Document ID: chunk:federal_register_of_legislation:C2004A04148:body:0:p21
Version: federal_register_of_legislation:C2004A04148
Segment Type: other
Provision Reference: 
Character Range: 62775–65679

and

   (d)     the income is taken to be:

         (i) interest on the value of the asset at the assumed property rate; or

SCHEDULE 2—continued

         (ii) the amount calculated in accordance with subsection 48d (3);

     whichever is the higher.

Note: for 'assumed property rate' see section 46zk.

Assumed property rate

  "46zk. The assumed property rate is:

  (a)     10% per year; or

    (b)     if a lower rate is determined under subsection 1099p (2) of the Social Security Act—that lower rate.".

Subsection 48 (2):

  Omit the subsection, substitute:

"(2) For the purposes of subsection (1), the value of any granny flat interest of the person is taken not to be consideration received by the person.

Note: for 'granny flat interest' see subsection 5l (8a).".

Section 49a:

  Repeal the section, substitute:

Earnings credit account

  "49a. (1) If:

    (a)     a person is receiving a service pension (other than a carer service pension); and

  (b)     either:

        (i) the person is not a member of a couple; or (ii) the person is a member of a couple and the person's partner is receiving neither a service pension (other than a carer service pension) nor a social security pension (other than a carer pension);

the person has an individual earnings credit account.

  "(2) If:

    (a)     a person is receiving a service pension (other than a carer pension); and

    (b)    the person's partner is receiving a service pension (other than a carer service pension) or a social security pension (other than a carer pension);

the person and the partner have a joint earnings credit account.

  "(3) If at a particular time:

  (a) subsection (1) ceases to apply to 2 people; and

SCHEDULE 2—continued

     (b) subsection (2) applies to create a joint earnings credit account for them;

the balance of the joint earnings credit account at that time is the sum of the balances of their individual accounts immediately before that time.

  "(4) If at a particular time:

   (a)     subsection (2) ceases to apply to 2 people; and

     (b)    subsection (1) applies to create an individual earnings credit account for either or both of them;

the balance of the individual earnings credit account or accounts at that time is 50% of the balance of their joint earnings credit account immediately before that time.".

Section 49b (Earnings Credit Account Balance Calculator—point 49b-A1):

  Omit:

Account balance calculation

"49b-A1. This is how to work out the balance of the person's earnings credit account:";

substitute:

Individual account balance calculation

"49b-A1. If the person has an individual earnings credit account, this is how to work out the balance of the account:".

Section 49b (Earnings Credit Account Balance Calculator—points 49b-A2, 49b-A3 and 49b-A4):

  Omit the points, substitute:

Individual account balance not to exceed $1,000

"49b-A2. The