Adding or updating a market-linked income stream 108-05060020

If the customer has supplied a physical copy of an income stream schedule to a Service Centre, upload a copy of the income stream schedule to the customer's record.

Is the customer only contacting to add or update a market-linked income stream?

• Yes, go to Step 3
• No, go to Step 2

Discuss all the income and assets updates the customer would like to make during their contact (for example income stream, shares, foreign income)

Only proceed with the coding if all updates needed can be completed.

If there are concerns with the legitimacy of the customer's information, see Coding income and assets for Centrelink payments and services.

This table describes information needed to update the income stream.

Can the customer provide all the other information needed?

• Yes, go to Step 3
• No:
• further information or documents will be needed before the updates can be done
• check if additional information for the income stream update is also needed
• go to Step 3

All appropriately skill-tagged Service Officers can process new and existing market-linked income streams at the point of contact for all payment types.
Note: do not add new income streams without the customer supplying an income stream schedule.

Documents:

• For existing market linked income streams
• No documents are needed for current account balance or gross annual income changes unless the change is due to a commutation
• A Details of income stream product (SA330) or similar schedule completed by the provider is needed for partial commutations and a change to gross annual income from a commutation or if changes to the provider name and/or product reference number have occurred following a successor funds transfer
• For new income streams, an SA330 or similar schedule completed by the provider is needed
• A provider can issue their own schedule with similar questions that appear on the SA330, and this can be accepted

Is the customer able to provide all the required information?

• Yes, go to Step 5
• No, go to Step 4

Tell the customer all information is needed before any change can be made to make sure they receive correct entitlement.

Before requesting further information, see Step 3 in Table 1 on the Process Direct subtab.

Note: if requesting an income stream schedule, do not insist on the customer providing an SA330 only. Providers can issue their own schedule with similar questions that appear on the SA330, and this can be accepted.

• Tell the customer of the information they must provide. See Requesting information (CLK)
• Use Mail Forms if a form needs to be sent
• Ask for the information to be returned within 14 days

Note: where the customer or partner is unable or unwilling to provide information due to FDV (Family and Domestic Violence), escalate to AISR support. AISR support will request the information directly from the provider.

Procedure ends here until documents returned.

Check if a Service Officer has applied an update for the product in this financial year as part of the Automation of Income Stream Reviews (AISR) process. The DOV to be used now is before to the DOV on the Income Streams (SUPS, SUPI, SUPV) screen and Income Stream Details line.

There will be a NOTE about an ‘Income stream review manual update’. If needed, the Interaction History in Customer First will also have provider data information for the related product.

Did a Service Officer update the product in this financial year as part of the AISR process, and the DOV to be used now is before the DOV on the Income Stream Details?

• Yes, go to Step 7
• No, go to Step 6

If the customer is notifying changes to an existing income stream from 1 July and before the annual August review has been completed, see Step 1 in Table 2

Otherwise, if the customer is advising of:

• a change to the current account balance, see Step 3 in Table 2
• a commutation or a change in gross annual income from a commutation, see Step 5 in Table 2
• a change in gross annual income not from a commutation, see Step 11 in Table 2
• a change to the provider name and product reference number following a Successor Fund Transfer, see Step 1 in Table 3
• the expiry date for the product in the final year of the product. See Step 10 in Table 2
• the income stream has already expired, see Step 16 in Table 2 table
• new income stream details, see Step 1 in Table 4
• information as part of a review, see Income stream reviews

• Escalate by creating a Fast Note- select Auto Text, use Older Australians > Update > Action req – Auto Income stream review
• Document the action needed
• If a work item exists, re-categorise as ZIAM_AISR_SUPS
• Procedure ends here

The customer may be notifying new gross annual income from 1 July or the new current account balance.

Other than for self-managed superannuation fund (SMSF) or small APRA superannuation fund (SAF), the information being notified by the customer will be provided to Services Australia in August as part of the “Automation of income stream reviews” process.

If there is a need to make the update before the August review, for example, the change will be payment effecting, go to Step 2.

Is the customer’s income stream from an SMSF or SAF?

• Yes, tell the customer they can either:
• wait for the August review using online services as outlines in the review letter, or
• provide a current income stream schedule
• No, tell the customer their income stream will be updated automatically when their provider supplies the information directly to the agency for the review

All the information requested for the review must be provided and updated (use the Income and Assets Update Task Selector workflow):

• 1 July account balance
• The new nominated gross annual income amount for the current financial year
• Any commutations made in the previous financial year. Note: an MLI is generally a non-commutable income stream, except in very limited circumstances. Determine if the commutation is allowable or not, and
• The current account balance

Note: if the market-linked income stream is in its final year with a payment factor of 1 and displays the error “The Gross Annual Income Amount must be between minimum ####.## and maximum ####.##”, see Table 4, Step 8.

A manual review must be set to expire all market-linked products in the final year. See Table 4, Step 9.

1 July balance

• The 1 July account balance can only be updated once in a financial year
• If another update is made in the same financial year, an error “1 July Balance field can only be updated once in a financial year” is displayed
• If a coding error is made, the event has been updated and a correction is needed, delete the incorrect line and re-code the correct information. Note: if deleting a line, make sure the new line is added with the correct details
• Do not update new gross income only. If other details are completed with an Event Date 1 July or later, the system will treat the 1 July account balance as updated as well and not allow any further changes for the financial year
• All details are to be updated in the one transaction to prevent the review letter being sent to the customer in August and re-work because the 1 July account balance not being updated
• If the income stream schedule is issued or dated before 1 July, do not accept for updates from 1 July. A new schedule from 1 July is required
• If the account balance for 1 July is not provided but a current account balance for another date in July is provided, this is acceptable and can be used to update 1 July account balance.

See August review of income streams for full details of updates needed.

Procedure ends here.

• If the current account balance has changed because of a commutation, the customer must provide an income stream schedule. Go to Step 7
• If the current account balance has increased significantly, ask the customer if they have started a new income stream. Some providers re-use product reference numbers. If it is a new income stream, the customer must provide an income stream schedule. Go to Step 7

For other updates, go to the Income Streams (SUPS, SUPI, SUPV).

Are details for the market-linked income stream already entered?

The product type code should be MLI - Market Linked Income Stream.

• Yes, go to Step 4
• No, the customer must provide an income stream schedule. Go to Step 7

Use the Income and Assets Update workflow.

• In the customer's record enter START into the Super key
• Select Income and Assets Update from the Task Selector options
• Select Income Streams (SUPS/SUPI/SUPV)
• Add any extra Income and Assets types needed
• Select Start to begin the workflow

To update:

• Expand the appropriate product from Income Streams (SUPS, SUPI, SUPV)
• Check details are correct
• On the Income Stream Details line add a new entry and make the necessary changes to following fields:
• Event Date: date of change
• Current Account Balance: code the new current account balance
• Select Save once updates made
• Update Receipt Date and Channel and Save
• Check the Income Streams (SUPS, SUPI, SUPV) displays the updated income stream details
• Select Assess
• Check the payment outcome on Entitlements (ELD) and select Finish
• If using the Process Direct Income and Assets workflow, NOTES will prepopulate automatically and display for review when Finish is selected
• At this point any additional information can be added, as per Online Document Recorded (ODR)
• Once NOTES are complete, select Finalise. The transaction will complete and NOTES replicate to the Document List (DL)

Procedure ends here.

While in the income stream owner's record, go to the Income Streams (SUPS, SUPI, SUPV)

Are there details for the income stream for the product type MLI - Market Linked Income Stream already entered?

• Yes, go to Step 6
• No, the customer must provide income stream schedule. Go to Step 7

Commutation

• A market-linked income stream is non-commutable except in extremely limited circumstances
• If a partial commutation is made or the product must be cancelled because of a full commutation, determine if the commutation is allowable or not
• See Commutation of asset-test exempt (ATE) income streams

Gross annual income

The income stream provider calculates the gross annual income. Service Officers must not undertake this calculation. Get a current SA330 or similar schedule from the income stream provider before making any changes to the gross annual income from a commutation.

Is the customer advising of a commutation or a resulting change to Gross income?

