Adding or updating a term income stream 108-05060050

If the customer has purchased a new income stream using funds from selling their principal home and they intend to use some or all of 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 term 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 are 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 term income streams at the point of contact for all payment types.

Do not add new income streams without the customer supplying an income stream schedule.

Documents to request

Documents are required for new term 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 is needed where the income stream is being added to the customer record and the Event Date is historical:

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

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

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

Is the customer able to provide everything needed?

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

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

• Request all of the information they must provide. See Requesting information (CLK)
• Use Mail Forms if a form needs to be sent

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.

If the customer or their partner is:

• Providing new income amount as part of a review, see Income stream indexation review. Procedure ends here
• Providing information at the end of the product term as part of a review, see Review of income stream products with a residual capital value
• Advising a change to the gross income from an existing income stream, go to Step 6
• Advising the income stream has expired, go to Step 10
• Advising new income stream, see Step 1 in Table 2

• Go to the Income Streams (SUPS) screen

Check for an existing record of the income stream owner's record. If required, switch records between partners using .

The product type will be:

• TIS - TERM INCOME STREAM
• ANN - ORDINARY MONEY ANNUITY TERM (non-complying)
• ARS - ROLLOVER MONEY ANNUITY TERM or
• ART - ETP SUPPER'N PENSION TERM

Note: the following codes are obsolete but can still be used for assessment purposes. They have never been converted and are for products purchased before 20 September 2004.

• 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 7
• No:
• the income stream must be added
• go to Step 11

Indexation method is:

• FIX:
• An amount is automatically calculated annually using the fixed indexation percentage
• Do not update the gross income
• The system will auto increase the income amount by the percentage coded in the Indexation % field on the date specified in the Next Indexation Date field
• The next indexation date will also auto update
• Check the information is correct. The indexation date should be the anniversary of the purchase date
• Procedure ends here
• CPI - Consumer Price Index: use the Income and Assets workflow to make an update
• Key START in the Super key
• Select the Income and Assets update workflow from Task Selector
• Select Income Streams (SUPS/SUPI/SUPV)
• Select Start, this will navigate you back to the Income Streams (SUPS) screen inside the workflow
• Select relevant to the appropriate product from the Income Streams (SUPS, SUPI, SUPV) table
• On the Income Stream Details line select Add to create a new entry and make the necessary changes to following fields:
• Event Date: date of change
• Gross Income Amount: - code new gross income amount
• Income Frequency: - code the frequency of the payment (if changed)
• Go to Step 8

• Next 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 9

• Select Save once updates made
• Update Receipt Date and Channel, select Save
• Check the Income Streams (SUPS, SUPI, SUPV) table displays the updated income stream details
• Select Assess
• Check the payment outcome on Entitlements (ELD) screen and select 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 add any additional information, as per Online Document Recorded (ODR)
• Once NOTES are complete, select Finalise. The transaction will complete and NOTES replicate to the Document List (DL)
• Check if there is an indexation review for this product on the FAL screen in Customer First and ensure it is finalised to prevent a reminder letter being sent or payment being suspended
• Procedure ends here

Term income streams automatically expire on the system at the end of the term. Take the following steps if this has not occurred, or the product has to be cancelled for some other reason.

If the income stream product has a Residual Capital Value (RCV) over $5,000, ask the customer what has occurred with the residual funds. Ensure other assets are updated as required with this update.

To expire the term income stream, access the income stream owner's record, then launch the Process Direct Income and Assets Update workflow. To do this access the customers record in Process Direct Customer Summary.

• Key START into the Super key
• Select the Income and Assets Update workflow from Task Selector
• Select Income Streams (SUPS/SUPI/SUPV)
• Select Start

To update use the following information:

• select Edit against the income stream product. The Change Income Streams (SUPS/SUPI/SUPV) screen will display
• update the Income Stream Details:
• Product Cancellation Reason: - 'EXP – Term expired'
• select Save once updates made
• update Receipt Date and Channel, select Save
• the system will automatically set the relevant fields to 0 on the Income Stream Details item line
• Select Edit relevant to this line to update:
• Event Date: - 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
• select Save once updates made

Record the details of the circumstances of the cancellation on the NOTE at finalisation.

