Section 1121A — Social Security Act 1991: Effect of certain liabilities on value of assets used in primary production

(1) For the purposes of working out the value of a person’s assets under this Act, if: (a) the person is: (i) a primary producer; or (ii) a family member of a primary producer; and (b) the person has assets (including real property) that are, in the Secretary’s opinion, used for the purposes of carrying on that primary production; and (c) the person also has liabilities that are, in the Secretary’s opinion, related to the carrying on of the primary production; then: (d) section 1121 does not apply in relation to the assets referred to in paragraph (b); and (e) those assets are taken to be a single asset (in this section called the primary production asset); and (f) the value of that single asset is worked out under subsection (2). Note: For family member see subsection 23(1). (2) The value of a person’s primary production asset is worked out in the following way: Method statement Step 1. Add together the value of the assets referred to in paragraph (1)(b): the result is called the unencumbered value. Step 2. Add together the value of the liabilities referred to in paragraph (1)(c): the result is called the total liability. Step 3. Take the total liability away from the unencumbered value: the result is the value of the person’s primary production asset. (3) If the result under Step 3 of the Method statement is less than nil, the value of the primary production asset is taken to be nil.