In terms of variation dates and financial assets assessments will need to be re-calculated to reflect changes in deeming thresholds and deeming rates.

6.5.3.1Financial institutions
(e.g. bank, building society, credit union, solicitor accounts):

• Commencement date – prior to 13 July 1999, the day after money was invested; from 13 July 1999, the day money was invested or the day after the end of the notification period as applicable.
• Variation dates – The deeming rates on financial assets are monitored to ensure they reflect appropriate rates of return. Any changes to the deeming rates will be made in March and September, when pensions are indexed. Prior to 13 July 1999, the payday after the date(s) interest was actually paid during the period.
• Income – prior to 1 July 1996 income was calculated on the actual interest rate payable, or the deemed rate whichever is the higher. From 1 July 1996 income from financial institutions is calculated at the deemed rate of interest.

6.5.3.2 — Managed investments and shares

• Commencement date – prior to 13 July 1999 the day after MIs or shares were purchased; from 13 July 1999 the day MIs or shares were purchased, or the day after the end of the notification period as applicable.
• Variation dates - the departmentally initiated run dates are to be used in the calculations for the period of the overpayment.
• Income - For both Australian and overseas shareholdings, income is calculated at the deemed rate. Prior to 1 July 1996 income was calculated based on the dividends paid. The last sale value of the share was used in order to determine the asset amount of the share.

6.5.3.3 — Loans/gifts

• Commencement date – prior to 13 July 1999 the day after the money was lent or given away; from 13 July 1999 the day the money was lent or given away, or the day after the end of the notification period as applicable.
• Variation dates – prior to 13 July 1999 payday after the anniversary of the date the gift was made; from 13 July 1999, the anniversary of the day the gift was made.
• Income - the deeming rate applicable at the time.

For information concerning deeming of income in respect of loans refer to P9/C5/S4 of the CLIK Policy Library.

For information concerning the effect of disposal (gifting) on deemed income refer to P9/C5 of the CLIK Policy Library.