Social Security (Modification of Asset Deprivation Rules) Principles 2017 (Cth)

Social Security (Modification of Asset Deprivation Rules) Principles 2017

I, FINN PRATT, Secretary of the Department of Social Services, formulate these Principles under section 1209E of the Social Security Act 1991.

Dated 8 March 2017

Finn Pratt Secretary of the Department of Social Services

Contents Part 1 Preliminary 1 Name of Principles 3 2 Commencement 3 3 Definitions 3 4 Purpose 3 Part 2 Disposal of asset (on or after 1 January 2002) by individual 5 Purpose of Part 2 4 6 Definitions 4 7 Transferor as sole attributable stakeholder 4 8 Transferor as member of couple 4 9 Transfer to company or trust with 2 or more attributable stakeholders 4 10 Transfer to company or trust by individual who becomes attributable stakeholder 5 Part 3 Disposal of asset (on or after 1 January 2002) by company or trust 11 Purpose of Part 3 6 12 Disposal to individual by company or trust 6 13 Disposal by way of dividend or distribution to genuine investor 6

Part 1 Preliminary

1 Name of Principles These Principles are the Social Security (Modification of Asset Deprivation Rules) Principles 2017. 2 Commencement These Principles commence on 1 April 2017. 3 Definitions In these Principles: Act means the Social Security Act 1991. asset disposal provisions means Division 2 of Part 3.12, section 93U, section 93UA and sections 198F to 198MA of the Act. 4 Purpose These Principles set out decision‑making principles with which the Secretary must comply for the purposes of making a determination under subsection 1208K (1) or 1208L (3) of the Act.

Part 2 Disposal of asset (on or after 1 January 2002) by individual 5 Purpose of Part 2 This Part sets out decision‑making principles with which the Secretary must comply in making a determination for subsection 1208K (1) of the Act. 6 Definitions In this Part: individual means an individual who transfers property to a company or trust in accordance with subsection 1208K (1) of the Act. member of a couple has the same meaning as in section 4 of the Act. transfer of property means a transfer of property by way of capital contribution. 7 Transferor as sole attributable stakeholder (1) This section applies to an individual who is not a member of a couple. (2) The Secretary must take into account whether the individual was the only attributable stakeholder of the company or trust, either before or after the transfer. 8 Transferor as member of couple (1) This section applies to an individual who is a member of a couple. (2) The Secretary must take into account whether: (a) the individual was the only attributable stakeholder of the company or trust, before or after the transfer; or (b) both members of the couple were the only attributable stakeholders of the company or trust, before or after the transfer. 9 Transfer to company or trust with 2 or more attributable stakeholders (1) This section applies if, in relation to a transfer of property to a company or a trust: (a) the transfer is made by an attributable stakeholder of the company or trust; and (b) before the transfer, there were 2 or more attributable stakeholders of the company or trust. (2) This section also applies if, in relation to a transfer of property to a company or a trust: