Home property adjustment amount and apportionment calculations on entity owned residence 043-04060020

The REHC screen is used to record house and curtilage owned by an entity.

Where a customer's Customer Reference Number (CRN) is recorded against the house and curtilage, the assessable value of that house and curtilage will be passed to the customer's record and deducted from any assets attributed to that CRN from the entity. This amount is called the home property adjustment amount (HPAA).

• The system will pass Address and Event Date details from the Real Estate (RE) screen
• House: Free text field used to describe the house. The description may assist when updating details later. It also may assist a professional registered valuer if a valuation is needed. In some cases it may be more appropriate to record the occupant's name
• Curr Val: Record the current market value of the house and curtilage. The full value should be recorded regardless of how many CRNs are recorded as residing in the house. For all new claims from 1 January 2007 the Assets Test assessment for the principal home and curtilage has been amended to a single title rule. Where the private land use test applies, the amount of house and curtilage is the lesser of two hectares or the area of the one title on which the home is situated. Where the extended land use test applies, the amount of house and curtilage is the value of the all of the land on the same title as the home. The value of any land attached to the home which is not regarded as curtilage is an assessable asset
• Note: a title document may have more than one parcel of land included
• A grandfathered savings provision for real estate will grandfather concessions for real estate to two groups of existing customers on payments continuously prior to 1 January 2007. This group are entitled to a 2 hectare house and curtilage amount
• CRN: Record the CRN of any customer who is both a controller of the trust or company and who is in receipt of an income support payment. If there is more than one such customer living in one home, including a partnered couple, record each person's CRN
• If the CRN of a customer who is a controller of a company that owns a property containing the house in which they live is recorded on the REHC screen, ensure the customer is recorded as being a home owner on the Accommodation Details (AC) screen

Ensure that, for members of a couple, both partners have their CRN recorded on the same REHC screen.

For more detail on house and curtilage assessments, see Assessing house and curtilage.

The home property adjustment amount (HPAA) of each controller whose CRN is recorded on the Real Estate House and Curtilage (REHC) screen can be calculated through the combination of the data on the following screens:

• Real Estate (RE) (% Asset Owned: field)
• REHC (Current Valuation: field)
• Trust/Company Attribution (TRA) (Asset Attribution %: field) and
• Trust/Company Liabilities (TRLD) (Amount $: field)

The formula is:

Step 1: Value of the home = (value of customer's house per REHC multiplied by the percentage owned per RE) minus liabilities (if the result is negative, substitute zero).

Where: apportioned liabilities = (value of customer's house per REHC) x (total liability relating to that property on TRLD) / (value of whole property on RE).

Step 2: HPAA = (value of the home from Step 1) x (the customer's attribution % on TRA).