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These definitions apply to a social security pension payment (section 23(1)-'social security pension') or social security benefit payment (section 23(1)-'social security benefit') when assessing deprivation of assets.
Act reference: SSAct section 23(1)-'social security pension', section 23(1)-'social security benefit'
For adequate financial consideration to be received, the person MUST receive value in the form of money or assets (1.1.A.290). Adequate financial consideration CAN be accepted when the amount received reasonably equates to the market value (1.1.M.40) of the asset. It may be necessary to obtain a valuation from the AVO.
For adequate financial consideration to be received, the person MUST receive money, goods or services which approximate in value to the rate of disposed income.
IF a person disposes of an income producing asset and receives adequate financial consideration in money or money's worth for the asset, then it CAN be accepted that they have received adequate financial consideration for the disposed of income.
Example: Income producing assets include a rented house and shares.
A person whose income is reduced because of arranging or investing their assets in a particular way is NOT regarded as receiving INADEQUATE financial consideration.
Example: A person who withdraws money from an investment paying 9% interest per annum and reinvests the money at 4% interest per annum is NOT regarded as having received INADEQUATE financial consideration.
Act reference: SSAct section 1106 Disposal of ordinary income, section 1123 Disposal of assets
Policy reference: SS Guide 4.1 Deprivation of Income & Assets
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Last reviewed: 5 May 2008
