Adding or updating a defined benefit income stream 108-05060060

Note: before a system release in December 2024, military invalidity pension (MYP) income streams were coded as defined benefit income streams. See Adding or updating a military invalidity pension income stream.

Appropriately skilled Service Officers can process new and existing defined benefit income streams at the point of contact for all payment types.

For existing and new defined benefit income streams, the customer must supply:

• a Details of Income Stream Product (SA330), or
• an income stream schedule

The schedule can be:

• the one page Defined Benefit Income Stream Schedule, see the Resources page
• a provider issued schedule with the same information as the Details of Income Stream Product (SA330)

The customer may not know if their income stream has a tax-free component (deductible amount). The income stream schedule issued by the provider will contain this information. Other documents, (for example, CPI indexation advice letters), may not have the tax-free component and cannot be accepted.

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

If the customer is responding to an indexation review, see Income stream indexation review.

Discuss all income and asset updates required (for example other income streams, shares, foreign income).

Only proceed with the coding if all updates 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.

Note: if the customer advises of a reduced assessment of Special Rate Disability Pension (SRDP) due to their Commonwealth Super income stream, for example. Defence Force Retirement and Death Benefits (DFRDB) Scheme and the Military & Benefits (MBS) Scheme, they need to provide supporting documents from DVA as to the calculation of the reduction amount. The Commonwealth Super used to reduce the SRDP is exempt income for the Income Support assessment.

Has the customer provided the income stream schedule and all income and asset changes?

• Yes, go to Step 4
• No, go to Step 3

Tell the customer all information is needed before any change can be made, to make sure they get the correct entitlement. See Requesting information (CLK):

• The customer must provide a schedule for each income stream they own
• 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 Family and domestic violence, escalate to AISR support. AISR support will escalate to arrange the request of the information directly from the provider.

Procedure ends here until documents returned.

If the customer or their partner is advising:

• of a commutation of the income stream, see Commutation of asset test exempt (ATE) income streams
• a Successor Fund Transfer (SFT), where all fund members move to another fund, the income stream will have a new provider and/or a new product reference number. Refer to the FINS Bulletin for a listing of SFT/IFTs. See Table 2, Step 1
• new defined benefit income stream details, see Table 3, Step 1
• suspension or restoration of income stream payments, go to Step 9
• gross income or other changes to an existing income stream, go to Step 5

While in the income stream owner's record, go to the Income Streams (SUPS) screen. If required to switch records between partners, use .

Are there details for the income streams recorded?

The product type will be DEF - DEFINED BENEFIT.

• Yes, go to Step 6
• No, see Table 3, Step 1

Select relevant to the appropriate product from the Income Streams (SUPS, SUPI, SUPV) table and select Edit on the last update to access the Change Income Stream Details screen.

If the income stream is updated automatically, Channel Type will be ISP (income stream provider) for any update in the last 12 months. If the most recent update is ISP, and correct, and the customer only wants to update the income, they can wait for the provider to supply the next updates.

Is there an update with channel type ISP within the previous 12 months?

• Yes:
• Tell the customer the system will update their income stream. The provider will supply this information directly to Services Australia for the review
• If the customer wants to wait for the provider data, procedure ends here
• No:
• Check the provider name and product reference number on the customer record match the income stream schedule. An error will prevent bulk updates
• Go to Step 7

Check the Inc Ded Amt Calc Method field. If it is:

• 'I - Calculated under NEW proportional method' the amount of the tax-free component will be in the TFC New Method field
• 'S - Applies if the customer meets the criteria for savings provision' the tax-free component will always be displayed in the TFC Old Method field and the tax free component under the new method reported on the income stream schedule must be added in the TFC New Method field

If the schedule provides a tax-free component that has not previously been recorded, check with the provider before updating.

Select Cancel to close the Superannuation Payment Details.

Use the Income and Assets Task Selector for updating the income stream.

• Enter START into the Super Key
• Select Income and Assets Update from the Task Selector
• Select Income Streams (SUPS/SUPI/SUPV)
• And any additional income and asset types required for the update being completed
• Select Start

To update:

• Select relevant to the appropriate product from the Income Streams (SUPS, SUPI, SUPV) table
• Check details are correct

On the Income Stream Details line select Add to create a new entry and make the necessary changes.

Event Date:

• Date of the change, for example
• CPI date for an update of a current customer/partner
• Claim date if old SUPS coding exists but it hasn’t been on Income Support Payments for some time.
• Multiple dates if period required covers a period before and after a CPI is applied. Defined benefits income streams can have 6 monthly, annually or no CPI applied, it depends on the provider, for example all Commonwealth Superannuation Corporations different income streams are increased twice a year. The increases are applied December/January and June/July each year.
• Cannot be coded with a future date

Gross Income Amount:

• Code new fortnightly gross income amount, include any additional income amount a customer or their partner receives for their child
• If the gross income amount is annual or monthly, calculate the fortnightly amount. If annual, divide the annual amount by 26. If monthly, multiply the monthly amount by 12 and divide the result by 26

Income Frequency:

• Select 2we – fortnightly
• The income frequency must be fortnightly to enable bulk updates and indexation reviews

Super Child Amount:

• Code the amount of any additional income received for children
• The system will subtract this amount from the gross income amount when determining the assessable income for the customer
• Leave blank if Nil

Super Child Number:

• Code the total number of children for whole additional payments are received
• Leave blank if Nil

TFC New Method:

