Social Security (Asset-test Exempt Income Streams – Legacy Product) Determination 2025
I, Xia Du, delegate of the Secretary of the Department of Social Services, make this determination.
Dated 26.09.2025
Xia Du
Acting Branch Manager, Payment Structures and Seniors Branch
Delegate of the Secretary of the Department of Social Services
Contents
1 Name...............................................1
2 Commencement.........................................1
3 Authority.............................................1
4 Definitions............................................1
5 Class of income streams determined as asset-test exempt income streams .......1
1 Name
This instrument is the Social Security (Asset-test Exempt Income Stream – Legacy Product) Determination 2025.
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 | Immediately after the commencement of the Social Security (Asset-test Exempt Income Stream Guidelines) Determination 2025. | |
Note: This table relates only to the provisions of this instrument as originally made.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 subsections 9A(5), 9B(4) and 9BA(11) of the Social Security Act 1991.
4 Definitions
In this determination:
Act means the Social Security Act 1991
asset-test exempt income stream has the same meanings given by sections 9A, 9B and 9BA of the Act.
income stream has the same meaning as in subsection 9(1) of the Act.
5 Class of income streams determined as asset-test exempt income streams
For the purposes of subsections 9A(5), 9B(4) and 9BA(11) of the Act, an income stream is determined as an asset-test exempt income stream if:
- the income stream was an asset-test exempt income stream under section 9A, 9B or 9BA of the Act immediately before the commencement of the Treasury Laws Amendment (Legacy Retirement Product Commutations and Reserves) Regulations 2024; and
- the income stream complies with the requirements of subsection 9A(2), 9B(2) or 9BA(2) of the Act, except for paragraphs 9A(2)(h), 9B(2)(h) or 9BA(2)(f); and
- the only reason the income stream does not comply with the requirements in paragraphs 9A(2)(h), 9B(2)(h) or 9BA(2)(f) of the Act is because the contract or governing rules allow for the income stream to be commuted in accordance with:
- regulation 1.08AA of the Retirement Savings Accounts Regulations 1997; or
- regulation 1.05AA of the Superannuation Industry (Supervision) Regulations 1994; or
- regulation 1.06C of the Superannuation Industry (Supervision) Regulations 1994.
Overview
The Social Security (Asset-test Exempt Income Stream – Legacy Product) Determination 2025 was introduced to address a gap in the existing framework for asset-test exempt income streams under the Social Security Act 1991. This determination was necessitated by the need to clarify and update the criteria for certain legacy income products that were previously exempt from asset tests but may not fully comply with more recent regulatory requirements. The determination was made by Xia Du, a delegate of the Secretary of the Department of Social Services, and it commenced immediately after the commencement of the Social Security (Asset-test Exempt Income Stream Guidelines) Determination 2025. The policy objective is to ensure that eligible income streams continue to be exempt from asset tests, thereby maintaining the social security benefits for those who rely on these income streams.
Scope and Application
The Social Security (Asset-test Exempt Income Stream – Legacy Product) Determination 2025 applies to income streams that were previously classified as asset-test exempt under the Social Security Act 1991. It is designed to maintain the exemption status for these income streams, provided they meet certain criteria, including compliance with specific sections of the Act, except for certain non-compliance issues related to commutation regulations. The determination is made under the authority of the Social Security Act 1991 and comes into effect immediately after the commencement of the Social Security (Asset-test Exempt Income Stream Guidelines) Determination 2025. The instrument applies nationally and is subject to any amendments through subordinate instruments, which can extend or restrict its application. This determination does not apply to income streams that do not meet the specified conditions or those that fail to comply with the essential requirements of the Act beyond the exceptions outlined.
Key Provisions
The Social Security (Asset-test Exempt Income Stream – Legacy Product) Determination 2025, issued by Xia Du under the authority of the Secretary of the Department of Social Services, outlines specific provisions regarding the classification of certain income streams as asset-test exempt income streams (section 5). The determination came into effect immediately after the commencement of the Social Security (Asset-test Exempt Income Stream Guidelines) Determination 2025 (section 2). It was made under the powers granted by subsections 9A(5), 9B(4), and 9BA(11) of the Social Security Act 1991 (section 3). The key provisions establish that an income stream qualifies as an asset-test exempt income stream if it met this criterion before the Treasury Laws Amendment (Legacy Retirement Product Commutations and Reserves) Regulations 2024 and satisfies specific conditions outlined in the Social Security Act 1991, excluding certain paragraphs that allow for commutation (section 5).
The determination imposes several obligations on the entities it governs. Firstly, income streams must have been exempt from asset-tests before the specified regulations took effect. Secondly, they must comply with the general requirements set out in the Social Security Act 1991, except for certain non-compliance points related to commutation. The determination also stipulates that the reason for non-compliance with the specified paragraphs must be because the contract or governing rules allow for the income stream to be commuted under specific regulations (section 5).
Failure to adhere to the provisions of this determination may result in consequences under the Social Security Act 1991. While the determination itself does not explicitly state penalties, non-compliance with the Social Security Act 1991 can lead to various civil or criminal penalties. For instance, knowingly providing false or misleading information can attract penalties, including fines and imprisonment. The specific penalties would be determined by the relevant sections of the Social Security Act 1991, which may impose fines up to certain limits or imprisonment for a defined period.
In summary, the Social Security (Asset-test Exempt Income Stream – Legacy Product) Determination 2025 sets out clear criteria for determining which income streams qualify as asset-test exempt. It mandates compliance with specific conditions while allowing for certain exceptions related to commutation. Non-compliance with the underlying Social Security Act 1991 can lead to significant penalties, underscoring the importance of adhering to the provisions outlined in this determination.