• Yes, and documents:
• have not been supplied yet, go to Step 7
• have been supplied, go to Step 9
• No, procedure ends here

• Yes, go to Step 9
• No, go to Step 8

• Tell the customer of the information they must provide. See Requesting information (CLK).
• Use Mail Forms to issue the SA330 or tell the customer to ask their provider for an income stream schedule:
• The SA330 must be completed by the income stream provider for income streams purchased from a retail provider, or
• The Trustee for income streams paid from a self-managed superannuation fund (SMSF) or small APRA fund (SAF). Note: some SMSFs may have a retail provider as their administrator, for example, AXA, MLC, who may complete the form
• A provider can issue their own schedule with similar questions that appear on the SA330, and this can be accepted
• Ask for the information to be returned within 14 days

Note: where the customer or partner is unable or unwilling to provide information due to FDV (Family and Domestic Violence), escalate to AISR support. AISR support will request the information directly from the provider.

Procedure ends here until documents returned.

Note: if the market-linked income stream is in its final year with a payment factor of 1 and displays the error “The Gross Annual Income Amount must be between minimum ####.## and maximum ####.##”, see Table 4, Step 8.

A manual review must be set to expire all market-linked products in the final year. See Table 4, Step 9.

• To update an existing income stream:
• Use the Income and Assets Update Task Selector workflow (START)
• To update details manually, check details are correct on Income Streams (SUPS, SUPI, SUPV) screen before updating relevant fields on the Income Stream Details line, see Step 1 in Table 4
• To add a new income stream, see Step 1 in Table 4

In the final year of the income stream, the recipient can elect to have it expire at the end of the actual term or the closest 30 June.

In Customer First, create a manual review on the Review Registration (RVR) screen and complete the fields as follows:

• Service Reason: customer's payment type
• Review Reason: select most appropriate reason
• Due Date: at the end of the product term based on the purchase date and the term or relevant number, or on 30 June of current financial year
• Source: INT
• Date of Receipt: today's date
• Notes: 'Customer elected to expire income stream in final year. Expire the product with cancellation reason EXP.'
• Keywords: MLIEXP and AISRUPD
• Workgroup: leave blank
• Position: leave blank
• Transfer to Region: leave blank

The review will mature on the Due Date coded in the RVR activity. Workload Management will allocate the review for manual action.

Procedure ends here.

The income stream provider calculates the gross annual income. Service Officers must not undertake this calculation. If in doubt, get a current SA330 or similar schedule from the income stream provider before making any changes to the gross annual income.

As part of the Government response the COVID-19 (novel coronavirus) the minimum drawdown limits for market-linked income streams under the Superannuation Industry (Supervision) Regulations 1994 were reduced by 50% for 2019/2020, 2020/2021, 2021/2022 and 2022/2023 financial years. Customers can reduce their gross annual income amount for the financial year, subject to the reduced minimum limit based on the existing 1 July account balance.

To update manually:

• Expand the appropriate product from the Income Streams (SUPS, SUPI, SUPV)
• Check the details are correct
• On the Income Stream Details line add a new entry and make the necessary changes to the following fields:
• Event Date: date of the change
• Market Linked Gross Amount: the new gross annual income
• Select Save
• Update Receipt Date and Channel and Save
• Check the Income Streams (SUPS, SUPI, SUPV) displays the updated income stream details
• Select Assess
• Check the payment outcome on Entitlements (ELD) and select Finish
• If using the Process Direct Income and Assets workflow, NOTES will prepopulate and display for review when Finish is selected
• At this point, any additional information can be added, as per Online Document Recording (ODR)
• Once NOTES are complete, select Finalise. The transaction will complete and NOTES replicate to the Document List (DL)

Note: if the market-linked income stream is in its final year with a payment factor of 1 and displays the error “The Gross Annual Income Amount must be between minimum ####.## and maximum ####.##”, see Table 4, Step 8.

A manual review must be set to expire all market-linked products in the final year. See Table 4, Step 9.

If it is not in its final year and the edit ‘E022SN Amount must be within minimum and maximum calculated amounts’ is triggered, check the gross annual income amount.

If the gross annual income:

• matches the Calculated Income amount field
• no further coding is needed
• is less than the Allow Min field amount
• code the Allow Min amount in the Market Linked Gross Amount field
• is between the Allow Min and Allow Max field amounts
• code the amount provided in the Market Linked Gross Amount field
• is more than the Max field amount, go to Step 12

Procedure ends here.

The income stream no longer complies with Section 9BA:

• check the record for an income schedule or documents showing the date the gross income exceeded the maximum allowable gross income
• If sufficient details are not on the record, make 2 genuine attempts to contact the customer by phone:
• ask for an income stream schedule
• use Mail Forms to send an SA330 if the customer requests a form
• ask for the information to be returned within 14 days. See Requesting information (CLK)
• If telephone contact was unsuccessful:
• send a request for an income stream schedule
• ask for it to be returned within 14 days

Procedure ends here until documents are returned.

If the gross annual income is more than the Max field amount:

• the income stream:
• no longer complies with section 9BA, and
• loses its asset test exempt (ATE) status from the date it exceeds the maximum allowable gross income
• contact the FINS Helpdesk for advice and in Customer First, create a manual review on the Review Registration (RVR) screen. Complete the fields as follows:
• Service Reason: customer's payment type
• Review Reason: select most appropriate reason
• Due Date: due date of FINS Helpdesk advice
• Source: INT
• Date of Receipt: today's date
• Notes: 'FINS Helpdesk contacted for advice. Check response and return to OB 108-05060020 for action.'
• Keywords: MLIEXP and AISRUPD
• Workgroup: leave blank
• Position: leave blank
• Transfer to Region: leave blank
• the review will mature on the Due Date coded in the RVR activity. Workload Management will allocate the review for manual action
• follow the advice of the FINS Helpdesk, and
• if FINS advise that the product has lost its ATE status, cancel it and record it as non-complying. Go to Step 14

On the Income streams (SUPS, SUPI, SUPV) table,

• use the 'Edit' icon to select the relevant entry
• screenshot the Pension/Annuities Identification (SUPI) screen with the details needed for recoding:
• provider information
• purchase date
• reference number, and
• relevant number
• screenshot the Pension/Annuities Details Variable (SUPV) screen for any date of events after the date advised by the FINS Helpdesk
• select OTH - (Other) in the Product Cancellation Reason field
• select Save

Check the data shows nil income and asset value in the Income Streams Details (SUPV) table as at the date advised by the FINS Helpdesk.

Recode as a new product.

• Select Add new line icon on the right of the Income Stream (SUPS,SUPI, SUPV) table
• Code the income stream details (SUPV) from the screen shots as per Step 14
• Code Section 9A/B/BA Compliant IND field:
• Follow FINS Helpdesk coding advice
• Code the earliest required date of event (DOV) from SUPV in the Superannuation Payment Details column
  Note: if the previous entry was cancelled, this DOV must be the same date as the cancellation
• Record any SUPV entries with a later DOV as a new entry to the Income Stream Details (SUPV) table by selecting the Add New Line icon to the right of the table
• Save the changes

Note: if the market-linked income stream is in its final year with a payment factor of 1 and displays the error “The Gross Annual Income Amount must be between minimum ####.## and maximum ####.##”, see Table 4, Step 8.

A manual review must be set to expire all market-linked products in the final year. See Table 4, Step 9.

To add a new income stream, go to Step 1 in Table 4

Market-linked income streams do not automatically expire on the system at the end of the term. In the final year of the income stream, the customer can elect to have it expire at the end of the actual term based on the purchase date and the term or relevant number or the closest 30 June, in the current financial year.

Use the Income and Assets Stream Update Task Selector workflow to update the product.

To update:

• Once on Income Streams (SUPS, SUPI, SUPV) select Edit against the correct product to access the Change Income Streams (SUPS/SUPI/SUPV) options
• From the Product Cancellation Reason field select the correct cancellation reason (EXP - Term Expired) and Save
• Update Receipt Date and Channel and Save
• Expand the income stream details
• If needed, edit the following fields:
• Event Date: Date of expiry as provided by customer. This can be the end of the product term and is based on the purchase date and the term or relevant number or 30 June of the final year
• Check and make sure all income and asset fields are zero

Select Save

• Check the Income Streams (SUPS, SUPI, SUPV) screen displays the updated income stream details
• Select Assess
• Check the payment outcome on Entitlements (ELD) and select Finish
• If using the Process Direct Income and Assets workflow, NOTES will prepopulate and display for review when Finish is selected
• At this point, add any extra details of the circumstances of the cancellation
• Once NOTES are complete, select Finalise. The transaction completes and NOTES replicate to the Document List (DL)

While in the income stream owner's record, go to the Pension/Annuities Summary (SUPS) screen.

