An investment is a managed investment if:

• the money or property invested is paid by the investor directly or indirectly to a body corporate or into a trust fund,
• the assets that represent the money or property invested (the invested assets) are not held in the names of investors,
• the investor does not have effective control over the management of the invested assets, and
• the investor has a legally enforceable right to share in any distribution of income or profits derived from the invested assets.

For a full definition see also:

Sections 5J(1A), 5J(1B) and 5J(1C) of the VEA.

An exempt asset is one that is disregarded when calculating the value of a person's assets under the assets test.  Examples of exempt assets include:

• the value of a person's principal home,
• any motor vehicle provided under the Vehicle Assistance Scheme,
• the value of any medal or decoration awarded for valour, other than used as an investment or hobby,
• up to two funeral bonds where the combined amount invested is within the funeral bond threshold,
• a prepaid funeral or cemetery plot
• value of a superannuation fund investment prior to pension age.

For a full legislative definition see section 52 of the VEA.

The funeral bond threshold is an annually CPI indexed amount under section 59B of the VEA.  A person may have up to two funeral bonds treated as exempt assets.

A prepaid funeral is a funeral purchased in advance. The type and style of funeral is documented in a contract and the funeral is paid for at today's prices. There are no further costs to be paid regardless of when the funeral is required. A prepaid funeral is assessed as an exempt asset and no threshold or limit applies.