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

• Income stream provider for income streams purchased from a retail provider
• A provider can issue their own schedule with similar questions that appear on the SA330, and this can be accepted

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

• Yes, see Step 1 in Table 2
• No:
• Request a Details of income stream product (SA330), or similar schedule issued by their provider. See Requesting information (CLK)
• Tell the customer who is able to complete the income stream schedule
• 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, MIP, MIUS) table. If so, update these other assets.

The Income and Assets Update workflow from the Task Selector in Process Direct can be used to update income streams:

• In Process Direct via Customer Summary, access the customers record
• Key START into the Super key
• Select the Income and Assets Update workflow from Task Selector
• Select Income Streams (SUPS/SUPI/SUPV)
• Select Start

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.

To update, use the following information:

Select Add to access the Create Income Streams (SUPS/SUPI/SUPV) screen.

Code the Income Stream Details:

• Product Type:
• 'TIS - TERM INCOME STREAM'
• Income stream from SMSF/SAF?:
• 'No', term income streams cannot be paid from a Self-Managed Superannuation Fund (SMSF) or a Small APRA Fund (SAF)
• Provider or SMSF/SAF Name:
• name of financial institution
• do not code names of financial planners and accountants
• Provider or SMSF/SAF ABN:
• code the fund's Australian Business Number
• Product Name:
• name of the income stream product as stated on the schedule
• for joint income streams, include the term 'jointly owned' to identify the product as a jointly owned income stream
• Product Reference Number:
• 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
• record reference number 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:
• Same as purchase date
• Purchase Date:
• purchase date of the income stream as stated on the schedule

• Term or Relevant Number:
• as stated on the schedule
• it is the length of time for which the income stream is payable
• if it is 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 the provider
• 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:
• code 'No'
• Start Date Original Commuted Product:
• leave blank
• Product Cancellation Reason:
• leave blank when adding new income stream
• Note: if the product is fully commuted, cancel the income stream
  Do not delete. If the product is cancelled, it stops being assessed under income and assets test.
  If the product is being cancelled, use Edit to access the Change Income Stream (SUPS/SUPI/SUPV) screen 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
  Note: this date is displayed on the Marital Status (MS) screen
• 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:
• Where the assessment of lump sum arrears result in a debt during the bereavement period for the surviving spouse waiver provisions may apply. They are in 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
• If there is a debt that might be able to be waived, record the details on a NOTE. Debt Staff will make a decision when the debt is assessed

New claim

The Event Date will be the:

• date the income stream was purchased where the:
• customer has a partner who is current on an ISP, RCA or LIC before the purchase date, or
• income stream was purchased after the date of grant of the payment
• income stream was purchased after the lodgement of an early claim
• lodgement date for an early claim
• the 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:
• no update needed
• system displays whether the income stream was manually updated by staff or auto bulk updated with data sent by the provider (ISP)
• Gross Income Amount:
• code exactly as shown on the schedule (including cents, if stated)
• do not convert to an annual amount unless specified on the schedule
• for joint income streams, halve the amount shown on the schedule
• Income Frequency:
• code the frequency of payment
• the system uses this field to make automatic updates to the asset value of some income streams

• Residual Capital Value:
• code the amount that will be returned to the income stream owner as a lump sum at the end of the income stream term, coded as whole dollars only
• for joint income streams, halve the amount shown on the schedule
• Original Purchase Price:
• code amount originally paid for the income stream, not reduced by any commutations
• code exactly as stated on the schedule (including cents, if stated)
• for existing products, if there is a whole dollar discrepancy, the product must be cancelled with cancellation reason 'OTH' and recoded
• for joint income streams, halve the amount shown on the schedule
• Commutation Date:
• code the date of the latest commutation
• this date is only for information and is not the date of effect
• Latest Commutation:
• code the most recent commutation amount
• Purchase Price Less Commutations:
• the system displays original purchase price less total commutations made
• Previous Commutations:
• system displays total commutations made up to the current date

• If the income stream is not indexed, go to Step 9
• Category 3 Assets Tested (Short Term) Income Stream:
• Indexation fields will not display
• Go to Step 9

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

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

Is the Event Date historical?

