Document ID: chunk:federal_register_of_legislation:C2004A04993:body:0:p47
Version: federal_register_of_legislation:C2004A04993
Segment Type: other
Provision Reference: 
Character Range: 118397–121110

the value of assets and liquid assets see paragraph (5)(a).
Note 3: For liquid assets see subsection 19B(1).
Note 4: For liquid assets limit see paragraph (5)(b).
Note 5: For accepted estimated taxable income see subsection 198B(5).

Failing assets test by large margin but passing special income test

"(4) The Secretary may decide that the care receiver is taken to satisfy subparagraph 198(1B)(f)(i) if:

    (a) the value of the care receiver's assets is more than $559,250; and

    (b) the value of the care receiver's liquid assets is less than the liquid assets limit; and

    (c) the amount of the care receiver's accepted estimated taxable income for the current financial year is less than the threshold amount worked out under subsection (6).

     Note 1: The asset values specified in paragraph (4)(a) are indexed each year on 1 January (see sections 1190 and 1191).
Note 2: For calculating the value of assets and liquid assets see paragraph (5)(a).
Note 3: For liquid assets see subsection 19B(1).
Note 4: For liquid assets limit see paragraph (5)(b).
Note 5: For accepted estimated taxable income see subsection 198B(5).

Definitions—assets and income

"(5) For the purposes of this section:

SCHEDULE 10—continued

    (a) the value of the care receiver's assets or liquid assets is the sum of the values of the assets or liquid assets (as the case requires) of the following people:

(i) the care receiver;

(ii) if the care receiver has a partner—the partner;

       (iii) if the care receiver or the care receiver's partner has one or more FP children—those FP children; and

    (b) the liquid assets limit for a care receiver is:

(i) if the care receiver is a member of a couple—$10,000; or

(ii) if the care receiver is not a member of a couple—$6,000; and

    (c) the care receiver's taxable income for a particular financial year is the care receiver's taxable income for that year as worked out under section 198B.

Note: For liquid assets see subsection 19B(1).

Working out the threshold amount

"(6) For the purposes of paragraphs (2)(c), (3)(b) and (4)(c), the threshold amount is the amount worked out using the following formula:

where:

MBR is the maximum basic rate of age pension payable, as at the last 1 January, to a person who has a partner.

FPC is the number of FP children of the care receiver or the care receiver's partner (if the care receiver has a partner).

    Note: For the maximum basic rate of age pension see point 1064-B1 of Pension Rate Calculator A in section 1064.

Determination of initial amounts

"(7) If the Secretary determines in writing that a specified higher amount is to be substituted for a specified amount in subsection (2), (3) or (4),