Policy

A gift to a private trust or private company from a sole attributable stakeholder

If a sole [glossary:attributable stakeholder:615], or [glossary:members of a couple:84] who are the only attributable stakeholders, make a capital injection into a structure in the form of a gift, that gift will not be subject to the disposal or [glossary:deprivation provisions:221] but must be included in the value of the structure. This is because a sole attributable stakeholder, or members of a couple who are the only attributable stakeholders, cannot gift to themselves.

Liabilities - loan or debt

Liabilities can include loans that have been made to a trust or [glossary:company:602] or debts owed by a trust or company. Loans can be from controllers, [glossary:associates:491] or a third party. Loans can also have been made by another trust or company or debts can be owed by the [glossary:entity:168] to another trust or company.

This topic provides information on the following:

Basis of assessment of income

The assessment of income received by a person from a [glossary:company:602] is based on the type and current rate of [glossary:income:31], if any. Income currently maintained should cease to be assessed, if:

• the person advises that they are no longer receiving any income, or

• a company in which a person has an interest is placed in liquidation.

In this case the shareholders effectively no longer have access to the income.

Last amended: 27 May 2011

What is a controlled private trust?

A trust is a [glossary:controlled private trust:86] in relation to an individual if:

• the trust is a [glossary:designated private trust:703], and
• the individual passes the private trust [glossary:control test:198], or
• the individual passes the [glossary:source test:186].

When deciding whether an individual passes the [glossary:control:461] or source tests reference must be had to the [glossary:associates:491] of the individual.    

What is superannuation?

The primary purpose of a superannuation scheme is to provide its beneficiaries with financial resources and other benefits during their retirement.    

VEA→

This section outlines policy concerning application of the farmers' income test to determine whether a farmer's income in the last three years before transfer of a property was less than the rate of age service pension applicable to that farmer.

Last amended: 18 August 2014

VEA→

Assess actual income not deemed income

VEA→

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

This section explains the requirements for calculating the amount of [glossary:rent assistance:367] payable.