Lump sums can be exempted from the Income Test under VEA. An amount received by a person is an exempt lump sum if it is:
not a periodic payment (within the meaning of subsection 5K(1A),
not income from remunerative work undertaken by the person, and
is an amount, or one of a class of payments that the [glossary:Commission:545] determines to be an exempt lump sum.
The following table explains how to assess the value of fixed term deposits, unlisted bonds, debentures and securities. An alternative value is accepted if a person provides supporting information.
Last amended 25 August 2008
This topic provides information on the following:
Specified classes of trusts that are excluded from the attribution process in Part IIIB, Division 11A of the VEA are:
The credit balance held in any account with a bank, building society or credit union is an asset for pension purposes and is assessed at full face value.
For assessment purposes, a person's assertion as to the balance of an account is generally accepted. Account balances may also be verified by:
Last amended: 13 May 2008
The following table shows how to select and use the appropriate [glossary:life expectancy:348] table in the assessment of an [glossary:income stream:406].
|
Step |
Action |
|
1 |
Determine the [glossary:commencement day:334] of the income stream to be assessed and ensure that the correct table is used. |
The [glossary:assets:296] and [glossary:income:31] generated by fixed trusts, including fixed [glossary:testamentary trusts:506], are fully assessed against the trust beneficiaries in the fixed proportions laid down by the trust deed. The practice of assessing the asset value based on the fixed entitlements of the beneficiaries and the income on actual distributions to beneficiaries will continue only for fixed trusts established before 7.30pm 9 May 2000.
Individual ceases to be an attributable stakeholder of a company or trust
Section 52ZZY VEA
Part IIIB, Division 4, Subdivision C VEA – Family law affected income streams
