Policy

Last updated 12 January 2007

Assessment of a business conducted from home

The following table provides reference points for the assessment rules of businesses conducted from home.    

This chapter outlines the rules on assessing a person's residence.

See Also

Overseas managed investments

Deeming applies to [glossary:managed investments:707] held overseas.

Non-exempt funeral bonds

Deeming applies to funeral bonds that are not [glossary:exempt assets:573].    

Scope and operation of deeming

Deeming was introduced to encourage pensioners to maximise their total disposable income by investing to gain returns of at least the deeming rate. Current deeming rates represent the returns that are generally available in safe investments. Deeming refers to how income from [glossary:financial assets:241] is assessed for income test purposes and applies to most [glossary:DVA:306] and [glossary:Centrelink:441] payments.

Example of pensioner description/situation

John and Mary are both [glossary:service pensioners:245] with a combined total of $100,000 in [glossary:financial investments:437]. $65,000 is in a term deposit and they have $35,000 worth of managed investments.

Example of calculation of deemed income

The following table is an example showing the deemed income calculation.

Note: The threshold amount and the deeming interest rate used in this example were current at 1 May 2020 and may have since changed.     

What is GARP?

[glossary:GARP:181] is the legislative instrument used by decision-makers to determine the amount of [glossary:Disability Compensation Payment:574] to pay a [glossary:veteran:424] in respect of [glossary:incapacity:350] from war-caused or defence-caused [glossary:injuries:315] and [glossary:diseases:603]. It looks at the medical impairment suffered as a result of war-caused disabilities and the effect on the veteran's lifestyle.

Last amended: Proceeds from sale of home

Last updated: 23 March 2012

What is company title property ownership?

Company title property ownership occurs where a block of flats, units or apartments is held under a single title. A person with company title property ownership purchases a share in the company that owns the property, rather than purchasing the title for the individual property in which they live.

This is different to arrangements where the principal residence of the person is owned or transferred to a controlled private company or a controlled private trust.

This chapter contains information on deeming provisions and how savings investments, shares investments and managed investments are treated under the deeming provisions.

See Also