Deprivation provisions apply to a pensioner who is assessed under the income test [2] and assets test [2]. The value of a disposed asset must be recorded, even if it has no effect on the pensioner's current entitlement. It may be necessary to obtain a valuation for the disposed asset from the Australian Valuation Office.
The value of several disposed assets may cause a pensioner's income support pension to be assets tested. The deemed income may cause an effect under the income test.
Deeming is applied to the:
The actual income lost by disposal of an income producing asset, when the disposal of assets is being assessed, is ignored.
More ? [3]
VEA ? [4]
The value of disposed assets is subject to deeming provisions if the value of these assets exceeds the disposal limit. Any actual income lost by disposal of an income-producing asset is disregarded. This ensures no double counting due to the deeming provisions. Asset disposal is assessed under both the income test (deeming) and assets test, regardless of whether the disposed asset was income-producing or capable of producing income.
More ? [5]
One element of the means test [2] for income support pensions whereby the rate of pension payable to a pensioner reduces progressively as their income increases above a certain threshold known as the income free area (IFA) [2].
One element of the means test for income support pensions whereby the rate of pension payable to a pensioner reduces progressively as their assets increase above a certain threshold known as the assets value limit (AVL). [12]
Links
[1] https://clik.dva.gov.au/user/login?destination=node/16016%23comment-form
[2] https://clik.dva.gov.au/%23
[3] https://clik.dva.gov.au/book/export/html/16016#tgt-cspol_part9_ftn557
[4] https://clik.dva.gov.au/book/export/html/16016#tgt-cspol_part9_ftn558
[5] https://clik.dva.gov.au/book/export/html/16016#tgt-cspol_part9_ftn559
[6] https://clik.dva.gov.au/compensation-and-support-policy-library/part-9-principles-determining-pension-rate/95-deeming-provisions
[7] https://clik.dva.gov.au/book/export/html/16016#ref-cspol_part9_ftn557
[8] https://clik.dva.gov.au/legislation-library
[9] https://clik.dva.gov.au/book/export/html/16016#ref-cspol_part9_ftn558
[10] https://clik.dva.gov.au/compensation-and-support-policy-library/part-9-principles-determining-pension-rate/96-deprivation-income-and-assets/964-treatment-income-and-assets-disposals
[11] https://clik.dva.gov.au/book/export/html/16016#ref-cspol_part9_ftn559
[12] http://clik.dva.gov.au/glossary/assets-value-limit-avl