Document ID: chunk:federal_register_of_legislation:C2024C00866:section:46e:p2
Version: federal_register_of_legislation:C2024C00866
Segment Type: section
Provision Reference: s 46E (pt 2/2)
Character Range: 680130–681961

($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).
 (3A) However, if subsection 52(2) applies in relation to a member of the couple and:
 (a) the couple have financial assets that are proceeds:
 (i) from the sale of the principal home of a member of the couple; and
 (ii) described in paragraph 52(2)(a) or (c); and
 (b) the earlier of the times mentioned in that paragraph has not occurred for the member of the couple and the proceeds;
then:
 (c) those financial assets are to be disregarded for the purposes of working out the ordinary income the couple is taken to receive under subsection (3); and
 (d) the ordinary income the couple is taken to receive per year on those financial assets is the amount worked out by multiplying the value of those financial assets by the below threshold rate.
Example: To continue the example in subsection (3), Maree and Peter's financial assets ($500,000) described in this subsection are multiplied by the below threshold rate (0.25%):

 The ordinary income that the couple is taken to receive on the couple's financial assets described in this subsection is $1,250 per year.
 (4) Each member of the couple is taken, for the purposes of this Act, to receive, as ordinary income during each week, an amount calculated according to the formula: