1.1.D.44 Deductible amount

Usage

This definition applies to all payments.

Definition

In reference to a defined benefit income stream for a year, a deductible amount means the sum of the amounts that are the tax free components of the payments received from the defined benefit income stream during the year.

The tax-free component is determined with reference to the Income Tax Assessment Act 1997 and the Income Tax (Transitional Provisions) Act 1997.

Note: From 1 January 2016, the deductible amount is capped at 10% of the gross income from the income stream. This means if the income stream has a tax-free component greater than 10% of the gross income from the income stream, the deductible amount for social security purposes is 10% of the gross income from the income stream.

Act reference: SSAct section 9(1)-'deductible amount'

Policy reference: SS Guide 4.9.2.30 Income Test Assessment of Asset-Test Exempt Income Streams

Last reviewed: 1 July 2019