The Guides to Social Policy Law is a collection of publications designed to assist decision makers administering social policy law. The information contained in this publication is intended only as a guide to relevant legislation/policy. The information is accurate as at the date listed at the bottom of the page, but may be subject to change. To discuss individual circumstances please contact Services Australia.

1.1.I.70 Income stream

Usage

This definition applies to all payments.

Definition

An income stream is a regular series of payments made directly from accumulated superannuation contributions or purchased with a lump sum.

An income stream can be:

  • an income stream arising under arrangements that are regulated by the Superannuation Industry (Supervision) Act 1993, or
  • an income stream arising under a public sector superannuation scheme, or
  • an income stream arising under a retirement savings account, or
  • an income stream provided as life insurance business by a life company registered under section 21 of the Life Insurance Act 1995, or
  • a family law affected income stream.

The Secretary can determine a product to be an income stream for social security purposes through a legislative instrument.

The following are not income streams:

  • available money
  • deposit money
  • an investment in a public unit trust
  • an investment in an insurance bond
  • an investment with a friendly society
  • an investment in a superannuation fund
  • an investment in an ADF
  • an investment in an ATO small superannuation account
  • a listed security
  • a loan that has not been repaid in full
  • an unlisted public security
  • gold, silver or platinum bullion
  • a payment of compensation in relation to the person's inability to earn, derive or receive income from remunerative work
  • a payment of compensation in relation to the person's total and permanent disability or incapacity

Act reference: SSAct section 9(1)-'income stream'

The 4 assessment categories of income streams

There are 4 assessment categories of income streams:

  • assets-test exempt income streams
  • asset-tested income streams (long term)
  • asset-tested income streams (short term)
  • asset-tested income streams (lifetime).

Act reference: SSAct section 9(1)-'income stream', section 9(1E) The secretary may, by legislative instrument, determine …, section 9A Meaning of asset-test exempt income stream-lifetime income streams, section 9B Meaning of asset-test exempt income stream-life expectancy income streams

Policy reference: SS Guide 1.1.A.304 Asset-tested income stream (short term, long term, lifetime), 1.1.A.306 Asset-test exempt income stream

Non-commutation funded income stream

A non-commutation funded income stream means an income stream that has not been purchased by directly transferring the proceeds from the commutation of another ATE income stream.

Policy reference: SS Guide 4.9.2.40 Commuting an Asset-Test Exempt Income Stream

Last reviewed: