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

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

Part 1: Preliminary

1.1    Name of determination

This determination is the Asset-test Exempt Income Stream (Lifetime
Income Stream Guidelines) Determination 2015.

1.2Commencement

This determination commences on the day after it is registered.

1.3Revocation

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.

1.5Definitions

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 SuperannuationIndustry (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)):

·asset-test exempt income stream

·defined benefit income stream.

·commencement day

·Commission

·income stream

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 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.