Assessment of assets hardship 108-04120040

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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.

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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.

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Description

1

Asset Hardship grant letter - text for Q999

Dear [claimant name],

I am writing to you about your [payment type] and your claim for consideration under the asset hardship provisions. You have been assessed as eligible for payment of [payment type] under the asset hardship provisions from [dd/mm/yyyy].

The asset(s) that have been disregarded as they are considered to be unrealisable are: [disregarded asset details]…………..

The rate payable to you under the asset hardship provisions is Max rate – ordinary income - notional income – actual income – reduction for non-disregarded assets = [$x.xx] per fortnight.

All property disregarded under the hardship provisions is deemed to produce income. This is the lesser of 2.5% of the value of the property, or the commercial lease value of the property. In your case the notional income assessed is $x.xx per fortnight.

You are paid under the asset hardship provisions. There are some additional things you must advise us within 14 days of when they occur.

[Delete line if not applicable to this case]

• If your readily available funds (bank, shares, investments, accessible superannuation exceed $.................
• If the frozen bank accounts that are being disregarded can now be accessed
• If the Company assets that are being disregarded can now be accessed
• If your Company/Trust is deregistered or wound up
• If your property settlement is finalised
• If you cease to rent or commence to rent the disregarded property
• If your ex-partner moves out of the disregarded property
• If your property is occupied by a close relative, you must notify if they move out
• If you cease to farm the property
• If you take the property off of the market
• You sell the disregarded property

If you commence employment, please contact Services Australia and advise of the details of your employment. As you are paid under the asset hardship provisions, you will not be able to report your wages online but will need to call each fortnight to report.

Select the contact Call Centre option.

[Include appeal paragraph]