1.1.I.70 Income stream
This definition applies to all payments.
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
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 126.96.36.199 Commuting an Asset-Test Exempt Income Stream