4.6.5.10 Assessing Personal Effects, Household Contents, Vehicles & Cash

Summary

This topic discusses how to assess a customer's or couple's (1.1.M.120)

personal effects and household contents (1.1.P.235),
vehicles, and
cash (1.1.C.63).

Personal effects & household contents

A customer's or couple's personal effects and household contents are assessed as being $10,000, UNLESS the customer advises a different amount.

If the customer advises that the net market value (1.1.M.40) of their personal effects and household contents is less than $10,000:

accept the customer's assessment, UNLESS
there are very strong indications to suggest that the value is significantly understated.

If the customer's valuation appears to be significantly understated:

ask how they arrived at the decision, AND
explain the meaning of 'market value'.

A customer is ALWAYS required to declare the value of personal effects and household contents IF that value exceeds $10,000.

Act reference: SSAct section 1118(3) For the purposes of this section…

Vehicles

A customer's estimate of the market value of their vehicle is accepted UNLESS the valuation:

is significantly over or understated, AND
would affect their payability or rate.

Explanation: Vehicles include a motor vehicle, motor cycle, trailer, caravan (other than the principal home (section 11A(1)), or boat (other than the principal home).

Exception: Commonwealth vehicles provided under the 'gift car scheme' are an exempt asset (1.1.E.170).

Act reference: SSAct section 11A(1) Principal home

Cash

The customer's estimate of the value of cash on hand other than that held to meet day-to-day expenses is accepted. On call deposits with a bank, credit union or building society are assessed at face value.

Act reference: SSAct section 1118 Certain assets to be disregarded in calculating the value of a person's assets

Policy reference: SS Guide 2.2.3 Verifying Financial Information

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Last reviewed: 2 January 2007

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