August income stream reviews 110-02060020

The following income stream products are reviewed in August:

• account-based income stream (AIS)
• allocated annuities (ALA)
• allocated pensions (ALP)
• market-linked income stream (MLI)
• asset test exempt (ATE) lifetime income stream from SMSF/SAF (LIS, ANL, ARL, ARP)
• asset test exempt (ATE) life expectancy income stream from SMSF/SAF (LIE, ANN, ARS, ART)

There are 2 types of August reviews. Which process applies depends on whether the income stream is paid from a Self-Managed Superannuation Funds (SMSF) and Small APRA Funds (SAF) or not.

This is an automated review using the Automation of income stream reviews (AISR) process.

All income stream product providers must supply information electronically to Services Australia for completing reviews for:

• Account-based income streams (including allocated pensions and allocated annuities)
• Market-linked income streams

Low Income Health Care Card (LIC) holders and their partners are included.

Commonwealth Seniors Health Card (CSHC) holders and their partners are included for account-based income streams only.

If a customer was unable to be successfully matched with information from their income stream provider, the system generates a customer review letter in October. See Income stream customer reviews – account-based and market-linked income streams.

Customer First creates a SAL review if the customer has one of the following income streams paid from an SMSF or SAF:

• account-based
• market-linked
• asset test exempt (ATE) lifetime or life expectancy. An actuarial certificate review is included for these products

This is a letter review. The letter lists the income streams to be reviewed. Customers also receive an online reminder via the landing page of their online account when they log in.

The review activity (Super 12 monthly review) appears on the Future Activity List (FAL) screen and the review reason is ‘SAL’.

If the account-based income stream is subject to deeming, the customer is only asked to provide the account balance as at 1 July or later.

If the account-based income stream is grandfathered, (Category 2), meaning it is not subject to the post 1 January 2015 deeming changes or if the income stream is an MLI, the customer is asked to provide:

• the account balance as at 1 July (closing 30 June balance)
• the new nominated annual income amount for the current financial year, and
• details of any commutations made in the previous financial year

For asset test exempt lifetime or life expectancy income streams from an SMSF or SAF, the customer is asked to provide a new actuarial certificate.

If the customer has multiple income streams, they only receive one letter. This is even if the income streams are different types. If the customer only returns information for some of their income streams, the review can still be completed. The system will create a new review activity for the remaining products.

Account-based information can be actioned by a Service Officer; send the actuarial certificate provided to a CAO. The CAO will determine if the product can continue to be asset test exempt.

Lifetime and life expectancy asset test exempt income streams:

• If the review is outstanding, a second request is sent in mid-November
• A Manual Follow-up (MFU) is created for a Complex Assessment Officer (CAO) if a new actuarial certificate is not supplied by 31 December. The ATE income stream must be reassessed as an asset tested income stream from 1 January. Reviewing actuarial certificates for lifetime or life expectancy asset test exempt income streams from Self Managed or Small APRA Super Funds

Account-based and market-linked income streams:

• If the review is outstanding, a second request is sent in mid-November
• Payments will be automatically suspended if the requested information is not supplied by 31 December
• The customer's payment will cancel 13 weeks after the suspension if there has been no reply or updates made

The system will check if information has already been received and updates have been completed for account-based products (types AIS, ALA and ALP) and market-linked income stream products before sending letters. The checks will be done before:

• issuing the first review letter
• issuing the reminder letter
• suspending the customer's record for failure to provide the requested information

Each income stream selected for review is checked for an update of the following fields with a date of event in the current financial year:

• 1 July Account Balance
• Current Account Balance, and
• for MLI only, Gross Annual Income Amount

If not all of the fields needed are updated, the system will still send out a letter as the review process has not been completed.

The Income Stream review letter asks the customer to provide the information online by going to:

• my.gov.au and signing in to their myGov account to access their Centrelink online account. From the 'Tasks' section, they select 'You need to complete your income stream review'
• servicesaustralia.gov.au/incomestreamreviews and entering their Customer Reference Number (CRN) and the One Time Access Code (OTAC) provided in the review letter. The OTAC allows the customer, their nominee or a trusted third party to complete the review online

Customers required to provide supporting documents are prompted to upload these online. An 'Upload documents' links is presented on the Receipt page of the Income Stream Review service.

Customers who are unable to complete their review online or need intensive support can contact the agency on 132 300 for help.

If the customer has made a commutation from an asset-test exempt or a market-linked income stream product, as these are generally non-commutable, a schedule is required from the provider to determine if the commutation is allowable. See Commutation of asset test exempt (ATE) income stream. See Process page. Note: the same process to assess the commutation applies to both asset tested and asset test exempt market-linked income streams.

Outside of the review cycle, customers or their partners may advise the agency of an update to their current account balance at any time. They must also advise if there has been a commutation or other material change if their account-based income stream is a grandfathered (category 2) product.