• Code the tax-free component calculated using the new proportional method as stated on the schedule
• If this field has a value and the Inc Ded Amt Calc Method field is 'I' or 'S' (for more information on values, see Table 3, Step 7), the amount recorded in this field must also be updated when updating the gross income amount as a result of the indexation
• From 1 January 2016, the deductible amount is capped at 10% of the gross income received from the income stream. If the income stream has a TFC amount greater than 10% of the gross income, the system will cap the deductible amount at 10%.
  Exception: the 10% cap does not apply to the MBS and DFRDB defined benefit income streams

Other Deduction Type:

• Leave blank if no other deductions apply

Other Deduction Amount:

• This field is not available if Other Deduction Type is blank
• Special Rate Disability Pension (SRDP):
• Recipients of SRDP from Department of Veterans' Affairs (DVA) may have a reduction to their SRDP entitlement due to their Commonwealth superannuation. E.g. DFRDB and MBS
• The SRDP is reduced at 60% by an offset for the Commonwealth superannuation they receive. The amount of Commonwealth superannuation used to reduce the SRDP is exempt as income for Social Security purposes. The amount shown as Superannuation Offset on the SRDP letters can be used to determine the amount allowed as offset
• Exception: If SRDP has reduced to NIL – then only the amount required to reduce it to NIL is exempt, see Resources for calculating the fortnightly reduction amount from DVA documents. This information needs to be included in the doc when updates are finalised
• Family Law Split (FLS)
• Depending on the agreement/court order involved, it is possible the superannuation fund has split the gross income and is only paying the customer their remaining share. For those cases no additional reduction is required
• However if the superannuation fund was unable to split the payment then the fortnightly amount the customer must legally pay to the other party can be coded here to reduce the gross income assessed. For example: May be a set amount of $200, or could be 20% of the gross. See References for link to relevant instructions. This information needs to be included in the doc when updates are finalised
• Both SRDP & FLS
• Add together both fortnightly deduction amounts and code the total. This information needs to be included in the doc when updates are finalised

Complete the update:

• Select Save once updates made
• Update Receipt Date , Channel, Service Reason (if required) and select Save
• Check the payment outcome is as expected on Entitlements (ELD). Only finalise if the outcome is determined to be accurate. Select Finish
• If the Service Officer has used the Process Direct Income and Assets workflow, NOTES will be prepopulated automatically and display for review when Finish is selected
• At this point any more information can be added, as per Online Document Recorded (ODR)

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

Procedure ends here.

Has the customer and/or their partner contacted to advise of suspension or restoration of payments from a defined benefit income stream?

• Yes, refer to FINS Helpdesk who will seek advice from the Income Support Means Test team on assessment and coding. Procedure ends here.
• No, see Table 1, Step 4

In the income stream owner's record:

• go to the Income Streams (SUPS) screen
• the product type code will be DEF - DEFINED BENEFIT

Has the customer provided a current one page Defined Benefit Income Stream Schedule, SA330 or similar schedule from the income stream provider?

• Yes, go to Step 3
• No, the customer must provide an income stream schedule, go to Step 2

Customer or partner must provide the one page Defined Benefit Income Stream Schedule, an SA330 or similar schedule from their provider before the provider name and product reference number can be changed:

• See Requesting information
• 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 Family and domestic violence, escalate to AISR support. AISR support will escalate to arrange the request of the information directly from the provider.

Procedure ends here until documents are returned.

For current customers

From the income stream owner's record, launch the Process Direct Income and Assets Update workflow. To do this access the customers record in Process Direct Customer Summary:

• Key START into the Super Key
• Select Income and Assets Update from the Task Selector
• Select Income Streams (SUPS/SUPI/SUPV)
• Select Start to initiate the workflow
• Select Edit against the income stream product to access the Change Income Streams (SUPS/SUPI/SUPV) screen

For New Claims: all updates are done within the new claim activity.

Change the following Income Stream Details fields as needed:

• Provider or SMSF/SAF Name:
• Select the correct option
• If a defined benefit superannuation fund does not appear in the provider/fund name list, contact the Financial Industry and Network Support (FINS) Level 2 Policy Helpdesk via the Online Query Form to request the provider/fund to be added to the list
• The provider name must be correct to enable bulk updates and indexation reviews
• Provider or SMSF/SAF ABN:
• The ABN will auto populate based on the ‘Provider or SMSF/SAF name’ field coding (this should not be returned in QMA if different from what is showing on the schedule)
• Product Name:
• Leave blank
• Product Reference Number:
• 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
• Ensure the correct product reference number is recorded exactly as it appears on the schedule
• Do not code the provider ABN or product name as the product reference number
• The number must be correct to enable correct bulk indexation updates
• For information on recording Commonwealth Super Reference Numbers in the correct format, see the Resources page for attached guide document.
• Select Save once updates made
• Update Receipt Date, Channel, and Service Reason. Select Save

• Check the Income Streams (SUPS, SUPI, SUPV) table displays the updated income stream details
• Select Assess
• Check the payment outcome is as expected on Entitlements (ELD). Only when the outcome is determined to be accurate, select Finish
• If the Service Officer has used the Process Direct Income and Assets workflow, NOTES will be prepopulated automatically and display for review when Finish is selected
• At this point any more information can be added, as per Online Document Recorded (ODR)

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

Procedure ends here.

Schedule needed for a defined benefit income stream

Has the customer and/or their partner provided a SA330 or the Defined Benefit Income Stream Schedule or a similar schedule providing details for each income stream?

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

• See Requesting information (CLK)
• The customer must provide a schedule for each income stream they own
• 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 Family and domestic violence, escalate to AISR support. AISR support will escalate to arrange the request of the information directly from the provider.

Procedure ends here until documents returned.

Note: before a system release in December 2024, military invalidity pension (MYP) income streams were coded as defined benefit (DEF) income streams.

