Document ID: chunk:federal_register_of_legislation:C2010C00233:clause:10_7
Version: federal_register_of_legislation:C2010C00233
Segment Type: clause
Provision Reference: sch 10 cl 7
Character Range: 221030–222914

7  After subsection 1118(1)
Insert:

Application of insurance etc. payments to rebuilding etc.

 (1AA) Subsection (1AB) applies if:
 (a) a person receives any insurance or compensation payments because of loss of or damage to a building (including the person's principal home) or plant; and
 (b) either:
 (i) if the building or plant was lost—the person applies the whole or a part of those payments to build another building or plant to replace the building or plant that was lost; or
 (ii) if the building or plant was damaged—the person applies the whole or a part of those payments to rebuild, repair or renovate the building or plant.

 (1AB) For the purposes of paragraph (1)(sa), the amount that may be disregarded is:
 (a) the value of the building or plant that is being built, rebuilt, repaired or renovated, to the extent that those payments are so applied; and
 (b) if a building whose value is being disregarded under paragraph (a) of this subsection is to be the person's principal home:
 (i) the value of the land on which the building is being built, rebuilt, repaired or renovated to the extent that, once the building becomes the person's principal home, the land will, under section 11A, be included in a reference to the principal home; and
 (ii) the value of any other structure, on that land, that is to be the person's principal home to the extent that the structure was built before the person began applying the payments.

 (1AC) For the purposes of paragraph (1)(sa), the amount worked out under subsection (1AB) may be disregarded during the period:
 (a) beginning when the payments are received; and
 (b) ending at the earlier of the following times:
 (i) 12 months, or such longer period as the Secretary determines for any special reason, after that time;
 (ii) when the building, rebuilding, repair or renovation of the building or plant is complete.