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Determinations/Social Security as made
This determination sets out the guidelines for the exercise of the Secretary's discretion under subsection 9A(5) of the Social Security Act 1991 (the Act) to determine that a defined benefit income stream that does not meet the requirements of subsection 9A(2) of the Act is an asset-test exempt income stream for the purposes of the Act.
Administered by: Social Services
Registered 16 Sep 2015
Tabling HistoryDate
Tabled HR17-Sep-2015
Tabled Senate12-Oct-2015

 

 

Asset-test Exempt Income Stream (Lifetime Income Stream Guidelines) (Social Security) Determination 2015

 

 

I, Finn Pratt, Secretary of the Department of Social Services, make this determination under subsection 9A(6) of the Social Security Act 1991.

 

 

 

 

 

Dated this 7th day of September 2015

 

 

 

 

 

 

 

 

 

 

…………………………………………………………………………………………..………………………………

FINN PRATT AO PSM

SECRETARY

DEPARTMENT OF SOCIAL SERVICES

 

 


Part 1: Preliminary

 

1.1     Name of determination

 

          This determination is the Asset-test Exempt Income Stream (Lifetime

            Income Stream Guidelines) (Social Security) Determination 2015.

 

1.2       Commencement

 

          This determination commences on the day after it is registered.

 

1.3       Revocation

           

The Asset-test Exempt Income Stream (Lifetime Income Stream Guidelines)         

Determination 1998 [F2009C00037] is revoked.

 

1.4     Purpose

 

            The purpose of this determination is to set out the guidelines for the           exercise of the Secretary’s discretion, under subsection 9A(5) of the Act, to determine that a defined benefit income stream that does not meet the requirements of subsection 9A(2) of the Act is an asset-test exempt income stream for the purposes of the Act.

 

1.5       Definitions

 

In this determination:

 

  Act means the Social Security Act 1991.

 

  lifetime income stream, in relation to a person, means an income stream in        

  which payments are made, at least annually, throughout the life of the person    

  and, if there is a reversionary beneficiary, throughout the life of the reversionary            

  beneficiary.

 

  private sector fund has the same meaning as in subsection 10(1) of the Superannuation Industry (Supervision) Act 1993.

 

  public sector fund has the same meaning as in subsection 10(1) of the   Superannuation Industry (Supervision) Act 1993.

 

  public sector superannuation scheme has the same meaning as in subsection           10(1) of the Superannuation Industry (Supervision) Act 1993.

 

  superannuation fund has the same meaning as in subsection 10(1) of the         

  Superannuation Industry (Supervision) Act 1993.

 

  superannuation pension means a pension payable from a superannuation

  fund.

 

   Note The following expressions used in this determination are defined in the Act (see      

   s.9(1), s.9(1F), s.9A and s.23):

 

·              asset-test exempt income stream

·              commencement day

·              defined benefit income stream

·              income stream

·              Secretary.


Part 2: Guidelines

 

2.1              Lifetime income stream under a public sector fund or public sector superannuation scheme

 

(1)     In making a determination under subsection 9A(5) of the Act in relation to an income stream arising under a public sector fund or a public sector superannuation scheme, the Secretary must have regard to this section.

 

(2)     The income stream mentioned in (1):

 

(a)       must be a lifetime income stream that is a defined benefit income stream; and

 

(b)       must be paid from a public sector fund or a public sector superannuation scheme that was established before
20 September 1998; and

 

(c)       regardless of its commencement day, would have been treated as a superannuation pension and had its value disregarded in calculating the person’s assets under section 1118 of the Act as in force immediately before
20 September 1998.

 

 

2.2              Lifetime income stream under a private sector fund

 

(1)       In making a determination under subsection 9A(5) of the Act in relation to an income stream arising under a private sector fund, the Secretary must have regard to this section.

 

          (2)       The income stream mentioned in (1):

 

(a)   must be a lifetime income stream that is a defined benefit income stream; and

 

(b)   must be paid from a private sector fund that was established before 20 September 1998; and

 

(c)   regardless of its commencement day, would have been treated as a superannuation pension and had its value disregarded in calculating the person’s assets under section 1118 of the Act as in force immediately before
20 September 1998.

 

(3)       The private sector fund mentioned in (2)(b) must have a direct connection with the previous employment of the recipient of the lifetime income stream or, in the case of a reversionary beneficiary, the person who would be the recipient had they not died.

 

(4)          For subsection (3), a private sector fund has a direct connection

         with a person's previous employment if the lifetime income stream

         from the private sector fund became payable to, or in respect of,       

         the person because of that employment.