For New Claims: all updates are done within the new claim activity.

For current customers

Launch the Process Direct Income and Assets Update workflow. To do this access the customers record in Process Direct Customer Summary:

• Key START into the Super Key
• Select Income and Assets Update from the Task Selector
• Select Income Streams (SUPS/SUPI/SUPV)
• Select Start

Select Add to access the Create Income Streams (SUPS/SUPI/SUPV) screen.

Code the Income Stream Details:

• Product Type:
• Select 'DEF - DEFINED BENEFIT'
• Income stream from SMSF/SAF?
• Select No
• Provider or SMSF/SAF Name:
• Select the provider name
• If a defined benefit superannuation fund does not appear in the provider/fund name list, contact the Financial Industry and Network Support (FINS) Level 2 Policy Helpdesk via the Online Query Form to request the provider/fund to be added to the list
• The provider name must be correct to enable bulk updates and indexation reviews
• Provider or SMSF/SAF ABN:
• The ABN will auto populate based on the Provider or SMSF/SAF name field chosen. This should not be returned in QMA if different from what is showing on the schedule
• Product Name:
• Leave blank
• Product Reference Number:
• 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
• Make sure the correct product reference number is recorded exactly as it appears on the schedule
• Do not code the provider ABN or product name as the product reference number
• The number must be correct to enable correct bulk indexation updates
• For information on recording Commonwealth Super Reference Numbers in the correct format, see the Resources page for attached guide document
• Event Date/Commencement Date:
• Code the start date
• If a defined benefit income stream is acquired by a reversionary beneficiary, code the start date of the original income stream that is, when the primary partner started the income stream
• Note: this is not the Event Date as indicated by the field title
• Purchase date:
• Leave blank
• Term or Relevant Number:
• Leave blank to allow the system to calculate the correct relevant number
• The system will insert the life expectancy of the customer at the start date of the income stream. For partnered customers, the system will insert the life expectancy of the partner who has the longer life expectancy. Note: the relevant number is not needed for income streams started from 1 July 2007
• Section 9A/B/BA/BB Compliant Ind:
• Select 'Yes'
• Defined benefit income streams are 100% asset test exempt (ATE) regardless of start date
• Start Date Original Commuted Product:
• Leave blank
• Product Cancellation Reason:
• Leave blank when adding a new income stream

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 (usually the deceased partner), which is the date the customer, (the reversionary beneficiary), is entitled to the income stream payment
• 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 starts. Lump sum arrears are assessed as income from an income stream
• If it was the partners, the income stream is assessed from this date even though other income and assets are assessed at the end of the 16 week bereavement review where the customer does not advise the changes before the review
• Waiver provisions are effective from 9 May 2018:
• If the assessment of lump sum arrears result in a debt during the bereavement period for the surviving spouse, give consideration to waiver provisions contained under Class of Debt, Section 1237AB(1) of the Social Security Act 1991. See the References for a link
• All conditions 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 to waive the debt, record the information on a NOTE. Debt Staff will make a decision
• Note: if the date of reversion is prior to a CPI date that has passed, historical schedules will need to be requested. See Requesting information (CLK)

New claim

The Event Date will be the:

• date the income stream started where the:
• customer has a partner who is current on an income support payment, Residential Care Assessment (RCA) or Low Income Health Care Card (LIC) before the start date, or
• income stream started 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

Start of new income stream by existing customer

Invalidity or TPD pension:

• If lump sum arrears were paid, go to Step 5
• If no lump sum arrears were paid, the Event Date will be the start date of the ongoing payments

Non-invalidity or TPD pension:

• If lump sum arrears were paid, the Event Date is the first date included in the arrears
• If no lump sum arrears were paid, the Event Date is the start date of the ongoing payments

Go to Step 6.

Did the customer have notification obligations during the period of the arrears?

• Yes, the Event Date will be the date of the notification obligation, e.g. upon notice of approval from the superannuation fund the person's Invalidity or TPD pension was approved. It is not the date they applied for this pension
• No, the Event Date will be the start date of the ongoing payments.

Note: the lump sum payments for the period prior to the Event Date will be assessed as ordinary income from the date of receipt, for the number of days equal to the period which the arrears represent, up to a maximum of 52 weeks. For example, if the lump sum arrears period is 4 months, the lump sum amount is treated as income over the following 4 months from the date the amount was received. See Income from personal injury insurance schemes and disability benefits for coding instructions.

Go to Step 6.

• Channel Type: After saving the update automatically displays how the income stream was updated:
• CSO if manually updated by Services Australia staff
• ISP auto bulk updated with data sent by the provider, or
• WEB if updated using information provided online
• Gross Income Amount:
• Code the fortnightly gross income amount
• It must include any additional amount a customer or their partner receives for their child
• Income Frequency:
• Select 2WE – fortnightly. The income frequency must be fortnightly to enable bulk updates and indexation reviews
• If the gross income reported by the provider is annual or monthly, calculate the fortnightly amount. If annual, divide the annual amount by 26. If monthly, multiply the monthly amount by 12 and divide the result by 26
• Super Child Amount:
• Code the amount of any additional income stream payments received for children
• The system will deduct this amount from the gross income amount when determining the assessable income for the customer
• Leave blank if Nil
• Super Child Number:
• Code the total number of children for whom additional payments are received
• Leave blank if Nil

Undeducted Purchase Price field

Use this field to record the undeducted purchase price (UPP) of the income stream product. This field is needed in the following 2 situations:

• The provider has answered YES to 'Is the Tax-Free Component calculated using the old method based on UPP'. This will happen when:
• the start date is before 1 July 2007, and
• the customer is under 60, or the customer is over 60 and the income stream is from SA Super, SA Police or GESB WA
• The income stream started before 1 July 2007 and savings provisions apply

The UPP appears on the schedule. If the amount is not provided, it can be calculated in some cases.

