Social Assistance Act, 2004 (Act No. 13 of 2004)

Regulations

Regulations relating to the Application for and Payment of Social Assistance and the Requirements or Conditions in respect of Eligibility for Social Assistance

Chapter 3 : Determination of Financial Criteria

21. Determination of means
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(1) For the purposes of determining means, in respect of social assistance, except for a grant in-aid and the foster child grant, the income of the applicant is deemed to be the annual income for an applicant not in a spousal relationship, or half the annual income of the applicant and his or her spouse, where the applicant is in a spousal relationship, and 'income' means—
(a) any compensation payable to an applicant or his or her spouse in cash or otherwise;
(b) any profits, withdrawals or other benefits derived from a business concern or farm of which the applicant or his or her spouse is the owner or holds property rights in respect thereof;
(c) any payment which an applicant or his or her spouse receives from a trust or inheritance or as an employee;
(d) any payment which an applicant or his or her spouse derives from property rights;
(e) any pension or annuity payable to an applicant or his or her spouse in terms of the provisions of a pension or provident or retirement annuity fund established in terms of any Act, but excluding benefits received in terms of the Act;
(f) any rental payable to an applicant or his or her spouse for providing accommodation;
(g) any profits, withdrawals or other benefits derived from farming activities where fixed property is rented by an applicant or his or her spouse;
(h) any maintenance received from a person obliged in law to provide such maintenance;
(i) any other income, not mentioned in these Regulations including interest and dividends, generated from assets of an applicant or his or her spouse; and
(j) any income or financial support derived from a South African or international organisation, excluding social assistance.

 

(2)
(a) The provisions of subregulation (1)(a), (b) and (c) apply with the necessary changes if the applicant or his or her spouse donated or relinquished income in order to obtain a social grant.
(b) Despite the provisions of paragraph (a) the income contemplated in paragraph (a) must not be taken into account after a period of five years has lapsed from the date of donation or relinquishment.

 

(3) Regarding the assets of the applicant and his or her spouse, in the case of an older person's grant, disability grant and a war veteran's grant, the following must be taken into account:
(a) The municipal value of any property owned, but not occupied by the applicant and his or her spouse: Provided that any outstanding bond amount must be deducted;
(b) immovable property owned by the applicant or his or her spouse, or property held under leasehold;
(c) cash investments, bonds or loans or any outstanding debts in favour of the applicant or his or her spouse;
(d) shares, share capital or interest in assets of a company or other institution;
(e) endowment policies after maturity date and cash in hand or in any account with a financial institution;
(f) any property rights held by the applicant or his or her spouse; and
(g) any lump sum invested by the applicant or his or her spouse in a company or a financial institution with the aim of procuring an annuity.

 

(4) Despite subregulation (3) the value of immovable property owned and occupied by the applicant and his or her spouse must not be taken into account when regard is had to the assets of the applicant and his or her spouse, in the case of an older person's grant, a disability grant and a war veteran's grant.

 

(5) The Agency must, if it is of the opinion that an applicant or his or her spouse impoverished himself or herself or relinquished assets to obtain a social grant, take such assets into account, which may include any property or asset donated, transferred or sold below market value by either the applicant or his or her spouse to a connected party: Provided that such impoverishment or relinquishment shall not be taken into account after a period of five years has lapsed from the date of such impoverishment or relinquishment.