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

Code indexation information for Category 2 Assets Tested (Long Term) Income Streams.

• Indexation Method:
• 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:
• 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
• Indexation Percent:
• Code only if Indexation Method: 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 remaining fields needed for the Superannuation Payment Details are automatically completed by the system:

• Select Save once updates made
• Update Receipt Date and Channel, select Save
• Check the Income Streams (SUPS, SUPI, SUPV) table displays the updated income stream details. Select relevant to the product from the Income Streams (SUPS, SUPI, SUPV) table and select edit on the item level provisional update to access the Change Income Stream Details screen

Check the additional coding now appears:

• Deductible Amount (Income): - system calculated:
• deduction amount for an asset-tested (long term) income stream (category 2) by which the gross income amount is reduced to determine assessable income
• zero for an asset-tested (short term) income stream (category 3) as these are subject to deeming under the income test. The deemed income displays on the Financial Investment Summary (IVIS) screen
• Deductible Assets Amount:
• system calculates and displays the deduction amount
• it is used, with the term elapsed, to determine the assessable asset amount
• Term Elapsed (Years):
• 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
• 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, calculate the term elapsed n increments of whole years. If not annual, the term elapsed is calculated in increments of 0.5 years
• Assessable Income Amount:
• system calculated
• gross income amount - deductible amount (income) for asset-tested (long term) income stream (category 2)
• no value for asset-tested (short term) income streams (category 3) as these are subject to deeming under the income test
• Assessable Asset Amount:
• the system calculates and displays the assessable asset amount
• this amount is included on the IVIS screen under Income Stream Cat3 and added to other financial investments for calculation of deemed income
• Product Category: No update needed. The system auto displays either:
• Assets Tested (Long Term) Income Stream
• Assets Tested (Short Term) Income Stream

Select Cancel to close the Superannuation Payment Details for the next part in 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 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 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 11

• Check the Income Streams (SUPS, SUPI, SUPV) table displays the updated income stream details
• Select Assess
• Check the payment outcome on Entitlements (ELD) screen and select 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 ISP or LIC at any time since the date of purchase of the income stream
• determine the additional Event Date(s) needed

If the income stream is:

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

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

Within the same activity, select relevant to the product details from the Income Streams (SUPS, SUPI, SUPV) table. On the Income Stream Details line select Add to access the Create Income Stream Details screen:

• update the first Event Date. No other fields need to be changed
• select 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:
• Select relevant to the product details from Income Streams (SUPS, SUPI, SUPV) table
• on the Income Streams Details line select Add to access the Create Income Stream Details screen
• 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, use it 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 relevant to the product from the Income Streams (SUPS/SUPI/SUPV) table
• on the Income Stream Details line select Add to access the Create Income Stream Details 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:
• on the Income Streams (SUPS, SUPI, SUPV) table
• select relevant to the product being added
• on the Income Stream Details line select Add to access the Create Income Stream Details screen
• 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 ensure they receive correct entitlement:

• Request all of the information they must provide. See Requesting information (CLK)
• Use Mail Forms if a form needs to be sent
• Place the started income stream update on hold for 14 days

Procedure ends here until documents returned.

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

• Indexation Method:
• 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:
• For CPI indexed income streams, this is usually the anniversary of the purchase date. It is not 1 year from the Event Date (date of receipt of requested information) or the date when the income is updated
• Input the date as included in the schedule. Note: if the income stream is from a SMSF or SAF and the indexation date reported is 1 July, it can be accepted
• If this date is blank in the schedule, input the next anniversary of the purchase date
• it is necessary to ensure the annual reviews are correctly generated by the system and updated each year
• must be coded with the next future review date when adding the income stream with an indexation method
• Indexation 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) table displays the updated income stream details
• Select Assess
• Check the payment outcome on Entitlements (ELD) screen and select 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) screen.

