Section 48C — Veterans' Entitlements Act 1986: Disposal of ordinary income—members of couples

(1) Subject to subsections (2), (3) and (4), if a person who is a member of a couple has, on or after 1 June 1984, disposed of ordinary income of the person: (a) 50% of the amount of the disposition is to be included in the person’s ordinary income; and (b) 50% of the amount of the disposition is to be included in the person’s partner’s ordinary income. Note 1: For disposes of income see section 48. Note 2: For amount of disposition see section 48A. (2) If: (a) amounts are included under subsection (1) in the ordinary income of a person who is a member of a couple and in the person’s partner’s ordinary income because the person has disposed of ordinary income; and (b) the person and the person’s partner cease to be members of the same couple; any amount that was included in the ordinary income of the person’s former partner because of the disposition is to be included in the person’s ordinary income. (3) If: (a) amounts are included under subsection (1) in the ordinary income of a person who is a member of a couple and in the person’s partner’s ordinary income because the person has disposed of ordinary income; and (b) the person dies; no amount is to be included in the ordinary income of the person’s partner because of the disposition. (4) If: (a) an amount is included under subsection (1) in the ordinary income of a person who is a member of a couple and in the person’s partner’s ordinary income because the person has disposed of ordinary income; and (b) the person’s partner dies; any amount that would, if the person’s partner had not died, be included in the ordinary income of the person’s partner because of the disposition is to be included in the person’s ordinary income. Note: For ordinary income see subsection 5H(1): ordinary income includes investment income but does not include maintenance income.