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6.4.2 Types of assets
22.214.171.124 — Please note that this is a guide for reviewing assets according to departmental review dates. The files should be checked for any other effective dates where the pension rate was changed and those dates incorporated into the overpayment calculations.
The value of the property needs to be determined for each year of the overpayment. The annual June asset review date (i.e. the Assets Value Limits adjustment date) will be the date used in calculations until the overpayment period ceases.
- Managed investments and shares
The departmentally initiated run dates are to be used in the calculations for the period of the overpayment. If the managed investment is held overseas it is to be treated as a special product (advice should be sought from the Investment Database Unit (IDU) regarding the calculations).
For overseas held shares use the dates the Australian held shares are updated in the calculations. From 1 July 1996, extended deeming applies to all financial assets including overseas shares. Therefore income from overseas shares is assessed at the deemed rate of income. The last sale price of overseas shares may be obtained from the relevant overseas stock exchange website.
Listing of world stock exchanges (Uni of Melbourne)
- Vehicles, plant, machinery, equipment, livestock (not listed on tax returns)
The annual June asset review date will be the date used in the calculations.
- Vehicles, plant, machinery, equipment, livestock (listed on tax returns)
The appropriate payday following the signing of the tax return, or day of signing from 13 July 1999, will establish the start date for the overpayment. Then the entitlement during the overpayment period is based on the (net income and) asset valuation in the year it was declared or produced.
- Farm/business/private company/private trust
(This includes loans and shares held in these types of cases)
Pre-date of effect, the appropriate payday following the signing of the tax return will establish the start date for the overpayment.
From 13 July 1999 (introduction of DOE) the date the tax return was signed will establish the start date of the overpayment. Then the entitlement during the overpayment period is based on the (net income and) asset valuation in the year it was declared or produced. The income and assets of a Private Trust or Company may be attributed to an attributable stakeholder. Attribution is based on a control and source test.
(not including loans to businesses or trusts)
The appropriate day the amount loaned fluctuates.
- Gifts (above the allowable limits) – The anniversary of the date the gift was made. In these cases be aware of any fluctuations in the deeming rate.
Note:From 1 July 2002, changes were made to the rules governing the disposal of assets. For more information refer to DI 28/2002.
- Investment asset (e.g. bank, building society, credit union, solicitor accounts)
Reassess when the balance alters enough to affect the pension rate. A guide commonly used is when the accounts alter around the $1,000.00 to $2,000.00 mark, but this may only alter the pension by about $1.00. January, March, July and September A/Ls should be considered as effective variation dates for calculating overpayments.