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 relevant legislation/policy. 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.F.135 Financial investments

Usage

The definition of financial investment applies to all income support payments and some concession programs.

Act reference: SSAct section 23(1)-'income support payment'

Definition: financial investment

For income and assets test purposes, a financial investment is defined as:

  • available money, or
  • deposit money, or
  • a managed investment, or
  • a listed security, or
  • a loan that has not been repaid in full, or
  • an unlisted public security, or
  • gold, silver or platinum bullion, or
  • an asset-tested income stream (short term), or
  • from 1 January 2015, an asset-tested income stream (long term) that is an account-based pension, or
  • from 1 January 2015, an asset-tested income stream (long term) that is an account-based annuity.

Examples: Financial investments include:

  • cheque and savings accounts from banks, building societies and credit unions,
  • cash,
  • term deposits,
  • cash management accounts,
  • money held in solicitors' trust accounts,
  • managed investments,
  • investments in superannuation funds, approved deposit funds and deferred annuities held by income support recipients who are over age pension age,
  • account-based pension or account-based annuity,
  • bonds, debentures, unsecured notes, bank bills,
  • listed shares and securities,
  • loans made to individuals and business structures (i.e. private companies, trusts),
  • shares in unlisted public companies, and
  • gold and other bullion.

Act reference: SSAct section 9(1) Financial assets and income streams definitions, section 9(1)-'asset-tested income stream (short term)', section 9(1)-'asset-tested income stream (long term)', section 9(1)-'superannuation fund'

Policy reference: SS Guide 4.4 Deeming provisions, 4.3 Ordinary income, 4.6 Assets, 4.6.5.20 Assessing Fixed Term Deposits, Bonds, Securities, 4.6.5.40 Assessing Shares in Public Companies, 4.9.3.30 Means test assessment of asset-tested income streams (long term)

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