4.9.6.20 Payment splits of income streams: percentage payment splits

Summary

A 'percentage payment split' occurs where the superannuation agreement (1.1.S.416) or court order (1.1.C.355) specifies that payments from the original FLA income stream (1.1.O.35) owned by the member (1.1.M.118) are to be split with the non-member (1.1.N.115) on a percentage basis.

This topic covers:

  • asset and income test assessment
  • data requirements for
    • ATE income stream
    • asset-tested income stream (long term) non-account-based
    • asset-tested income stream (long term) account-based
    • asset-tested income stream (lifetime).

Asset & income test assessment

The asset test and income test assessment of income streams split according to a percentage payment split is explained in the following table.

Income stream Asset test Income test
Non-defined benefit income streams (non-account-based) - ATE No asset assessed See 4.9.6.30
Non-defined benefit income streams (non-account-based) - asset-tested income streams (long term) and asset-tested income streams (lifetime) See 4.9.6.30 See 4.9.6.30
Non-defined benefit income streams (account-based income streams) See 4.9.6.40 See 4.9.6.40
Defined benefit income streams See 4.9.6.50 See 4.9.6.50
Market-linked income streams See 4.9.6.55 See 4.9.6.55

Data requirements

The DSS helpdesk will require the following data to undertake means test assessments of income streams subject to a percentage payment split.

The data has been categorised according to data that may be held already by Centrelink and which may need to be obtained from the recipient, or income stream provider.

ATE income stream Requirements
At operative time (information currently held by Centrelink for existing recipients)
  • purchase price (1.1.P.500) of original FLA income stream at commencement day
  • gross income from original FLA income stream immediately before payment split takes place (i.e. at operative time)
  • commencement day (1.1.C.205) of original FLA income stream
  • relevant number (1.1.R.135) of original FLA income stream

Note: Centrelink will need to request the above information from new recipients who become eligible for income support payments as a result of the divorce property settlement.

At operative time (information NOT currently held by Centrelink)
  • percentage split between member and non-member as specified in superannuation agreement or court order
  • operative time
  • details, including dates, on any commutations occurring from commencement day to operative time (note that some of this data may currently be held by Centrelink)
  • gross income from primary/secondary FLA income streams from the first payment after the operative time
At review date (information NOT currently held by Centrelink)
  • details, including dates, on any further commutations (including the proportion in which the commutation is split between the member and non-member) that occur after the operative time
  • details on new gross income amounts for the primary and secondary FLA income streams
Asset-tested income stream (long term) non-account-based Requirements
At operative time (information currently held by Centrelink)

As per data requirements for ATE income streams, AND

  • RCV, if any, of original FLA income stream at commencement day
  • term elapsed (this value can be calculated by Centrelink at the review date by determining the period elapsed since the commencement day of the original FLA income stream).
At operative time (information NOT currently held by Centrelink) As per data requirements for ATE income streams.
At review date (information NOT currently held by Centrelink) As per data requirements for ATE income streams.
Asset-tested income stream (lifetime) Requirements
At operative time (information currently held by Centrelink)
  • purchase amount (1.1.P.495) of original FLA income stream immediately before payment split takes place (i.e. at operative time)
  • gross income from original FLA income stream immediately at operative time
  • commencement day of original FLA income stream
  • threshold day (1.1.T.101) of original FLA income stream

Note: Centrelink will need to request the above information from new recipients who become eligible for income support payments as a result of the divorce property settlement.

At operative time (information NOT currently held by Centrelink)

As per data requirements for ATE income streams, AND

  • whether the non-member spouse has reached their assessment day (1.1.A.280) in relation to the secondary FLA income stream
  • whether the non-member spouse has reached their threshold day in relation to the secondary FLA income stream.
At review date (information NOT currently held by Centrelink)

As per data requirements for ATE income streams, AND

  • whether the non-member spouse has reached their assessment day in relation to the secondary FLA income stream
  • whether the non-member spouse has reached their threshold day in relation to the secondary FLA income stream.
Asset-tested income stream (long term) account-based Requirements
At operative time (information currently held by Centrelink) As per data requirements for ATE income streams.
At operative time (information NOT currently held by Centrelink)

As per data requirements for ATE income streams, AND

  • account balance of original FLA income stream at operative time.
At review date (information NOT currently held by Centrelink)

As per data requirements for ATE income streams, AND

  • account balance backing primary and/or secondary FLA income streams. (In this situation, there will be one account balance backing one, or both, income streams at the review date. It will be necessary to obtain details of the proportions of the account balance that back each income stream.)
Market-linked income streams Requirements
At operative time (information currently held by Centrelink)
  • purchase price of original FLA income stream at commencement day
  • gross income from original FLA income stream immediately before payment split takes place (i.e. at operative time)
  • commencement day of original FLA income stream
  • relevant number of original FLA income stream
At operative time (information NOT currently held by Centrelink)
  • percentage split between member and non-member as specified in superannuation agreement or court order
  • operative time
  • details, including dates, on any commutations occurring from commencement day to operative time (note that some of this data may currently be held by Centrelink)
  • gross income from primary/secondary FLA income streams from the first payment after the operative time
  • account balance of original FLA income stream at operative time
At review date (information NOT currently held by Centrelink)
  • details, including dates, on any further commutations (including the proportion in which the commutation is split between the member and non-member) that occur after the operative time
  • details on new gross income amounts for the primary and secondary FLA income streams
  • account balance backing primary and/or secondary FLA income streams. (In this situation, there will be one account balance backing one, or both, income streams at the review date. It will be necessary to obtain details of the proportions of the account balance that back each income stream.)
Last reviewed: 1 July 2019