Debts arising from commutation of asset-test exempt income streams 107-04020120

Policy

Social Security Guide 4.9.2.17 Retention of asset test exemption for ATE income streams purchased from 20/09/2004, or from 20/09/2007

Social Security Guide 4.9.2.40 Commuting an Asset-Test Exempt Income Stream

Debts created before 1 October 1997 and after 20 September 2001

Debts created before 1 October 1997

Section 1223A of the Social Security Act 1991, covering internal transfer debts, was repealed (revoked) from 1 October 1997. Section 1223A came back into force on 20 September 2001 as part of the asset-test exempt income stream commutation legislation. When coding the debt, use the following:

• If the section of the Social Security Act 1991 is 1223A:
  • the start date must be before 1 October 1997, and
  • use '1223A -Transfer to new payment type’

Debts created after 20 September 2001

If the section of the Social Security Act 1991 is S1223A:

• the start date must be on or after 20 September 2001, and
• use 'S1223A - asset-test exempt income stream cashed in'

Legislation

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Social Security Act 1991

• section 1223A, Debt resulting from commutation of asset-test exempt income stream contrary to subsection 9A(2), 9B(2) or 9BA(2)
• section 9A, Meaning of asset-test exempt income stream-lifetime income streams
• section 9B, Meaning of asset-test exempt income stream-life expectancy income streams
• section 9BA, Meaning of asset-test exempt income stream - market linked income streams
• section 1237AB, Secretary may waive debts of a particular class

Social Security (Guidelines for determining whether income stream is asset-test exempt) (DSS) Determination 2011

Social Security Act 1991, before 1 October 1997

Social Security Act 1991, section 1223A, Debt resulting from commutation of asset-test exempt income stream contrary to subsection 9A(2), 9B(2) or 9BA(2)