4.6.5.10 Assessing personal effects, household contents, vehicles & cash
Summary
This topic discusses how to assess a person's and their partner's:
Personal effects & household contents
A person's and their partner's personal effects and household contents are assessed as being $10,000, UNLESS the person advises a different amount.
If the person advises that the net market value (1.1.M.40) of their personal effects and household contents is less than $10,000:
- accept the person's assessment, UNLESS
- there are very strong indications to suggest that the value is significantly understated.
If the person's valuation appears to be significantly understated:
- ask how they arrived at the decision, AND
- explain the meaning of 'market value'.
A person is ALWAYS required to declare the value of personal effects and household contents IF that value exceeds $10,000.
Act reference: SSAct section 1118(3) Value of certain personal effects of less than $10,000
Vehicles
A person's estimate of the market value of their vehicle is accepted UNLESS the valuation:
- is significantly over or understated, AND
- would affect their payability or rate.
Explanation: Vehicles include a motor vehicle, motor cycle, trailer, caravan (other than the principal home), or boat (other than the principal home).
Exception: Commonwealth vehicles provided under the 'vehicle assistance scheme' are an exempt asset (1.1.E.170).
Act reference: SSAct section 11A(1) Principal home
Cash
The person's estimate of the value of cash on hand other than that held to meet day-to-day expenses is accepted. On call deposits with a bank, credit union or building society are assessed at face value.
Act reference: SSAct section 1118 Certain assets to be disregarded in calculating the value of a person's assets