Social Security Amendment (Family Law Affected Income Streams) Principles 2019 (Cth)
Social Security Amendment (Family Law Affected Income Streams) Principles 2019
I, Kathryn Campbell, Secretary of the Department of Social Services, make the following instrument.
Dated 14 June 2019
Kathryn Campbell AO CSC
Secretary of the Department of Social Services
Contents
1 Name........................................................................................................................................ 1
2 Commencement........................................................................................................................ 1
3 Authority.................................................................................................................................. 1
4 Schedules................................................................................................................................. 1
Schedule 1—Amendments 2
Social Security (Family Law Affected Income Streams) (FaHCSIA) Principles 2011 2
Schedule 2—Repeals 5
Social Security (Family Law Affected Income Streams) (DEEWR) Principles 2011 (No. 1) 5
1 Name
This instrument is the Social Security Amendment (Family Law Affected Income Streams) Principles 2019.
2 Commencement
(1) Each provision of this instrument specified in column 1 of the table commences, or is taken to have commenced, in accordance with column 2 of the table. Any other statement in column 2 has effect according to its terms.
| Commencement information | ||
| Column 1 | Column 2 | Column 3 |
| Provisions | Commencement | Date/Details |
| 1. The whole of this instrument | 1 July 2019. | 1 July 2019 |
Note: This table relates only to the provisions of this instrument as originally made. It will not be amended to deal with any later amendments of this instrument.
(2) Any information in column 3 of the table is not part of this instrument. Information may be inserted in this column, or information in it may be edited, in any published version of this instrument.
3 Authority
This instrument is made under section 1099DD and subsection 1120A(5) of the Social Security Act 1991.
4 Schedules
Each instrument that is specified in a Schedule to this instrument is amended or repealed as set out in the applicable items in the Schedule concerned, and any other item in a Schedule to this instrument has effect according to its terms.
Schedule 1—Amendments
Social Security (Family Law Affected Income Streams) (FaHCSIA) Principles 2011
1 Subsection 1.3(1)
Insert:
assessment day for a person’s family law affected income stream means:
(a) for an income stream that reverted to the person as a reversionary benefit—the person’s assessment day as defined in subsection 1120AB(7) of the Act;
(b) otherwise—the person’s assessment day as defined in subsection 1120AB(6) of the Act.
purchase amount, for a person’s family law affected income stream means:
(a) in relation to a day that is before the person’s assessment day for the income stream—the purchase amount for the income stream as defined in subsection 1120AA(4) of the Act;
(b) in relation to a day that is on or after the person’s assessment day for the income stream—the purchase amount for the income stream as defined in subsection 1120AB(12) of the Act.
threshold day for a person’s family law affected income stream means:
(a) for an income stream that reverted to the person as a reversionary benefit—the person’s threshold day as defined in subsection 1120AB(10) of the Act;
(b) otherwise—the person’s threshold day worked out using the method statement in subsection 1120AB(9) of the Act.
2 Subsection 1.3(1) (note)
Repeal the note, substitute:
Note 1 The definitions of assessment day, purchase amount and threshold day adopt formula and calculation methods in sections 1120AA and 1120AB of the Act for the purpose of defining terms as they are used in these Principles. Sections 1120AA and 1120AB of the Act do not apply to family law affected income streams.
Note 2 Several other words and expressions used in these Principles have the meaning given in Part 1.2 of the Act. For example:
asset-test exempt income stream (subsection 9(1) and sections 9A, 9B and 9BA)
asset-tested income stream (long term) (subsection 9(1))
asset-tested income stream (lifetime) (subsection 9(1) and 9E)
commencement day (subsection 9(1))
deductible amount (subsection 9(1))
defined benefit income stream (subsection 9(1) and subsection (1F))
family law affected income stream (subsection 9(1) and section 9C)
income (subsection 8(1))
income stream (subsection 9(1))
original family law affected income stream (subsection 9(1) and section 9C)
primary FLA income stream (subsection 9(1) and section 9C)
purchase price (subsection 9(1))
relevant number (subsection 9(1))
residual capital value (subsection 9(1))
secondary FLA income stream (subsection 9(1) and section 9C)
superannuation fund (subsection 9(1)).
3 Subsection 1.3(2) (note)
Omit “90MD”, substitute “90XD”.
4 After paragraph 1.4(d)
Insert:
(da) subsection 1099DCA(1);
5 Part 4 (heading)
Repeal the heading, substitute:
Part 4 Asset value of asset-tested income streams (other than lifetime)
6 After Part 4
Insert:
Part 5 Income from of asset-tested income streams (lifetime)
5.1 Application of Part
This Part applies to a family law affected income stream that is an asset-tested income stream (lifetime).
5.2 Income stream that is a family law affected income stream that is an asset-tested income stream (lifetime)
(1) For paragraph 1099DD(e) of the Act, the Secretary must have regard to the following matters in making decisions under subsection 1099DCA(1) of the Act:
(a) the matters mentioned in items 1 to 4 and 14 to 23 of Schedule 1;
(b) any other matter that the Secretary considers relevant in the circumstances.
(2) If payments are being made from the income stream under more than 1 payment split, the Secretary must have regard to each matter mentioned in subsection (1) that applies to each payment split.
Part 6 Asset value of asset-tested income streams (lifetime)
6.1 Application of Part
This Part applies to a family law affected income stream that is an asset-tested income stream (lifetime).
6.2 Income stream that is a family law affected income stream that is an asset-tested income stream (lifetime)
(1) For paragraph 1120A(5)(a) of the Act, the Secretary must have regard to the following matters in making decisions under subsection 1120A(2) of the Act:
(a) the matters mentioned in items 1 to 4 and 14 to 25 of Schedule 1;
(b) any other matter that the Secretary considers relevant in the circumstances.
(2) If payments are being made from the income stream under more than 1 payment split, the Secretary must have regard to each matter mentioned in subsection (1) that applies to each payment split.
7 Schedule 1 (note to Schedule heading)
Omit “and 4.3(2)(a)”, substitute “4.3(2)(a), 5.2(1)(a) and 6.2(1)(a)”.
8 After item 23 of the table in Schedule 1
Insert:
| 24 | If the member spouse has reached the assessment day in relation to the original family law affected income stream: |
| (a) the member spouse’s assessment day in relation to the original family law affected income stream; and (b) the purchase amount of the original family law affected income stream; and (c) the member spouse’s threshold day in relation to the original family law affected income stream. | |
| 25 | If the member spouse has not reached the assessment day in relation to the original family law affected income stream: (a) whether the non-member spouse has reached their assessment day in relation to the secondary FLA income stream; and (b) whether the non-member spouse has reached their threshold day in relation to the secondary FLA income stream; and (c) the purchase amount of the original family law affected income stream. |
Schedule 2—Repeals
Social Security (Family Law Affected Income Streams) (DEEWR) Principles 2011 (No. 1)
1 The whole of the instrument
Repeal the instrument.
0
0
0