Income stream customer reviews - defined benefit or military invalidity pension income streams 110-19011120

Customers must supply an income stream schedule via:

• mail
• in person, or
• the upload facility in their myGov account

Note: information for these reviews cannot be accepted verbally.

If the customer has contacted to:

• advise of a payment suspension or cancellation, go to Step 3
• provide the details of the review in person and they:
• have the income stream schedule from their provider, go to Step 4
• do not have the income stream schedule, tell them they must return it via the above methods only. Refer to the request letter sent for the due date (if registered for online letters, this may be available in the customer's myGov inbox). Procedure ends here

The customer must supply the income stream schedule for their payment to be restored.

Has the customer supplied the correct income stream schedule?

• Yes,
• Restore the customer's payment using the Benefits Action (BA) screen. Do not finalise the activity
• Go to Step 4
• No,
• Tell the customer payments cannot be restored until they supply the income stream schedule
• Procedure ends here

Open the income stream schedule document:

• go to the Pension/Annuities Summary (SUPS)
• compare the details in the latest provided income stream or similar schedule to the details on the customer’s record for the following fields:
• Product type
• Provider name
• Commencement date

Is there a difference?

• Yes, go to Step 5
• No, for:
• Defined benefits go to Step 7
• Military Invalidity Pension, go to Step 8

Before December 2024, military invalidity pension (MYP) income streams were coded as defined benefit (DEF) income streams. If the existing DEF income stream coded on the record is now identified as a military invalidity pensions for which MYP data was received they are to be converted to MYP with the existing details of the defined benefit from the date of the CPI update.

Cancel the product:

• open the existing SUPI entry
• cancel the current product by selecting ‘OTH - Other’ in the Product Cancellation Reason field:
• if processing in Customer First, populate the source and Date of Receipt (DOR) as required. Key ‘C’ in to Action
• the Event Date is the DOR

The system will return to the summary screen.

To recode SUPI:

• populate the Income Stream Details and fix the differences identified earlier
• keep the following fields blank:
• Provider or SMSF/SAF ABN
• Purchase date
• Term or relevant number

Defined benefit and military invalidity pension income streams do not need an Australian Business Number (ABN) and the term/relevant number will be populated automatically:

• Code the 3 letter code for the Provider
• only MBS - Military Superannuation and Benefit Scheme or DFBV - DFRDB are valid providers for military invalidity pensions
• make sure the Section 9A/B/BA/BB Compliant Ind field is Yes, even if the coding before showed No

Key the income stream as a new product and fix the differences.

For help with:

• defined benefit income streams, see Table 3, Step 3 in Adding or updating a defined benefit income stream
• military invalidity pension income streams, see Table 3, Step 3 in Adding or updating a military invalidity pension income stream

For military invalidity pension income streams, go to Step 8.

Select the defined benefit income stream from the Pension/Annuities Summary (SUPS). Check the Product Reference Number. If the Product Reference Number is different, to correct it in:

• Process Direct:
• select Edit
• change the Product Reference Number
• select Save
• Customer First:
• change the Product Reference Number
• complete the Source and Date of Receipt (DOR) as required
• key ‘C’ into the Action field

Go to SUPV. Apply the required updates for the income stream product:

• Event date, the date the customer provides the requested details
• Gross Income amount, key the new fortnightly gross income amount. It must include any additional income amount the customer or their partner receives for their child
• Super Child Amount, the amount of additional superannuation payments received for children. The system will minus this from the gross income when it works out the assessable income for the customer
• TFC New Method, key the tax free component as stated on the schedule
• Note: if this field has a value and the Inc Ded Amt Calc Method field is 'I' or 'S', change the deductible amount in this field at the same time as changing the gross income amount (as a result of the indexation)
• Assessable Income Amount, do not update this field as the system will do the required calculation
• If there are existing other deductions, review to determine if they will also need updating with the indexation of the gross income amount, see Adding or updating a defined benefit income stream

Has a work item been allocated for completion in Process Direct, yet actioned in Customer First?

• Yes, go to Step 9
• No, procedure ends here

Select the military invalidity pension income stream from the Pension/Annuities Summary (SUPS). Check the Product Reference Number. If the Product Reference Number is different, to correct it in:

• Process Direct:
• select Edit
• change the Product Reference Number
• select Save
• Customer First:
• change the Product Reference Number
• complete the Source and Date of Receipt (DOR) as required
• key ‘C’ into the Action field

Go to SUPV. Apply the required updates for the income stream product:

• Event date, the date the customer provides the requested details
• Gross Income amount, key the new fortnightly gross income amount. It must include any additional income amount the customer or their partner receives for their child
• Income Frequency, 2we
• Super Child Amount, the amount of additional superannuation payments received for children. The system will minus this from the gross income when it works out the assessable income for the customer
• Special Reduction Amount, key the special reduction amount as stated on the schedule
  This is the TFC on the schedule calculated for the Special Reduction Amount, and not the amount used for taxation and reported to the Australia Taxation Office (ATO)
• Assessable Income Amount, do not update this field as the system will do the required calculation

If there are existing other deductions, review to determine if they will also need updating with the indexation of the gross income amount, see Adding or updating a defined benefit income stream.

Has a work item been allocated for completion in Process Direct, yet actioned in Customer First?

• Yes, go to Step 9
• No, procedure ends here

Go to Customer Details (CRN/BP), then to the Activities or Interaction History tab:

• find the CoC
• select the CoC ID
• select Edit
• change the Status to Completed
• select Save
• select Back
• clear out of the customer's record

Procedure ends here.