Document ID: chunk:federal_register_of_legislation:F2015L00068:front:0:p25
Version: federal_register_of_legislation:F2015L00068
Segment Type: other
Provision Reference: 
Character Range: 64959–67720

(1) of the Act.

12 Effect of unsecured loan on value of assets

  In relation to an unsecured loan, the Commission must take into account:
 (a) whether a transaction that gave rise to the loan was an arm's length transaction, having regard to the criteria described in section 13; and
 (b) the matters referred to in section 14.

13 Criteria for arm's length transaction

 (1) For paragraph 12 (a), a transaction is an arm's length transaction if:
 (a) the transaction is for the purposes of the business activities of the company or trust; and
 (b) the transaction is made under a written agreement that is signed by each party to the agreement, and witnessed by an individual who is not a party to the transaction; and
 (c) each party to the transaction is:
 (i) at least 18 years old; or
 (ii) at least 16 years old and engaged in a full-time occupation; or
 (iii) at least 16 years old and receiving a social security entitlement; and
 (d) the transaction is made for an arm's length amount.

 (2) For subparagraph (1) (c) (ii), a full-time occupation:
 (a) includes any employment, trade, business, profession, vocation or calling; and
 (b) does not include a course of education at a school, college, university or similar institution.

14 Other matters

  For paragraph 12 (b), the Commission must also take into account, in relation to the transaction that gave rise to the charge or encumbrance:
 (a) whether the individual is the sole attributable stakeholder, or a member of a couple both members of which are the only 2 attributable stakeholders of the company or trust; and
 (b) whether the loan is secured by a charge or encumbrance over an asset other than an asset described in paragraph 52ZZU (1) (b) of the Act; and
 (c) the commercial, social and familial relationships (if any) between the parties to the transaction; and
 (d) the nature and circumstances of the transaction.

Schedule 4
Note: the reference to Schedule 4 is not part of the instrument in Schedule 4.

Veterans' Entitlements (Attribution of Income) Principles 2002
Instrument 2014 No. R69

Contents

Page
Part 1 Preliminary

 1Name of Principles

 2Commencement

 3Definitions

 4 Purpose

Part 2 Determination about excluded income (Act s 52ZZK)

Division 2.1 No double counting — both members of couple are attributable stakeholders of company or trust
 5Application of Division 2.1

 6Sum of distributions is the same as sum of attributable income

 7Sum of distributions is less than sum of attributable income

 8Sum of distributions is greater than sum of attributable income

Division 2.2 No double counting — one member of couple is not attributable stakeholder
 9Distribution made to partner who is not attributable stakeholder

Division 2.3 Investor makes