VEA ? [2]
Generally the assets [3] and income [3] of a controlled private trust [3] or controlled private company [3] are assessed on an annual basis from the most recent tax return. However, pensioners who are attributable stakeholders [3] of a controlled private trust or controlled private company may request a reassessment of their circumstances at any time. The reassessment period then becomes the attribution period [3], which must have reference to the applicable derivation period [3].
More ? [4]
An entity [3] has three attributable stakeholders, X, Y and Z. All the stakeholders are in receipt of an income support payment. Stakeholder X requests a reassessment that results in a decrease in the amount of attributed income for the entity. The decrease in entity income affects all the stakeholders regardless of who originally requested the reassessment.
The pensioner must supply appropriate documentation to enable a reassessment. It is their responsibility to keep current financial records of the entities they control. The documentation they may supply can include but is not restricted to:
The pensioner is also required to supply current financial records at the end of each reassessment cycle. Where a person has difficulty in providing this information, it is appropriate that they seek assistance from their accountant. It should be noted that possible legal ramifications preclude DVA staff from assisting pensioners in compiling the financial statements.
The pensioner must supply an estimate of their expected earnings for the reassessment period.
An asset means any property, including property outside Australia.
According to section 5H of the VEA [9] income is:
According to section 52ZZH of the VEA, a trust is a controlled private trust in relation to an individual if the company is a designated private trust and the individual passes either the:
According to section 52ZZC of the VEA, a company is a controlled private company in relation to an individual if the company is a designated private company and the individual passes either the:
According to section 52ZZJ of the VEA [10], 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.
The Commission may, by writing, determine that, if an individual is an attributable stakeholder [3] of a company or trust at a specified time (the start time), then an attribution period is a period beginning at the start time and ending at the earlier of the following times:
The attribution period for the purposes of the application of Division 11A applies to both the individual and the company or trust. That attribution period must relate to a specified derivation period [3] of the company or trust.
An attribution period:
An entity means any of the following:
an individual,
a company,
a trust,
a business partnership,
a corporation sole,
a body politic.
Financial year, in relation to a company, means:
Links
[1] https://clik.dva.gov.au/user/login?destination=node/16482%23comment-form
[2] https://clik.dva.gov.au/book/export/html/16482#tgt-cspol_part10_ftn500
[3] https://clik.dva.gov.au/%23
[4] https://clik.dva.gov.au/book/export/html/16482#tgt-cspol_part10_ftn501
[5] https://clik.dva.gov.au/service-eligibility-assistant-updates/all-determinations-order-date-signed-oldest-most-recent/determinations-under-vea
[6] https://clik.dva.gov.au/book/export/html/16482#ref-cspol_part10_ftn500
[7] 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
[8] https://clik.dva.gov.au/book/export/html/16482#ref-cspol_part10_ftn501
[9] http://clik/health-procedure-library/health-information-and-management-notes-himn/vhc/072014-vhc-veterans-home-care
[10] http://clik.dva.gov.au/legislation-library