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Financial investment

According to section 5J of the VEA, a financial investment means:

     but does not include an investment in an FHSA (within the meaning of the First Home Saver Accounts Act 2008) or a designated NDIS amount.

 

Available money means cash on hand but does not include reasonable amounts of money held to cover day to day expenses.

Deposit money means the credit balance of accounts held with financial institutions, including:

  • savings and cheque accounts,
  • term deposits,
  • cash management accounts,
  • mortgage offset accounts,
  • money in solicitor's trust accounts, and
  • income equalisation deposits.

An investment is a managed investment if:

  • the money or property invested is paid by the investor directly or indirectly to a body corporate or into a trust fund,
  • the assets that represent the money or property invested (the invested assets) are not held in the names of investors,
  • the investor does not have effective control over the management of the invested assets, and
  • the investor has a legally enforceable right to share in any distribution of income or profits derived from the invested assets.

For a full definition see also:

Sections 5J(1A), 5J(1B) and 5J(1C) of the VEA.

 

 

A listed security is an investment in a public company listed on an Australian or a foreign stock exchange and includes:

  • ordinary, preference, partly paid, contributing, and deferred dividend shares,
  • convertible notes,
  • options,
  • rights,
  • futures,
  • warrants and endowment warrants, and
  • share ratio contracts.

 

 

The following investments all meet the definition of a loan:

  • debentures,
  • government and semi-government bonds,
  • bank bills
  • commercial bills,
  • non-convertible notes, and
  • capital notes.

Note – a person is not treated as having made a loan merely because:

  • the person has an account with a financial institution, or
  • the person has paid an entry contribution.

 

 

An unlisted security includes:

  • ordinary, preference, partly paid, contributing, and deferred dividend shares,
  • convertible notes,
  • options,
  • rights,
  • futures, and
  • warrants and endowment warrants

in a:

  • public company that is not listed on a stock exchange, or
  • cooperative.

Bullion means:

  • gold, silver and platinum bar, ingot and nugget holdings, or
  • coins, medals and decorations held for investment purposes and containing those metals.

An income stream is an asset tested short term income stream if it is;

 

 

An income stream is an asset tested long term income stream if it is:

  • and has either;
  •      a term greater than 5 years; or
  •      a term of 5 years or less, that is equal to or greater than the person's life expectancy.

 

 

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