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Jane is a single WidB recipient with $2,000 in a building society account, shares valued at $15,000, and managed investments valued at $22,000. She gifted $28,000 to her children yesterday and has not gifted money before.
The following table shows the deemed income calculation.
|
Step |
Action |
$ |
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1 |
Determine the value of the recipient's total financial assets. - Add financial investments and total deprived assets (less allowable gifting of $10,000). - RESULT: value of total financial assets. |
57,000 |
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2 |
Is the value of total financial assets less than the threshold? - If YES, multiply the value by 2.5% to obtain the total deemed income. - If NO, multiply the threshold by 2.5%. - RESULT: below threshold amount = ($45,400 x 2.5%) |
1,135 |
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3 |
Determine the unused value amount. - Value of total financial assets - Less threshold - RESULT: unused value amount. |
57,000 45,400 11,600 |
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4 |
Multiply the unused value amount by 4%. - RESULT: above threshold amount. |
464 |
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5 |
Determine the total deemed income. - Add the below threshold amount and the above threshold amount = $1,135 + $464 - RESULT: total deemed income. |
1,599 |
The total deemed income is added to any income Jane has from other sources to calculate how much she can be paid under the income test.
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Last reviewed: 20 March 2013