• If the product provider or customer has not provided the UPP amount but has provided the fortnightly tax-free component amount calculated using the old method based on UPP, the UPP can be calculated using the following formula:
• UPP = tax free component x 26 x relevant number
• For single customers, the relevant number is the life expectancy of the person at the start date of the product
• For partnered customers, the relevant number is the longest life expectancy of either partner at the start date of the product

Note: the Relevant Number Calculator can be used to determine:

• the UPP from the relevant number on the SUPS screen, and
• the TFC amount

In the Inc Ded Amt Calc Method field, code the method that will apply for the calculation of the tax free component as follows:

O - Calculated under the OLD method based on undeducted purchase price

• Use the code O when:
• the start date is before 1 July 2007, and
• the provider has indicated on the income stream schedule the tax free component is calculated using the old method based on UPP, and
• the customer is under 60, or the customer is over 60 and the income stream is from SA Super, SA Police or GESB WA
• The tax-free component is calculated under the pre-1 July 2007 rules using the old method based on the undeducted purchase price (UPP)
• If this code is used the TFC New Method field should be blank or zero

S - Applies if the customer meets the criteria for the savings provision

• This will only apply if the customer meets the criteria for the savings provision
• Code the tax free component supplied by the income stream provider in the TFC New Method field. Use this code when all the following apply:
• the Inc Ded Amt Calc Method has defaulted to 'O'
• the provider has indicated on the income stream schedule the tax free component is calculated using the new proportional method
• the fortnightly deductible amount on the customer's record calculated using the UPP is greater than the tax free component reported on the schedule
• The tax-free component calculated is under the old method using the undeducted purchase price (UPP)

I - Calculated under NEW proportional method, changes with indexation

• Code the tax free component supplied by the income stream provider in the TFC New Method field. Use this code when:
• the provider has indicated on the income stream schedule the tax free component is calculated using the new proportional method, and
• the Provider Name is not 'CSS' (Commonwealth Superannuation Scheme)
• The tax free component is calculated using the new proportional method and will change when the gross income amount changes as a result of indexation
• If this code is used, do not code the UPP in the Undeducted Purchase Price field

F - Calculated under NEW proportional method, applies to Provider CSS

• Code the tax-free component supplied by the income stream provider in the TFC New Method field
• Use this code when the provider has indicated on the income stream schedule the tax-free component is calculated using the new proportional method, and
• the Provider Name is 'CSS' (Commonwealth Super Scheme)
• The deductible amount is calculated using the new proportional method and will not vary with the changes in the gross income amount
• It will remain the same permanently
• If this code is used, do not code the UPP in the Undeducted Purchase Price field

Z - Tax Free Component (Deductible amount) is Zero

• Use this code when the provider has indicated on the income stream schedule that there is no tax-free component. The tax-free component or deductible amount is zero
• When a new product is coded on the system, this field will default to 'Z' and must be changed if there is a tax-free component reported on the schedule
• If this code is used, the Undeducted Purchase Price field and the TFC New Method field should be blank or zero

TFC New Method field

Code the tax- free component calculated by the income stream provider using the new proportional method. This amount will be reported on the income stream schedule

• Code this field if the Inc Ded Amt Calc Method is an I, F, or S
• Update this field if the gross income amount is changed as a result of indexation and the Inc Ded Amt Calc Method field is I or S

TFC Old Method field

This displays the tax- free component under the old method. The amount in this field will display when the Undeducted Purchase Price field has a value recorded.

Deductible Amt (Income) field

The system calculates and displays the capped deductible amount (if the actual deductible amount is greater than 10% of the gross income amount) or the actual deductible amount (if 10% or less of the gross income amount). This amount is reduced from the gross income amount to determine assessable income

Exception: the 10% cap does not apply to the MBS and DFRDB defined benefit income streams

Other Deduction Type:

• Leave blank if no other deductions apply

Other Deduction Amount:

• Leave blank if no other deductions apply
• Special Rate Disability Pension (SRDP)
• Recipients of SRDP from Department of Veterans' Affairs (DVA) may have a reduction to their SRDP entitlement due to their Commonwealth superannuation. E.g. DFRDB and MBS.
• The SRDP is reduced at 60% by an offset for the Commonwealth superannuation they receive. The amount of Commonwealth superannuation used to reduce the SRDP is exempt as income for Social Security purposes. The amount shown as Superannuation Offset on the SRDP letters can be used to determine the fortnightly amount allowed as an offset and exempt.
• Exception: If SRDP has reduced to NIL – then only the amount required to reduce the SRDP to Nil is exempt, see Resources for calculating the fortnightly reduction amount from DVA documents. This information needs to be included in the doc when updates are finalised.
• Family Law Split (FLS)
• Depending on the agreement/court order involved, it is possible the superannuation fund has split the gross income and is only paying the customer their remaining share. For those cases no additional reduction is required.
• However if the superannuation fund was unable to split the payment then the fortnightly amount the customer must legally pay to the other party can be coded here to reduce the gross income assessed. For example: The payment may be a set amount of $200 per fortnight, or could be a 20%. See References for link to relevant instructions. This information needs to be included in the doc when updates are finalised.
• Both SRDP & FLS
• Add together both fortnightly deductions and code the total. This information needs to be included in the doc when updates are finalised.

