Last amended: 18 August 2014

Assess actual income not deemed income



Person's ordinary income from all sources other than farming

Section 49Y(2) VEA

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In the assessment of non-sugarcane farm income for the sugarcane farmers' income test, deemed income is not calculated on financial assets. Income from financial assets is assessed using the actual income amount received, as disclosed on the income tax return.

Actual income relating to financial assets

The table below sets out the income that should be assessed for various forms of financial assets.

Financial asset

Income to be assessed

Bank accounts, cash deposits, debentures, loans etc.

Interest paid

Shares and managed investments

Dividends or distributions paid plus capital gains

Imputation credits and foreign tax credits


Annuities and other income streams

Net taxable income as shown on tax return

Disposal of income and assets

If the sugarcane farmer or their partner has disposed of any assets during the three years prior to divestment, no income is assessed under the sugarcane farmers' income test, as no actual return would be received. As with other financial assets, deeming provisions do not apply to gifted assets. If the person qualifies for a pension or allowance under RASF, assessment of gifts under the deprivation provisions will apply in determining the rate of pension payable. Disposal of income is included in the sugarcane farmers' income test.

Payments not assessed as income


The following payments will not be assessed as income:

  • income support payments including Family Tax Benefit
  • Youth Allowance or ABSTUDY
  • payments made under the Farm Household Support Act 1992 (repealed 2014)
  • payments made under the VEA
  • eligible termination payments.
Assessment of all other income

All other non-sugarcane farm income normally assessable under the income test will be taken into account under the sugarcane farmers' income test. Under the test, non-farm profits cannot be offset by non-farm losses.