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

This pageexplains how to assess and code market-linked income stream products.

Staff trained in Process Direct select the Process Direct tab. Staff not trained, select Customer First.

Process Direct

On this page:

Adding or updating an income stream

Recording income stream details

Updating Provider Name and/or Product Reference Number for existing income streams

Coding a new income stream

Adding or updating an income stream

Table 1

Step	Action
1	Check update(s) needed 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
2	Discuss all the income and assets updates the customer would like to make 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
3	Documents needed 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
4	Request documents 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.
5	Check if the income stream has been updated in this financial year 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
6	Notifying changes to an existing income stream from 1 July and before the annual August review 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 only, 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
7	Create a Fast Note 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

Recording income stream details

Table 2

Step	Action
1	Customer advising of changes from 1 July and before August review 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
2	Updates from 1 July and before August 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. 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.
3	The customer has contacted to update the current account balance of their or their partner's income stream 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
4	Update current account balance 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.
5	Change to existing income stream 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
6	There has been a commutation or a change in gross income due to a commutation 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
7	Has the customer or partner supplied an SA330 or similar schedule for each income stream? Yes, go to Step 9 No, go to Step 8
8	Request documents 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.
9	Record details 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. 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
10	Expiry date of MLI in the final year of the product 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. All updates must be completed in Customer First. If there is a started activity for this update in Process Direct, cancel this activity. For new claims and non-new claim activities, use the handover function in Process Direct to complete the coding in Customer First. See Process Direct navigation, common screens and functions for further information. For AISR activities, cancel the started activity and complete the update in Customer First. Go to Table 2, Step 10 in Customer First Process Tab to complete further updates.
11	Update gross annual income 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. 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.
12	Gross income is more than the Allow Max field amount 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.
13	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 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
14	Cancel with reason OTH 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.
15	Recode SUPI 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. To add a new income stream, go to Step 1 in Table 4.
16	Expire (cancel) income stream 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. Under the SIS Regulations, providers have an obligation to pay out any remaining funds and close the income stream within 28 days. Once the term has expired, the products are no longer income streams and need to be removed from SUPS. Is the current account balance as recorded on the customer's record less than $5,000? Yes, evidence is not needed, go to Step 17. No: Evidence of full commutation or closure of income stream due to the account balance being exhausted is needed. A schedule is not required as providers generally do not issue a schedule for a closed product. If the funds have not yet been paid to the customer and are more than $5,000, update the income stream with Product Cancellation Reason. The system will automatically set the relevant fields on the Income Stream Details line to zero. Use Event Date as at date of expiry. Code the product on MIUS with Event Date and apply to most recent current account balance. See Table 2, Step 2 of Managed investments - adding a new investment for coding instructions. If the amount is more than $20,000 ask the customer what has happened to the funds. Ask for any supporting documents needed to update assets purchased. If the customer has provided the required information, go to Step 17.
17	Expire (cancel) income stream continued 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 If any remaining funds were transferred to a new income stream, code the new asset-tested income stream using the information from the income stream schedule. For adding the new income stream, see Income streams. Update any other changes to the customer's income and assets, see Coding income and assets 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) ø

Updating Provider Name and/or Product Reference Number for existing income streams

Table 3

Step	Action
1	Successor Fund Transfer changes to Provider Name and/or Product Reference Number 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
2	Documents needed 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
3	Update Provider Name and/or Product reference number when document(s) 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: For SMSF/SAF only: enter the name of the self-managed superannuation fund manually. Do not code the names of financial planners or accountants For non-SMSF: select the appropriate Provider name from the drop-down list. Beginning to type part of the name will reduce the options. Note: the provider name may not be an exact match to the schedule. If a superannuation fund does not appear in the provider/fund name list in the first instance, please refer to FINS Bulletin page Successor Fund Transfer (SFT) page. If still unable to locate, refer to LPS for support as per normal BAU processes Provider or SMSF/SAF ABN: For SMSF/SAF only, enter the fund’s Australian Business Number For non-SMSF/SAF: this will auto-populate. Note: the ABN may not match the schedule 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.

Coding a new income stream

Table 4

Step	Action
1	The customer advises of a new income stream 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: For SMSF/SAF only: enter the name of the self-managed superannuation fund manually. Do not code the names of financial planners or accountants For non-SMSF: select the appropriate Provider name from the drop-down list. Beginning to type part of the name will reduce the options. Note: the provider name may not be an exact match to the schedule. If a superannuation fund does not appear in the provider/fund name list in the first instance, please refer to FINS Bulletin page Successor Fund Transfer (SFT) page. If still unable to locate, refer to LPS for support as per normal BAU processes Provider or SMSF/SAF ABN: For SMSF/SAF only, enter the fund’s Australian Business Number For non-SMSF/SAF: this will auto-populate. Note: the ABN may not match the schedule 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
2	Income Stream Details - continued 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).
3	Superannuation Payment Details 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
4	Superannuation Payment Details continued 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
5	Superannuation Payment Details continued 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
6	Superannuation Payment Details continued 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. 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
7	Superannuation Payment Details continued 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 9.
8	Market-Linked income stream (MLI) in the final year If the error 'E022SN - The Gross Annual Income Amount must be between minimum ####.## and maximum ####.##' is displayed. For new claims and non-new claim activities please use the handover function in Process Direct to complete the coding in Customer First. See Process Direct navigation, common screens and functions for further information. For AISR activities, cancel the started activity and complete the update in Customer First.
9	Finalise activity 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