Document ID: chunk:federal_register_of_legislation:C2022A00062:clause:1_12
Version: federal_register_of_legislation:C2022A00062
Segment Type: clause
Provision Reference: sch 1 cl 12
Character Range: 8011–9468

12  Subsection 46E(3) (example)
Repeal the example, substitute:
Example: How deemed income of a couple is worked out per year for the couple's financial assets other than financial assets described in subsection (3A) (using rates and deeming thresholds in force on 1 July 2022).
 Maree and Peter, a couple, have $622,000 worth of financial assets, made up of $500,000 in proceeds from the sale of the couple's principal home and $122,000 of other financial assets. Maree and Peter intend to apply the whole of the proceeds of sale to build another residence that is to be the couple's principal home. The below threshold rate is 0.25%. The above threshold rate is 2.25%.
 The total value of the couple's financial assets ($122,000), disregarding the whole of the proceeds of sale ($500,000—see subsection (3A)), is higher than the couple's deeming threshold ($93,600—see subsection 46H(2)). So, the deeming threshold is multiplied by the below threshold rate (0.25%):

 The couple's deeming threshold of $93,600 is subtracted from the total value of the couple's financial assets ($122,000), disregarding the whole of the proceeds of sale ($500,000—see subsection (3A)). The remainder is $28,400.
 The amount of $28,400 is multiplied by the above threshold rate (2.25%):

 The ordinary income that the couple is taken to receive on the couple's financial assets, other than financial assets described in subsection (3A), is $873 per year ($234 plus $639).