1.1.L.65 Loan (assets test)

Usage

This definition applies to all payments subject to assets testing provisions.

Definition

To be a loan there MUST be:

  • an actual lending of money or an asset (1.1.A.290) of a particular value, AND
  • a clear intention to repay.

A loan is:

  • an advance of money, or
  • the payment of an amount for, on account of, on behalf of or at the request of a person where there is an obligation, whether expressed or implied, to repay the amount.

Policy reference: SS Guide 4.6.6.30 Encumbrances & Loans Against Assets, 4.6.2.20 Assessing Exemption for Irrecoverable Loans, Failed Loans & Debts, 4.6.5.60 Assessing Loans & Guarantor Arrangements

Last reviewed: 9 February 2015