4.6.8.30 Grandfathering provisions for more than one title

Summary

This topic discusses the grandfathering provisions that exist for income support recipients (who have land adjacent to the principal home of up to 2 hectares) and who would otherwise be disadvantaged by the introduction of the one title rule from 1 January 2007.

Background information

From 1 January 2007 the legislative definition of a principal home was amended to clarify the exemption of land adjacent to the home as being the land held under the same title document as the land on which the dwelling-house is located.

This amendment would have resulted in some income support recipients receiving a reduced rate of payment, or having their payment cancelled, from 1 January 2007.

What are grandfathering provisions

Grandfathering provisions enable a person to continue to have their circumstances assessed under the 'old rules', so they are not disadvantaged by the introduction of the 'new rules'.

Generally, if a person's payment was to be reduced or cancelled due to the introduction of a new rule (legislative or policy) then a grandfathering provision enables that person to be assessed as they were still under the old rules.

Income support recipients to whom the grandfathering provisions apply, may come to light on an ongoing basis.

Application of grandfathering provisions

The grandfathering provisions apply to income support recipients who were receiving payment as at 31 December 2006, and:

• whose payment would be reduced or cancelled from 1 January 2007 as a result of the application of the amended definition of land adjacent to the principal home, OR
• whose payment was reduced prior to 1 January 2007 because land adjacent to their dwelling-house was not on the same title.

Under the grandfathering provisions, from 1 January 2007, the income support recipient will continue to have the 2 hectares on more than one title exempt from the assets test, providing:

• the land on the other title is not used primarily for commercial purposes
• the income support recipient remains living in their home, and
• the income support recipient continues to receive an income support payment.

The grandfathering provisions also apply to income support recipients, current at 31 December 2006, who would have gained an advantage in the past if it were not for the one title rule being enforced. That is, the income support recipient could have had land of up to 2 hectares on 2 titles exempt, but because the one title rule was enforced they only have an exemption for one title.

Under the grandfathering provisions, from 1 January 2007, the income support recipient can have the 2 hectares on more than one title exempt from the assets test, providing:

• the land on the other title is not used primarily for commercial purposes
• the income support recipient remains living in their home, and
• the income support recipient continues to receive an income support payment.

Where income support recipients could have gained an advantage in the past if it were not for the one title rule being enforced, the normal date of effect provisions relating to a favourable decision will apply. That is, the date of effect of the favourable determination is the day they sought the review.

The grandfathering provisions apply only to income support recipients whose dwelling-house and adjacent land is 2 hectares and under, but the area of land is on more than one title.

The grandfathering provisions do not apply to a person who satisfies the extended land use test.

Cessation of income support payment

If the person ceases to receive an income support payment then grandfathering provisions are lost and cannot be reapplied some time in the future.