Assessment of assets hardship 108-04120040

Item

Description

1

Legal transfer of property

A farmer who transfers legal ownership of their farm property to a child may be able to have the deprivation disregarded.

Check if the farmer would have qualified for a pension under asset hardship provisions if the property transfer did not occur.

For example:

• the farmer met the severe financial hardship criteria, and
• the farm met the criteria of an unrealisable asset at the time of transfer

2

Single person who gives away financial assets

A single person who gives away financial assets worth $300,000 and ends up with $5,000, is not eligible.

This is because the hardship is a direct result of giving away the assets.

Item

Description

1

A customer makes claim for Age Pension in July and is rejected under the assets test in August. They become aware of the assets hardship provisions via their rejection letter and obtain a claim form and apply for assets hardship as soon as practicable in September. In this case the delegate has the discretion to grant under the asset hardship from July if all the criteria are met from that time.