Policy

Last amended: 25 November 2010

Exchange rate for British pensions

The exchange rate used to convert [glossary:British:328] pensions into Australian dollars is the 'on demand airmail buying rate' as supplied by the Commonwealth Bank. DVA monitors the exchange rates on a daily basis, but only adjusts the exchange rate if the average in any given fortnight varies by plus or minus 2.5% from the base exchange rate. The updated exchange rate is applied immediately to all [glossary:British:328]:    

Gifts

The following table shows how different gift situations are assessed as income for [glossary:DVA:306] purposes.

Resignation from a discretionary trust before 1 January 2002

This section contains information on the assessment and treatment of the [glossary:assets:296] and [glossary:income:31] from [glossary:primary production:265] private trusts and private companies from 1 January 2002. It also contains information on the concession available to [glossary:attributable stakeholders:615] of primary production trusts who wish to retire from the primary production business (trust) while retaining a right of veto in order to prevent the sale or break-up of the primary production assets.    

Last amended: 8 September 2011

Recognised liability – loan and debt

Loans to or debts owed by an [glossary:entity:168] will be recognised as a genuine liability of the entity and therefore allowed as a genuine deduction from the gross asset value of the borrowing entity if:

Incidental benefits allowed

Calculating the asset value

Defined benefit income streams and Military Invalidity Pensions Income Streams are not included in a person's assessable assets.

Income test assessment

All required information for the primary and secondary Family Law Affected (FLA) income streams is calculated by the income stream provider. 

The source test for a private trust and company

The [glossary:source test:186] in relation to a [glossary:controlled private trust:86] and a [glossary:controlled private company:72] is to be applied where:

• an individual transfers assets to a structure after 7.30pm 9 May 2000, and    
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Last amended: 09 September 2013

Earnings changes are notifiable events

Section 54 VEA provides that a pension recipient may be given a notice that requires them to inform the Department of 'a specified event or change in circumstances' that may affect their payment.

    VEA →