The product type code will be MLI.

Has the customer provided a current SA330 or similar schedule from the income stream provider?

• Yes, go to Step 3
• No, go to Step 2

Customer or partner must provide an SA330 or similar schedule from their provider before the provider name and product reference number can be updated.

• Issue SA330 using Mail Forms or tell customer to provide a similar schedule issued by the provider. See Requesting information (CLK)
• Ask for the information to be returned within 14 days
• Tell the income stream owner the SA330 must be completed by:
• the income stream provider for income streams purchased from a retail provider
• the trustee for income streams paid from a self-managed superannuation fund (SMSF) or small APRA superannuation fund (SAF). Note: some SMSFs may have a retail provider as their administrator, for example, AMP. MLC, who may complete the form
• Record details on a DOC

Note: where the customer or partner is unable or unwilling to provide information due to FDV (Family and Domestic Violence), escalate to AISR support. AISR support will request the information directly from the provider.

Procedure ends here until documents are returned

• 'S'elect the appropriate product from SUPS in the Super Key field and select Continue
• Once on Income Streams (SUPS, SUPI, SUPV) select Edit against the correct product to access the Change Income Streams (SUPS/SUPI/SUPV) options
• Provider or SMSF/SAF Name field - name of financial institution, or name of SMSF or SAF. Do not code names of financial planners and accountants
• Provider or SMSF/SAF ABN field - the funds Australian Business Number as stated on the schedule for the 'Provider Name'
• Product Reference Number field - record the correct product reference exactly as it appears on the schedule. The product reference number is unique to each income stream and may show as the product reference number, account number or policy number on the schedule. Do not code the provider ABN or the product name as the product reference number. If the product reference number is incomplete, for example *********305, get the full number from the customer before updating. If there are leading zeroes, code them. Coding incorrect numbers or partial numbers causes the income stream auto updates during the August and February review to fail
• Source, DOR fields
• Action field - code 'C' (system will not accept 'I')

Select Save

• Check the Income Streams (SUPS, SUPI, SUPV) screen displays the updated income stream details
• Select Assess
• Check the payment outcome on Entitlements (ELD) and select Finish
• If using the Process Direct Income and Assets workflow, NOTES will prepopulate and display for review when Finish is selected
• At this point any additional information and details of the circumstances of the cancellation can be added

Once NOTES are complete, select Finalise. The transaction will complete and NOTES replicate to the Document List (DL). Procedure ends here.

Use the Income and Assets Update Task Selector workflow.

To update:

Code Income Streams (SUPS, SUPI, SUPV) screen

• Select Add to access Create Income Streams (SUPS, SUPI, SUPV) options

Code the Income Stream Details:

• Product Type Code field:
• 'MLI' (market-linked income stream)
• Income stream from SMSF/SAF? field:
• 'Y'es or 'N'o if the income stream is paid from a Self-Managed Superannuation Fund (SMSF) or a Small APRA Fund (SAF)
• Provider or SMSF/SAF Name field:
• Name of financial institution, or name of SMSF or SAF
• Do not code names of financial planners and accountants
• Provider or SMSF/SAF ABN field:
• The fund's Australian Business Number as stated on the schedule for the 'Provider Name'
• Product Name field:
• Name of the income stream product as stated on the schedule
• Product Reference Number field – make sure the correct product reference number is recorded exactly as it appears on the schedule. The product reference number is unique to each income stream, and may be shown as the product reference number, account number or policy number on the schedule:
• Do not code the provider ABN or product name as the reference number
• Coding incorrect numbers or partial numbers causes the income stream auto updates during the August and February reviews to fail
• Event Date/ Commencement Date field
• Same as purchase date/start date on the schedule
• Purchase Date field:
• Purchase date of the income steam as stated on the schedule. If the income stream is reversionary the original purchase date is used
• If the purchase date is on or after 20 September 2007, check if the income stream has been purchased from the full commutation of another market-linked income stream. If so, note the purchase date of the commuted product as it will be needed for coding later
• Term or Relevant Number field - as stated on the schedule:
• This is the length of time for which the income stream is payable
• If schedules and/or provider data are received in decimal places, make sure the Term or Relevant Number is rounded up to a whole number. Must be a whole number
• If not provided on the SA330 or is incorrect, contact the provider to get the correct number or request the customer to get a correctly completed schedule from provider. See Requesting information (CLK)
• It must always be the number that applied at the start date and must not be changed following reversion to a reversionary partner or beneficiary

• Section 9A/B/BA Compliant Indicator field:
• Code Yes or No if the MLI meets requirements under section 9BA of the Social Security Act 1991 to be 50% asset-test exempt (ATE)
• Code No for an MLI purchased on or after 20 September 2007 unless it was purchased from the commutation of a pre-20 September 2007 MLI, and meets the conditions for retention of the 50% ATE status
• For more information, see the References page. If a product loses its ATE status, it must be cancelled and recoded as non-complying
• If unsure, contact the FINS Helpdesk before coding ‘N’ in this field. Normal escalation procedures apply. See the Resources page for a link to the Online Query Form
• Start Date Original Commuted Product field:
• Only coded if the purchase date is on or after 20 September 2007 and the product meets the conditions for retention of the ATE status as above
• Staff must contact FINS Helpdesk before coding this field. Normal escalation procedures apply. See Resources page for a link to the Online Query Form
• Product Cancellation Reason field:
• Leave blank when adding a new income stream
• If the income stream is fully commuted, cancel the income stream. Do not delete. If the product is cancelled, it stops to be assessed under Income and Assets Tests
• If updating an income stream to stop, on Income Streams (SUPS, SUPI, SUPV) select Edit against the correct product to access the Change Income Streams (SUPS, SUPI, SUPV) options. Select the correct cancellation reason and Save

Expand the produce details if needed. Edit the cancellation date of event (DOV).

Select the date for the Event Date field using the following information.

Reversionary beneficiary

• The Event Date is the day after the date of death of the primary beneficiary (deceased spouse or partner), which is the date the customer (reversionary) is entitled to the income stream payment
  Note: this date is displayed on the MS screen
• It can include lump sum arrears plus the regular ongoing payments
• Normally lump sum arrears are paid for the period from day after date of death to the date regular payments start
• This assessment will apply even though other income and assets are assessed at the end of the 16 week bereavement review in cases where the customer does not advise the changes before the review
• Waiver of debt for reversionary beneficiary. Effective from 9 May 2018:
• If the assessment of lump sum arrears result in a debt during the bereavement period for the surviving spouse, consideration must be given to waiver provisions contained under Class of Debt, Section 1237AB(1) of the Social Security Act 1991. See the Reference page for a link to the legislation
• All the conditions included in the legislation must be met
• These waiver provisions cannot be used to waive debts outside the 14 week bereavement period, or debts which occurred before 9 May 2018
• If it is possible the waiver provisions can be applied, record the information on a NOTE to the record. Debt Staff will make the decision

New claim

The Event Date will be the:

• date the income stream was purchased where the:
• customer has a partner who is current on an ISP, RCA or LIC before the purchase date, or
• income stream was purchased after the date of grant of the payment
• income stream was purchased after the lodgement of an early claim
• lodgement date for an early claim
• the start date of the 8 week assessment period for LIC
• payment grant date in all other cases

Purchase of new income stream by an existing customer

• The Event Date is the purchase date of the product
• An additional Event Date may need to be inserted if the schedule provided is for a later date. For example:
• A customer purchases income stream on 1 May
• Schedule is issued on 15 May with a current account balance as at that date
• The balance at purchase, that is, purchase price, to be coded with an Event Date of 1 May and a new page to be inserted with Event Date 15 May and balance at that date

Channel Type field

Displays if the income stream was manually updated by Services Australia staff or auto bulk updated with data sent by the provider (ISP)

