Document ID: chunk:federal_register_of_legislation:C2024C00866:section:46d:p2
Version: federal_register_of_legislation:C2024C00866
Segment Type: section
Provision Reference: s 46D (pt 2/2)
Character Range: 675693–677497

46H(1)). So, the deeming threshold is multiplied by the below threshold rate (0.25%):

 Elaine's deeming threshold of $56,400 is subtracted from the total value of Elaine's financial assets ($64,000), disregarding part of the proceeds of sale ($100,000—see subsection (3A)). The remainder is $7,600.
 The amount of $7,600 is multiplied by the above threshold rate (2.25%):

 The ordinary income that Elaine is taken to receive on Elaine's financial assets, other than financial assets described in subsection (3A), is $312 per year ($141 plus $171).
 (3A) However, if subsection 52(2) applies in relation to the person and:
 (a) the person has financial assets that are proceeds:
 (i) from the sale of the person's principal home; 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 person and the proceeds;
then:
 (c) those financial assets are to be disregarded for the purposes of working out the ordinary income the person is taken to receive under subsection (3); and
 (d) the ordinary income the person 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), Elaine's financial assets ($100,000) described in this subsection are multiplied by the below threshold rate (0.25%):

 The ordinary income that Elaine is taken to receive on Elaine's financial assets described in this subsection is $250 per year.
 (4) The person is taken, for the purposes of this Act, to receive one fifty‑second of the sum of the amount calculated under subsection (3) and the amount (if any) calculated under paragraph (3A)(d) as ordinary income of the person during each week.