1.1.L.65 Loan (assets test)


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


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 Encumbrances & loans against assets, Assessing Exemption for Irrecoverable Loans, Failed Loans & Debts, Assessing Loans & Guarantor Arrangements

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