Social Security (Value of Asset-tested Income Streams (Lifetime)) Determination 2019

Social Security (Value of Asset‑tested Income Streams (Lifetime)) Determination 2019

made under subsection 1120AB(4) of the

Social Security Act 1991

Compilation No. 2 

Compilation date: 1 January 2025

Includes amendments:  F2025L00199

About this compilation

This compilation

This is a compilation of the Social Security (Value of Asset‑tested Income Streams (Lifetime)) Determination 2019 that shows the text of the law as amended and in force on 1 January 2025 (the compilation date).

The notes at the end of this compilation (the endnotes) include information about amending laws and the amendment history of provisions of the compiled law.

Uncommenced amendments

The effect of uncommenced amendments is not shown in the text of the compiled law. Any uncommenced amendments affecting the law are accessible on the Register (www.legislation.gov.au). The details of amendments made up to, but not commenced at, the compilation date are underlined in the endnotes. For more information on any uncommenced amendments, see the Register for the compiled law.

Application, saving and transitional provisions for provisions and amendments

If the operation of a provision or amendment of the compiled law is affected by an application, saving or transitional provision that is not included in this compilation, details are included in the endnotes.

Modifications

If the compiled law is modified by another law, the compiled law operates as modified but the modification does not amend the text of the law. Accordingly, this compilation does not show the text of the compiled law as modified. For more information on any modifications, see the Register for the compiled law.

Self‑repealing provisions

If a provision of the compiled law has been repealed in accordance with a provision of the law, details are included in the endnotes.

Contents

1 Name....................................................1

3 Authority.................................................1

4 Definitions................................................1

5 Surrender value method........................................2

6 Death benefit method.........................................3

Endnotes 

Endnote 1—About the endnotes 6

Endnote 2—Abbreviation key 7

Endnote 3—Legislation history 8

Endnote 4—Amendment history 9

1  Name

  This instrument is the Social Security (Value of Asset‑tested Income Streams (Lifetime)) Determination 2019.

3  Authority

  This instrument is made under subsection 1120AB(4) of the Social Security Act 1991.

4  Definitions

Note: A number of expressions used in this instrument are defined in the Act, including the following:

(a) asset‑tested income stream (lifetime) (see section 9E of the Act);

(b) assessment day (see subsections 1120AB(6) and (7) of the Act);

(c) governing rules (see section 9 of the Act).

  In this instrument:

access amount, for a particular day (the access day) for an asset‑tested income stream (lifetime), means the sum of:

 (a) the maximum amount that would have been payable for the income stream, as determined by the contract or governing rules for the provision of the income stream, if the income stream had been commuted on the assessment day for the income stream; and

 (b) any instalments paid for the income stream after the assessment day and before the access day.

Act means the Social Security Act 1991.

death benefit, for a particular day for an asset‑tested income stream (lifetime), means the maximum commutation amount that would be payable for the income stream, as determined by the contract or governing rules for the provision of the income stream, if the person, or persons, eligible to receive the income stream died on that day.

death benefit comparison value has the meaning given by subsection 6(3).

first half of the life expectancy period, for an asset‑tested income stream (lifetime), means the number of days in the period:

 (a) starting on the assessment day for the income stream; and

 (b) ending when the number of days equal to the life expectancy period for the income stream divided by 2, and rounded down to the nearest whole number, have passed.

life expectancy period, for an asset‑tested income stream (lifetime), means the number of days worked out by:

 (a) using the Life Tables to calculate the number of days, as at the assessment day, in the life expectancy of:

 (i) the person eligible to receive the income stream; or

 (ii) for a joint income stream—the eldest of those eligible to receive the income stream; and

 (b) rounding that number of days down to the nearest whole number of years; and

 (c) converting those years to a number of days, assuming 365 days in a year.

