Guideline Schedule C Definitions for National Means Test

Schedule C Definitions for National Means Test		Guideline: State Number: 29 (Part) Effective Date: 1/07/07

Allowable Assets
The maximum level of assets an applicant may have (following allowable deductions) for an applicant to qualify for a grant of legal aid without an initial contribution on assets. The figures represent an estimate of the amount that an applicant may be expected to have on hand between periodic paydays, or set aside to pay rent or other regular outgoings.
The maximum level of assets are set at $740 for a single applicant and $1,490 for an applicant with dependants.
Allowable Equity in Housing
The allowable equity in housing includes equity in:
all types of housing occupied as the principal place of residence of an applicant; housing in which the applicant resided immediately prior to separation; and land on which the applicant is building a home in which they intend to live;
up to a maximum ceiling fixed by reference to the appropriate benchmark.
Assessable Assets
The assessable assets of an applicant are the assets of the applicant (apart from excluded assets) and any financially associated person, unless:
they are separated; the financially associated person has a contrary interest in the matter for which legal assistance is sought; disclosure of the legal problem may damage the relationship; or there are other special reasons why the income of the financially associated person should be disregarded.
The assessable assets of an applicant are assets in which the applicant or a financially associated person has a legal or equitable interest. "Asset" may include real estate or personal items not registered in an applicant's or financially associated person's name.
Assessable Assets of a Child
The assessable assets of a child applicant:
the assets of that child where that child supports himself/herself from an income and/or any government benefit received by that child in their own right; or the assets of the parent(s) or guardian(s) who support(s) the child unless: a parent(s)/guardian(s) has a contrary interest in the matter; or disclosure of the matter to the parent(s)/guardian(s) would damage the relationship; or the parent(s)/guardian(s) is genuinely unwilling or unable to assist the child in the matter
unless, due to policy or administrative reasons, the LAC decides not to assess the child's assets.
Assessable Income
The assessable income of an applicant is the income of the applicant and any financially associated person (less all allowable deductions), unless:
they are separated; the financially associated person has a contrary interest in the matter for which legal assistance is sought; disclosure of the legal problem may damage the relationship; or there are other special reasons why the income of the financially associated person should be disregarded.
Assessable income is the income which the applicant or a financially associated person receives or of which the applicant or the financially associated person has the benefit. "Benefit" may include housing costs, living expenses, car costs, etc.
Assessable Income of a Child
The assessable income of a child applicant is:
the income of that child where that child supports himself/herself from that income; and/or any government benefit received by that child in their own right; or the income of the parent(s) or guardian(s) who support(s) the child;
unless:
a parent(s)/guardian(s) has a contrary interest in the matter; or disclosure of the matter to the parent(s)/guardian(s) would damage the relationship; or the parent(s)/guardian(s) is genuinely unwilling or unable to assist the child in the matter,
unless, due to policy or administrative reasons, the LAC decides not to assess the child's income.
Asset in Dispute
An asset in dispute is one of the following:
an asset the actual ownership of which is the issue for which legal assistance is sought; or an asset which the applicant, or a financially associated person asserts he/she is not the owner of (which has been disclosed in the application) and which would ordinarily be taken into account in any means test assessment.
It does not include assets in matrimonial property disputes where the legal issue is proportionate distribution rather than actual ownership.
Child
A person under the age of 18 years.
Childcare Costs
Childcare costs are those necessarily incurred by the applicant or financial associated person to work or study.
Clothing
Normal clothing which is reasonably required by the applicant and dependants.
Compulsory Payment
Compulsory payments include approval fees, compulsory initial contributions and other initial payments which all eligible applicants are required to pay irrespective of whether their assessable income and assets are below the eligibility thresholds.
Consumer Debt
Debt incurred in relation to:
household goods; motor vehicles; or repairs
which are owed:
to finance companies; on credit cards; or to other high interest lenders; or by way of personal loan or consumer mortgage,
whether the debt was incurred by the applicant, or the applicant has been left with a debt for which another person was to be solely or jointly responsible.
Contributions
Amounts of money which are payable, upon legal assistance being granted, toward the cost of legal services provided. Such payments are calculated through assessment under the National Means Test and the estimated cost of providing legal services.
Corporations
A group of people authorised to act as an individual and recognised in law as a single entity.
Dependant
A dependent child or financially associated person.
Discretions
Powers to waive certain core eligibility criteria in specified circumstances which are vested by individual LACs.
Equitable Charge
Any mortgage, statutory charge, caveat or other legal instrument used to secure a financial interest over the property of an applicant.
Farm/Business Equity
Equity in a farm or business vested in the applicant or a financially associated person up to a maximum ceiling. Where a single farm comprises several different titles it should be regarded as a single property for the purposes of the National Means Test.
Financially Associated Person
A financially associated person may include any person:
