This definition applies to all payments subject to assets testing provisions.
A company is incorporated by registration under the Corporations Act. A company is a legal entity which is set up to either:
The features of a company are:
Some features of a private company are:
These companies are referred to in the Corporations Act as proprietary companies.
Policy reference: SS Guide 188.8.131.52 Assessable Assets from Private Companies & Unlisted Public Companies, 184.108.40.206 Treatment of Assessable Assets - Private & Unlisted Public Companies - Not Assessed Under New T & C Rules, 220.127.116.11 Assessing Shares in Public Companies, 18.104.22.168 Assessing Shares in Private & Unlisted Public Companies - Not Assessed Under New T & C Rules
A public company can offer its shares to the public. A public company may be listed on the Stock Exchange or unlisted.
Shares in public listed and unlisted companies are financial assets under the Act. They are part of an income support recipient's financial assets and subject to deeming. They are NOT subject to assessment under the business income rules in the SSAct section 1075(1).
Act reference: SSAct section 1075(1) Permissible reductions of business income, section 1072 General meaning of ordinary income, section 8(1) Income test definitions, section 9(1)-'financial asset', section 9(1)-'financial investment', section 9(1)-'listed security', section 9(1)-'unlisted public security'
Last reviewed: 13 May 2013