Contents

Page

Part 1 Preliminary

1 Name of Principles

2 Commencement

3 Definitions

4 Purpose

Part 2 Disposal of ordinary income (on or after 1 January 2002) by individual

5 Purpose of Part 2

6 Definitions

7 Transferor as sole attributable stakeholder

8 Transferor as member of couple

9 Transfer to company or trust with 2 or more attributable stakeholders

10 Transfer to company or trust by individual who becomes attributable stakeholder

Part 3 Disposal of ordinary income (on or after 1 January 2002) by company or trust

11 Purpose of Part 3

12 Disposal to attributable stakeholder

Part 1 Preliminary

1 Name of Principles

These Principles are the Social Security (Modification of Income Deprivation Rules) Principles 2017.

2 Commencement

These Principles commence on 1 April 2017.

3 Definitions

In these Principles:

Act means the Social Security Act 1991.

4 Purpose

These Principles set out decision-making principles with which the Secretary must comply for the purposes of making a determination under subsection 1208Q (1) and 1208R (3) of the Act.

Part 2 Disposal of ordinary income (on or after 1 January 2002) by individual

5 Purpose of Part 2

This Part sets out decision-making principles with which the Secretary must comply in making a determination for subsection 1208Q (1) of the Act.

6 Definitions

In this Part:

individual means an individual who transfers property to a company or trust in accordance with subsection 1208Q (1) of the Act.

member of a couple has the same meaning as in section 4 of the Act.

7 Transferor as sole attributable stakeholder

(1) This section applies to an individual who is not a member of a couple.

(2) The Secretary must take into account whether the individual was the only attributable stakeholder of the company or trust, either before or after the transfer.

8 Transferor as member of couple

(1) This section applies to an individual who is a member of a couple.

(2) The Secretary must take into account whether:

(a) the individual was the only attributable stakeholder of the company or trust, either before or after the transfer; or

(b) both members of the couple were the only attributable stakeholders of the company or trust, either before or after the transfer.

9 Transfer to company or trust with 2 or more attributable stakeholders

(1) This section applies if, in relation to a transfer of property to a company or trust:

(a) the transfer is made by an attributable stakeholder of the company or trust; and

(b) before the transfer, there were 2 or more attributable stakeholders of the company or trust.

(2) This section also applies if, in relation to a transfer of property to a company or trust:

(a) the transfer is made by an attributable stakeholder of the company or trust; and

(b) after the transfer, there were 2 or more attributable stakeholders of the company or trust.

(3) The Secretary must take into account the income attribution percentage of each attributable stakeholder of the recipient company or recipient trust, before and after the transfer of the property.

10 Transfer to company or trust by individual who becomes attributable stakeholder

(1) This section applies if, in relation to a transfer of property to a company or a trust:

(a) the transfer is made by an individual who is not an attributable stakeholder of the company or trust; and

(b) as a result of the transfer, the individual is an attributable stakeholder.

(2) The Secretary must take into account the income attribution percentage of each attributable stakeholder of the company or trust, before and after the transfer of the property.

Part 3 Disposal of ordinary income (on or after 1 January 2002) by company or trust

11 Purpose of Part 3

This Part sets out decision-making principles with which the Secretary must comply in making a determination for subsection 1208R (3) of the Act.

12 Disposal to attributable stakeholder

The Secretary must take into account whether, in relation to a transfer of ordinary income of a company or trust in accordance with subsection 1208R (1) of the Act, the transfer is to an individual who is an attributable stakeholder of the company or trust.