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SOCIAL SECURITY LEGISLATION AMENDMENT (FURTHER BUDGET AND OTHER MEASURES) ACT 1996 No. 83, 1996 - SCHEDULE 1
Schedule 1-Amendments to remove the means test exemption
for superannuation assets in certain cases
Social Security Act 1991 1 Section 3 (index) Insert:
prescribed pre-pension age person 23(1)
2 Subsection 8(1) (definition of income) After "(5)", insert ", (7A)". 3 After
subsection 8(7) Insert: Excluded amounts-superannuation investment returns
(7A) Subject to subsection (7B), a return on a person's investment in a
superannuation fund, an approved deposit fund, a deferred annuity or an ATO
small superannuation account is not income for the purposes of this Act if the
person has not:
(a) reached pension age; or
(b) started to receive a pension or an annuity out of the fund. Note 1:
For pension age see subsection 23(1). Note 2: For superannuation fund,
approved deposit fund, deferred annuity and ATO small superannuation
account see subsection 9(1). Certain investment returns not excluded
(7B) Subsection (7A) does not exclude a return on a person's investment if the
person is a prescribed pre-pension age person. Note: For prescribed
pre-pension age person see subsection 23(1). 4 Paragraph 8(8)(b) Repeal the
paragraph and the notes. 5 Paragraph 9(1B)(d) (note) Omit "before pension age
is reached", substitute "by persons who are neither prescribed pre-pension age
persons nor persons who have reached pension age". 6 Paragraph 9(1B)(e) (note)
Omit "before pension age is reached", substitute "by persons who are neither
prescribed pre-pension age persons nor persons who have reached pension age".
7 Paragraph 9(1B)(f) (note) Omit "before pension age is reached", substitute
"by persons who are neither prescribed pre-pension age persons nor persons who
have reached pension age". 8 Paragraph 9(1B)(g) (note) Omit "before pension
age is reached", substitute "by persons who are neither prescribed pre-pension
age persons nor persons who have reached pension age". 9 Paragraph 9(1C)(a)
After "investor", insert "is not a prescribed pre-pension age person and". 10
Paragraph 9(1C)(b) After "investor", insert "is not a prescribed pre-pension
age person and". 11 Paragraph 9(1C)(c) After "investor", insert "is not a
prescribed pre-pension age person and". 12 Paragraph 9(1C)(ca) After
"investor", insert "is not a prescribed pre-pension age person and". 13
Subsection 9(1C) (note 1) Repeal the note, substitute: Note 1: For pension age
and prescribed pre-pension age person see subsection 23(1). 14 Subsection
23(1) Insert:
prescribed pre-pension age person means a person who, whether before, on or
after 20 September 1997:
(a) reaches, or has reached, 55; and
(b) has received, since reaching 55, any, or any combination, of the
following for a single continuous period of 39 weeks, or for separate
periods that add up to a period of 39 weeks:
(i) a social security pension;
(ii) a social security benefit;
(iii) a service pension. 15 After subsection 23(1) Insert:
(1A) For the purposes of the definition of prescribed pre-pension age person
in subsection (1), a person who receives a payday-based payment of a pension
or benefit of the kind referred to in paragraph (b) of the definition is taken
to have received the payment for a period of 2 weeks. Note: For payday-based
payment see section 42. 16 Section 1095 Repeal the section. 17 Paragraph
1096(a) Omit "before the person reaches pension age". 18 After paragraph
1096(a) Insert:
(aa) when the investment is realised, the person is not a prescribed
pre-pension age person and has not reached pension age; and 19 At the
end of section 1096 Add: Note: For pension age and prescribed
pre-pension age person see subsection 23(1). 20 Paragraph 1118(1)(f)
Repeal the paragraph. 21 After section 1118 Insert: 1118A Value of
certain superannuation investments to be disregarded
(1) Subject to subsections (2) and (3), the value of a person's investment in
a superannuation fund, an approved deposit fund, a deferred annuity or an ATO
small superannuation account is to be disregarded in calculating the value of
the person's assets for the purposes of this Act if the person has not:
(a) reached pension age; or
(b) started to receive a pension or an annuity out of the fund.
(2) Subsection (1) does not apply to the calculation of the value of a
person's assets for the purposes of section 198J or 198L, subparagraph
263(1)(d)(iv), or section 1124A, 1125, 1125A, 1126, 1133 or 1135A.
(3) Subsection (1) does not exclude the value of a person's investment if the
person is a prescribed pre-pension age person. Note: For pension age and
prescribed pre-pension age person see subsection 23(1).
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