Section 1208N — Social Security Act 1991: Individual disposes of asset to company or trust before 1 January 2002—individual is attributable stakeholder

(1) If: (a) an individual has transferred property to a company or trust before 1 January 2002; and (b) the transfer amounts to a disposal by the individual of an asset of the individual; and (c) apart from this section: (i) under Division 2 of Part 3.12 or sections 198F to 198MA (inclusive), as a result of the disposition, a particular amount is included in the value of the individual’s assets for the period of 5 years that starts on the day on which the disposition took place; and (ii) that 5-year period ends after 1 January 2002; and (d) the individual is an attributable stakeholder of the company or trust on 1 January 2002; the Secretary may, by writing, determine that: (e) in a case where the individual’s asset attribution percentage is 100%—Division 2 of Part 3.12 and sections 93U, 93UA and 198F to 198MA (inclusive) have effect, in relation to the disposal of the asset referred to in paragraph (b), as if a reference in that Division or those sections to the period of 5 years that starts on the day on which the disposition took place were a reference to the period: (i) beginning on the day on which the disposition took place; and (ii) ending immediately before 1 January 2002; or (f) in a case where the individual’s asset attribution percentage is less than 100%—Division 2 of Part 3.12 and sections 93U, 93UA and 198F to 198MA (inclusive) have effect on and after 1 January 2002, in relation to the disposal of the asset referred to in paragraph (b), as if the amount of the disposition were reduced by: (i) the individual’s asset attribution percentage as at 1 January 2002; or (ii) if a higher percentage is specified in the determination—that higher percentage. (2) A determination under subsection (1) has effect accordingly. (3) In making a determination under subsection (1), the Secretary must comply with any relevant decision-making principles.