If a sole attributable stakeholder [2], or members of a couple [2] who are the only attributable stakeholders, make a capital injection into a structure in the form of a gift, that gift will not be subject to the disposal or deprivation provisions [2] but must be included in the value of the structure. This is because a sole attributable stakeholder, or members of a couple who are the only attributable stakeholders, cannot gift to themselves.
If there are multiple attributable stakeholders and one of those stakeholders makes a capital injection to a structure in the form of a gift, the gift will be included in the value of the structure and attributed to the attributable stakeholders in accordance with their assessed attribution percentage. The attributable stakeholder who made the gift will be subject to the deprivation provisions [2] of the Act, in regard to the amount of the gift attributed to the other (attributable) stakeholders.
More ? [3]
John and Jim are the attributable stakeholders of a private company, with an attribution percentage of 50% each. John gifts $30,000 to the company. Fifty percent ($15,000) of the gift is subject to the disposal rules which results in an amount of $5,000 held against John as a deprived asset for 5 years from the date of the gift.
If the gift is from a third party (that is, a person who is not an attributable stakeholder [2] of the trust or company), the amount of the gift will be added to the value of the entity [2]. The third party making the gift would be subject to the deprivation provisions [2], if that third party is or becomes an income support recipient.
More ? [4]
According to section 52ZZJ of the VEA [9], a person is an attributable stakeholder if a company or trust is a controlled private company or trust in relation to the individual unless the Commission determines otherwise.
According to Section 5E(2) [10]of the VEA [10]a person is a member of a couple, if they are:
The term “partnered” is also commonly used.
According to section 52ZZJ of the VEA [9], a person is an attributable stakeholder if a company or trust is a controlled private company or trust in relation to the individual unless the Commission determines otherwise.
An entity means any of the following:
an individual,
a company,
a trust,
a business partnership,
a corporation sole,
a body politic.
Links
[1] https://clik.dva.gov.au/user/login?destination=node/16323%23comment-form
[2] https://clik.dva.gov.au/%23
[3] https://clik.dva.gov.au/book/export/html/16323#tgt-cspol_part10_ftn478
[4] https://clik.dva.gov.au/book/export/html/16323#tgt-cspol_part10_ftn479
[5] https://clik.dva.gov.au/compensation-and-support-policy-library/part-10-types-income-and-assets/103-business-structures-and-trusts/1037-attribution-percentage-derivation-and-attribution-period-01012002/attribution-percentage
[6] https://clik.dva.gov.au/book/export/html/16323#ref-cspol_part10_ftn478
[7] https://clik.dva.gov.au/compensation-and-support-policy-library/part-10-types-income-and-assets/103-business-structures-and-trusts/1036-attribution-guidelines-private-trusts-private-companies-01012002/source-test
[8] https://clik.dva.gov.au/book/export/html/16323#ref-cspol_part10_ftn479
[9] http://clik.dva.gov.au/legislation-library
[10] http://www.comlaw.gov.au/Series/C2004A03268