Life Tables means:

                       (a)   if a person's assessment day for an asset-tested income stream (lifetime) is before 1 January 2020—the Australian Life Tables 2010‑12 published by the Australian Government Actuary; or

                       (b)   if a person's assessment day for an asset-tested income stream (lifetime) is between 1 January 2020 and 31 December 2024—the Australian Life Tables 2015‑17 published by the Australian Government Actuary; or

                      (c)   if a person's assessment day for an asset-tested income stream (lifetime) is on or after 1 January 2025—the Australian Life Tables 2020‑22 published by the Australian Government Actuary.

surrender comparison value has the meaning given by subsection 5(3).

surrender value, for a particular day for an asset‑tested income stream (lifetime), means the maximum commutation amount that would be payable for the income stream, as determined by the contract or governing rules for the provision of the income stream, if the person, or persons, eligible to receive the income stream did not die on that day.

5  Surrender value method

 (1) This section sets out a method for working out the value of an asset‑tested income stream (lifetime) by reference to the surrender value of the income stream.

 (2) The value of a person’s asset‑tested income stream (lifetime) on a particular day is the highest value for that day or any later day worked out using the following method statement.

 (3) The surrender comparison value of an asset‑tested income stream (lifetime) is:

 (a) for a day during the 14 day period that begins on the assessment day for the income stream—the access amount for the day;

 (b) for any other day:

 (i) unless subparagraph (ii) applies—the amount worked out for the day under subsection (4); or

 (ii) if the amount worked out for the day under subsection (4) is less than or equal to zero—nil.

 (4) For the purposes of paragraph (3)(b), the amount for a day (the access day) is worked out using the following formula:

where:

previously commuted amount means the sum of any amounts commuted from the income stream before the access day.

remaining life expectancy means the number of days remaining in the life expectancy period for the income stream after subtracting the number of days in the period:

 (a) starting on the assessment day for the income stream; and

 (b) ending on the access day.

6  Death benefit method

 (1) This section sets out a method for working out the value of an asset‑tested income stream (lifetime) by reference to the death benefit of the income stream.

 (2) The value of a person’s asset‑tested income stream (lifetime) on a particular day is the highest value for that day or any later day worked out using the following method statement.

 (3) The death benefit comparison value of an asset‑tested income stream (lifetime) is:

 (a) for a day within the first half of the life expectancy period for the income stream—the access amount for the day;

 (b) for any other day:

 (i) unless subparagraph (ii) applies—the amount worked out for the day under subsection (4); or

 (ii) if the amount worked out for the day under subsection (4) is less than or equal to zero—nil.

 (4) For the purposes of paragraph (3)(b), the amount for a day (the access day) is worked out using the following formula:

where:

previously commuted amount means the sum of any amounts commuted from the income stream before the access day.

remaining life expectancy means the number of days remaining in the life expectancy period for the income stream after subtracting the number of days in the period:

 (a) starting on the assessment day for the income stream; and

 (b) ending on the access day.

Endnotes

Endnote 1—About the endnotes

The endnotes provide information about this compilation and the compiled law.

The following endnotes are included in every compilation:

Endnote 1—About the endnotes

Endnote 2—Abbreviation key

Endnote 3—Legislation history

Endnote 4—Amendment history

Abbreviation key—Endnote 2

The abbreviation key sets out abbreviations that may be used in the endnotes.

Legislation history and amendment history—Endnotes 3 and 4

Amending laws are annotated in the legislation history and amendment history.

The legislation history in endnote 3 provides information about each law that has amended (or will amend) the compiled law. The information includes commencement details for amending laws and details of any application, saving or transitional provisions that are not included in this compilation.

The amendment history in endnote 4 provides information about amendments at the provision (generally section or equivalent) level. It also includes information about any provision of the compiled law that has been repealed in accordance with a provision of the law.

Misdescribed amendments

A misdescribed amendment is an amendment that does not accurately describe how an amendment is to be made. If, despite the misdescription, the amendment can be given effect as intended, then the misdescribed amendment can be incorporated through an editorial change made under section 15V of the Legislation Act 2003.

If a misdescribed amendment cannot be given effect as intended, the amendment is not incorporated and “(md not incorp)” is added to the amendment history.

Endnote 2—Abbreviation key

Endnote 3—Legislation history

Endnote 4—Amendment history