Other Disregarded Assets

Asset-test exempt income streams

Superannuation funds and approved deposit funds

The value of a person's investment in a superannuation fund or an approved deposit fund is a disregarded asset until the person:

• reaches pension age (or qualifying age for income support supplement recipients); or
• commences to receive a pension or annuity from the fund.    
  More →

  Chapter 10.5 Income Streams

  Chapter 10.4 Superannuation Funds

  More → (go back)

   

Assessing decoration awards for valour

Provided it is not used for the purposes of investment or as a hobby, the value of any medal or other decoration awarded for valour that is owned by a person is a disregarded asset. This includes medals and other decoration awarded to someone else beside the owner.

Assessing aids for disabled

• any of the person's personal property that is designed for use by a disabled person,
• any part of the person's personal property that is attributable to modifications made to that property to enable it to be used by disabled persons, and
• modifications to a car for use by a disabled person, but not the vehicle itself.

If DVA provided the person with a motor vehicle under the Vehicle Assistance Scheme, the value of that vehicle is also a disregarded asset.    More →

Amounts paid under a home equity conversion agreement

An amount received by a pensioner within the preceding 90 days which is paid to or on behalf of that person or their partner under a home equity conversion agreement is a disregarded asset to the extent that the total amount owed by the person or by the person and their partner under home equity conversion agreements from time to time does not exceed $40,000.     More →

Payments made in respect of prisoners of war during World War II

The 2001 Australian Government Budget provided for a one-off payment of $25,000 to all Australian service personnel and civilians who were held captive by Japan during World War II or their widows or widowers who were alive on 1 January 2001.

This $25,000 one-off payment is disregarded under the assets test by allowing it as a deduction from the value of the person's total assets for life.     More →

If the recipient of the payment remarries, the $25,000 continues to be disregarded and is deducted from the joint assets of the recipient and their partner, during the recipient's lifetime. The assets test exemption does not transfer to another person, including the widow/er, upon the death of the recipient of the payment.

The payment is regarded as an exempt lump sum under the income test.     More →

The same does not apply to ex-gratia payments made:

• to British groups held prisoner by the Japanese during World War II or their surviving widows/widowers, or
• by a Commonwealth or allied country to those surviving Japanese internment or their surviving widows/widowers.

These payments are regarded as an exempt lump sum for income test purposes, but if the money received from these payments is invested, used to acquire assets or disposed of, then the subsequent investment, asset acquisition or disposal is assessed using the appropriate income and assets test rules.     More →

National Disability Insurance Scheme amounts

NDIS amounts  held by, or on behalf of, an NDIS participant to pay for future disability expenses under their NDIS plan are an exempt asset.

The assets test exemption also applies to any actual returns earned, derived or received on NDIS amounts.

The calculation of the disregarded NDIS asset amount is –

• the sum of the NDIS amounts received, and any return on those amounts,

 LESS

•  those amounts spent in accordance with the person’s NDIS Plan.