• Account Based Product field
• System defaults 'Y'
• Original Purchase Price field:
• Code amount originally paid for the income stream, not reduced by any commutation
• Code exactly as stated on the schedule (including cents if stated)
• If coded incorrectly, (other than just in the cents), the product must be cancelled and recoded
• If the income stream is reversionary, use the original purchase price
• 1 July Account Balance field
• Code the account balance at 1 July
• If purchased during the current financial year and the 1 July account balance is not available, code the purchase price
• The system calculates the gross income amount from this amount coded
• This field can only be updated once during the financial year. If an error is made and the event has been updated, delete the page and recode the product details
• The system will not accept zero unless there is a cancellation reason present on the SUPI screen
• Current Account Balance field:
• Code the current account balance
• For the August review, this amount must be the same as the 1 July Account balance
• If a customer seeks a reassessment at any other time and provides a current balance, only update this field
• 50% of this amount is assessed as an asset if section 9BA compliant

• Term Remaining (Years) field:
• System displays the number of years remaining for the income stream (rounded up to the nearest whole number)
• In the final year the owner can elect to have the income stream expire on the actual expiry date or the nearest to 30 June
• If the value is 1.0, the system includes in the August review mail out letter a request for details on which option the customer has selected. Note: this date can currently only be updated in Customer First as the filed does not display in Process Direct
• Payment Factor field
• The system displays the factor used to calculate the gross annual income amount
• Commutation Date field:
• Code the date of the latest commutation
• This date is only for information and is not the date of effect
• Latest Commutation field:
• An MLI is generally a non-commutable income stream irrespective of if it is asset-test exempt or asset-tested, except in very limited circumstances. Determine if the commutation is allowable or not
• If the commutation is non-allowable, the income stream will no longer comply with section 9BA. If unsure, contact the FINS Helpdesk before updating this field. Normal escalation procedures apply. See Resources page for a link to the Online Query Form.
• Code the most recent commutation amount
• Purchase Price Less Commutations field
• System displays original purchase price less total commutations made
• Previous Commutations field:
• System displays total commutations made up to the current date
• Product Category field - system displays either:
• 7 - Partially Asset-test Exempt Market-linked Income stream
• 8 - Asset-tested Market-linked Income stream

Market Linked Gross Amount field

If adding an MLI:

• Code the 4 compulsory fields on this screen (plus the two commutation fields if needed) and select Save
• If the Market Linked Gross Amount is outside the allowable minimum or allowable maximum, the system will trigger the edit. 'The Gross Annual Income Amount must be between $XXXX.xx and maximum XXXX.xx'
• The system will default the amount from the Calculated Income amount field (1 July Account Balance/ Payment Factor). This information is only visible once the update is completed.

The gross income amount must be within the allowable range as calculated by the system:

• Allow Min field - 90% of the amount in the Calculated Income amount field
• Allow Max field - 110% of the amount in the Calculated Income amount field

Note: as part of the Government response to COVID-19 (novel coronavirus) the minimum drawdown limits for market-linked income streams under the Superannuation Industry (Supervision) Regulations 1994 have been reduced by 50% for 2019/2020, 2020/2021, 2021/2022 and 2022/2023 financial years. This means the annual amount received during these financial years can be between 45% - 110% of the calculated income amount. Customers can reduce their gross annual income amount, subject to the reduced minimum based on the existing 1 July account balance.

Note: if the market-linked income stream is in its final year with a payment factor of 1 and displays the error “The Gross Annual Income Amount must be between minimum ####.## and maximum ####.##” go to Step 8.

A manual review must be set to expire all market-linked products in the final year. Go to Step 9.

If the income reported on the schedule:

• matches the Gross Annual Income Amount field
• no further coding is needed
• is less than the Allow Min: amount displayed in the edit
• code the Min amount in the Market Linked Gross Amount field
• is between the Allowable Min and Allowable Max field amounts displayed in the edit
• code the amount reported on the customer's schedule in the Gross Annual Income Amount field
• is more than the Max field amount
• the income stream will no longer comply with section 9BA
• contact the customer or the income stream provider and advise the amount reported is incorrect
• tell the customer the income cannot be greater than the maximum otherwise it will lose its ATE status and no longer comply with SIS (Superannuation Industry (Supervision) Regulations)
• ask for a new schedule with an income amount within the allowable minimum and maximum. In Customer First, create a manual review on the Review Registration (RVR) screen and complete the fields as follows:
  Service Reason: customer's payment type
  Review Reason: select most appropriate reason
  Due Date: 14 days from today's date
  Source: INT
  Date of Receipt: today's date
  Notes: 'Income stream schedule requested. Check response and return to OB 108-05060020 for action.'
  Keywords: MLIEXP and AISRUPD
  Workgroup: leave blank
  Position: leave blank
  Transfer to Region: leave blank
• the review will mature on the Due Date coded in the RVR activity. Workload Management will allocate the review for manual action
• Select Save
• Update Receipt Date and Channel and Save

If an MLI is purchased in June of any year

• It is to be assumed the customer has deferred payments until on or after 1 July of the next financial year
• If the purchase date is in June of the current financial year, the system defaults '0' in the Market Linked Gross Amount field. An edit prevents this from being changed
• The Calculated Income amount, Allow Min and Max fields will display ‘0’
• The amount must be updated to show the new financial year income in July or during the following August review
• The customer may report they are to receive a payment during June, but still code zero
• Tell the customer to provide the new income amount in July

The system calculates and displays the following fields. No value will display until the required fields for calculation have been coded.

• Expand the appropriate MLI product from Income Streams (SUPS, SUPI, SUPV)
• Check details are correct
• On the Income Stream Details line select Edit against date of event (DOV) update to access the Superannuation Payment Details

Check the following information displays:

• Deductible Amount (Income) field
• System calculates the deduction amount by which the gross income amount from an income stream is reduced to determine assessable income
• Calculated Income Amount field:
• The system calculates this by dividing the 1 July account balance by a payment factor
• Payment factors are defined in the Superannuation Industry (Supervision) (SIS) Regulations and are based on the years remaining until the MLI expires
• No value will be displayed until the required fields for calculation have been coded
• Assessable Income Amount field:
• The system calculated amount (gross income amount - deductible amount (income))
• Assessable Asset Amount field:
• System calculated amount
• If the income stream complies with section 9BA, 50% of the current account balance is an assessable asset

Go to Step 10.

Due to a known system issue, the minimum and maximum calculation during the final year for MLI is not correct.

If the error 'E022SN - The Gross Annual Income Amount must be between minimum ####.## and maximum ####.##' is displayed, complete the following workaround:

• Open the existing SUPI entry by selecting the Edit icon next to the product listed under the Income Streams (SUPS, SUPI, SUPV) table
• Note the product reference from the SUPI screen
• Cancel the current product by selecting OTH - Other in the Product Cancellation Reason field
• Save
• Check the data shows nil income and asset value in the Income Stream Details (SUPV) table
• Make sure the latest line on SUPV is today’s DOV

Code new entry on Other Assets (OAS) screen:

• Type: OTH
• Description: SUPS MLI PRN (insert product reference number)
• DOV: today
• Value: If the product is not Section 9A/B/BA compliant, code the current account balance as the value. If the product is Section 9A/B/BA compliant code half the current account balance as the value.
• Ownership: 100% CUS

Code new entry on Other Income (OINS) screen

• Type: OTH
• Description: SUPS MLI PRN (insert product reference number)
• Reference: leave blank
• DOV: today
• Value: code assessable income. In the final period, this is calculated by the Gross Income less the deductible which is ((purchase price - commutations) / relevant number)
• Frequency: ANN

Once finalised, DOC the record (see Resources) and code a manual review for the expiry date. A manual review must be set to expire all market-linked products.

Go to Step 9.

If error “The Gross Annual Income Amount must be between minimum ####.## and maximum ####.##” was returned and the work around was used to code the product on OAS/OINS, a review to zero off the coding is required.

In Customer First, create a manual review on the Review Registration (RVR) screen and complete the fields as follows:

• Service Reason: customer's payment type
• Review Reason: INV (Investments/Bonds/Shares)
• Due Date: code DOV as advised by provider for expiry (this will be either the end of the term or closest 30/6)
• Source: INT
• Date of Receipt: today's date
• Notes: 'Zero OAS & OINS screen coding for SUPS MLI PRN <insert product reference number> from DOV <insert date due to expire>.'
• Keywords: MLIEXP and AISRUPD
• Workgroup: leave blank
• Position: leave blank
• Transfer to Region: leave blank

The review will mature on the Due Date coded in the RVR activity. Workload Management will allocate the review for manual action.