• Assessable Income Amount field - system calculated: gross income amount – (deductible amount + other deductions amount) = assessable income
• Assessable Asset Amount field - will be blank as no asset value assessed
• Product Category field - automatically displays the category of the income stream for assessment purposes. System displays either:
• 4 - Assets Test Exempt Defined Benefit Income Stream
• 5 - Assets Tested Defined Benefit Income Stream. Note: although this category displays as assets tested, the income stream is 100% asset-test exempt due to the indefinite Ministerial exemption
• Select Save once updates made
• Update Receipt Date, Channel, Service Reason (If required) and select Save

• Check the Income Streams (SUPS, SUPI, SUPV) table displays the updated income stream details
• Select Assess
• Check the payment outcome is as expected on Entitlements (ELD), do not finalise if not, if determined accurate select Finish
• If the Service Officer has used the Process Direct Income and Assets workflow, NOTES will be prepopulated automatically and display for review when Finish is selected
• At this point, any more information can be added, as per Online Document Recorded (ODR)

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

Note: prior to a system release in December 2024, military invalidity pension (MYP) income streams were coded as defined benefit (DEF) income streams. See Adding or updating a military invalidity pension income stream.

Appropriately skilled Service Officers can process new and existing defined benefit income streams at the point of contact for all payment types.

For existing and new defined benefit income streams, the customer must supply:

• Details of Income Stream Product (SA330), or
• an income stream schedule

The schedule can be:

• the one page Defined Benefit Income Stream Schedule, see the Resources page
• a provider issued schedule with the same information as the Details of Income Stream Product (SA330)

The customer may not know if their income stream has a tax-free component (deductible amount). The income stream schedule issued by the provider will contain this information. Other documents, (for example, letters), may not have the tax-free component and cannot be accepted.

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

If the customer is responding to an indexation review, see Income stream indexation review.

Discuss all the income and asset updates required (for example other 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.

Note: if the customer advises of a reduced assessment of Special Rate Disability Pension (SRDP) due to their Commonwealth Super, e.g. Defence Force Retirement and Death Benefits (DFRDB) Scheme and the Military Superannuation and Benefits (MBS) Scheme, they need to provide supporting documents from DVA as to the calculation of the reduction amount. The Commonwealth Super used to reduce the SRDP is exempt income for the Income Support assessment.

Has the customer provided the income stream schedule, and all the other information needed?

• Yes, go to Step 4
• No, go to Step 3

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

• See Requesting information (CLK)
• The customer must provide a schedule for each income stream they own
• 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 Family and domestic violence, escalate to AISR support. AISR support will escalated to arrange the request of the information directly from the provider.

Procedure ends here until documents returned.

If the customer or their partner is advising:

• commutation of the income stream, see Commutation of asset test exempt (ATE) income streams
• gross income or other changes to an existing income stream, go to Step 5
• a Successor Fund Transfer (SFT), where all fund members move to another fund, the income stream will have a new provider and/or a new product reference number. Refer to the FINS Bulletin for a listing of SFT/IFTs. See Table 2, Step 1
• new defined benefit income stream details, see Table 3, Step 1
• suspension or restoration of income stream payments, go to Step 9

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

Are there details for the income streams recorded?

The product type will be DEF – DEFINED BENEFIT

• Yes, go to Step 6
• No, see Table 3, Step 1

Go to the SUPS screen. Select the income stream product to go to the Superannuation Details Variable (SUPVD) screen.

If the income stream can be updated automatically, the channel type (Chnl Type) field on the SUPVD screen will be income stream provider (ISP) for any previous update in the last 12 months. If the most recent update is ISP and correct, and the customer only wants to update the income, they can await the provider to supply the next update.

Is there an update with channel type ISP within the previous 12 months?

• Yes:
• Tell the customer the system will update their income stream. The provider will supply this information directly to Services Australia for the review
• If the customer wants to await the provider data. Procedure ends here
• No:
• Check the provider name and product reference number on the customer record match the income stream schedule. An error will prevent bulk updates
• Go to Step 7

Check the Inc Ded Amt Calc Method field on the SUPV screen. If it is:

• 'I' the amount of the tax free component will be in the TFC New Method field
• 'S' the tax free component will always be displayed in the TFC Old Method field and the tax free component under the new method reported on the income stream schedule must be added in the TFC New Method field

If the schedule provides a tax free component that has not previously been recorded, check with the provider before updating.

Select Continue to return to the SUPS screen.

To update manually:

• 's'elect the appropriate product from the SUPS screen
• check details on the Pension/Annuities Identification (SUPI) screen are correct. Select Continue

Update the Superannuation Details Variable (SUPVD) screen:

Event Date field

• Date of the change, for example
• CPI date for a current customer/partner
• Claim date if old SUPS coding exists but it hasn’t been on Income Support Payments for some time
• Multiple dates if period required covers a period before and after a CPI is applied. Defined benefits income streams can have 6 monthly, annually or no CPI applied, it depends on the provider, for example all Commonwealth Superannuation Corporations different income streams are increased twice a year. The increases are applied December/January and June/July each year.
• Cannot be coded with a future date.

