Assessing income streams paid from Self-Managed Superannuation Funds (SMSFs) or Small APRA Superannuation Funds (SAFs) 108-05060070

Note:

• changes to and addition of lifetime/life expectancy asset-test exempt (ATE) to income streams paid from a Self-Managed Superannuation Fund (SMSF) or Small APRA Superannuation Fund (SAF) are generally completed by processing services following CAO assessment
• Smart Centre Call or Access must not update lifetime/life expectancy asset-test exempt (ATE) income streams paid from SMSFs or SAFs
• all Service Officers can process updates to existing account-based income streams and market-linked income streams at the point of contact for all payment types

Is the income stream from a 'Self Managed Superannuation Fund' (SMSF) or a Small APRA fund (SAF)?

• Yes, go to Step 2
• No, see Income streams. Procedure ends here

• Yes, if documentation is for:
• an asset-test exempt lifetime or life expectancy income stream, go to Step 9
• any other product type, go to Step 6
• No, go to Step 3

• Yes, see Table 2
• No, go to Step 4

• Yes, go to Step 5
• No, procedure ends here

Note: for SMSFs and SAFs, the trustee of the SMSF/SAF or fund administrator must sign the documents.

• Yes, go to Step 6
• No, go to Step 8

• Yes,
• for adding an account-based income stream, see Adding or updating an account-based income stream
• for adding a market-linked income stream, see Adding or updating a market-linked income stream
• No, go to Step 7

• Yes, go to Step 9
• No, check with customer what type of income stream they actually receive. SMSFs or SAFs cannot offer any other type of income streams such as Term or Defined Benefit. See Income Streams in the Background tab

Issue the customer a Details of income stream product (SA330) for each income stream they receive from their SMSF or SAF. Advise the customer the trustee of the SMSF or SAF or the fund administrator must complete this form. A similar schedule is acceptable, but must be signed by the trustee of the SMSF/SAF or fund administrator. If the income stream is a lifetime or a life expectancy product that complies with section 9A or 9B of the Social Security Act 1991, they must provide additional documentation as listed in Step 10.

The completed schedule and/or additional documentation must be returned to Services Australia.

Request all of the information they must provide. See Requesting information (CLK).

Use Mail Forms if a form needs to be sent.

Procedure ends here until documents returned.

Contact the Financial Industry and Network Support (FINS) Helpdesk if a customer has an income stream which meets all of the following criteria:

• it is paid from an SMSF or SAF
• it is a lifetime or life expectancy income stream
• it is a 9A/9B compliant income stream
• it was purchased on or after 1 January 2006

Note: the customer must supply documentation about the income stream if the product complies with section 9A/9B of the Social Security Act 1991 (SSA). This documentation is listed in the SA330 as Question 26.

See the References page for more information on what must be included in the documentation and information about Actuarial Certificates.

Has the customer provided the required documentation?

• Yes, go to Step 10
• No, request the customer provide the required documentation. See Requesting information (CLK). Record details of the interview on a DOC. Procedure ends here until documents returned

The documentation supplied by the customer for an asset-test exempt (ATE) lifetime or life expectancy income stream must initially be forwarded to a CAO for assessment. Any future changes made by a customer to these income streams such as partial commutations or reduction in gross income, must be referred to a CAO to check whether the commutation or reduction in income is allowable or not.

After being scanned for processing, refer the returned documents to a CAO.

• Yes, scan for processing and refer the certificate to a CAO. Procedure ends here
• No, go to Step 2

• Yes, see Annual income stream indexation review. Procedure ends here
• No, go to Step 3

• Yes, see August review of income streams
• No, go to Step 4

• Yes,
• For account-based income streams, see Adding or updating an account-based income stream
• For market-linked income streams, see Adding or updating a market-linked income stream
• No, go to Step 5

• Yes,
• For account-based income stream, see Commutation of asset-tested income streams, Step 7 in Commutation of an asset tested income stream table
• For market-linked income stream, lifetime and life expectancy income streams, see Commutation of asset-test exempt (ATE) income streams. Note: lifetime, life expectancy and market-linked income streams are non-commutable except in extremely limited circumstances. If a partial commutation is made or the product has to be cancelled because of a full commutation, check with a Service Support Officer, CAO or FISO, whether the commutation is allowable or not
• No, procedure ends here

Has the Complex Assessment Officer (CAO) completed a report and notified the referring Service Officer with a recommendation about the assessment of the asset-test exempt lifetime or life expectancy income stream from the SMSF or SAF?

• Yes, go to Step 2
• No, procedure ends here

When the CAO finalises the CAO report and notifies the referring staff of a recommendation, check for an existing record of the lifetime or life expectancy income stream on the Pension/Annuities Summary (SUPS) screen.

Is income stream already coded on SUPS screen?

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

Use the Income Stream Update guided procedure.

To update manually:

• for lifetime income streams, see Adding or updating a lifetime income stream
• for life expectancy income streams, see Adding or updating a life expectancy income stream

Record the details on a DOC.

Use the Income Stream Update guided procedure.

To update manually:

• for lifetime income streams, see Adding or updating a lifetime income stream
• for life expectancy income streams, see Adding or updating a life expectancy income stream

Record the details on a DOC.