a.	from whom the applicant usually receives financial support; or
b.	to whom the applicant usually provides financial support; or
c.	who could reasonably be expected to financially assist the applicant in obtaining legal services.
"Person" may include a relative, partner, spouse, corporation, trust, group etc.
Forum Test
The agency in whose State/Territory the action is to be heard shall determine whether or not assistance shall be granted. The test provides that an application for legal assistance must be made to the Legal Aid Commission in the State/Territory in which the Court action will proceed.
General Discretion
This is a general discretion to grant legal assistance to an otherwise ineligible applicant in exceptional circumstances, having regard to any other matter affecting the ability of a person to meet the cost of obtaining the legal services from a private legal practitioner without undue hardship. Individual Commissions will determine where, if at all, the discretion is vested.
Generic Benchmark
A standard measurement expressed in descriptive terms which identifies its elements. A monetary amount can then be assigned to the benchmark by reference to the description.
Henderson Poverty Line
The Henderson Poverty Line as published by the Institute of Applied Economic and Social Research of the University of Melbourne on a quarterly basis.
Home Equity
Equity in housing in which the applicant normally lives. This includes:
housing in the form of a house, flat, unit, caravan, boat or any other abode occupied by the applicant as their place of residence; or land on which the applicant is currently building a home or has recently completed building a home in which they intend to live.
Household Furniture and Effects
Normal household furniture and effects reasonably required by the applicant and dependants. In practice, legal aid bodies rarely find themselves in the position of considering what household property should be asset-tested. It is generally only where the total value of household effects or particular items is unusually high, or where assistance is sought to resolve a dispute concerning those items, that attention is directed to the question.
Housing
Any type of accommodation in which a person lives including a house, flat, hostel, hotel, caravan, boat etc.
Housing Costs
The cost of housing including rent, mortgage, rates or one half of board payments up to a combined maximum as set out in Schedule B Income Test Benchmark Amounts.
Income
Income is income from all sources including:
pensions, benefits and allowances; income from paid work, including overtime, commissions and allowances (eg. car); periodic receipts of a capital nature including payments from investments, interest earned and payments of debts owed to the applicant; board or rent received; maintenance received; workers compensation or other insurance payments; and superannuation.
Income does NOT include Basic Family Payment (as paid by the Department of Social Security) and is calculated net of business overheads/expenses reasonably incurred in or for the purposes of gaining or producing that income. NOTE: Such overheads/expenses shall not be considered reasonably incurred merely because they have been, or are likely to be allowed or allowable deductions by the Commissioner of Taxation for the purposes of the Income Tax Assessment Act 1936. In some LACs income does not include rental assistance.
Income Tax
Income tax includes the Medicare levy.
Maintenance Payments
Payments made in respect of a child or children who do not live with the applicant.
Male Average Weekly Earnings
The level of income a person having lump sum compensation payments on hand is deemed to have during any Department of Social Security preclusion period. The indicator used is Average Weekly Earnings of Employees (Male, full-time, average weekly ordinary time earnings) as released quarterly by the Australian Bureau of Statistics.
Motor Vehicle Equity
The asset value is based on a 5 year old "family" car. The figure used is taken from the 'red book' and will usually be a six cylinder Australian made car (e.g. Holden, Falcon).
A maximum of two (2) motor vehicles will be accepted under the Assets Test (without assessment for Assets contribution) provided:-
a.	the vehicles belong to a household of two or more persons whose combined means are assessable under the particular application for legal aid at hand, and
b.	the combined equities in the two vehicles do not exceed the current allowance benchmark. (See Schedule 1 Contributions Benchmark Amounts )
Person
A person may include a relative, partner, spouse, trust corporation or group.
Principal Residence
The place at which the applicant normally lives.
Representative Proceedings
The terms 'representative' is used here in its strict sense to refer to matters where the applicant for assistance brings proceedings as representative for a group of persons, all of whom are named in the initiating process.
In cases where the applicant seeks assistance for a test case, the outcome of which may indirectly benefit others by clarifying the law or establishing a remedy, the Means Test can only be applied to the applicant. However, Guideline on other sources of support may be relevant if the individuals who stand to benefit can afford to collectively fund a test case and would be likely to do so if assistance were not available.
Tools of Trade
The tools normally and reasonably used to earn income by the applicant or financially associated person.
Trusts
Formal financial arrangements whereby one person holds assets for the benefit of another person which may be distributed or released by the person holding the assets.
Updating of Benchmark Amounts
All benchmark amounts will be updated every six months, that is in January and July of each year, using (amongst other figures) Henderson Poverty Line figures released in the previous December and June in relation to the previous September and March quarters. Adoption of the updated figures will be determined by individual LACs.
Verification of Means
Documentation of income and assets in the form of pay slips, statements and other specific documentation as set out in the National Means Test.

Page Last Revised :Tuesday, April 13, 2010