Gross Income field

• Code new fortnightly gross income amount, include any additional income amount a customer or their partner receives for their child
• If the gross income amount is annual or monthly, calculate the fortnightly amount. If annual, divide the annual amount by 26. If monthly, multiply the monthly amount by 12 and divide the result by 26

Income frequency field

• Select 2we – fortnightly. The income frequency must be fortnightly to enable bulk updates and indexation reviews

Super Child Amount field

• Code the amount of additional income received for children
• The system will subtract this amount from the gross income amount when determining the assessable income for the customer
• Leave blank if Nil

Super Child Number field

• Code the total amount of children for whom additional payments are received
• Leave blank if Nil

TFC New Method field

• Code the tax-free component calculated using the new proportional method as stated on the schedule
• If this field has a value and the Inc Ded Amt Calc Method field is 'I' or 'S' (for more information on values, see Table 3, Step 7), the amount recorded in this field must also be changed when changing the gross income amount as a result of the indexation
• From 1 January 2016, the deductible amount is capped at 10% of the gross income received from the income stream. If the income stream has a TFC amount greater than 10% of the gross income, the system will cap the deductible amount at 10%. Exception: the 10% cap does not apply to the MBS and DFRDB defined benefit income streams

Other ded amount method field

• Leave blank if no other deductions apply

Other Ded Amount field

• Leave blank if no other deductions apply
• Special Rate Disability Pension (SRDP)
• Recipients of SRDP from Department of Veterans' Affairs (DVA) may have a reduction to their SRDP entitlement due to their Commonwealth superannuation. E.g. DFRDB and MBS. The SRDP is reduced at 60% by an offset for the Commonwealth superannuation they receive. The amount of Commonwealth superannuation used to reduce the SRDP is exempt as income for Social Security purposes. The amount shown as Superannuation Offset on the SRDP letters can be used to determine the amount allowed as offset.
• Exception: If SRDP has reduced to NIL – then only the amount required to reduce the SRDP to Nil is exempt, see Resources for calculating the fortnightly reduction amount from DVA documents. This information needs to be included in the doc when updates are finalised.
• Family Law Split (FLS)
• Depending on the agreement/court order involved, it is possible the superannuation fund has split the gross income and is only paying the customer their remaining share. For those cases no additional reduction is required. However if the superannuation fund was unable to split it the amount the customer must legally pay to the other party can be coded here to reduce the gross income assessed. For example: May be a set amount $200 or $350 a fortnight, or could be a percentage of the gross 20% or 50% etc. See References for link to relevant instructions. This information needs to be included in the doc when updates are finalised.
• Both SRDP & FLS
• Add together both fortnightly deductions and code the total. This information needs to be included in the doc when updates are finalised.
• Source, DOR, and Action fields
• Select Continue to return to the SUPS screen

Check the SUPS screen displays the updated income stream details.

• Check the payment outcome is as expected, do not finalise if not
• Complete the activity on the Assessment Results (AR) screen
• Record details on a DOC as per Online Document Recorded (ODR)

Procedure ends here.

Has the customer and/or their partner contacted to advise of suspension or restoration of payments from a defined benefit income stream?

• Yes, refer to FINS Helpdesk who will seek advice from the Income Support Means Test team on assessment and coding. Procedure ends here
• No, see Table 1, Step 4

In the income stream owner's record:

• go to the Pension/Annuities Summary (SUPS) screen
• the product type code will be DEF

Has the customer provided a current one page Defined Benefit Income Stream Schedule, SA330 or similar schedule from the income stream provider?

• Yes, go to Step 3
• No, the customer must provide an income stream schedule, go to Step 2

Customer or partner must provide the one page Defined Benefit Income Stream Schedule, an SA330 or similar schedule from their provider before the provider name and product reference number can be changed.

• See Requesting information (CLK)
• Record a DOC detailing what the customer has been requested to provide
• 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 Family and domestic violence, escalate to AISR support. AISR support will escalate to arrange the request of the information directly from the provider.

Procedure ends here until documents are returned.

• 'S'elect the income stream product from the SUPS screen
• Select Continue to open the Pension/Annuities Identification (SUPI) screen

Change the following fields as needed:

• Provider or SMSF/SAF Name field
• Use field help (?) to see the list of defined benefit provider names with their 3 letter codes
• Code the three letter code for the name of the income stream provider
• The system will auto populate the correct provider name
• If a defined benefit superannuation fund does not appear in the provider/fund name list, contact the Financial Industry and Network Support (FINS) Level 2 Policy Helpdesk via the Online Query Form to request the provider/fund to be added to the list
• The provider name must be correct to enable bulk updates and indexation reviews
• Provider or SMSF/SAF ABN field
• Leave blank
• Product Name field
• Leave blank
• Product Reference Number field
• 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
• Make sure the correct product reference number is recorded exactly as it appears on the schedule
• Do not code the provider ABN or product name as the product reference number
• The number must be correct to enable correct bulk indexation updates
• Complete the Source and DOR fields
• Action field
• Code 'C' (system will not accept 'I')

• Select Continue
• On the Warning screen, change the N to Y
• Select Continue to open the Pension/Annuities Details Variable (SUPV) screen
• Event Date field - date of change
• Select Continue to return to the SUPS screen
• 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.

Schedule needed for a defined benefit income stream

Has the customer and/or their partner provided a SA330 or the Defined Benefit Income Stream Schedule or a similar schedule providing details for each income stream?

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

• See Requesting information (CLK)
• The customer must provide a schedule for each income stream they own
• 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 Family and domestic violence, escalate to AISR support. AISR support will escalate to arrange the request of the information directly from the provider.

Procedure ends here until documents returned.

Note: prior to a system release in December 2024, military invalidity pension (MYP) income streams were coded as defined benefit (DEF) income streams.