If the income was accepted, a review to manually expire the income stream is required.

In Customer First, create a manual review on the Review Registration (RVR) screen, code and complete the fields as follows:

• Service Reason: customer's payment type
• Review Reason: INV (Investments/Bonds/Shares)
• Due Date: code DOV as advised by provider for expiry (this will be either the end of the term or closest 30/6)
• Source: INT
• Date of Receipt: today's date
• Notes: 'Expire MLI income stream PRN <insert product reference number> using cancellation reason 'EXP' from DOV <insert date due to expire>.'
• Keywords: MLIEXP and AISRUPD
• Workgroup: leave blank
• Position: leave blank
• Transfer to Region: leave blank

The review will mature on the Due Date coded in the RVR activity. Workload Management will allocate the review for manual action.

Procedure ends here.

• Check the Income Streams (SUPS, SUPI, SUPV) displays the updated income stream details
• Select Assess
• Check the payment outcome on Entitlements (ELD) and select Finish
• If using the Process Direct Income and Assets workflow, NOTES will prepopulate and display for review
• Add any additional information, as per Online Document Recorded (ODR)
• Select Finalise. The transaction will complete and NOTES will replicate to the Document List (DL)
• If needed make sure the FAL screen is checked in Customer First and any review for the return of the documents completed

If the customer has supplied a copy of an income stream schedule, upload the copy to the customer's record.

Is the customer only contacting to add or update a market-linked income stream?

• Yes, go to Step 3
• No, go to Step 2

Discuss Income and assets updates with the customer (for example, income stream, shares, foreign income). Complete the updates if all the coding can be finalised.

If there are concerns with the legitimacy of the customer's information, see Coding income and assets for Centrelink payments and services.

Can the customer provide all the other information needed?

• Yes, go to Step 3
• No:
• further information or documents needed before the updates can be done
• check if additional information for the income stream update is needed
• go to Step 3

Service Officers with the correct skill tag can process new and existing market-linked income streams at point of contact for all payment types.

Note: do not add new income streams if the customer does not supply an income stream schedule.

Documents:

• For existing market linked income streams:
• No documents are needed for current account balance or gross annual income changes unless the change is due to a commutation
• A Details of income stream product (SA330) or similar schedule completed by the provider is needed for partial commutations and a change to gross annual income from a commutation or if changes to the provider name and/or product reference number have occurred following a successor funds transfer
• For new income streams, an SA330 or similar schedule completed by the provider is needed

If the customer can provide all needed information

• Yes, go to Step 5
• No, go to Step 4

Tell the customer, all information is needed before any change can be updated, so the correct entitlement is paid.

• Tell the customer of the information they must provide. See Requesting information (CLK)
• Use Mail Forms if a form needs to be sent
• Ask for the information to be returned within 14 days

Note: where the customer or partner is unable or unwilling to provide information due to FDV (Family and Domestic Violence), escalate to AISR support. AISR support will request the information directly from the provider.

Procedure ends here until documents returned.

Check if a Service Officer has applied an update for the product in this financial year as part of the Automation of Income Stream Reviews (AISR) process. The DOV to be used now is before the DOV on the SUPV screen

There will be a DOC on Document List about an ‘Income stream review manual update’. The Interaction History will also contain provider data information for the related product.

Did a Service Officer update the product in this financial year as part of the AISR process and the DOV to be used now is before to the DOV on the SUPV screen?

• Yes, go to Step 7
• No, go to Step 6

If the customer is

• notifying changes to an existing income stream from 1 July and before the annual August review has been completed, see Step 1 in Table 2.
• advising:
• a change to the current account balance, see Step 3 in Table 2
• a commutation or a change in gross annual income from a commutation, see Step 6 in Table 2
• a change in gross annual income not from a commutation, see Step 11 in Table 2
• a change to the provider name and product reference number following a Successor Fund Transfer, see Step 1 in Table 3
• the expiry date for the product, see Step 10 in Table 2
• the income stream has expired, see Step 16 in Table 2
• new income stream details, see Step 1 in Table 4
• providing information as part of a review, see Income stream reviews.

• Escalate by creating a Fast Note in Customer First:
• Select Auto Text, use Older Australians > Update > Action req – Auto Income stream review
• Document the action needed
• If a work item exists, re-categorise as ZIAM_AISR_SUPS
• Procedure ends here

The customer may be notifying new gross annual income from 1 July or the new current account balance.

Other than for self-managed superannuation fund (SMSF) or small APRA superannuation fund (SAF), the information being notified by the customer will be provided to Services Australia in August as part of the “Automation of income stream reviews” process.

If there is a need to make the update before the August review, for example, the change will be payment effecting, go to Step 2.

Is the customer’s income stream from an SMSF or SAF?

• Yes, tell the customer they can either:
• wait for the August review using online services as outlines in the review letter, or
• provide a current income stream schedule
• No, tell the customer their income stream will be updated automatically when their provider supplies the information directly to the agency for the review

All the information requested for the review must be provided and updated using the Income Stream Update guided procedure:

• 1 July account balance
• The new nominated gross annual income amount for the current financial year
• Any commutations made in the previous financial year. Note: an MLI is generally a non-commutable income stream, except in very limited circumstances. Determine if the commutation is allowable or not, and
• The current account balance

Note: if the market-linked income stream is in its final year with a payment factor of 1 and displays the error “The Gross Annual Income Amount must be between minimum ####.## and maximum ####.##”, see Table 4, Step 8.

A manual review must be set to expire all market-linked products in the final year. See Table 4, Step 9.

1 July balance

• The 1 July account balance can only be updated once in a financial year
• If another update is made in the same financial year, an error “E011SN – 1 July Balance field can only be updated once in a financial year” is displayed
• If a coding error is made, the event has been updated and a correction is needed, delete the page and re-code the correct information. Note: if deleting a page, make sure the new page is inserted with the correct details
• Do not update new gross income only. If other details are completed with an Event Date 1 July or later, the system will treat the 1 July account balance as updated as well and not allow any further changes for the financial year
• All details are to be updated in the one transaction to prevent the review letter being sent to the customer in August and re-work because the 1 July account balance was not updated
• If the income stream schedule is issued or dated before 1 July, do not accept for updates from 1 July. A new schedule from 1 July is required
• If the account balance for 1 July is not provided but a current account balance for another date in July is provided, this is acceptable and can be used to update 1 July account balance

See August review of income streams for full details of updates needed.

Procedure ends here.

• If the current account balance has changed because of a commutation, the customer must provide an income stream schedule. Go to Step 7
• If the current account balance has increased significantly, ask the customer if they have started a new income stream. Some providers re-use product reference numbers. If it is a new income stream, the customer must provide income stream schedule. Go to Step 7

For other updates, go to the Pension/Annuities Summary (SUPS) screen.

Are details for the market-linked income stream already entered?

The product type code should be MLI.

• Yes, go to Step 4
• No, the customer must provide income stream schedule. Go to Step 7

Use the Income Stream Update guided procedure.

To update manually:

• 'S'elect the appropriate product from the SUPS screen and select Continue
• Check details on the Pension/Annuities Identification (SUPI) screen are correct and select Continue
• On the Pension/Annuities Details Variable (SUPV7) screen make the necessary changes to following fields:
• Event Date: date of the change
• Current Account Balance: the new current account balance
• Source, DOR, and Action fields
• Select Continue
• Check the SUPS screen displays the updated income stream details
• Complete the activity on the Assessment Results (AR) screen
• Record details on a DOC

Procedure ends here.

While in the income stream owner's record, go to the Pension/Annuities Summary (SUPS) screen.

Are there details for the income stream for the product type market linked income (MLI) already entered?

• Yes, go to Step 6
• No, the customer must provide income stream schedule. Go to Step 7

Commutation

• A market-linked income stream is non-commutable except in extremely limited circumstances
• If a partial commutation is made or the product must be cancelled because of a full commutation, determine if the commutation is allowable or not
• See Commutation of asset-test exempt (ATE) income streams

Gross annual income

The income stream provider calculates the gross annual income. Service Officers must not undertake this calculation. Get a current SA330 or similar schedule from the income stream provider before making any changes to the gross annual income from a commutation.

