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Example of change in financial investments and renewal of LIC
Tanya's current LIC HCC ends on 7 August 2023. The 8 week income assessment period for the LIC renewal process is from 16 May 2023 to 10 July 2023.
As part of the renewal process, Tanya advises that:
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they purchased new shares in company ABC on 14 April 2023
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they still own the same number of shares in company XYZ
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they purchased a new managed investment with company XYHZ on 1 July 2023, and
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the current balance of their existing bank account (already on record) is $1,000. This is different from the recorded balance of $2,400 for that account
Assessment of new shares - the Date of Event (DOV) is 14 April 2023. The Date of Effect (DOE) for the LIC system to calculate the relevant income for the assessment period is 16 May 2023. This is the start date of renewal assessment period.
Assessment of current shares - there is no requirement to code a new DOV if there is no change to the number of shares owned in the same company. Changes are made automatically to the value of current shares in line with CPI on 20/3 and 20/9 each year and displays on the Financial Investment Summary (IVIS) screen.
If the LIC renewal is triggering a rejection due to income as the share price has not reassessed (potential drop of share price since last CPI change), coding a DOV for 16 May 2023 (start date of assessment period) could assist in triggering a reassessment of the current share price.
Assessment of new managed investments - the DOV (date of purchase 1 July 2023) is after 16 May 2023 but still part of the assessment period. The DOE for this investment is also 1 July 2023. The LIC system will calculate the relevant income for the period 1 July 2023 to 10 July 2023 as part of the renewal assessment.
Assessment of existing bank account - the DOV (on Savings (SVS) screen) and the DOE for the bank account update will be 16 May 2023 (start date of assessment period).
Tanya will need to provide evidence of the purchase of the 2 new investments. Tanya will not need to provide proof of the change to her bank account balance as verification of bank account balances is not required for new claims or renewals.
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