Document ID: chunk:federal_register_of_legislation:C2004C01135:clause:4_1126b
Version: federal_register_of_legislation:C2004C01135
Segment Type: clause
Provision Reference: sch 4 cl 1126B
Character Range: 216162–218190

1126B  Disposal of assets in pension year—family members

 (1) Subject to this section, if:
 (a) a person (the relevant person) has disposed of an asset during a pension year of another person (the other person) of whom the relevant person is a family member; and
 (b) the other person is receiving youth allowance; and
 (c) the amount of that disposition, or the sum of that amount and the amounts (if any) of other dispositions of assets previously made by the relevant person or the other person during that pension year, exceeds $10,000;
then, for the purposes of this Act, there is to be included in the value of the other person's assets for the period of 5 years that starts on the day on which the disposition took place:
 (d) the amount by which the sum of the amount of the first‑mentioned disposition and of the amounts (if any) of other dispositions of assets previously made by the relevant person or the other person during the pension year exceeds $10,000; or
 (e) the amount of the first‑mentioned disposition;
whichever is the lesser amount.

Note 1: For disposes of assets see section 1123.

Note 2: For amount of disposition see section 1124.

Note 3: For the effect of a transaction that constitutes both a disposal of an asset and a disposal of ordinary income see section 1110.

 (2) If:
 (a) amounts are included under subsection (1) in the value of the other person's assets because of a disposition of an asset by the relevant person; and
 (b) the relevant person ceases to be a family member of the other person;
any amount that was included in the value of the other person's assets because of the disposition ceases to be included in the value of those assets.

 (3) If:
 (a) an amount is included under subsection (1) in the value of the assets of the other person because of a disposition of an asset by the relevant person; and
 (b) the relevant person dies;
any amount that was included in the value of those assets because of the disposition ceases to be included in the value of those assets.