For New Claims: all updates are done within new claim activity

For Current Customers

To update manually, go to the Pension/Annuities Identification (SUPI) screen and complete the following fields:

• Product Type Code field
• Code 'DEF' for a defined benefit income stream
• Income stream from SMSF/SAF? field
• Code 'N' for no
• Provider or SMSF/SAF Name field
• Code the 3 letter code for the name of the income stream provider. The system will auto populate the correct provider name. Use field help (?) to see the list of defined benefit provider names with their 3 letter codes
• If a defined benefit superannuation fund does not appear in the provider/fund name list, contact the Financial Industry and Network Support (FINS) Level 2 Policy Helpdesk via the Online Query Form to request the provider/fund to be added to the list
• The provider name must be correct to enable bulk updates and indexation reviews
• Incom Stream Provider ABN field
• Leave blank
• Product Name field
• Leave blank
• Product Reference Number field
• 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
• Make sure the correct product reference number is recorded exactly as it appears on the schedule
• Do not code the provider ABN or product name as the product reference number
• The number must be correct to enable correct bulk indexation updates
• For information on recording Commonwealth Super Reference Numbers in the correct format, see the Resources page for attached guide document
• Purchase date field
• Leave blank, this field must not be coded
• Commencement Date field
• Code the start date
• If a defined benefit income stream is acquired by a reversionary beneficiary, code the start date of the original income stream, that is, when the primary partner started the income stream
• Term or Relevant Number field
• Leave blank to allow the system to calculate the correct relevant number
• The system will insert the life expectancy of the customer at the start date of the income stream. For partnered customers, the system will insert the life expectancy of the partner who has the longer life expectancy. Note: the relevant number is not needed for income streams started from 1 July 2007
• Section 9A/B/BA Compliant Indicator field
• Code 'Y' for yes
• Defined benefit income streams are 100% asset-test exempt (ATE) regardless of start date
• Start Date Original Commuted Product field
• Leave blank
• Product Cancellation Reason field
• Leave blank when adding a new income stream

Complete the Source, DOR, and Action fields.

Select Continue to go to the Pension/Annuities Details Variable (SUPVD) screen.

Go to Step 4.

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 (usually deceased spouse or partner), which is the date the customer (reversionary) is entitled to the income stream payment
• 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 starts. Lump sum arrears are assessed as income from an income stream
• If it was the partners the income stream is assessed from this date even though other income and assets are assessed at the end of the 16 week bereavement review where the customer does not advise the changes before the review
• Waiver provisions are effective from 9 May 2018:
• If the assessment of lump sum arrears result in a debt during the bereavement period for the surviving spouse, give consideration to waiver provisions contained under Class of Debt, Section 1237AB(1) of the Social Security Act 1991. See the Resources page for a link
• All conditions 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 to waive the debt, record the information on a DOC. Debt Staff will make a decision
• Note: if the date of reversion is prior to a CPI date that has passed, historical schedules will need to be requested. See Requesting information (CLK)

New claim

The Event Date will be the:

• date the income stream started where the:
• customer has a partner who is current on an income support payment, Residential Care Assessment (RCA) or Low Income Health Care Card (LIC) before the start date, or
• income stream started 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

Start of new income stream by existing customer

Invalidity or TPD pension

• If lump sum arrears were paid, go to Step 5
• If no lump sum arrears were paid, the Event Date is the start date of the ongoing payments
• See Resources page for an example

Non-invalidity or TPD pension

• If lump sum arrears were paid, the Event Date is the first date included in the arrears
• If no lump sum arrears were paid, the Event Date is the start date of the ongoing payments
• See Resources page for an example

Go to Step 6

Did the customer have notification obligations during the period of the arrears?

• Yes, the Event Date will be the date of the notification obligation. E.g., upon notice of approval from the superannuation fund the person's Invalidity or TPD pension was approved. It is not the date they applied for this pension
• No, the Event Date will be the start date of the ongoing payments

Note: the lump sum payments for the period prior to the Event Date will be assessed as ordinary income from the date of receipt, for the number of days equal to the period which the arrears represent, up to a maximum of 52 weeks. For example, if the lump sum arrears period is 4 months, the lump sum amount is treated as income over the following 4 months from the date the amount was received. See Income from personal injury insurance schemes and disability benefits for coding instructions

Go to Step 6.

• Channel Type (Chnl Type) field. Automatically displays how the income stream was updated:
• CSO if manually updated by Services Australia staff
• ISP auto bulk updated with data sent by the provider, or
• WEB if updated using information provided online
• Product Category field. Automatically displays the category of the income stream for assessment purposes. System displays either:
• 4 - Assets Test Exempt Defined Benefit Income Stream
• 5 - Assets Tested Defined Benefit Income Stream. Note: although this category displays as Assets Tested, the income stream is 100% asset-test exempt due to the indefinite Ministerial exemption
• Gross Income Amount field
• Code the fortnightly gross income amount
• If the gross income reported by the provider is annual or monthly calculate the fortnightly amount. If annual, divide the annual amount by 26. If monthly, multiply the monthly amount by 12 and divide the result by 26
• It must include any additional amount a customer or their partner receives for their child
• Income Frequency field
• Code 2WE (fortnightly). Income frequency must be fortnightly to enable bulk updates and indexation reviews.
• Super Child Amount field
• Code the amount of any additional income stream payments received for children
• The system will deduct this amount from the gross income amount when determining the assessable income for the customer
• Leave blank if Nil
• Super Child Number field
• Code the total number of children for whom additional payments are received
• Leave blank if Nil

Undeducted Purchase Price field

Use this field to record the undeducted purchase price (UPP) of the income stream product. This field is needed in the following 2 situations:

• The provider has answered YES to 'Is the Tax-Free Component calculated using the old method based on UPP'. This will happen when:
• the start date is before 1 July 2007, and
• the customer is under 60, or the customer is over 60 and the income stream is from SA Super, SA Police or GESB WA
• The income stream started before 1 July 2007 and savings provisions apply

The UPP appears on the schedule. If the amount is not provided, it can be calculated in some cases.

