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6.4.1 Overview overpayment of income support pension under the assets test provisions can only exist because of failure to notify of the acquisition of a new asset, or the disposal of an old one, or where processing of such a notification is delayed. No overpayment exists purely because the value of an existing asset has increased. Assets tested pensioners are not required to provide the Department with information about changes in the value of their assets. The Department initiates regular revaluations of real estate and businesses and of the value of shares and managed investments for those pensioners. This is in line with current legislation, and reflects the original Cabinet Decision on the introduction of the assets test, which did not allow for asset tested pensioners to be required to re-value their own assets., an overpayment may need to be calculated if a pensioner:

  • omits to list an asset; or
  • does not declare a full amount of an asset held, such as halving an investment; or
  • does not declare all property held in his/her name; or
  • does not notify the Department of the acquisition or disposal of an assessable asset (including dividend re-investment, or exercising an option to purchase additional units of an investment product); or
  • does not inform the Department that the assets held on their income and asset statement is incorrect. who are income tested are required to inform the Department if the value of their assets exceed the prescribed Asset Value Limit. Pensioners are not required to have assets formally revalued, and are not required to inform DVA of changes in asset value on a regular basis. Pensioners who feel that their assets may be approaching, or exceeding their prescribed asset limit are advised to let DVA know. This would trigger a review requiring the pensioner to provide an estimate of asset values. Where necessary, the Department may arrange for formal valuation of assets such as real estate. An overpayment would not be raised under these circumstances. to 13 July 1999, the overpayment start date was the date the asset was acquired/disposed of or the income support pension grant date, whichever occurred later. From 13 July 1999, the overpayment start date depends on whether the event was notified within the notification period or not. If the event was not notified within the notification period, the start date will be the day of the event. If the event was notified within the notification period, the start date will be the day after the end of the notification period. following section is to be used as a guide to frequency of variations when calculating assets overpayments.