Summary of Assessable Assets of Sole Traders Only | CLIK

External

Policy

Section 52C VEA

Section 52CA VEA

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This topic provides a summary of assessable assets for pensions that relate to sole traders only.

Summary table - assessable assets for pensions

The following table summarises the assessable assets, and their treatment, from a sole trader's business for pensioners.

Assets

Section 10.2.4 Determining the Value of an Asset

Section 10.2.3 Assessing Personal Assets and Financial Investments

Section 10.2.4 Determining the Value of an Asset

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Asset	Treatment
Business assets	Assess the current market value of business assets, less 'business' liabilities, under section 52C of the Veterans' Entitlements Act
Loans to the business by the pensioner	Treat as an injection of capital in the business. Add them back to the net assets of the business if listed as a liability on the balance sheet.
Loans to the business by persons other than the owner	Assess them as 'loans' if the lender is a DVA pensioner. Take them into account as liabilities when calculating the assessable value of the business.
Loans by the business to the owner	Disregard them when calculating the assessable value of the business.
Loans by the business to persons other than the owner	Assess them as the personal financial investments of the owner. Take them out of the business financial statements.
Asset	Treatment
Non-business assessable assets providing security for business liabilities where the business has a net deficiency	Deduct the amount of the deficiency from the value of the assessable assets.
Income equalisation deposits, farm management deposits, farm management bonds	These are not allowed as deductions and should be added back to the net profit in the year originally earned. Hold actual income earned. (This will show on the Income Tax Return.) No deduction is allowed for investment expenses.
Provision Account	Add the value back into the net assets of the partnership.