Is the customer advising of a commutation or a resulting change to Gross income?

• Yes, and documents:
• have not been supplied yet, go to Step 7
• have been supplied, go to Step 9
• No, procedure ends here

• Yes, go to Step 9
• No, go to Step 8

If a customer needs to supply SA330 or a schedule for an income stream:

• Tell the customer of the information they must provide
• Request all the information they must provide. See Requesting information (CLK)
• Use Mail Forms to issue the SA330 or tell the customer to ask their provider for an income stream schedule:
• the SA330 must be completed by the income stream provider for income streams purchased from a retail provider or
• the Trustee for income streams paid from a Self-managed superannuation fund (SMSF) or Small APRA fund (SAF). Note: some SMSFs may have a retail provider as their administrator, for example, AXA, MLC, who may complete the form
• A provider can issue their own schedule with similar questions that appear on the SA330 and this can be accepted

Procedure ends here until documents returned

Note: if the market-linked income stream is in its final year with a payment factor of 1 and displays the error “The Gross Annual Income Amount must be between minimum ####.## and maximum ####.##”, see Table 4, Step 8.

A manual review must be set to expire all market-linked products in the final year. See Table 4, Step 9.

• To update an existing income stream:
• Use the Income Stream Update guided procedure. Take care when updating the gross annual income amount. Procedure ends here
• To update details manually, check details are correct on the Pension/Annuities Identification (SUPI) screen before updating relevant fields on the Pension/Annuities Details Variable (SUPV7) screen, see Step 1 in Table 4
• To add a new income stream, see Step 1 in Table 4

In the final year of the income stream, the customer can elect to have it expire at the end of the actual term or the closest 30 June.

• When the payment factor (PF) of the income stream reaches 1.0, a new field ‘Term End 30 June?’ will display on the SUPV7 screen
• The system defaults to ‘No’

Only update if the expiry date is 30 June.

If no update needed, leave the default of ‘N’o’.

A manual update is the only procedure to update the expiry date.

To update the expiry date manually:

• 'S'elect the appropriate product from the SUPS screen and select Continue
• Check details on the Pension/Annuities Identification (SUPI) screen are correct and select Continue
• On the Pension/Annuities Details Variable C7 (SUPV7) screen make the necessary changes to following fields:
• Event Date: date of the change
• Term End 30 June? - change default ‘N’o to 'Y'es if expiry date is 30 June.
• Complete the Source, DOR and Action fields
• Select Continue
• Check the SUPS screen displays the updated income stream details
• Complete the activity on the Assessment Results (AR) screen
• Record details on a DOC
• In Customer First, create a manual review on the Review Registration (RVR) screen and complete the fields as follows:
• Service Reason: customer's payment type
• Review Reason: select most appropriate reason
• Due Date: at the end of the product term based on the purchase date and the term or relevant number, or on 30 June of current financial year
• Source: INT
• Date of Receipt: today's date
• Notes: 'Customer elected to expire income stream in final year. Expire the product with cancellation reason EXP.'
• Keywords: MLIEXP and AISRUPD
• Workgroup: leave blank
• Position: leave blank
• Transfer to Region: leave blank
• The review will mature on the Due Date coded in the RVR activity. Workload Management will allocate the review for manual action

Procedure ends here.

Use the Income Stream Update guided procedure.

The income stream provider calculates the gross annual income. Service Officers must not do this calculation. Get a current SA330 or similar schedule from the income stream provider before making any changes to the gross annual income.

As part of the Government response the COVID-19 (novel coronavirus) the minimum drawdown limits for market-linked income streams under the Superannuation Industry (Supervision) Regulations 1994 were reduced by 50% for 2019/2020, 2020/2021, 2021/2022 and 2022/2023 financial years. Customers can reduce their gross annual income amount for the financial year, subject to the reduced minimum limit based on the existing 1 July account balance.

To update manually:

• 'S'elect the appropriate product from the SUPS screen and select Continue
• Check details on the Pension/Annuities Identification (SUPI) screen are correct and select Continue
• On the Pension/Annuities Details Variable (SUPV) screen make the necessary changes to following fields:
• Event Date: date of the change
• Gross Annual Income Amount: the new gross annual income.
• Source, DOR and Action fields
• Select Continue
• Check the SUPS screen displays the updated income stream details
• Complete the activity on the Assessment Results (AR) screen
• Record details on a DOC

Note: if the market-linked income stream is in its final year with a payment factor of 1 and displays the error “The Gross Annual Income Amount must be between minimum ####.## and maximum ####.##”, see Table 4, Step 8.

A manual review must be set to expire all market-linked products in the final year. See Table 4, Step 9.

If it is not in its final year and the error ‘E022SN - Amount must be within minimum and maximum calculated amounts’ is triggered, check the gross annual income amount.

If the gross annual income:

• matches the Calculated Inc amt field
• no further coding is needed
• is less than the Allow Min field amount
• code the Allow Min amount in the Gross Annual Income Amount field
• is between the Allow Min and Max field amounts
• code the amount provided in the Gross Annual Income Amount field
• is more than the Max field amount, go to Step 12

Procedure ends here.

The income stream no longer complies with Section 9BA:

• check the record for an income schedule or documents showing the date the gross income exceeded the maximum allowable gross income
• If sufficient details are not on the record, make 2 genuine attempts to contact the customer by phone:
• request an income stream schedule. See Requesting information (CLK)
• use Mail Forms to send an SA330 if the customer requests a form
• ask for it to be returned within 14 days
• procedure ends here until documents returned

If the gross annual income is more than the Max field amount:

• the income stream
• no longer complies with section 9BA, and
• loses its asset test exempt (ATE) status from the date it exceeded the maximum allowable gross income
• contact the FINS Helpdesk for advice and in Customer First, create a manual review on the Review Registration (RVR) screen for when advice will be available. Complete the fields as follows:
• Service Reason: customer's payment type
• Review Reason: select most appropriate reason
• Due Date: due date of FINS Helpdesk advice
• Source: INT
• Date of Receipt: today's date
• Notes: 'FINS Helpdesk contacted for advice. Check response and return to OB 108-05060020 for action.'
• Keywords: MLIEXP and AISRUPD
• Workgroup: leave blank
• Position: leave blank
• Transfer to Region: leave blank
• the review will mature on the Due Date coded in the RVR activity. Workload Management will allocate the review for manual action
• follow the advice of the FINS Helpdesk, and
• if FINS advise that the product has lost its ATE status, cancel it and record it as non-complying. Go to Step 14

To cancel the product:

• screenshot the Pension/Annuities Identification (SUPI) screen with the details needed for recoding
• provider information
• purchase date
• reference number and
• relevant number
• screenshot the Pension Annuities Details Variable (SUPV) screen data for any date of event (DOV) after the date advised by the FINS Helpdesk
• select the relevant income stream from the SUPS screen
• select Continue to go to the SUPI screen
• on the SUPI screen, code:
• Product Cancellation Reason field 'OTH'
• Source: and DOR: as appropriate
• Action field - 'C' (system will not accept 'I')
• A warning will display, select 'Y' and continue
• Select 'Continue' to go to the SUPV screen
• Update Event Date: with date advised by FINS Helpdesk
  Note: this can be the end of the product term and is based on the purchase date and the term or relevant number, or 30 June of the final year
• In the Action field, code 'I'
• Select Continue. Go to Step 15

Recode as a new product on SUPI

• Key the information from the screen shots taken in the previous step. The DOV is the date the product was cancelled
• Section 9A/B/BA Compliant Indicator field, follow FINS Helpdesk coding advice
• Record any SUPV entries that have a later date of event
• To add a new income stream, go to Step 1 in Table 4

Market-linked income streams do not automatically expire on the system at the end of the term. In the final year of the income stream, the customer can elect to have it expire at the end of the actual term based on the purchase date and the term or relevant number, or the closest 30 June.

Use the Income Stream Update guided procedure to update the product. If the guided procedure is unavailable, update manually.

To update manually:

• Select the relevant income stream from the SUPS screen
• Select Continue to go to the SUPI screen
• On the SUPI screen, code:
• Product Cancellation Reason field - 'EXP'
• Source and DOR as appropriate
• Action field - 'C' (system will not accept I)
• A warning will display, select Y and continue
• Select Continue to go to the SUPV screen
• The system will automatically set the relevant fields to 0 on the SUPV screen
• Update:
• Event Date field - Date of expiry as provided by customer
  Note: this can be the end of the product term and is based on the purchase date and the term or relevant number or 30 June of the final year
• Action field - 'I'
• Select Continue

Record the details of the circumstances of the cancellation on a DOC.

