Document ID: chunk:federal_register_of_legislation:C2004A04771:front:0:p55
Version: federal_register_of_legislation:C2004A04771
Segment Type: other
Provision Reference: 
Character Range: 142001–144745

Note 1: For 'member of a couple', 'partnered (partner getting neither pension nor benefit)', 'partnered (partner getting benefit)' and 'partnered (partner getting pension)' see section 5E.
Note 2: 'Social security pension' includes a rehabilitation allowance.
Note 3: For 'adjusted Income excess' see point 45X-E7 below.

Adjusted income excess

"45X-E7. A person's adjusted income excess is the person's adjusted income less the person's adjusted income free area.

"MODULE F—ASSETS TEST

Effect of assets on maximum payment rate

"45X-F1. This is how to work out the effect of a person's assets on the person's maximum payment rate:

         Method statement
Step 1.  Work out the value of the person's assets.
         Note 1: For the treatment of the assets of a couple see point 45X-F2.
         Note 2: For the assets that are to be disregarded in valuing a person's assets see section 52.
         Note 3: For the valuation of an asset that is subject to a charge or encumbrance see section 52C.
Step 2.  Work out the person's assets value limit (see point 45X-F3 below).
             Note: A person's assets value limit is the maximum value of assets a person can have without affecting the rate of the person's income support supplement.
Step 3.  Work out whether the value of the person's assets exceeds the person's assets value limit.

         Method statement—continued
Step 4.  If the value of the person's assets does not exceed the person's assets value limit, the person's assets excess is nil.
Step 5.  If the value of the person's assets exceeds the person's assets value limit, the person's assets excess is the value of the person's assets less the person's assets value limit.
Step 6.  Use the person's assets excess to work out the person's reduction for assets using points 45X-F4 to 45X-F6 below.

Note 1: See point 45X-A1 (Steps 7 to 12) for the significance of the person's reduction for assets.
Note 2: The application of the assets test is affected by provisions concerning:
    • disposal of assets (sections 52E-52J);
    • retirement villages (sections 52K-52X);
    • financial hardship (sections 55Y and 55Z);
    • the pension loans scheme (sections 52ZA-52ZM).

Value of assets of members of couples

  "45X-F2. For the purposes of this Module:

  (a) the value of the assets of a member of a couple is to be taken to be 50% of the sum of:

        (i) the value of the person's assets; and

        (ii) the value of the person's partner's assets; and

     (b) the value of the assets of a particular kind of a member of a couple is to be taken to be 50% of the sum of:

        (i) the value of the person's assets of that kind; and

        (ii) the value of the person's partner's assets of that