Document ID: chunk:federal_register_of_legislation:C2024C00866:section:52z:p1
Version: federal_register_of_legislation:C2024C00866
Segment Type: section
Provision Reference: s 52Z (pt 1/3)
Character Range: 801507–804172

52Z  Application of financial hardship rules

Value of unrealisable asset to be disregarded
 (1) If section 52Y applies to a person, the value of:
 (a) any unrealisable asset of the person; and
 (b) any unrealisable asset of the person's partner;
is to be disregarded in working out the person's service pension rate, income support supplement rate or veteran payment rate.

Deduction from maximum payment rate
 (2) If section 52Y applies to a person, there is to be deducted from the person's service pension maximum payment rate, income support supplement maximum payment rate or veteran payment maximum payment rate an amount equal to the person's adjusted annual rate of ordinary income.

Adjusted annual rate of ordinary income
 (3) A person's adjusted annual rate of ordinary income is an amount per year equal to the sum of:
 (a) the person's annual rate of ordinary income (other than income from assets); and
 (b) the person's annual rate of ordinary income from assets that are not assets tested; and
 (c) either:
 (i) the person's annual rate of ordinary income from unrealisable assets; or
 (ii) the person's notional annual rate of ordinary income from unrealisable assets;
  whichever is the greater; and
 (d) an amount per year equal to $19.50 for each $250 of the value of the person's assets (other than disregarded assets).
 (3A) In working out the ordinary income of a person for the purposes of subsection (3), the following payments and amounts are to be counted:
 (a) a payment of an instalment of pension under Part II or IV;
 (b) a payment of an instalment of a pension (other than a pension payable in respect of a child) payable because of subsection 4(6) or (8B) of the Veterans' Entitlements (Transitional Provisions and Consequential Amendments) Act 1986;
 (d) a payment (other than a payment referred to in paragraph (a) or (b)) that is a payment in respect of incapacity or death resulting from employment in connection with a war or war‑like operations in which the Crown has been engaged;
 (da) a payment of compensation (other than a payment covered by paragraph (d)) to the extent that the payment is taken into account:
 (i) under Division 5A of Part II; or
 (ii) under section 74;
  to reduce a pension payable to the person under Part II or IV, as the case requires;
 (e) a payment by way of allowance (other than loss of earnings allowance) under Part VI of this Act;
 (f) a payment, by a foreign country, of an allowance or annuity that is of a similar kind to decoration allowance payable under section 102 or to Victoria Cross allowance payable under section 103;
 (fa) a payment under Part VIB (prisoner of war recognition