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Adding or updating a life expectancy income stream 108-05060040

This document outlines how to assess and code life expectancy income stream products.

Process Direct

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

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Adding or updating a life expectancy income stream

Coding a new income stream

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

Adding or updating a life expectancy income stream

Table 1

Step	Action
1	Check updates required 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
2	Discuss updates with customer 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
3	Who can complete these updates? 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
4	Request documents 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 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 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 Investment and Network Support (FINS) Helpdesk Is the income stream from an SMSF or SAF? Yes: See Assessing income streams paid from a self-managed superannuation fund (SMSF) or small APRA fund (SAF) Procedure ends here No, go to Step 6
6	Starting the update 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. 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 Table 2 > Step 1 Advising full commutation (closure) of income stream, see Commutation of asset-tested income streams or Commutation of asset-test exempt (ATE) income streams. Procedure ends here
7	Change to gross income or expiry of product term - check for an existing record 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 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. Refer to Table 2 > Step 1 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
8	Update gross income 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) If there is an existing deduction figure coded due to a family law split coded under ‘Other Deduction Amount’ 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.
9	Update gross income (continued) 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
10	Finalise the update Click Save once updates made Update Receipt Date, Channel, Service Reason (if required) 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
11	Expire (cancel) income stream 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, Channel, Service Reason (if required) 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.
12	Documents have been provided for each income stream they own 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 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 Table 2 > Step 1 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

Coding a new income stream

Table 2

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 (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: 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 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 Note: this is not the ‘event date’ as indicated by the field title. The ‘event date’ is addressed later 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
2	Income Stream Details - continued Section 9A/B/BA/BB Compliant Indicator: field Code 'Yes' or 'No' whether 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 If the date is not provided on the schedule, this field must be left blank and the Section 9A/B/BA/BB 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 a non-allowable full commutation has occurred after 7 December 2024 and during the 5-year grace period, the arising debt can be waived under the temporary debt relief conditions 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)
3	Code the Superannuation Payment Details 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 (usually deceased 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 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 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
4	Superannuation Payment Details continued 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
5	Superannuation Payment Details (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 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/BB 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 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 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 Deduction Amount: field: This field will not display if "Other Deduction Type" is not selected 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 for example if income is coded as a monthly figure this field must be coded with the monthly amount allowable deduction. 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 on the DOC when updates are finalised
6	Superannuation Payment details (continued) 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
7	Superannuation Payment Details (continued) 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/BB compliant
8	Superannuation Payment Details (continued) The system completes the remaining fields needed for the Superannuation Payment Details. Click Save once updates made Update Receipt Date, Channel, Service Reason (if required) 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/BB 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.
9	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? Yes, go to Table 3 > Step 1 No, go to Step 10
10	Finalise activity 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) needed for a new income stream

Table 3

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: 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
2	Income stream not indexed 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
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: 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
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? Yes, go to Step 5 No, go to Step 6
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, 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
6	Information not provided 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.
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 - 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/BB compliant
8	Finalise activity 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).