Assets test
Assessable assets
All assets, other than those specified as disregarded, are counted when calculating the value of a person's assets.
Determining the value of an asset
Saleable assets are assessed at their net market value. The market value of an asset can only be reduced if there is an encumbrance or unsecured loan against it. A person's estimation of an asset's value is accepted if it is reasonable, however, a valuation is needed in some circumstances. If the asset is owned with another person, the assets value for the person is determined using their proportion of interest in the asset.
Determining the Value of an Asset
Assets that are to be disregarded when calculating assets value
Some assets are to be disregarded when calculating the value of a person's assets. Two main reasons for assets being disregarded are:
- the assets have no value, such as legally irrecoverable loans, or
- it would be unreasonable or discriminatory to assess the asset.
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Disregarded Assets
Assessing personal assets and investments
The nature of an asset governs the way it is assessed. Assets can range from personal effects and household contents, through investments of various kinds, to businesses, estates and superannuation products.
Assessing Personal Assets and Investments