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9.6.3 Disposal Date for Deprived Income and Assets
Examples of disposal dates
Disposal dates include the date on which:
- a legally binding transfer agreement is signed,
- a legally binding transfer is registered,
- a legally binding transfer document, that can be registered, is in another person's possession, or
- the date that another person takes possession.
Tax year rule (disposals on or after 1 July 2002)
A tax year is a period commencing on 1 July and ending on 30 June of the next calendar year. For disposal of assets on or after 1 July 2002, section 52JA (for an individual) and 52JC (for members of a couple) provides a tax year rule that replaces the pension year rule.
Rolling period rule (disposals on or after 1 July 2002)
If there is the disposition of assets on or after 1 July 2002, the rolling period comprises the tax year in which the relevant disposition took place and such (if any) of the 4 previous tax years that have occurred after 30 June 2002. Disposals that occurred prior to 1 July 2002 are not counted in the rolling period.
Pension year rule (disposals before 1 July 2002)
Disposal of assets prior to 1 July 2002 were/are assessed by pension years and were/are included in the value of a person's assets for a 5 year period commencing from the date that the disposal took place. The pension year was usually the 12 month period commencing from the day that the income support pension first became payable to the pensioner. Disposals in the 5 pre-pension years are also included in the person's assets. Special determinations were required to align the pension year for members of a couple.
Note: no pension year assessment may extend beyond 30 June 2002.
Determining the pension year for couples (disposals before 1 July 2002)
The pension year for members of a couple must coincide. The table below explains how to determine the pension year date for couples.
If a couple received a pension...
then the pension year for both begins on...
on the same day
the date that a pension first became payable.
independently before becoming a couple
the day on which they became a couple.
after becoming a couple, where one partner is in payment
the date the recipient partner commenced receiving a pension.
Definition of tax year
section 5Q(1) VEA
Disposal of assets in tax year
Section 52JA VEA
Section 52JC VEA
If there is a disposition of assets on or after 1 July 2002, the rolling period is the period comprising the tax year in which the relevant disposition took place and such (if any) of the 4 previous tax years as occurred after 30 June 2002. This means that disposals that occurred prior to 1 July 2002 are not counted in the rolling period. Subsection 52JB(4) VEA (for individuals) and subsection 52JD(6) VEA (for members of a couple) define the rolling period relevant to the $30,000 disposal of assets 'free area' rule.