Section 1124A — Social Security Act 1991: Disposal of assets in pre-pension years—individuals

(1A) This section applies only to disposals of assets that took place before 1 July 2002. (1) If: (a) a person is not a member of a couple when the person claims a pension, benefit or payment of a kind referred to in subsection 11(10A); and (b) the person has, during a pre-pension year of the person, disposed of an asset of the person; and (c) the amount of that disposition, or the sum of that amount and of the amounts (if any) of other dispositions of assets previously made by the person during that pre-pension year, exceeds the disposal limit; then, for the purposes of determining whether a pension, benefit or payment is payable to the person, there is to be included in the value of the person’s assets for the period of 5 years that starts on the day on which the disposition took place: (d) the amount by which the sum of the amount of the first-mentioned disposition of assets and of the amounts (if any) of other dispositions of assets previously made by the person during that pre-pension year exceeds the disposal limit; or (e) the amount of the first-mentioned disposition; whichever is the lesser amount. Note 1: For disposes of assets see section 1123. Note 2: For amount of disposition see section 1124. Note 4: If a pension or benefit is payable to the person, section 1125 operates to determine the rate of payment and section 1124A ceases to apply to the person. (3) In this section: disposal limit means: (a) in relation to assets disposed of on or after 1 March 1986 and before 1 March 1991—$2,000; and (b) in relation to assets disposed of on or after 1 March 1991—$10,000.