Document ID: chunk:federal_register_of_legislation:C2024C00866:clause:6_2:p4
Version: federal_register_of_legislation:C2024C00866
Segment Type: clause
Provision Reference: sch 6 cl 2 (pt 4/80)
Character Range: 2120952–2124124

value limit is the maximum value of assets the person can have without affecting the person's rate of service pension, income support supplement or veteran payment.

           Step 3. Work out whether the value of the person's assets exceeds the person's assets value limit.
           Step 4. If the value of the person's assets does not exceed the person's assets value limit, the person's assets excess is nil.
           Step 5. If the value of the person's assets exceeds the person's assets value limit, the person's assets excess is the value of the person's assets less the person's assets value limit.
           Step 6. Use the person's assets excess to work out the person's reduction for assets using point SCH6‑F4 below.
                  Note 1: See the Method statements in point SCH6‑A1 for the significance of the person's reduction for assets.
                  Note 2: The application of the assets test is affected by provisions about the following:
                     (a) disposal of assets (sections 52E – 52JE);
                     (b) special residences (sections 52KA – 52X);
                     (c) financial hardship (sections 52Y and 52Z);
                     (d) the pensions loans scheme (sections 52ZAAA – 52ZM.

Value of assets of members of couples
 SCH6‑F2 For the purposes of this Module:
 (a) the value of the assets of a member of a couple is taken to be 50% of the sum of:
 (i) the value of the person's assets; and
 (ii) the value of the person's partner's assets; and
 (b) the value of the assets of a particular kind of a member of a couple is taken to be 50% of the sum of:
 (i) the value of the person's assets of that kind; and
 (ii) the value of the person's partner's assets of that kind.

Assets value limit
 SCH6‑F3 A person's assets value limit is worked out using Table F‑1. Work out the person's family situation and property ownership situation. The assets value limit is the corresponding amount in column 3.

Table F‑1—Assets value limit
Column 1                      Column 2                Column 3
                                                      Assets value limit
Item                          Person's family         Column 3A                                Column 3B
                              situation               Either person or partner property owner  Neither person nor partner property owner
                                                      $                                        $
1.                            Not member of a couple  250,000                                  450,000
2.                            Partnered               187,500                                  287,500

Note 1: For member of a couple and partnered see section 5E.
Note 2: For property owner see section 5L.
Note 3: Item 2 applies to members of illness separated and respite care couples.
Note 4: The assets value limit in column 3B of item 1 is adjusted annually under section 59H. The other assets value limits are indexed annually in line with CPI increases (see sections 59B to 59E).

Reduction for assets in excess of assets value limit
 SCH6‑F4(1) A person's reduction for assets is worked