1.1.A.280 Assessment day

Usage

This definition applies to all payments.

Definition

The assessment day is used when determining when asset-tested income streams (lifetime) are assessed as an income stream. The assessment day for a person's asset-tested income stream (lifetime) depends on:

  • whether the income stream was purchased using superannuation monies or non-superannuation monies
  • the income stream's commencement day (1.1.C.205)
  • the day the first amount was paid for the income stream
  • the day the income stream was acquired by the person
  • the day on which the person reaches pension age or satisfies a relevant condition of release, and
  • whether the income stream reverted to the person as a reversionary beneficiary.

Act reference: SSAct section 1120AB Value of asset-tested income streams (lifetime) that are not managed investments

For non-reversionary beneficiaries

If the asset-tested income stream (lifetime) did not revert to the person as a reversionary beneficiary, and … then the person's assessment day in relation to the income stream is …
was purchased with superannuation monies

the latest of the following:

  • the day the person first satisfies a relevant condition of release
  • the day the first amount was paid for the income stream, and
  • the day the person acquired the income stream (if no amount is identifiable as having been paid for the income stream).
was not purchased with superannuation monies

the income stream's commencement day, provided the commencement day is before the day the person reaches pension age (1.1.P.129).

If the commencement day for the income stream is on or after the day the person reaches pension age, the assessment day is the latest of the following:

  • the day the person reaches pension age
  • the day the first amount was paid for the income stream, and
  • the day the person acquired the income stream (if no amount is identifiable as having been paid for the income stream).

Act reference: SSAct section 1120AB(6) Assessment day

Policy reference: SS Guide 4.9.3.35 Means test assessment of asset-tested income streams (lifetime)

For reversionary beneficiaries

If the asset-tested income stream (lifetime) reverted to the person as a reversionary beneficiary, and … then the person's assessment day, in relation to the income stream, is …
the income stream reverted on or after the income stream's commencement day the day the income stream reverted.
the income stream reverted before the income stream's commencement day, and was purchased with superannuation monies

the income stream's commencement day, provided the person has not yet met a relevant condition of release.

Otherwise, the assessment day is the later of the day the income stream reverted, and the day the person met a relevant condition of release.

the income stream reverted before the income stream's commencement day, and was not purchased with superannuation monies

the income stream's commencement day, provided the commencement day is before the day the person reaches pension age.

Otherwise, the assessment day is the later of the day the income stream reverted, or the day the person reaches pension age.

Act reference: SSAct section 1120AB(7) For the purposes of this section, a person's assessment day …

Policy reference: SS Guide 4.9.3.35 Means test assessment of asset-tested income streams (lifetime)

Relevant conditions of release

When determining the assessment day for asset-tested income streams (lifetime) that are purchased with superannuation monies, the following are relevant conditions of release:

  • retirement
  • death
  • having a terminal medical condition
  • being permanently incapacitated, and
  • attaining age 65.

The meanings of these conditions of release are as determined in the Superannuation Industry (Supervision) Act 1993.

Act reference: SSAct section 1120AB(8) Value of asset tested income streams (lifetime) that are not managed investments

Social Security (Assessment Day - Conditions of Release) Determination 2019

Policy reference: SS Guide 4.9.3.35 Means test assessment of asset-tested income streams (lifetime)

Last reviewed: 1 July 2019