While in the income stream owner's record, go to the Pension/Annuities Summary (SUPS) screen.

The product type code will be MLI.

Has the customer provided a current SA330 or similar schedule from the income stream provider?

• Yes, go to Step 3
• No, go to Step 2

An SA330 or similar schedule from the customer's provider must be provided before the provider name and product reference number can be changed.

• Issue SA330 using Mail Forms or tell the customer to provide a similar schedule issued by their provider. See Requesting information (CLK)
• Ask for the information to be returned within 14 days
• Tell the income stream owner the SA330 must be completed by:
• The income stream provider for income streams purchased from a retail provider
• The trustee for income streams paid from a self-managed superannuation fund (SMSF) or small APRA superannuation fund (SAF). Note: some SMSFs may have a retail provider as their administrator, for example AMP and MLC who may complete the form
• Record details on a DOC

Procedure ends here until documents are returned.

• 'S'elect the appropriate product from the SUPS screen and select Continue
• On the Pension/Annuities Identification (SUPI) screen make the necessary changes to the following fields:
• Provider or SMSF/SAF Name field – name of the financial institution, or name of SMSF or SAF. Do not code names of financial planners and accountants
• Provider or SMSF/SAF ABN field – the funds Australian Business Number stated on the schedule for the 'Provider Name'
• Product Reference Number field – record the correct product reference exactly as it appears on the schedule. The product reference number is unique to each income stream and may show as the product reference number, account number or policy number on the schedule. Do not code the provider ABN or the product name as the product reference number. If the product reference number is incomplete, for example *********305, get the full number from the customer before updating. If there are leading zeroes, code them. Coding incorrect numbers or partial numbers causes the income stream auto updates during the August and February review to fail
• Source, DOR fields
• Action field – code 'C' (system will not accept 'I')
• Select continue
• On the Pension/Annuities Details Variable (SUPV7) screen, select Continue
• Check details on the SUPS screen are correct
• Complete the activity on the Assessment results (AR) screen
• Record details on a DOC

Procedure ends here.

Use the Income Stream Update guided procedure.

To update manually:

Code Pension/Annuities Identification (SUPI) screen

• Product Type Code field:
• 'MLI' (market-linked income stream)
• Income stream from SMSF/SAF? field:
• 'Y'es or 'N'o if the income stream is paid from a Self-Managed Superannuation Fund (SMSF) or a Small APRA Fund (SAF)
• Provider or SMSF/SAF Name field:
• Name of financial institution, or name of SMSF or SAF
• Do not code names of financial planners and accountants
• Provider or SMSF/SAF ABN field:
• The fund's Australian Business Number as stated on the schedule for the 'Provider Name'
• Product Name field:
• Name of the income stream product as stated on the schedule
• Product Reference Number field – make sure the correct product reference number is recorded as it appears on the schedule.
  The product reference number is unique to each income stream, and may be shown as:
• the product reference number,
• account number or
• policy number on the schedule

Do not code the provider ABN or product name as the reference number
Coding incorrect numbers or partial numbers causes the income stream auto updates during the August and February reviews to fail

• Purchase Date field:
• Purchase date of the income steam as stated on the schedule. If the income stream is reversionary the original purchase date is used
• Commencement Date field
• Same as purchase date
• Term or Relevant Number field - as stated on the schedule:
• This is the length of time for which the income stream is payable
• If schedules and/or provider data are received in decimal places, make sure the Term or Relevant Number is rounded up to a whole number
• Must be a whole number
• If not provided on the SA330 or is incorrect, contact the provider to get the correct number or request customer to get a correctly completed schedule from provider
• It must always be the number that applied at the start date and must not be changed following reversion to a reversionary partner or beneficiary

• Section 9A/B/BA Compliant Indicator field:
• Code 'Y'es or 'N'o if the MLI meets requirements under section 9BA of the Social Security Act 1991 to be 50% asset-test exempt (ATE)
• Code 'N' for an MLI purchased on or after 20 September 2007 unless it was purchased from the commutation of a pre 20 September 2007 MLI, and meets the conditions for retention of the 50% ATE status
• For more information, see the References page. If a product loses its ATE status, it must be cancelled and recoded as non-complying
• Start Date Original Commuted Product field:
• Only coded if the purchase date is on or after 20 September 2007 and the product meets the conditions for retention of the ATE status as above
• Staff must contact FINS Helpdesk before coding this field. Normal escalation procedures apply, see Resources page for a link to the Online Query Form
• Product Cancellation Reason field:
• Leave blank when adding a new income stream
• If the income stream is fully commuted, cancel the income stream. Do not delete. If the product is cancelled, it stops to be assessed under Income and Assets Tests. Use 'C'orrect in the Action field and the code the cancellation reason. The SUPV screen will display so the Event Date field can be coded
• Complete Source, DOR and Action fields and select Continue

Select the date for the Event Date field using the following information.

Reversionary beneficiary

• The Event Date is the day after the date of death of the primary beneficiary (deceased spouse or partner), which is the date the customer (reversionary) is entitled to the income stream payment
  Note: this date is displayed on the MS screen
• It can include lump sum arrears plus the regular ongoing payments
• Normally lump sum arrears are paid for the period from day after date of death to the date regular payments start
• This assessment will apply even though other income and assets are assessed at the end of the 16 week bereavement review in cases where the customer does not advise the changes before the review
• Waiver of debt for reversionary beneficiary. Effective from 9 May 2018:
• If the assessment of lump sum arrears result in a debt during the bereavement period for the surviving spouse, consideration must be given to waiver provisions contained under Class of Debt, Section 1237AB(1) of the Social Security Act 1991. See the References page for a link to the legislation
• All the conditions included in the legislation must be met
• These waiver provisions cannot be used to waive debts outside the 14 week bereavement period, or debts which occurred before 9 May 2018
• If it is possible the waiver provisions can be applied, record the information on a DOC to the record. Debt Staff will make the decision

New claim

The Event Date will be the:

• date the income stream was purchased where the:
• customer has a partner who is current on an ISP, RCA or LIC before the purchase date, or
• income stream was purchased after the date of grant of the payment
• income stream was purchased after the lodgement of an early claim
• lodgement date for an early claim
• the start date of the 8 week assessment period for LIC
• payment grant date in all other cases

Purchase of new income stream by an existing customer

• The Event Date is the purchase date of the product
• An additional Event Date may need to be inserted if the schedule provided is for a later date. For example:
• A customer purchases income stream on 1 May
• Schedule is issued on 15 May with a current account balance as at that date
• The balance at purchase, that is, purchase price, to be coded with an Event Date of 1 May and a new page to be inserted with Event Date 15 May and balance at that date

• Account Based Product field
• System defaults 'Y'
• 1 July Account Balance field
• Code the account balance at 1 July
• If purchased during the current financial year and the 1 July account balance is not available, code the purchase price
• The system calculates the gross income amount from this amount coded
• This field can only be updated once during the financial year. If an error is made and the event has been updated, delete the page and recode the product details
• The system will not accept zero unless there is a cancellation reason present on the SUPI screen
• Current Account Balance field:
• Code the current account balance
• For the August review, this amount must be the same as the 1 July Account balance
• If a customer seeks a reassessment at any other time and provides a current balance, only update this field
• 50% of this amount is assessed as an asset if section 9BA compliant
• Channel Type field
• Displays if the income stream was manually updated by Services Australia staff or auto bulk updated with data sent by the provider (ISP)

• Original Purchase Price field:
• Code amount originally paid for the income stream, not reduced by any commutations
• Code exactly as stated on the schedule (including cents if stated)
• If coded incorrectly, the product must be cancelled and recoded
• If the income stream is reversionary, the original purchase price is used
• For existing products, if there is a discrepancy (other than just in the cents), the product must be cancelled and recoded
• Commutation Date field:
• Code the date of the latest commutation
• This date is only for information and is not the date of effect
• Latest Commutation field:
• A market linked income (MLI) is generally a non-commutable income stream irrespective of if it is asset-test exempt or asset-tested, except in very limited circumstances. Determine if the commutation is allowable or not
• If the commutation is non-allowable, the income stream will no longer comply with section 9BA. If unsure, contact the FINS Helpdesk before updating this field. Normal escalation procedures apply.
• Code the most recent commutation amount
• Previous Commutations field:
• System displays total commutations made up to the current date
• Purchase Price - Commutations field:
• System displays original purchase price less total commutations made
• Product Category field - system displays either:
• 7 - Partially Asset-test Exempt Market-linked Income stream
• 8 - Asset-tested Market-linked Income stream
• Term Remaining (Years) field:
• System displays the number of years remaining for the income stream (rounded up to the nearest whole number)
• In the final year the owner can elect to have the income stream expire on the actual expiry date or the nearest 30 June to that date
• If the value is 1.0, the system includes in the August review mail out letter a request for details on which option the customer has selected

Payment Factor field:

• The system displays the factor used to calculate the gross annual income amount

Gross Annual Income Amount field

Note: if the market-linked income stream is in its final year with a payment factor of 1 and displays the error “The Gross Annual Income Amount must be between minimum ####.## and maximum ####.##” go to Step 8.

