Policies
7. Means Test
7.6. Assets test
7.6.1 Assets test for short matters
The following table sets out the assets test that is applied in short matters. Short matters are:
- Local Court criminal matters except:
- committals
- matters where a plea of not guilty has been entered, and
- matters requiring expenditure
Applicant's net assessable assets | Do they satisfy the assets test? |
| Yes |
| Only in exceptional circumstances (see 7.10.2 – 7.10.3) NOTE: All applicants must also satisfy the income test (see 7.5) and the lifestyle test (see 7.7).
|
7.6.2 Assets test in all other matters
The following table sets out the assets test applied in all other matters.
Applicant's net assessable assets | Do they satisfy the assets test? |
| Yes |
| The applicant must pay an assets contribution (see 7.8.4). If the assets contribution together with the income contribution (see 7.8.3) exceeds the allowable amount for the type of matter, the applicant does not satisfy the Means Test. |
NOTE: All applicants must also satisfy the income test (see 7.5) and the lifestyle test (see 7.7).
Note: where an applicant for legal aid is eligible for aid under the Means Test, they own real property and it is an expensive matter – this includes family law court proceedings, criminal indictable matters including EAGP and trials, and higher court civil proceedings, they will be required as a condition of the grant to execute a charge over the property to secure the total costs and expense of providing the legal service unless the grant is for an exempted matter.
7.6.3 How to calculate net assessable assets
The assets test is applied to the applicant's net assessable assets.
Net assessable assets are:
- the applicant's gross assessable assets (see 7.6.4), less
- excluded assets (see 7.6.5 – 7.6.6).
7.6.4 Gross assessable assets - what is included?
All assets are included in gross assessable assets, including, but not limited to, the following:
- land
- cash
- shares
- debentures
- other investments.
7.6.5 Excluded assets
The following table sets out the assets which are excluded when calculating the net assessable assets. The value of any asset in excess of the maximum allowed value must be included in the applicant's net assessable assets.
Excluded Asset | Maximum allowed value |
Household furniture and effects | Reasonable value |
Clothing | Reasonable value |
Tools of trade | Reasonable value |
Motor vehicle |
|
Home equity | $815,000 Note: Home equity includes the applicant's equity in their principal home. A principal home may include a house, flat, caravan, boat or any other abode occupied by the applicant as his or her place of residence. Note: for the purposes of an applicant in a Commonwealth family law matter, the maximum allowable equity is $407,500 where the equity is in the former matrimonial or de facto home and there has not yet been a property settlement. $407,500 represents 50% of the total allowable equity. |
Farm or business equity | $287,750 Note: If the farm is the principal home of the applicant, the value of the house and surrounding five (5) acres of land is excluded and is considered under "home equity". |
Newborn Upfront Payment Newborn Supplement | Amount received |
NDIS amount Coronavirus stimulus payments to households |
Amount received under the National Disability Insurance Scheme Amount received |
Lump sum payments | See 7.6.6 for information about lump sum payments which are excluded from the assets test |
| Recognition, redress and reparation payments | Amount received Lump sum recognition payments from a redress or reparation scheme listed in Means Test Guideline 4.5 are excluded from the applicant’s net assessable assets. See also 7.6.6. |
| Assets restrained under the Proceeds of Crime Act 2002 (Cth). For assets restrained under NSW legislation, see Criminal Law Guideline 1.6.2 | Amount restrained |
Allowable assets
| Single applicant - $4,660 Applicant with dependents or financially associated person - $5,990 |
7.6.6 Information about lump sum payments excluded from the assets test
Compensation payments
Lump sum compensation payments in hand are excluded from the applicant's net assessable assets if:
- neither the applicant nor their dependants is working, and
- the compensation recipient is currently precluded under section 17 and Part 3.14 of the Social Security Act 1991 from receiving a pension or benefit.
Child support or maintenance payments
Lump sum child or spouse maintenance in hand are excluded from the applicant's net assessable assets where the applicant is receiving a pension or benefit at a reduced rate under the maintenance income test.
Other lump sum payments
Other lump sum payments (e.g. superannuation paid on retrenchment or resignation) are excluded from the applicant's net assessable assets if:
- they are treated as income by Centrelink, and
- they preclude the applicant from receiving benefits.
Lump sum payments treated as income
In these cases the applicant will be deemed to have a gross weekly income equal to all employees average weekly earnings (AWE) during the Centrelink preclusion period. If the sum does not prevent the applicant from drawing a Centrelink benefit it is included in the applicant's net assessable assets.
Recognition, redress and reparation payments
Lump sum recognition payments from a redress or reparation scheme listed in the Guideline 4.5 are excluded from the applicant’s net assessable assets.
Date last published: 01 May 2023
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