Document ID: chunk:federal_register_of_legislation:C2025C00162:section:1118:p1
Version: federal_register_of_legislation:C2025C00162
Segment Type: section
Provision Reference: s 1118 (pt 1/6)
Character Range: 2147247–2149806

1118  Certain assets to be disregarded in calculating the value of a person's assets
 (1) In calculating the value of a person's assets for the purposes of this Act (other than sections 198F to 198MA (inclusive), Division 1B of Part 3.10, Division 2 and sections 1133 and 1135A), disregard the following:
 (a) if the person is not a member of a couple—the value of any right or interest of the person in the person's principal home that is a right or interest that gives the person reasonable security of tenure in the home;
 (b) if the person is a member of a couple—the value of any right or interest of the person in one residence that is the principal home of the person, of the person's partner or of both of them that is a right or interest that gives the person or the person's partner reasonable security of tenure in the home;
 (c) the value of any life interest of the person other than:
 (i) a life interest in the principal home of the person, of the person's partner or of both of them; or
 (ii) a life interest created by the person, by the person's partner or by both of them; or
 (iii) a life interest created on the death of the person's partner;
 (d) the value of any asset‑test exempt income stream of the person, other than a partially asset‑test exempt income stream;
 (da) half of the value of any partially asset‑test exempt income stream of the person;
 (e) any amount that is:
 (i) received by the person within the immediately preceding period of 90 days; and
 (ii) is excluded from the definition of income in subsection 8(1) by subsection 8(4) or (5);
 (f) the value of the person's investment in:
 (i) a superannuation fund; or
 (ii) an approved deposit fund; or
 (iv) an ATO small superannuation account;
  until the person:
 (v) reaches pension age; or
 (vi) starts to receive a pension or annuity out of the fund;
 (g) if:
 (i) the person has a granny flat interest in the person's principal home; and
 (ii) the granny flat interest gives the person reasonable security of tenure in the home; and
 (iii) the person acquired or retained the granny flat interest before 22 August 1990;
  the value of the granny flat interest;
 (ga) if:
 (i) the person has a granny flat interest in the person's principal home; and
 (ii) the person is a person to whom subsection 1150(2), 1151(2), 1152(2), 1152(5), 1153(2), 1154(2), 1155(2), 1156(2) or 1157(2) applies;
  the value of the granny flat interest;
Note: A person described in subparagraph (ii) will have acquired or retained the granny flat interest on or after 22 August 1990 (see