5. Assets Test

5.1  Assets Test for short matters

The below 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 assetsDo they satisfy the assets test?
$1500 or lessYes
Over $1500Only in exceptional circumstances

See Means Test Discretion 9.3 where contribution exceeds the allowable amount for the type of matter

NOTE: All applicants must also satisfy the Income Test and the Lifestyle Test.

5.2  Assets Test in all other matters

The following table sets out the assets test applied in all other matters.

Applicant's net assessable assetsDo they satisfy the assets test?
$100 or lessYes
Over $100

The applicant must pay an assets contribution (see Means Test 7.4).

If the assets contribution together with the income contribution exceeds the allowable amount for the type of matter, the applicant does not satisfy the Means Test.

All applicants must also satisfy the Income Test and the Lifestyle Test.

Note: where an applicant for legal aid is eligible for aid under the Means Test, and they own real property, as a condition of the grant of legal aid (unless it is an exempted matter), they will be required to execute a charge to secure the total costs and expense of providing the legal service, where:

  • it is an expensive matter – this includes family law court proceedings, criminal indictable matters including EAGP and trials, and higher court civil proceedings, or
  • the dispute is about the property.

See Contributions policy 2: Can contributions be secured upfront?

5.3  How to calculate net assessable assets

The Assets Test is applied to the applicant's net assessable assets.

Net assessable assets are:

5.4  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
  • crypto assets (including cryptocurrency)
  • other investments.

5.5  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 AssetMaximum allowed value

Household furniture and effects, clothing, tools of trade

Reasonable value

Motor vehicle 

  • One motor vehicle for a one-person household, or
  • Two motor vehicles for a two or more adult person household

Home equity

$815,000
The 'pool of assets' that are in dispute where the applicant has applied for family law property settlement proceedings.

$850,000

Note: The ‘pool of assets’ includes all assets that are in dispute. 

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".

Allowable assets

Single applicant - $4,660

Applicant with dependents or financially associated person - $5,990
Newborn Upfront Payment and Newborn Supplement

Amount received

NDIS amountAmount received under the National Disability Insurance Scheme
Coronavirus stimulus payments to householdsAmount received

Lump sum payments

See Means Test 1.4.5.6 Information about how lump sums are treated under the Assets Test

Recognition, redress and reparation payments

Amount received

Lump sum payments scheme listed in Means Test Guideline 1.3  are excluded from the applicant’s net assessable assets. See also Means Test 1.4.5.6 

Assets restrained under the Proceeds of Crime Act 2002 (Cth)

Amount restrained

For assets restrained under NSW legislation, see Criminal Law Guideline 2.5.2

5.6 - Information about lump sum payments excluded from the Assets Test

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 s 17 and Part 3.14 of the Social Security Act 1991 (Cth) from receiving a pension or benefit.

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 (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.

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.

Lump sum recognition payments from a redress or reparation scheme listed in the Means Test guideline 3.1 are excluded from the applicant’s net assessable assets.