The Guides to Social Policy Law is a collection of publications designed to assist decision makers administering social policy law. The information contained in this publication is intended only as a guide to social security payments. The information is accurate as at the date listed at the bottom of the page, but may be subject to change. To discuss individual circumstances please contact Services Australia.

1.1.A.304 Asset-tested income stream (long term, lifetime, short term)

Usage

These definitions apply to all payments.

Definition

Income streams (1.1.I.70) are either asset-test exempt (1.1.A.306) or asset-tested. There are 3 classes of asset-tested income streams:

  • asset-tested income streams (long term)
  • asset-tested income streams (lifetime), and
  • asset-tested income streams (short term).

Asset-tested income streams (long term)

Asset-tested income streams (long term) are income streams where:

  • the term of the contract is for a specified term of more than 5 years (i.e. not for the life of an individual or individuals), OR
  • the term of the contract is for a specified term of less than 5 years AND is equal to or greater than the purchaser's life expectancy, OR
  • the income stream pays for the life of an individual or individuals AND the income stream was purchased or acquired before 1 July 2019.

Note: Account-based income streams are assessed as asset-tested income streams (long term).

Note: Income streams that pay for the life of an individual or individuals purchased or acquired on or after 1 July 2019 are assessed as asset-tested income streams (lifetime).

Act reference: SSAct section 9(1)-'asset-tested income stream (long term)'

Policy reference: SS Guide 4.9.3.10 General provisions for asset-tested income streams, 4.9.3.30 Means test assessment of asset-tested income streams (long term)

Asset-tested income streams (lifetime)

Asset-tested income streams (lifetime) are income streams where:

  • the income stream was purchased or acquired on or after 1 July 2019, AND
  • the contract for the income stream provides that, once the income stream starts paying income, it continues to pay for the remainder of the life of a specified individual or individuals, AND
  • the amount of payment made by the income stream considers the age, life expectancy or other factors relevant to the mortality of the product owner.

Note: Lifetime income streams purchased before 1 July 2019 are assessed as asset-tested income streams (long term).

Act reference: SSAct section 9E Asset-tested income stream (lifetime)

Policy reference: SS Guide 4.9.3.10 General provisions for asset-tested income streams, 4.9.3.35 Means test assessment of asset-tested income streams (lifetime)

Asset-tested income streams (short term)

Asset-tested income streams (short term) are income streams that are not asset-test exempt income streams, asset-tested income streams (long term) or asset-tested income streams (lifetime).

Asset-tested income streams (short-term) have contracts with terms of 5 years or less.

Act reference: SSAct section 9(1)-'asset-tested income stream (short term)'

Policy reference: SS Guide 4.9.3.10 General provisions for asset-tested income streams, 4.9.3.20 Means test assessment of asset-tested income streams (short term)

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