Social Security (Value of Asset-tested Income Streams (Lifetime)) (Number of Expected Years) Instrument 2025
I, Gillian Beer, delegate of the Secretary of the Department of Social Services, make the following notifiable instrument.
Dated 24.02.2025
Gillian Beer
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 Schedules.............................................1
5 Number of expected years...................................1
Schedule 1—Repeals 2
Social Security (Number of Expected Years) Instrument 2019 2
1 Name
This instrument is the Social Security (Value of Asset-tested Income Streams (Lifetime)) (Number of Expected Years) Instrument 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 | 1 January 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Note: This table relates only to the provisions of this instrument as originally made.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 subsection 1120AB(11) 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Each instrument that is specified in a Schedule to this instrument is amended or repealed as set out in the applicable items in the Schedule concerned, and any other item in a Schedule to this instrument has effect according to its terms.
5 Number of expected years
For the purposes of step 1 of the method statement in subsection 1120AB(9) of the Social Security Act 1991, the number of expected years is 20.30 years.
Schedule 1—Repeals
Social Security (Number of Expected Years) Instrument 2019
1 The whole of the instrument
Repeal the instrument
Overview
The Social Security (Value of Asset-tested Income Streams (Lifetime)) (Number of Expected Years) Instrument 2025, dated 24 February 2025, was made by Gillian Beer, Branch Manager of Payment Structures and Seniors Branch, acting as a delegate of the Secretary of the Department of Social Services. This notifiable instrument repeals the Social Security (Number of Expected Years) Instrument 2019 and introduces a new number of expected years for the calculation of asset-tested income streams under the Social Security Act 1991. Specifically, it sets the number of expected years at 20.30 years, which is intended to address the need for more accurate assessments of lifetime asset-tested income streams. The instrument aims to ensure that social security payments are calculated more effectively, aligning with the policy objective of providing accurate and fair social security benefits. The instrument commenced on 1 January 2025, as stipulated in its provisions.
Scope and Application
The Social Security (Value of Asset-tested Income Streams (Lifetime)) (Number of Expected Years) Instrument 2025 is a notifiable instrument issued under the Social Security Act 1991. This instrument sets the number of expected years at 20.30 for the purpose of calculating the value of asset-tested income streams in lifetime for social security purposes. It applies to individuals and entities that are subject to the asset tests under the Social Security Act 1991. This includes those who are recipients or potential recipients of social security benefits, where their assets are assessed for eligibility and the amount of benefits they may receive. The instrument has a national reach, as it operates within the Commonwealth framework of the Social Security Act 1991. It supersedes the Social Security (Number of Expected Years) Instrument 2019, thereby repealing it in its entirety. The instrument's provisions commenced on 1 January 2025, and it may be subject to further amendments through subordinate legislation as necessary.
Key Provisions
The Social Security (Value of Asset-tested Income Streams (Lifetime)) (Number of Expected Years) Instrument 2025 (the "Instrument") sets out specific provisions that amend the Social Security Act 1991. According to section 1, this Instrument is effective from 1 January 2025. The Instrument is made under subsection 1120AB(11) of the Social Security Act 1991, which highlights its legal authority (section 3). The primary content of the Instrument is found in its Schedules, where it specifies amendments or repeals to existing instruments, such as the Social Security (Number of Expected Years) Instrument 2019 (section 4). The key provision of the Instrument is that, for the purposes of calculating the value of asset-tested income streams for lifetime, the number of expected years is set at 20.30 years (section 5).
Under the Instrument, the Department of Social Services and its authorised officers have specific obligations to implement and adhere to the provisions outlined. They must ensure that the calculations for asset-tested income streams are made according to the new number of expected years, which is now 20.30 years. The Instrument also mandates that any relevant amendments or repeals specified in the Schedules are to be carried out effectively and timely, which in this case involves repealing the Social Security (Number of Expected Years) Instrument 2019 (Schedule 1).
There are potential consequences for breaches of the provisions outlined in this Instrument. However, the text does not explicitly state the penalties or consequences for non-compliance. Given that the Instrument is a notifiable instrument, it is likely that breaches may lead to administrative or financial penalties as outlined in the relevant sections of the Social Security Act 1991. Typically, such breaches could result in fines or other corrective actions deemed appropriate by the Department of Social Services. It is essential for the Department and any affected parties to comply fully with the requirements to avoid any adverse outcomes.