Document ID: chunk:federal_register_of_legislation:C2004A04148:body:0:p19
Version: federal_register_of_legislation:C2004A04148
Segment Type: other
Provision Reference: 
Character Range: 57906–60588

money; and

SCHEDULE 2—continued

    (b) the interest is received or accounted for less frequently than the anniversary of the making of the deposit;

interest on the deposit money is taken to be received by the depositer on each anniversary of the making of the deposit.

Income money that does not attract interest

  "46x. (1) If:

  (a)     money is income money of a person; and

  (b)    interest is not paid on that money;

the person is taken to receive interest on that money at the assumed rate.

Note: for 'assumed rate of interest' see section 46za.

  "(2) Subsection (1) has effect subject to section 46z.

Income money that attracts low interest

  "46y. (1) If:

  (a)     money is income money of a person; and

    (b)    the rate per year at which interest is paid on the money is less than the assumed rate;

the person is taken to receive interest on that money at the assumed rate.

Note: for 'assumed rate of interest' see section 46ZA.

  "(2) Subsection (1) has effect subject to section 46z.

Certain income money to be disregarded

"46z. (1) The Minister may determine that this Division does not apply to:

  (a)     specified income money of a person; or

  (b)    specified income money of a class of persons.

"(2) A determination under subsection (1) is to be made by notice in writing.

  "(3) If:

   (a)     a person has income money; and

     (b)    a determination under subsection (1) applies to the income money;

the income money is to be disregarded for the purposes of applying this Division to the person.

Assumed rate of interest on income money

   "46za. The assumed rate of interest is:

   (a) 10% per year; or

SCHEDULE 2—continued

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

"Division 8b—Interest attributed to money on loan

Application of this Division

"46zb. (1) This Division applies to loans by a person entered into, or acquired, by the person after 21 August 1990.

"(2) If this Division applies to a person's loan, Division 8 does not apply to the return on the loan.

Basic concepts—loan and interest

  "46zc. For the purposes of this Division:

  (a) there is a loan by a person if, but not only if, the person has:

       (i) debentures; or

       (ii) bonds; or

       (iii) other securities; and

  (b) there is no loan by a person:

         (i) because the person has money in an account with a financial institution; or

      (ii) because of any entry contribution of the person; and

    (c)     the interest on a loan includes any payment for the use of the money that is lent; and

    (d)     if the interest that is paid on a loan is