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Adding or updating an account-based income stream 108-05060010

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Examples of grandfathered income stream in place before the current financial year

Item

Example

1

Calculating gross annual income

Bill advises gross annual income in July 2014 of $15,600 per annum ($1,300 per month).

Bill contacts on 15 October 2014 and informs the gross income has increased to $1,500 per month.

Bill has already received $1300 per month for July, August and September. This is equal to $3,900.

Bill will now receive $13,500 ($1500 x 9) for the period October 2014 to June 2015.

Therefore, the total gross income for the financial year is $17,400 ($3,900 + $13,500). The new gross annual income to be coded from date of advice will be $17,400.

2

Assessing annual income for an account-based pension

John is aged 70 and has an allocated pension with 1 July account balance of $200,000.

John advises the gross annual income in July 2014 of $24,000 ($2,000 per month).

In January 2015, John wishes to reduce the gross annual income as the current account balance has dropped. John must still take at least a minimum income of $10,000 for the current financial year. At $2,000 per month, John has already received 6 monthly payments totalling $12,000 (July to December), so has already received more than the minimum amount.

If John elects to receive no further income payments for the financial year, the gross annual income for the current financial year will be $12,000. The new gross annual income to be coded from the date of advice will be $12,000.

DOC templates

Summary: Income stream product updated

A system issue was identified where the income stream category was assessed incorrectly for the customer's account-based income stream product.

The system was fixed in September 2020 and product required remediation.

Income stream cancelled and recoded from Date of Event DD.MM.20XX as this is when income stream category started assessing incorrectly.

Coded Review of Assessment (ROA) screen as a part of the activity as agency error has resulted in the incorrect assessment.

If arrears generated

Arrears of $XX.XX from DD.MM.YYYY - DD.MM.YYYY issued as per Operational Blueprint - Adding or updating an account-based income stream, 'Category rectification activities' Table 8.

If debt generated

Debt raised for investigation due to incorrect historical assessment for customer. System issue resulted in incorrect assessment for customer.

Relevant Number Calculator

An attachment is available: Placed in front of links to attachmentsRelevant Number Calculator

Forms

Details of income stream product (SA330)

Level 2 Policy Helpdesks - Online Query Form

Financial Industry and Network Support (FINS)

Successor Fund and Intra Fund Transfers

Direct referral to SSO

mySupport

Contact details

Department of Veterans' Affairs (DVA) - Centrelink DVA Clearance Team (SCS)

QMA details

Activities submitted to QMA must not have the following fields marked as an error for category 9 (deemed) account-based income streams when keying, as they do not affect assessment or future product matching under AISR processes:

  • Incorrect Relevant Number
  • Incorrect 1 July balance
  • Incorrect Original Purchase Price
  • Incorrect Gross Annual Payment

SRDP reduction calculation examples

Note: only relevant to Category 2 products that are paid by Commonwealth Superannuation Scheme and have been approved by Level 2 helpdesk.

The Maximum SRDP payable amount is reduced first by:

  • any Permanent Impairment compensation payable, then
  • Commonwealth superannuation, and
  • possible debt repayments

The maximum possible Commonwealth superannuation reduction is 60% of the available Commonwealth superannuation.

Example of how DVA may express the SRDP assessment.

SRDP payable amount per week:

  • Maximum SRDP rate $721.60
  • less MRCA PI offset $237.82
  • less DRCA PI offset $0.00
  • less 60% Superannuation offset $611.32
  • less VEA DP offset $0.00

SRDP payable = $0.00

In this example, the superannuation offset is $611.32. At 60%, this offset was generated from $1,018.86 per week superannuation. $611.32 x 10 / 6 = $1,018.86.

However, in this example, $611.32 was not required to reduce the SRDP payment to nil. After reducing for the Permanent Impairment offset ($721.60 - $237.82), only $483.78 was used to offset the SRDP to 0.00. Which at 60%, required only $806.30 per week of the superannuation. i.e. ($483.78 x 10 / 6 = $806.30).

Convert any weekly SRDP figures to annual and is to be coded under Other Deduction Amount field.

The Other Deduction Type field should be coded with S unless there is also a Family Law Split allowed reduction to be added to the SRDP reduction and then it would be B.