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

Item

Example

1

Calculating gross annual income

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

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

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

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

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

2

Assessing annual income for an account-based pension

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

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

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

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