Policy

Last amended: 10 August 2007

Loans made by the pensioner

This chapter contains information on the types of ordinary income that affect a pensioner's payments. Information on income that is exempt from assessment is also included.

See Also

Last amended: 9 October 2006

Last amended: 20 September 2009

Last amended: 22 June 2006

Allowances are excluded from the assessment

Allowances paid to the employee to meet genuine work-related expenses are excluded from the income assessment, as these amounts are intended to meet incurred work costs and are therefore not available for the use or benefit of the person. Where there is satisfactory evidence that earnings include amounts for allowances that were fully expended on work-related expenses, these amounts should be excluded from the earnings assessment.    

This section contains information on the assessment and treatment of capital injections to [glossary:controlled private trusts:86] and [glossary:controlled private companies:72].

Person considered to be a genuine investor

A person will be considered to be a [glossary:genuine investor:281] where they provide capital to an [glossary:entity:168] in return for equity. Where a person is considered to be a genuine investor in an entity they will be ascribed the [glossary:historical value:447] of the injection of capital. See below for further information on the treatment of injections of capital to fixed unit private trusts and private companies.

Last updated 27 November 2012

Attribution of the income of a private trust or private company

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.