A manual review must be set to expire all market-linked products in the final year. Go to Step 9.

If adding a Market Linked Income (MLI):

• Code the first 4 compulsory fields on this screen (plus the two commutation fields if needed) and select Continue
• The system will default the amount from the Calculated Inc amt field (1 July Account Balance/ Payment Factor). If different from the amount provided on the schedule, code the annual income from the schedule.

The amount must be within the allowable range as calculated by the system:

• Allow Min field - 90% of the amount in the Calculated Inc amt field
• Max field - 110% of the amount in the Calculated Inc amt field

Note: as part of the Government response to COVID-19 (novel coronavirus) the minimum drawdown limits for market-linked income streams under the Superannuation Industry (Supervision) Regulations 1994 have been reduced by 50% for 2019/2020, 2020/2021, 2021/2022 and 2022/2023 financial years. This means the annual amount received during these financial years can be between 45% - 110% of the calculated income amount. Customers can reduce their gross annual income amount, subject to the reduced minimum based on the existing 1 July account balance.

If the income reported on the schedule:

• matches the Gross Annual Income Amount field
• no further coding is needed
• is less than the Allow Min field amount
• code the Allow Min amount in the Gross Annual Income Amount field
• is between the Allow Min and Max field amounts
• code the amount reported on the customer's schedule in the Gross Annual Income Amount field
• is more than the Max field amount
• the income stream will no longer comply with section 9BA
• contact the customer or the income stream provider and advise the amount reported is incorrect
• tell the customer the income cannot be greater than the maximum otherwise it will lose its ATE status and no longer comply with SIS regulations
• ask for a new schedule with an income amount within the allowable minimum and maximum. In Customer First, create a manual review on the Review Registration (RVR) screen and complete the fields as follows:
  Service Reason: customer's payment type
  Review Reason: select most appropriate reason
  Due Date: 14 days from today's date
  Source: INT
  Date of Receipt: today's date
  Notes: 'Income stream schedule requested. Check response and return to OB 108-05060020 for action.'
  Keywords: MLIEXP and AISRUPD
  Workgroup: leave blank
  Position: leave blank
  Transfer to Region: leave blank
• the review will mature on the Due Date coded in the RVR activity. Workload Management will allocate the review for manual action.

If an MLI is purchased in June of any year

• It is to be assumed the customer has deferred payments until on or after 1 July of the next financial year
• If the purchase date is in June of the current financial year, the system defaults '0' in the Gross Annual Income Amount field. An edit prevents this from being changed
• The Calculated Inc amt, Allow Min and Max fields will display ‘0’
• The amount must be updated to show the new financial year income in July or during the following August review
• The customer may report they are to receive a payment during June, but still code zero
• Tell the customer to provide the new income amount in July

The system calculates and displays the following fields. Select Continue to return to the SUPS screen. Select the product being added to return to SUPI. Select Continue to return to SUPV.

Check the following information displays:

• Deductible Amt (Income) field
• System calculates the deduction amount by which the gross income amount from an income stream is reduced to determine assessable income
• Term End 30 June? field:
• Will be hidden and protected until the final year of the product
• System defaults 'N'. In the final year
• The income stream provider will have to report in the August review if the income stream will stop at the end of the term specified in the contract or 30 June of that financial year
• Change 'N' to 'Y' if the income stream will stop on 30 June
• Calculated Inc Amt field:
• The system calculates this by dividing the 1 July account balance by a payment factor
• Payment factors are defined in the Superannuation Industry (Supervision) (SIS) Regulations and are based on the years remaining until the MLI expires
• No value will be displayed until the required fields for calculation have been coded
• Assessable Income Amount field:
• The system calculated amount (gross income amount - deductible amount (income))
• Assessable Asset Amount field:
• System calculated amount
• If the income stream complies with section 9BA, 50% of the current account balance is an assessable asset
• Complete Source DOR and Action fields and select Continue

Due to a known system issue, the income calculation during the final year for MLI is not correct (NNU 12279).

If the error “E022SN - The Gross Annual Income Amount must be between minimum ####.## and maximum ####.##” is displayed, it requires the following workaround:

• Select the relevant income stream from the SUPS screen
• 'S'elect Continue to go to the SUPI screen
• On the SUPI screen, code:
• Product Cancellation Reason field 'OTH'
• Source and DOR as appropriate
• Action field - 'C' (system will not accept 'I')
• A warning will display, select 'Y' and continue
• Select 'Continue' to go to the SUPV screen
• Update Event Date today
• In the Action field, code 'I'
• Select Continue

Code new entry on Other Assets (OAS) screen:

• Type: OTH
• Description: SUPS MLI PRN (insert product reference number)
• DOV: today
• Value: If the product is not Section 9A/B/BA compliant, code the current account balance as the value. If the product is Section 9A/B/BA compliant code half the current account balance as the value.
• Ownership: 100% CUS

Code new entry on Other Income (OINS) screen

• Type: OTH
• Description: SUPS MLI PRN (insert product reference number)
• Reference: leave blank
• DOV: today
• Value: code assessable income. In the final period, this is calculated by the Gross Income less the deductible which is ((purchase price - commutations) / relevant number)
• Frequency: ANN

Once finalised, DOC the record (see Resources) and code a manual review for the expiry date. A manual review must be set to expire all market linked products.

Go to Step 9.

If error “The Gross Annual Income Amount must be between minimum ####.## and maximum ####.##” was returned and the work around was used to code the product on OAS/OINS, a review to zero off the coding is required.

In Customer First, create a manual review on the Review Registration (RVR) screen and complete the fields as follows:

• Service Reason: customer's payment type
• Review Reason: INV (Investments/Bonds/Shares)
• Due Date: code DOV as advised by provider for expiry (this will be either the end of the term or closest 30/6)
• Source: INT
• Date of Receipt: today's date
• Notes: 'Zero OAS & OINS screen coding for SUPS MLI PRN <insert product reference number> from DOV <insert date due to expire>.'
• Keywords: MLIEXP and AISRUPD
• Workgroup: leave blank
• Position: leave blank
• Transfer to Region: leave blank

The review will mature on the Due Date coded in the RVR activity. Workload Management will allocate the review for manual action.

If the income was accepted, a review to manually expire the income stream is required.

In Customer First, create a manual review on the Review Registration (RVR) screen and complete the fields as follows:

• Service Reason: customer's payment type
• Review Reason: INV (Investments/Bonds/Shares)
• Due Date: code DOV as advised by provider for expiry (this will be either the end of the term or closest 30/6)
• Source: INT
• Date of Receipt: today's date
• Notes: 'Expire MLI income stream PRN <insert product reference number> using cancellation reason 'EXP' from DOV <insert date due to expire>.'
• Keywords: MLIEXP and AISRUPD
• Workgroup: leave blank
• Position: leave blank
• Transfer to Region: leave blank

The review will mature on the Due Date coded in the RVR activity. Workload Management will allocate the review for manual action.

Procedure ends here.

• Check details on the SUPS screen are correct
• Complete the activity on the Assessment Results (AR) screen
• Make sure the FAL screen is checked and any review for the return of the documents completed
• Record details on a DOC