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Adding or updating a lifetime income stream 108-05060030

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This document outlines the procedure explaining how to assess and code lifetime income stream products.

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

Customer First

On this page:

Adding or updating an income stream

Coding a new income stream purchased before 1 July 2019

Additional Event Date(s) needed for a new income stream

Adding or updating an income stream


Table 1

Expand table

Step

Action

1

Check update(s) required

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.

Is the customer contacting to add or update a lifetime income stream?

2

Discuss updates with customer

Discuss all income and assets updates required (for example, income stream, shares, foreign income).

Only proceed with the coding if all updates required 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.

Information needed to update the income stream is described in this table.

Can the customer provide all the other information required?

  • 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

Who can complete these updates?

All appropriately skill-tagged Service Officers can process new and existing lifetime income streams at the point of contact for all payment types.

Do not add new income streams without an income stream schedule. Providers can issue their own schedule with similar questions that appear on the SA330, and this can be accepted.

Request a Details of income stream product (SA330) or similar schedule completed by the provider for:

  • Existing lifetime income streams where there have been any partial commutations
  • New income streams
  • Successor Fund Transfers (SFT)

Historical Event Date

Additional coding will be needed where the income stream is being added to the customer record and the Event Date is historical:

  • For asset reassessment historical means:
    • more than 6 months in the past if the payment frequency is less than annual, or
    • more than12 months in the past if the payment frequency is annual, or
    • the Event Date is before the date the income stream is added to the customer’s record
  • For income assessment historical means:
    • the payment is indexed, and
    • the Event Date is more than 12 months in the past

Some of the coding can be done without additional information from the customer. The customer must provide the gross income amount for each period of 12 months from the anniversary of the purchase date where:

  • the indexation method is CPI (Consumer Price Index), and
  • they or their partner received an income support payment (ISP) or a Low Income Health Care Card (LIC) at any time since the date of purchase

Is the customer able to provide everything needed?

4

Request documents

Tell the customer all information is required before any change can be made to ensure they receive correct entitlement:

  • Tell the customer of all 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

Where the customer or partner is unable, or unwilling, to provide information due to family and domestic violence (FDV), escalate to Automation of Income Stream Reviews (AISR) support. AISR support will escalate to arrange the request of the information directly from the provider.

Procedure ends here until documents returned.

5

Income stream paid from a self-managed superannuation fund (SMSF) or small APRA fund (SAF)

Most SMSFs and SAFs can be identified by their name. The name of the SMSF may include the customer's or their partner's family name:

  • Question 9 on the SA330 will also help identify if the income stream is paid from an SMSF or SAF
  • For help, contact the Financial Investment and Network Support (FINS) Helpdesk by completing a New Level 2 enquiry web form at the My Level 2 Policy Helpdesk Requests Summary page. See the Resources page for a link

Is the income stream from a SMSF or SAF?

6

Income stream purchased before 1 July 2019

The means testing of lifetime income stream products changed from 1 July 2019.

For existing products purchased before 1 July 2019 (including reversionary income streams which reverted after 1 July 2019 and Successor Fund Transfers), the existing means test assessment continues as outlined in the following steps.

Was the income stream purchased before 1 July 2019?

7

If the customer or their partner is:

If the product was a jointly owned income stream but one member has passed away the product will need to be coded off and recoded with the full purchase price and income. While the income amount paid is often 100% of the amount paid to both owners, some products only allow for a reduced portion to be payable to the surviving member for example 80% or 50% etc. The date of event will need to be the day after date of death of the other member. Once that is coded any other changes per below can then be factored.

8

Successor Fund Transfer (SFT)

Go to the Pension/Annuities Summary (SUPS) screen of income stream owner’s record.

Update Pension/Annuities Identification (SUPI) screen as required:

  • 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 fund does not appear in the provider/fund name list in the first instance, please refer to FINS Bulletin page Successor Fund Transfer (SFT). 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
  • Provider Name field:
    • The name of the income stream product as stated on the schedule
    • For joint income streams, include the term ‘jointly owned’ to identify the product as a jointly owned income stream
  • 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
    • Ensure the 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

Is there a change to the gross income?

9

Change to gross income - check existing record

Go to the Pension/Annuities Summary (SUPS) screen of income stream owner's record.

The product type code should be LIS, ANL, ARL, ARP or OTN.

Note: the following codes are obsolete but can used for assessment purposes. They have never converted and are from before 20 September 2004. The assessment is not affected:

  • ANL (Ordinary Money Annuity Life)
  • ARL (Rollover Money Annuity Life)
  • ARP (Superannuation Pension Life)

The assessment is not affected, however any product with an obsolete product type must be updated to current product codes to prevent manual handoffs as part of the Automation of Income Stream Reviews process. See Step 1 of Table 2 in Income stream reviews – coding accuracy.

Are there details for the lifetime income stream recorded?

10

Update gross income

Indexation method is:

  • FIX:
    • An amount is automatically calculated annually, using the fixed indexation percentage
    • Do not update the gross income
    • The system will auto increase the income amount by the percentage coded in the Indexation % field on the date specified in the Next Indexation Date field. The next indexation date also will auto update
    • Go to Step 12
  • CPI:
    • 'S'elect the appropriate product from the SUPS screen and select Continue
    • Check details on the Pension/Annuities Identification (SUPI) screen are correct and select Continue
    • The Pension/ Annuities Details Variable (SUPV) screen presents
  • Event Date: date of the change
  • Gross Income field - code new gross income amount. Note: for joint income streams, halve the amount shown on the schedule
  • Income Frequency field - code frequency of the payment (if changed)
  • If there is an existing deduction figure code due to a family law split coded under ‘Other Ded Amt (income)’ field, this amount may need to be adjusted. If it is a set amount then it can remain, if it is a percentage of the gross then it needs to be adjusted when the gross is adjusted. Note: this field needs to be based on the frequency coded for the income, for example if monthly coded then this figure must represent the monthly amount allowed as a deduction
  • Go to Step 11

11

Coding the (SUPV) screen
  • Next Indexation Date field for CPI indexed income streams:
    • It is usually the anniversary of the purchase date. It is not 1 year from the Event Date (date of receipt of requested information) or the date when the income is updated
    • Input the date as included in the schedule. Note: if the income stream is from a SMSF or SAF and the indexation date reported is 1 July, it can be accepted
    • If this date is blank in the schedule, input the next anniversary of the purchase date
    • Go to Step 12

12

Finalise the activity
  • Source: DOR: and Action fields, select Continue
  • Check the SUPS screen displays the updated income stream details
  • Complete the activity on the Assessment Results (AR) screen
  • Check if there is an indexation review for this product on the FAL screen and ensure it is finalised to prevent a reminder letter being sent or payment being suspended
  • Record details on a DOC

Procedure ends here

13

Documents have been provided for each income stream

A SA330 or similar schedule is needed for each income stream they own: The schedule must be completed by the:

  • Income stream provider for income streams purchased from a retail provider
  • 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

Has the customer provided an SA330 or similar schedule for each income stream owned by them (and partner)?

  • Yes, see Step 1 in Table 2
  • No:
    • Request a Details of income stream product (SA330) or similar schedule completed by the provider. See Requesting information (CLK)
    • Use the Mail Forms guided procedure in Customer First if a form needs to be sent
    • Tell the customer who can complete the income stream schedule
    • The customer must provide an income stream schedule for each income stream they own
    • Where the customer or partner is unable, or unwilling, to provide information due to family and domestic violence (FDV), escalate to Automation of Income Stream Reviews (AISR) support. AISR support will escalate to arrange the request of the information directly from the provider
    • Procedure ends here until documents are received

Coding a new income stream purchased before 1 July 2019


Table 2

Expand table

Step

Action

1

Record a new income stream

Before starting the update, check where the money came from to buy the income stream. For example, the customer used money in a savings account or a superannuation account recorded on the Managed Investments Summary (MIS) screen. If so, these other assets need updating in the same activity as adding the new income stream.

To update manually, use the following information.

Code Pension/Annuities Identification (SUPI) screen.

  • Product Type Code field:
    • 'LIS' (lifetime income stream)
  • Income stream from SMSF/SAF? field:
    • 'Y'es or 'N'o depending on if the income stream is paid from a self-managed superannuation fund (SMSF) or small APRA fund (SAF). Refer to Question 9 in the SA330 for this information
  • 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 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:
    • The name of the income stream product as stated on the schedule
    • For joint income streams, include the term ‘jointly owned’ to identify the product as a jointly owned income stream
  • 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
    • Ensure the 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
  • Purchase Date field:
    • Purchase date of the income stream as stated on the schedule
  • Commencement Date field - same as purchase date

2

(SUPI) screen continued

Term or Relevant Number field:

  • This is stated on the schedule
  • It is the length of time for which the income stream is payable
  • If not provided on the SA330 or is incorrect, contact the provider to obtain the correct number or request customer to obtain correctly completed schedule from provider. See Requesting information (CLK)
  • For joint products the same relevant number must be recorded on the customer and their partner's record
  • If there is no reversionary pension beneficiary nominated, the relevant number is the life expectancy factor of the primary beneficiary
  • If there is a reversionary pension beneficiary nominated the relevant number is the longer life expectancy factor of either the primary or the reversionary pension beneficiary
  • It is always the number that applied at the start date and must not be changed following reversion to a reversionary partner or beneficiary

3

(SUPI) screen - continued

Section 9A/B/BA Compliant Indicator field

  • Code 'Y'es or 'N'o depending on whether or not the income stream meets requirements under section 9A of the Social Security Act 1991
  • Code 'N' for a LIS purchased on or after 20 September 2007 unless it was purchased on or after 20 September 2007 from the commutation of a section 9A compliant income stream purchased before 20 September 2007 provided conditions are met for retention of the asset-test exemption
    For more information, see the References page
    If a product loses its ATE status, it must be cancelled and recoded as non-complying

Start Date Original Commuted Product field

  • Contact FINS Helpdesk before coding this field. See the Resources page for a link to the New Level 2 enquiry web form at the My Level 2 Policy Helpdesk Requests Summary page
  • Only coded if the purchase date is on or after 20 September 2007 and the product meets conditions for retention of the ATE status as above
  • If the date is not provided on the schedule, this field must be left blank and the Section 9A/B/BA Compliant Indicator field coded as 'N'
  • Product Cancellation Reason field - leave blank when adding new income stream

Complete Source, DOR and Action fields and select Continue

4

Code the Pension/Annuities Details Variable (SUPV) screen

Select the date for the Event Date field using the following information.

Note: an additional Event Date(s) may be needed for some new income streams. These will be added after the first page is complete. More information is provided later as it is needed.

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
  • Assessable income from the income stream includes:
    • any lump sum arrears, and
    • regular ongoing payments
  • Normally, lump sum arrears are paid for the period from the day after the date of death to the date regular payments start
  • 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 effective from 9 May 2018:
    • Where 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 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 there is a debt that might be able to be waived, record the details on a DOC. Debt Staff will consider it when assessing the debt

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 existing customer

  • The Event Date is the purchase date of the product

5

(SUPV) screen continued

Channel Type field:

  • no update needed
  • system auto displays whether the income stream was manually updated by Services Australia staff or auto bulk updated with data sent by the provider (ISP)

Product Category field. No update needed. The system auto displays either:

  • 1 - Assets Test Exempt Income Stream
  • 2 - Assets Tested (Long Term) Income Stream
  • 6 - Partially Assets Test Exempt Income Stream

SMSF/SAF Actuarial Cert Date field

  • This date is only required for lifetime income streams from SMSFs/SAFs that comply with section 9A
  • Do not code until the Complex Assessment Officer (CAO) has checked the actuarial certificate and provided a recommendation to accept it
  • Code the start date of the 'in force' period of the actuarial certificate. This must be 1 July of the current financial year. This is not the date the certificate was signed or issued
  • If assessing a new income stream from SMSF/SAF, additional documents including actuarial certificate are required
  • If reviewing actuarial certificate, recode this field when a new actuarial certificate is provided and accepted by CAO

6

SUPV screen (continued)

Gross Income Amount field:

  • Code exactly as shown on the schedule (including cents, if stated)
  • Do not convert to an annual amount unless specified on the schedule
  • For joint income streams, halve the amount shown on the schedule

Income Frequency field:

  • Code the frequency of payment
  • The system uses this field to make automatic updates to the asset value of some income streams

Residual Capital Value field:

  • The system displays only if the Section 9A/B/BA Compliant Ind field is N
  • Code the amount that will be returned to the income stream owner as a lump sum at the end of the income stream term. If this is zero, leave the field blank
  • A product with a residual capital value cannot comply with section 9A
  • For joint income streams, halve the amount shown on the schedule

Original Purchase Price field:

  • Code amount originally paid for the income stream, not reduced by any commutations
  • Code exactly as stated on the schedule (including cents, if stated)
  • For existing products, if there is a whole dollar discrepancy, the product must be cancelled with cancellation reason OTH and recoded
  • For joint income streams, halve the amount shown on the schedule

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:

  • A lifetime income stream that complies with section 9A is generally a non-commutable income stream, except in very limited circumstances
  • Determine if the commutation is allowable or not. If unsure, contact the FINS helpdesk before updating this field. Normal escalation procedures apply. See the Resources page for a link to the Online Query Form
  • Code the most recent commutation amount

Prev Commutations field:

  • The system displays total commutations made up to the current date

Purch Price - Commutations field:

  • The system displays original purchase price less total commutations made

Other Deduction Type field:

  • Possible codes:
    • Blank – use if no other deductions allowed
    • ‘F’ – Family Law Split (FLS)
    • ‘S’ – Special Rate Disability Pension (SRDP) – not applicable for LIE products so should not be selected
    • ‘B’ – Code if customer has both SRDP and FLS reductions - not applicable for LIE products so should not be selected

Other Ded Amt (income): field:

  • This field must not be coded if ‘F’ is not coded in ‘Oth Ded Amount method’ field
  • Family Law Split (FLS)
    • Depending on the agreement or court order involved, it is possible the provider has split the income stream and is only paying the customer their remaining share. For those cases no additional reduction is required
    • However, if the provider was unable to split the payment, then the amount the customer must legally pay to the other party can be coded under ‘other deduction amount’ to reduce the gross income assessed. The amount coded in this field must match the frequency used for the income coded e.g. if income is coded as a monthly figure this field must be coded with the monthly amount allowable. For example: it may be a set amount of $10,000 per year or could be 20% of the gross and if required needs to be converted to the frequency used for coding the income. See References for link to relevant instructions. This information needs to be included in the DOC when updates are finalised

7

SUPV screen (continued)

If the income stream is not indexed, go to Step 9

In all other cases, if the Event Date is historical, additional Event Date(s) will be needed. The indexation fields are completed on the last, (most recent) Event Date.

  • For asset reassessment historical means:
    • more than 6 months in the past if the payment frequency is less than annual, or
    • more than12 months in the past if the payment frequency is annual, or
    • the Event Date is before the date the income stream is added to the customer’s record
  • For income assessment historical means:
    • the payment is indexed, and
    • the Event Date is more than 12 months in the past

Is the Event Date historical?

  • Yes:
    • do not code the indexation fields at this point
    • make a note additional Event Date(s) will be needed before the update can be finalised
    • go to Step 9
  • No, go to Step 8

8

SUPV screen- indexation information
  • Indexation Method field:
    • The indexation method will be stated on the schedule
    • If payment is indexed, indexation details must be coded for review of the gross income
    • If 'FIX', the system will auto increase the income amount by the percentage coded in the Indexation % field on the date specified in the Next Indexation Date field
    • If 'CPI' is coded, the system will send out a letter to the income stream owner requesting their new gross income and frequency of payment
  • Next Indexation Date field:
    • For CPI indexed income streams, this is usually the anniversary of the purchase date. It is not 1 year from the Event Date (date of receipt of requested information) or the date when the income is updated
    • Input the date as included in the schedule. Note: if the income stream is from a SMSF or SAF and the indexation date reported is 1 July, it can be accepted
    • If this date is blank in the schedule, input the next anniversary of the purchase date
    • It is necessary to ensure the annual reviews are correctly generated by the system and updated each year
    • Must be coded with the next future review date when adding the income stream with an indexation method
  • Indexation % field:
    • Code only if Indexation Method field is FIX
    • If the indexation rate is greater than 5% the product cannot be section 9A/B/BA compliant

9

SUPV screen (continued)

The remaining fields needed on the SUPV screen are automatically completed by the system:

  • Select Continue to return to the SUPS screen
  • Select the product being added in this update
  • From the SUPI screen, select return to the SUPV screen

Check the additional coding now appears:

Deductible Amt (Assets) field:

  • system calculated if Section 9A/B/BA Compliant Ind field is N (product category 2)
  • displays the deduction amount and is used with the term elapsed to determine the assessable asset amount
  • does not display for partially asset-test exempt income streams (product category 6) even though the amount is used to calculate the assessable asset amount

Deductible Amt (Income) field:

  • system calculates and displays the deduction amount. The gross income amount from an income stream is reduced by the deduction amount to determine assessable income

Term Elapsed (Years) field:

  • system displays the period elapsed since the start date
  • this is used with the deductible amount (assets) to calculate the assessable asset amount for asset-tested (product category 2) and partially asset-test exempt (category 6) income streams
  • if gross income frequency is annual, the term elapsed is calculated in increments of whole years. If not annual, the term elapsed is calculated in increments of 0.5 years

Assessable Income Amount field:

  • system calculated: gross income amount - deductible amount (income)

Assessable Asset Amount field:

  • system calculates and displays the assessable asset amount

Select Continue to return to the SUPS screen for the next part in the update

10

Additional Event Dates will be needed for some new income streams

Historical Event Date

  • For asset reassessment, historical means:
    • more than 6 months in the past, if the payment frequency is less than annual, or
    • more than 12 months in the past if the payment frequency is annual, or
    • the Event Date is before the date the income stream is added to the customer’s record
  • For income assessment, historical means:
    • the payment is indexed, and
    • the Event Date is more than 12 months in the past

Is an additional Event Date(s) needed because the income stream is being added to the customer record and the Event Date is historical?

11

Finalise activity
  • Check details on the SUPS screen are correct
  • Joint income streams owned by the customer and partner must be recorded separately on both records
  • Complete the activity on the Assessment Results (AR) screen
  • Ensure FAL screen is checked and any review for the return of the documents completed
  • Record details on a DOC

Additional Event Date(s) needed for a new income stream


Table 3

Expand table

Step

Action

1

Historical Event Date

Additional Event Date(s) may be needed for both the assets test and income test to work correctly when the income stream is being added with a historical Event Date:

  • for asset reassessment historical means:
    • more than 6 months in the past if the payment frequency is less than annual, or
    • more than12 months in the past if the payment frequency is annual, or
    • the Event Date is before the date the income stream is added to the customer’s record
  • for income assessment historical means:
    • the payment is indexed, and
    • the Event Date is more than 12 months in the past

Example:

  • CPI indexed income stream so the income reassessment period is 12 months
  • payments are monthly so the asset reassessment period is 6 months
  • customer current on payment 1 January
  • income stream Event Date is the previous 1 January but not coded in the claim
  • today is 1 December
  • an Event Date will be needed for:
    • 1 January, (date of grant), for the asset reassessment including the gross annual income for the income reassessment
    • 1 July and 'today', 1 December for the asset reassessment only
  • Note: the date of receipt will be important in working out if a debt exist or arrears are payable

Determine the reassessment period for the income stream, 6 or 12 months, then:

  • check if the customer or their partner was current on an ISP or LIC at any time since the date of purchase of the income stream
  • determine the additional Event Date(s) needed

If the income stream is:

2

Income stream not indexed

The income amount does not change. Only the asset value needs to be reassessed. The Event date(s) will be the 6 or 12 month anniversary date(s) as needed. The last date, the one in the current period, will be today's date

Within the same activity, select the product from the SUPS screen and select Continue:

  • add the first Event Date. No other fields need to be changed
  • select Continue to return to SUPS
  • repeat for each Event Date needed
  • the automatic reassessments will now work
  • go to Step 8

3

Income stream is indexed
  • note the purchase date of the income stream
  • payments to the customer change on the anniversary date of the purchase using the indexation percentage

Is the current gross annual income already coded and the additional Event Date(s) is for a 6 monthly asset reassessment(s) only?

  • Yes:
    • select Continue to return to the SUPS screen
    • select the product being added
    • add an Event Date for each 6-month anniversary of the purchase date. The last date, the one in the current period, will be today's date
    • no other fields need to be changed
    • the automatic reassessments will now work
    • the indexation method can now be added to the last (most recent) Event Date, go to Step 7
  • No, gross income amounts also needs to be added, go to Step 4

4

Gross annual income for indexed income streams

An Event Date with the new gross annual income will be needed for each annual anniversary of the purchase date.

FIX indexed income streams:

  • work out the annual income by multiplying the previous year's annual income by the indexation percentage provided in the income stream schedule
  • go to Step 5

CPI indexed income streams

The customer must provide the gross annual income as at each annual anniversary of the purchase date. Note: an SA330 or similar schedule is only needed if there has been a commutation

  • If the customer does not know the gross annual income, but knows the CPI percentage, it can be used to work out the gross annual income. Multiply the previous year's annual income by the CPI indexation percentage provided by the customer

Is the customer able to provide the information needed?

5

Adding gross annual income Event Date(s)
  • an Event Date will be needed for each annual anniversary of the purchase. If a schedule has been provided with a different date, do not use that date. Only the anniversary date is to be used
  • within the same activity, select the product from the SUPS screen
  • add the first Event Date. Update the Gross Income field
  • repeat for each annual anniversary of the Event Date as needed

Is an additional Event Date(s) for 6 monthly asset reassessment needed:

  • Yes:
    • select Continue to return to the SUPS screen
    • select the product being added
    • add an Event Date for each 6-month anniversary of the purchase date. The last date, the one in the current 6-month period, will be today's date
    • no other fields need to be changed
    • the automatic reassessments will now work
    • the indexation fields can now be completed on the last (most recent) Event Date
    • go to Step 7
  • No:
    • the indexation fields can now be completed on the last (most recent) Event Date
    • go to Step 7

6

Information not provided

Tell the customer all information is required before any change can be made to ensure they receive correct entitlement:

  • Tell the customer of all 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
  • Where the customer or partner is unable, or unwilling, to provide information due to family and domestic violence (FDV), escalate to Automation of Income Stream Reviews (AISR) support. AISR support will escalate to arrange the request of the information directly from the provider

Procedure ends here until documents returned.

7

Adding indexation information

The indexation fields are only updated for the most recent Event Date.

  • Indexation Method field:
    • The indexation method will be stated on the schedule
    • Indexation details must be coded for review of the gross income
    • If 'FIX', the system will auto increase the income amount by the percentage coded in the Indexation % field on the date specified in the Next Indexation Date field
    • If 'CPI' is coded, the system will send out a letter to the income stream owner requesting their new gross income and frequency of payment
  • Next Indexation Date field:
    • For CPI indexed income streams, this is usually the anniversary of the purchase date. It is not 1 year from the Event Date (date of receipt of requested information) or the date when the income is updated
    • Input the date as included in the schedule. Note: if the income stream is from a SMSF or SAF and the indexation date reported is 1 July, it can be accepted
    • If this date is blank in the schedule, input the next anniversary of the purchase date
    • It is necessary to ensure the annual reviews are correctly generated by the system and updated each year
    • Must be coded with the next future review date when adding the income stream with an indexation method
  • Indexation % field:
    • Code only if Indexation Method field is FIX
    • If the indexation rate is greater than 5% the product cannot be section 9A/B/BA compliant

8

Finalise activity
  • Check details on the SUPS screen are correct
  • Joint income streams owned by the customer and partner must be recorded separately on both records
  • Complete the activity on the Assessment Results (AR) screen
  • Ensure FAL screen is checked and any review for the return of the documents completed
  • Record details on a DOC