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. Assessing Fixed Term Deposits, Bonds, Securities


This topic discusses the assessable value of:

  • fixed term deposits, bonds and securities,
  • listed bonds and securities and deferred or reversionary bonds and investments,
  • commercial bonds, and
  • dingo bonds, digger bonds and zero coupon bonds.

It also summarises to which financial investments deeming provisions apply.

Act reference: SSAct section 9(1)-'financial investment'

Policy reference: SS Guide 4.4 Deeming Provisions

Fixed term deposits, bonds & securities

The table below explains how to assess the value of fixed term deposits, unlisted bonds and securities.

If… Then the assessable value is the…
the investment can be traded, market value (1.1.M.40).
the investment CANNOT be traded, amount paid by the person for the investment.

An alternative value is accepted IF the person provides supporting information.

Exceptions: The following are NOT valued in this way:

  • deferred debentures or deferred or reversionary interest (1.1.I.185) bonds and investments, AND
  • commercial bills, AND
  • dingo bonds, digger bonds, and zero coupon bonds, AND
  • listed bonds and securities.

Listed bonds & securities & deferred or reversionary bonds & investments

The asset (1.1.A.290) value is the last sale price quoted in the financial press. If the market price is NOT quoted in the financial press, the asset value is the:

  • total accrued compound interest, PLUS
  • face value of the bond or investment (see example).

Example: A 12% deferred interest bond of $100.00 has a value of $112.00 after one year ($100.00+$12.00) and $125.44 after 2 years ($112.00+$13.44).

A lower interest rate MAY apply if the investment is redeemed or surrendered BEFORE the fixed term. The following table shows which interest rate to use when assessing these investments.

If the person… Then use the…
HAS redeemed or surrendered the investment BEFORE the fixed term, LOWER interest rate.
NOT redeemed or surrendered the investment, HIGHER interest rate.

Commercial bills

The asset value for commercial bills is the:

  • amount paid for the bill, PLUS
  • interest owing at the end of the fixed term.

Dingo bonds, digger bonds & zero coupon bonds

Obtain the value of dingo bonds, digger bonds and zero coupon bonds from the merchant bank or financial institution that issued them.

Deemed income

A deemed rate of interest applies to ALL financial investments.

Example: Financial investments include fixed term deposits, debentures, listed securities, and unlisted public securities.

Policy reference: SS Guide 4.4 Deeming Provisions

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