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: 1 July 2019