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

 

Instrument 2015 No. R9

 

The REPATRIATION COMMISSION makes this determination under subsection 5JA(6) of the Veterans’ Entitlements Act 1986.

 

 

 

 

 

Dated this  6th day of  August  2015

 

 

 

The Seal of the                                                                 )

Repatriation Commission                                                 )

was affixed hereto in the                                                  )       SEAL

presence of:                                                                      )

 

 

 

 

 

 

Simon Lewis                                                           Craig Orme

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

SIMON LEWIS                                                                                         CRAIG ORME              

                                                                                                                      AM CSC…………………………

PRESIDENT                                                                                    DEPUTY PRESIDENT

 

 

 

 

 

 

1.1               Name of determination

 

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

 Income Stream Guidelines) 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 (Instrument 1998 No.10) is revoked.

 

1.4   Purpose

 

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

 

1.5           Definitions

 

In this determination:

 

 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.

 

VEA means the Veterans’ Entitlements Act 1986.

 

 Note The following expressions used in this determination are defined in the VEA (see s.5A, 

 5J(1), 5JA and 5J(1)(1E)):

 

 

Part 2: Guidelines

 

2          

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

 

(1) In making a determination under subsection 5JA(5) of the VEA in relation to an income stream arising under a public sector fund or a public sector superannuation scheme, the Commission 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 52 of the VEA 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 5JA(5) of the VEA in relation to an income stream arising under a private sector fund, the Commission 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 52 of the VEA 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.