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.

4.6.7.120 Notional ordinary income - other farming situations

Summary

This topic discusses how to calculate notional ordinary income for a person's farm WHEN the farm is NOT being operated by the person or a family member.

Notional ordinary income for a person's farm that is an unrealisable asset is the LOWER of:

  • 2.5% of its NET value, OR
  • the commercial lease value (1.1.C.207).

Exception: Any actual income received by the person from the farm is used to calculate the rate under hardship provisions IF the actual income received is GREATER THAN the calculated notional ordinary income.

Act reference: SSAct section 1129 Access to financial hardship rules—pensions, section 1130B Access to financial hardship rules—pension PP (single), section 1131(1) Access to financial hardship rules—benefits, section 23(14) Participation in pension loans scheme, section 11(1)-'unrealisable asset', section 8(1)-'income'

Policy reference: SS Guide 4.6.6.30 Encumbrances & loans against assets, 4.6.7.100 Notional Ordinary Income - Net Value of a Farm

Last reviewed: