Adding or updating a life expectancy income stream 108-05060040

If the customer has purchased a new income stream using funds from selling their principal home and they intend to use some or all the funds to purchase a new home, see Sale of principal home.

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 life expectancy income stream?

• Yes, go to Step 3
• No, go to Step 2

Discuss all of 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 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.

This table describes information needed to update the income stream.

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

All appropriately skill-tagged Service Officers can process new and existing life expectancy income streams at the point of contact for all payment types. Do not add new income streams without an income stream schedule.

Documentation to request:

• For existing life expectancy income streams, a Details of income stream product (SA330) or similar schedule completed by the provider is required for any partial commutations
• For new income streams, a Details of income stream product (SA330) or similar schedule completed by the provider is required
• A provider can issue their own schedule with similar questions that appear on the SA330 and this can be accepted

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 or a Low Income Health Care Card (LIC) at any time since the date of purchase

Is the customer able to provide everything needed?

• Yes, go to Step 5
• No, go to Step 4

Tell the customer all information is required before any change can be made to make sure they receive correct entitlement.

• Tell the customer 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

Note: where the customer or partner is unable, or unwilling, to provide information due to Family and Domestic Violence (FDV), escalate to AISR support. AISR support will request the information directly from the provider.

Procedure ends here until documents returned.

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 Details of income stream product (SA330) will also help identify if the income stream is paid from an SMSF or SAF
• If needed, contact the Financial Industry and Network Support (FINS) Helpdesk via the Level 2 Policy Help Desks Online Query Form. See the Resources page for a link

Is the income stream from an SMSF or SAF?

• Yes:
• See Assessing income streams paid from Self Managed Superannuation Funds (SMSFs) or Small APRA Superannuation Funds (SAFs)
• Procedure ends here
• No, go to Step 6

If the customer or their partner is:

• Providing information as part of a review, see Income stream indexation review. Procedure ends here
• Advising a change to the gross income from an existing income stream or expiry of the income stream at the end of the product term, go to Step 7
• Advising new income stream details, see Step 1 in Table 2

• Use Super Key field to navigate to screens
• Enter SUPS into the Super Key to go to the Income Streams (SUPS, SUPI, SUPV) screen

Check for an existing record of the income stream owner's record. If you need to switch records between partners use the Relations menu.

The product type code will be:

• LIE - LIFE EXPECTANCY INCOME STREAM
• ANN - ORDINARY MONEY ANNUITY TERM
• ARS - ROLLOVER MONEY ANNUITY
• ART - ETP SUPER'N PENSION TERM

Note: the following codes are obsolete but can used for assessment purposes. They have never converted and are for products purchased before 20 September 2007.

• ANN (Ordinary money annuity term)
• ARS (Rollover money annuity term)
• ART (ETP superannuation pension term)

The assessment is not effected, 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. Refer to Step 1 of Table 2 in Income stream reviews – coding accuracy.

Are there details for the income stream/s already entered on the Income Stream (SUPS, SUPI, SUPV)?

• Yes,
• for change to gross income, go to Step 8
• for expiry of product term, go to Step 11
• No, go to Step 11

• Expand the appropriate product from Income Streams (SUPS, SUPI, SUPV)
• check details on are correct
• On the Income Stream Details line add a new entry, check the Indexation Method

Indexation method is:

• FIX - Indexed by a fixed % on a fixed date:
• An amount is automatically calculated annually using the indexation percentage
• Do not update the gross income
• The system will auto increase the income amount by the percentage coded in the Indexation Percent: field on the date specified in the Next Indexation Date: field. The Indexation date will also auto update
• Procedure ends here
• CPI - Consumer Price Index
• Enter START into the Super Key
• Select the Select Income and Assets Update from the Task Selector options
• Select Income Streams (SUPS/SUPI/SUPV)
• Select Start to initiate the workflow, this will navigate you back to the Income Streams (SUPS, SUPI, SUPV) inside the workflow
• Expand the appropriate product from Income Streams (SUPS, SUPI, SUPV)
• On the Income Stream Details line add a new entry and make the necessary changes to following fields:
• Event Date: date of change
• Gross Income: field - code new gross income amount
• Income Frequency: field - code the frequency of the payment (if changed)

• Next Indexation Date: field for CPI indexed income streams:
• check the indexation date
• 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
• Go to Step 10

• Click Save once updates made
• Update Receipt Date and Channel and Click Save
• Check the Income Streams (SUPS, SUPI, SUPV) displays the updated income stream details
• Click Assess
• Check the payment outcome on Entitlements (ELD) and click on Finish
• If the Service Officer has used the Process Direct Income and Assets workflow, NOTES will be prepopulated 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, Finalise. The transaction will complete and NOTES replicate to the Document
• Check if there is an indexation review for this product on the FAL screen and make sure it is finalised to prevent a reminder letter being sent or payment being suspended
• Procedure ends here

Make sure the product is a life expectancy income stream and not a lifetime income stream that has been coded incorrectly. Lifetime income streams do not expire, they are paid for the customer’s lifetime or their partner’s lifetime if the partner is a reversionary beneficiary.

Via the customers record launch the income stream owner's record in the Process Direct Income and Assets Update workflow. To access the Process Direct Customer Summary:

• Use Super Key field to navigate to screens
• Enter START into the Super Key
• Select Income and Assets Update from the Task Selector options
• Select Income Streams (SUPS/SUPI/SUPV)
• Select Start to initiate the workflow

To update:

• select Edit against the income stream product to access the Change Income Streams (SUPS/SUPI/SUPV) options
• update the Income Stream Details:
• Product Cancellation Reason: field - 'EXP – Term Expired'
• click Save once updates made
• update Receipt Date and Channel and click Save
• the system will automatically set the relevant fields to ‘0’ on the Income Steam Details item line
• Edit this line to update:
• Update:
• Event Date: field - Date of expiry. Note: this is the end of the product term and is based on the purchase date and the term or relevant number
• leave the Indexation Method, Next Indexation Date and Indexation Percent: fields blank
• click Save once updates made

Record the details of the circumstances of the cancellation on a NOTE.

An SA330, or similar schedule, providing details for each income stream. The schedule should 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 superannuation 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 they (and their partner) own?

• 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
• Procedure ends here until documents are received

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 (MIS, MIP, MIUS). If so, update these other assets.

The Income and Assets Update Task Selector (START) in Process Direct can be used to update Income Streams.

• Access the customers record in Process Direct Customer Summary
• Use Super Key field to navigate to screens
• Enter START into the Super Key
• Select Income and Assets Update from the Task Selector options
• Select Income Streams (SUPS/SUPI/SUPV)
• Select Start to initiate the workflow.

Note: any additional Income and Assets types required for the update being completed can be selected from the Income and Assets Update Task Selector at the same time.

Select add to access Create Income Streams (SUPS/SUPI/SUPV) options.

Code the Income Stream Details:

Code Pension/Annuities Identification (SUPI) screen

• Product Type Code: field:
• 'LIE - LIFE EXPECTANCY INCOME STREAM'
• As of 20 September 2007, this code must not be used for a new income stream which does not comply with section 9B
• If the product is a fixed term product and does not comply with section 9B, the correct product type is TIS. See Adding or Updating a Term income stream
• Income stream from SMSF/SAF? : field:
• 'Yes' or 'No' whether 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: field:
• The name of financial institution, or name of SMSF or SAF
• Do not code names of financial planners and accountants
• Provider or SMSF/SAF ABN: field:
• The fund's Australian Business Number
• Product Name: field:
• The name of the income stream product as stated on the schedule
• 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
• Make sure the correct 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
• Event Date
• Commencement Date: field:
• Must match the next field, the purchase date
• Purchase Date: field:
• The purchase date of the income stream as stated on the schedule
• Term or Relevant Number: field - as stated on the schedule
• This 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)
• The relevant number is the fixed term of the product and must be a whole number
• It must always be the number that applied at the commencement date and must not be changed following reversion to a reversionary partner or beneficiary

• Section 9A/B/BA Compliant Indicator: field
• Code 'Yes' or 'No' whether or not the income stream meets requirements under section 9B of the Social Security Act 1991.
  Note: new life expectancy income streams cannot be purchased on or after 20 September 2007 unless it was purchased from the commutation of a section 9B compliant income stream purchased before 20 September 2007 and provided the conditions are met for retention of the assets-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:
• This is 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
• Contact FINS Helpdesk before coding a date in this field. See the Resources page for a link to the Online Query Form.
• 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 a new income stream
• If the product 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 cancelled due to a full commutation and it complies with section 9B, check if it is an allowable commutation.
  If the product is being cancelled, use edit to access the Change Income Stream (SUPS/SUPI/SUPV) options and code the cancellation reason. This will generate an automatic '0' date of event on the Income Stream Details item line. Edit this line to adjust the Event Date: field to the correct date of event (DOV)

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
• 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:
• If 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 of 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

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 income support payment, Residential Care (RCA) or Low Income Health Care Card (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 commencement 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

Channel Type: field:

• No update required
• The system displays whether income stream was updated by Services Australia staff (CSO) or auto bulk updated with data sent by the provider (ISP)

• SMSF/SAF Actuarial Cert Date: field:
• This date is only required for life expectancy income streams from SMSFs/SAFs that comply with section 9B commenced before 1 January 2007
• 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

• 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
• Income Frequency: field:
• code the frequency of payment
• the system uses this field to make automatic updates to asset value for some income streams
• Residual Capital Value: field:
• 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
• a product with a residual capital value cannot comply with section 9B
• 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
• 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:
• code the most recent commutation amount
• a life expectancy income stream that complies with section 9B is a non-commutable income stream, except in very limited circumstances
• determine whether 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
• Purchase Price - less Commutations: field:
• the system displays original purchase price less total commutations made
• Previous Commutations: field
• the system displays total commutations made up to the current date

If the income stream is not indexed, go to Step 8

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 8
• No, go to Step 7

• 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 - Indexed by a fixed % on a fixed date' the system will auto increase the income amount by the percentage coded in the Indexation Percent: field on the date specified in the Next Indexation Date: field
• If 'CPI - Consumer Price Index' 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 make sure 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 - Indexed by a fixed % on a fixed date
• If the indexation rate is greater than 5% the product cannot be section 9A/B/BA compliant

The system completes the remaining fields needed for the Superannuation Payment Details.

• Click Save once updates made
• Update Receipt Date and Channel and click Save
• Check the Income Streams (SUPS, SUPI, SUPV) displays the updated income stream details. Expand the product from Income Streams (SUPS, SUPI, SUPV) and select edit on the item level provisional update to access the Change Income Steam Details options

Check the additional coding now appears:

• Deductible Amount (Income): field:
• system calculates and displays the deduction amount by which the gross income amount from an income stream is reduced to determine assessable income
• Deductible Amount (Assets): field:
• system calculated if Section 9A/B/BA Compliant Ind: field is No (product category 2)
• displays the deduction amount and is used with the term elapsed to determine the assessable asset amount
• not display for partially asset-test exempt income streams (product category 6) even though the amount is used to calculate the assessable asset amount
• Term Elapsed (Years): field:
• system displays the period elapsed since the commencement 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
• Product Category: field. No update required. The system automatically displays either:
• 1 - Assets Test Exempt Income Stream
• 2 - Assets Tested (Long Term) Income Stream
• 6 - Partially Assets Test Exempt Income Stream

Select Cancel to close the Superannuation Payment Details for the next part of the update.

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?

• Yes, go to Step 1 in Table 3
• No, go to Step 10

• Check the Income Streams (SUPS, SUPI, SUPV) displays the updated income stream details
• Click Assess
• Check the payment outcome on Entitlements (ELD) and click on Finish
• if the Service Officer has used the Process Direct Income and Assets workflow, NOTES will be prepopulated 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, Finalise. The transaction will complete and NOTES replicate to the Document List (DL).

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: 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 income support payment 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:

• not indexed, go to Step 2
• indexed, go to Step 3

The income amount does not change. Only the asset value needs a reassessment. 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, Expand the product details from the Income Streams (SUPS/SUPI/SUPV) and on the Income Stream Details line add a new entry to access the Create Income Stream Details options :

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

• 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:
• Expand the product details from the Income Streams (SUPS/SUPI/SUPV) select the product being added
• on the Income Stream Details line add a new entry to access the Create Income Stream Details options
• 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

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?

• Yes, go to Step 5
• No, go to Step 6

• 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, Expand the product from the Income Streams (SUPS/SUPI/SUPV)
• on the Income Stream Details line add a new entry to access the Create Income Stream Details options
• add the first Event Date. Update the Gross Income Amount 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:
• on the Income Streams (SUPS/SUPI/SUPV) Expand the product being added
• on the Income Stream Details line add a new entry to access the Create Income Stream Details options
• 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 field can now be completed on the last (most recent) Event Date
• go to Step 7

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

• Tell the customer all 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

Procedure ends here until documents returned.

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 - Indexed by a fixed % on a fixed date', the system will auto increase the income amount by the percentage coded in the Indexation Percent: field on the date specified in the Next Indexation Date: field
• If 'CPI - Consumer Price Index' 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:
• Anniversary of the purchase date. Note: there is an exception if the income stream is from an SMSF or SAF. 1 July can be accepted as the indexation date
• If the income stream schedule has another date, do not use it
• It is necessary to make sure 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 Percent: field:
• Code only if Indexation Method: field is FIX - Indexed by a fixed % on a fixed date
• If the indexation rate is greater than 5% the product cannot be section 9A/B/BA compliant

• Check the Income Streams (SUPS, SUPI, SUPV) displays the updated income stream details.
• Click Assess
• Check the payment outcome on Entitlements (ELD) and click on Finish
• If the Service Officer has used the Process Direct Income and Assets workflow, NOTES will be prepopulated 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, Finalise. The transaction will complete and NOTES replicate to the Document List (DL).

If the customer has purchased a new income stream using funds from selling their principal home and they intend to use some or all the funds to purchase a new home, see Sale of principal home.

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 life expectancy income stream?

• Yes, go to Step 3
• No, go to Step 2

Discuss all of 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 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.

This table describes information needed to update the income stream.

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

All appropriately skill-tagged Service Officers can process new and existing life expectancy income streams at the point of contact for all payment types. Do not add new income streams without an income stream schedule.

Documentation to request:

• For existing life expectancy income streams, a Details of income stream product (SA330) or similar schedule completed by the provider is required for any partial commutations
• For new income streams, a Details of income stream product (SA330) or similar schedule completed by the provider is required
• A provider can issue their own schedule with similar questions that appear on the SA330 and this can be accepted

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 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

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 or a Low Income Health Care Card (LIC) at any time since the date of purchase

Is the customer able to provide everything needed?

• Yes, go to Step 5
• No, go to Step 4

Tell the customer all information is required before any change can be made to make sure they receive correct entitlement.

• Tell the customer all the information they must provide. See Requesting information (CLK)
• Use Mail Forms if a form is 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 Family and Domestic Violence (FDV), escalate to AISR support. AISR support will request the information directly from the provider.

Procedure ends here until documents returned.

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 Details of income stream product (SA330) will also help identify if the income stream is paid from an SMSF or SAF
• If needed, contact the Financial Industry and Network Support (FINS) Helpdesk via the Level 2 Policy Help Desks Online Query Form. See the Resources page for a link

Is the income stream from an SMSF or SAF?

• Yes:
• See Assessing income streams paid from Self Managed Superannuation Funds (SMSFs) or Small APRA Superannuation Funds (SAFs)
• Procedure ends here
• No, go to Step 6

If the customer or their partner is:

• Providing information as part of a review, see Income stream indexation review. Procedure ends here
• Advising a change to the gross income from an existing income stream or expiry of the income stream at the end of the product term, go to Step 7
• Advising new income stream details, see Step 1 in Table 2

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

The product type code will be LIE, ANN, ARS, or ART.

Note: the following codes are obsolete but can used for assessment purposes. They have never converted and are for products purchased before 20 September 2007.

• ANN (Ordinary money annuity term)
• ARS (Rollover money annuity term)
• ART (ETP superannuation pension term)

The assessment is not effected, 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. Refer to Step 1 of Table 2 in Income stream reviews – coding accuracy.

Are there details for the income stream/s already entered on the SUPS screen?

• Yes,
• for change to gross income, go to Step 8
• for expiry of product term, go to Step 11
• No, go to Step 11

Indexation method is:

• FIX:
• An amount is automatically calculated annually using the 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 Indexation date will also auto update
• Go to Step 10
• CPI, use the Income Stream Update guided procedure to make an update. If a manual update is needed:
• '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 will be presented
• Event Date: date of change
• Gross Income: field - code new gross income amount
• Income Frequency: field - code the frequency of the payment (if changed)
• Go to Step 9

• Next Indexation Date: field for CPI indexed income streams:
• Check the indexation date
• 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
• Go to Step 10

• 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 make sure it is finalised to prevent a reminder letter being sent or payment being suspended
• Record details on a DOC
• Procedure ends here

Make sure the product is a life expectancy income stream and not a lifetime income stream that has been coded incorrectly. Lifetime income streams do not expire, they are paid for the customer’s lifetime or their partner’s lifetime if the partner is a reversionary beneficiary.

Use the Income Stream Update guided procedure.

To update manually:

• Select the relevant income stream from the Pension/Annuities Summary (SUPS) screen
• On the Pension/Annuities Identification (SUPI) screen, code:
• Product Cancellation Reason: field - 'EXP'
• Action: field (system will not accept I) - 'C'
• Select Continue to go to the Pension/Annuities Details Variable (SUPV) screen
• On the SUPV screen, the system will automatically set the relevant fields to 0 or blank. Leave the Indexation Method, Next Indexation Date and Indexation % fields blank
• Update:
• Event Date: field - Date of expiry. Note: this is the end of the product term and is based on the purchase date and the term or relevant number
• Action: field - 'I'

Record the details of the circumstances of the cancellation on a DOC.

An SA330, or similar schedule, providing details for each income stream. The schedule should 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 superannuation 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 they (and their partner) own?

• Yes, see Step 1 in Table 2
• No:
• Request SA330 or similar schedule issued by their provider using Request Documents in Process Direct. The enhanced workflow creates a standalone RFI and updates to a CoC using a Task Selector
• Record what the customer has been asked for on a DOC
• Select Information to be supplied within 14 Days + Delivery
• Procedure ends here until documents are received

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, update these other assets.

Use the Income Stream Update guided procedure.

To update manually:

Code Pension/Annuities Identification (SUPI) screen

• Product Type Code: field:
• 'LIE' (life expectancy income stream)
• As of 20 September 2007, this code must not be used for a new income stream which does not comply with section 9B
• If the product is a fixed term product and does not comply with section 9B, the correct product type is TIS. See Adding or Updating a Term income stream
• Income stream from SMSF/SAF? : field:
• 'Y'es or 'N'o whether 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: field:
• The name of financial institution, or name of SMSF or SAF
• Do not code names of financial planners and accountants
• Provider or SMSF/SAF ABN: field:
• The fund's Australian Business Number
• Product Name: field:
• The name of the income stream product as stated on the schedule
• 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
• Make sure the correct 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:
• The purchase date of the income stream as stated on the schedule
• Commencement Date: field:
• The same as purchase date
• Term or Relevant Number: field - as stated on the schedule
• This 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)
• The relevant number is the fixed term of the product and must be a whole number
• It must always be the number that applied at the commencement date and must not be changed following reversion to a reversionary partner or beneficiary

• Section 9A/B/BA Compliant Indicator: field
• Code 'Y'es or 'N'o whether or not the income stream meets requirements under section 9B of the Social Security Act 1991.
  Note: new life expectancy income streams cannot be purchased on or after 20 September 2007 unless it was purchased from the commutation of a section 9B compliant income stream purchased before 20 September 2007 and provided the conditions are met for retention of the assets-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:
• This is 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
• Contact FINS Helpdesk before coding a date in this field. See the Resources page for a link to the Online Query Form
• 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 a new income stream
• If the product 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 cancelled due to a full commutation and it complies with section 9B, check if it is an allowable commutation.
  If the product is being cancelled, use 'C'orrect in the Action: field and code the cancellation reason.
  The SUPV screen will display so the Event Date: field can be coded
• Complete Source: DOR: and Action: fields and select Continue

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
• 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:
• If the assessment of lump sum arrears results 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 of 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

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 income support payment, 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 commencement 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

Channel Type: field:

• No update required
• The system displays whether income stream was updated by Services Australia staff (CSO) or auto bulk updated with data sent by the provider (ISP)

• Product Category: field. No update required. The system automatically 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 life expectancy income streams from SMSFs/SAFs that comply with section 9B commenced before 1 January 2007
• 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

• 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
• Income Frequency: field:
• Code the frequency of payment
• The system uses this field to make automatic updates to asset value for some income streams
• Residual Capital Value: field:
• 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
• A product with a residual capital value cannot comply with section 9B
• 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
• 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:
• Code the most recent commutation amount
• A life expectancy income stream that complies with section 9B is a non-commutable income stream, except in very limited circumstances
• Determine whether 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
• 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

If the income stream is not indexed, go to Step 8

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 8
• No, go to Step 7

• 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 make sure 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

The system completes the remaining fields needed on the SUPV screen.

• Select Continue to return to the SUPS screen
• Select the product being added in this update to 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
• 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 by which the gross income amount from an income stream is reduced to determine assessable income
• Term Elapsed (Years): field:
• system displays the period elapsed since the commencement 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 of the update

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?

• Yes, go to Step 1 in Table 3
• No, go to Step 10

• Check details on the SUPS screen are correct
• Complete the activity on the Assessment Results (AR) screen
• Make sure the FAL screen is checked and any review for the return of the documentation completed
• Record details on a DOC

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: 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 income support payment 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:

• not indexed, go to Step 2
• indexed, go to Step 3

The income amount does not change. Only the asset value needs a reassessment. 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

• 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

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?

• Yes, go to Step 5
• No, go to Step 6

• 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 field can now be completed on the last (most recent) Event Date
• go to Step 7

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

• Tell the customer 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

Procedure ends here until documents returned.

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 make sure 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

• 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
• Make sure the FAL screen is checked and any review for the return of the documentation completed
• Record details on a DOC