22.214.171.124 Notional Ordinary Income - Other Farming Situations
This topic discusses how to calculate notional ordinary income for a person's farm WHEN the farm is NOT being operated by the person or a family member.
Notional ordinary income for a person's farm that is an unrealisable asset is the LOWER of:
- 2.5% of its NET value, OR
- the commercial lease value (1.1.C.207).
Exception: Any actual income received by the person from the farm is used to calculate the rate under hardship provisions IF the actual income received is GREATER THAN the calculated notional ordinary income.
Act reference: SSAct section 1129 Access to financial hardship rules-pensions, section 1130B Access to financial hardship rules-pension PP (single), section 1131(1) Access to financial hardship rules-benefits, section 23(14) Participation in pension loans scheme, section 11(1)-'unrealisable asset', section 8(1)-'income'