to apply in acquiring the other residence is to be disregarded during that period for the purposes of determining the amount of the person's liquid assets.

History

S.14A(4) inserted by Act No. 161, 1994, by s.3 as set out in Part 2 of Schedule 1;

14A.(5) If:

(a): a person has or had a debt not related to the person's principal home or to any other residential property in which the person holds or held, solely or jointly, any right or interest; and

(b): since becoming unemployed or incapacitated for work or study (as the case requires), the person has, in order to discharge the debt in whole or in part, made a payment that the person was not obliged to make; and

(c): since becoming unemployed or incapacitated for work or study (as the case requires), the person had not already made such a payment in order to discharge that debt in part;

the amount of the payment referred to in paragraph (b) is to be disregarded for the purposes of determining the amount of the person's liquid assets.

History

S.14A(5) inserted by Act No. 161, 1994, by s.3 as set out in Part 2 of Schedule 1;

S.14A(5)(b) and (c) amended by Act No. 45, 1998, by s.3, Schedule 9, Part 1(19);

14A.(5A) If:

(a): a person has or had a debt not related to the person's principal home or to any other residential property in which the person holds or held, solely or jointly, any right or interest; and

(b): since becoming qualified for youth allowance or austudy payment (as the case requires), the person has, in order to discharge the debt in whole or in part, made a payment that the person was not obliged to make; and

(c): since becoming qualified for youth allowance or austudy payments (as the case requires), the person had not already made such a payment in order to discharge that debt in part;

the amount of the payment referred to in paragraph (b) is to be disregarded for the purposes of determining the amount of the person's liquid assets.

History

S.14A(5A) inserted by Act No. 45, 1998, by s.3, Schedule 9, Part 1(20);

14A.(6) For the purpose of determining whether a liquid assets test waiting period applies in relation to a claim for a social security benefit, subsection (5) can apply to a payment made after the claim if the payment is made before such a liquid assets test waiting period would end under section 549A, 575A, 598 or 676 (whichever is applicable).

History

S.14A(6) inserted by Act No. 161, 1994, by s.3 as set out in Part 2 of Schedule 1;

S.14A(6) amended by Act No. 1, 1996, by s.3(1) as set out in Schedule 5;

S.14A(6) amended by Act No. 45, 1998, by s.3, Schedule 9, Part 1(21);

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