• If the product provider or customer has not provided the UPP amount but has provided the fortnightly tax-free component amount calculated using the old method based on UPP, the UPP can be calculated using the following formula:
• UPP = tax free component x 26 x relevant number
• For single customers, the relevant number is the life expectancy of the person at the start date of the product
• For partnered customers, the relevant number is the longest life expectancy of either partner at the start date of the product

Note: the Relevant Number Calculator can be used to determine:

• the UPP from the relevant number on the SUPI screen, and
• the TFC amount

In the Inc Ded Amt Calc Method field, code the method that will apply for the calculation of the tax free component as follows.

O - Old

• Use the code O when:
• the start date is before 1 July 2007, and
• the provider has indicated on the income stream schedule the tax free component is calculated using the old method based on UPP, and
• the customer is under 60, or the customer is over 60 and the income stream is from SA Super, SA Police or GESB WA
• The tax-free component is calculated under the pre-1 July 2007 rules using the old method based on the undeducted purchase price (UPP)
• If this code is used the TFC New Method field should be blank or zero

S - Saved

• This will only apply if the customer meets the criteria for the savings provision
• Code the tax free component supplied by the income stream provider in the TFC New Method field. Use this code when all of the following apply:
• the Inc Ded Amt Calc Method has defaulted to 'O'
• the provider has indicated on the income stream schedule the tax-free component is calculated using the new proportional method
• the fortnightly deductible amount on the customer's record calculated using the UPP is greater than the tax-free component reported on the schedule
• The tax-free component calculated is under the old method using the undeducted purchase price (UPP)

I - Indexed

• Code the tax-free component supplied by the income stream provider in the TFC New Method field. Use this code when:
• the provider has indicated on the income stream schedule the tax-free component is calculated using the new proportional method, and
• the Provider Name is not 'CSS' (Commonwealth Superannuation Scheme)
• The tax-free component is calculated using the new proportional method and will change when the gross income amount changes as a result of indexation
• If this code is used, do not code the UPP in the Undeducted Purchase Price field

F - Fixed

• Code the tax-free component supplied by the income stream provider in the TFC New Method field
• Use this code when the provider has indicated on the income stream schedule the tax-free component is calculated using the new proportional method, and
• The Provider Name is 'CSS' (Commonwealth Super Scheme)
• The deductible amount is calculated using the new proportional method and will not vary with the changes in the gross income amount
• It will remain the same permanently
• If this code is used, do not code the UPP in the Undeducted Purchase Price field

Z - Zero

• Use this code when the provider has indicated on the income stream schedule that there is no tax free component. The tax-free component or deductible amount is zero
• When a new product is coded on the system, this field will default to 'Z' and must be changed if there is a tax-free component reported on the schedule
• If this code is used, the Undeducted Purchase Price field and the TFC New Method field should be blank or zero

TFC New Method field

Code the tax -free component calculated by the income stream provider using the new proportional method. This amount will be reported on the income stream schedule

• Code this field if the Inc Ded Amt Calc Method is an 'I', 'F', or 'S'
• Update this field if the gross income amount is changed as a result of indexation and the Inc Ded Amt Calc Method field is 'I' or 'S'

TFC Old Method field

Displays the tax- free component under the old method. The -amount in this field will display when the Undeducted Purchase Price field has a value recorded

Deductible Amt (Income) field - the system calculates and displays the capped deductible amount (if the actual deductible amount is greater than 10% of the gross income amount) or the actual deductible amount (if 10% or less of the gross income amount). This amount is reduced from the gross income amount to determine assessable income

Exception: the 10% cap does not apply to the MBS and DFRDB defined benefit income streams

Other ded amount method:

• Leave blank if no other deductions apply

Other Ded Amount:

• Leave blank if no other deductions apply
• Special Rate Disability Pension (SRDP)
• Recipients of SRDP from Department of Veterans' Affairs (DVA) may have a reduction to their SRDP entitlement due to their Commonwealth superannuation. E.g. DFRDB and MBS.
• The SRDP is reduced at 60% by an offset for the Commonwealth superannuation they receive. The amount of Commonwealth superannuation used to reduce the SRDP is exempt as income for Social Security purposes. The amount shown as Superannuation Offset on the SRDP letters can be used to determine the fortnightly amount allowed as an offset and exempt.
• Exception: If SRDP has reduced to NIL – then only the amount required to reduce the SRDP to Nil is exempt, see Resources for calculating the reduction amount from DVA documents. This information needs to be included in the doc when updates are finalised.
• Family Law Split (FLS)
• Depending on the agreement/court order involved, it is possible the superannuation fund has split the gross income and is only paying the customer their remaining share. For those cases no additional reduction is required.
• However if the superannuation fund was unable to split the payment then the fortnightly amount the customer must legally pay to the other party can be coded here to reduce the gross income assessed. For example: the payment may be a set amount $200per fortnight, or could be a 20% of the gross. See References for link to relevant instructions. This information needs to be included in the doc when updates are finalised.
• Both SRDP & FLS
• Add together both fortnightly deductions and code the total. This information needs to be included in the doc when updates are finalised.

• Assessable Income Amount field - system calculated: gross income amount – (deductible amount + other deductions amount) = assessable income
• Assessable Asset Amount field - will be blank as no asset value assessed
• Complete Source, DOR and Action fields

Select Continue.

• Check details on the Pension/Annuities Summary (SUPS, SUPI, SUPVD) screen are correct
• Check the payment outcome is as expected on Assessment Results (AR) screen, do not finalise if not
• Complete the activity on the Assessment Results (AR) screen
• Make sure the Future Activity List (FAL) screen is checked and any review for the return of the documents completed
• Record details on a DOC as per Online Document Recorded (ODR)