The Guides to Social Policy Law is a collection of publications designed to assist decision makers administering social policy law. The information contained in this publication is intended only as a guide to social security payments. The information is accurate as at the date listed at the bottom of the page, but may be subject to change. To discuss individual circumstances please contact Services Australia.

1.1.A.55 Adequate financial consideration (deprivation)


These definitions apply to a social security pension payment or social security benefit payment when assessing deprivation of assets.

Act reference: SSAct section 23(1)-'social security pension', section 23(1)-'social security benefit'


For adequate financial consideration to be received, the person must receive value in the form of money or assets (1.1.A.290). Adequate financial consideration can be accepted when the amount received reasonably equates to the market value (1.1.M.40) of the asset. It may be necessary to obtain a valuation from a professionally qualified valuer appointed by Centrelink.


For adequate financial consideration to be received, the person must receive money, goods or services which approximate in value to the rate of disposed income.

If a person disposes of an income producing asset and receives adequate financial consideration in money or money's worth for the asset, then it can be accepted that they have received adequate financial consideration for the disposed of income.

Example: Income producing assets include a rented house and shares.

A person whose income is reduced because of arranging or investing their assets in a particular way is not regarded as receiving inadequate financial consideration.

Example: A person who withdraws money from an investment paying 9% interest per annum and reinvests the money at 4% interest per annum is not regarded as having received inadequate financial consideration.

Act reference: SSAct section 1106 Disposal of ordinary income, section 1123 Disposal of assets

Policy reference: SS Guide 4.1 Deprivation of income & assets

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