If the customer has purchased a new income stream using funds from selling their principal home and they intend to use some or all of 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 term 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 are 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 term income streams at the point of contact for all payment types.

Do not add new income streams without the customer supplying an income stream schedule.

Documents to request

Documents are required for new term 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 is needed where the income stream is being added to the customer record and the Event Date is historical:

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

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

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

Is the customer able to provide everything needed?

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

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

• Request all of the information they must provide. See Requesting information (CLK)
• Use Mail Forms if a form needs to be sent

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.

If the customer or their partner is:

• Providing new income amount as part of a review, see Income stream indexation review. Procedure ends here
• Providing information at the end of the product term as part of a review, see Review of income stream products with a residual capital value
• Advising a change to the gross income from an existing income stream, go to Step 6
• Advising the income stream has expired, go to Step 10
• Advising new income stream, see Step 1 in Table 2

Check for an existing record of the income stream/s on the Pension/Annuities Summary (SUPS) screen of income stream owner's record.

The product type code will be TIS, non-complying ANN, ARS or ART.

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

• 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 7
• No:
• the income stream must be added
• go to Step 11

Indexation method is:

• FIX:
• An amount is automatically calculated annually using the fixed indexation percentage
• Do not update the gross income
• The system will auto increase the income amount by the percentage coded in the Indexation % field on the date specified in the Next Indexation Date field
• The next indexation date will also auto update
• Check the information is correct. The indexation date should be the anniversary of the purchase date
• Procedure ends here
• 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 present
• Event Date: date of the change
• Gross Income field - code new gross income amount
• Income Frequency field - code frequency of the payment (if changed)
• Go to Step 8

• 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
• Go to Step 9

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

Term income streams automatically expire on the system at the end of the term. Take the following steps if this has not occurred, or the product has to be cancelled for some other reason.

If the income stream product has a Residual Capital Value (RCV) over $5,000, ask the customer what has occurred with the residual funds. Ensure other assets are updated as required with this update.

To expire the term income stream, access the income stream owner's record then use the Income Stream Update guided procedure.

To update manually, use the following information.

• select the relevant income stream from the SUPS screen
• select Continue to go to the SUPI screen
• on the SUPI screen, code:
• Product Cancellation Reason field - 'EXP'
• Action field (system will not accept I) - 'C'
• select Continue to go to the SUPV screen
• the system will automatically set the relevant fields to 0 on the SUPV screen
• 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 is needed for each income stream they own: The schedule must be completed by the:

• Income stream provider for income streams purchased from a retail provider
• A provider can issue their own schedule with similar questions that appear on the SA330, and this can be accepted

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

• Yes, see Step 1 in Table 2
• No:
• Request a Details of income stream product (SA330), or similar schedule issued by their provider. See Requesting information (CLK)
• Tell the customer who is able to complete the income stream schedule
• 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, use the following information.

Code Pension/Annuities Identification (SUPI) screen

• Product Type Code field:
• 'TIS' (term income stream)
• Income stream from SMSF/SAF? field:
• ''N'o, a term income stream cannot be paid from a Self-Managed Superannuation Fund (SMSF) or a Small APRA Fund (SAF)
• Provider or SMSF/SAF Name field
• Name of financial institution
• Do not code names of financial planners and accountants
• Provider or SMSF/SAF ABN field
• Code the fund's Australian Business Number
• Product Name field:
• Name of the income stream product as stated on the schedule
• For joint income streams, include the term 'jointly owned' to identify the product as a jointly owned income stream
• Product Reference Number field
• The product reference number is unique to each income stream and may be shown as the product reference number, account number or policy number on the schedule
• Record reference number exactly as it appears on the schedule
• Do not code the provider ABN or product name as the product reference number
• Purchase Date field
• Purchase date of the income stream as stated on the schedule
• Commencement Date field
• Same as purchase date

• Term or Relevant Number field:
• As stated on the schedule
• It is the length of time for which the income stream is payable
• If it is 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 the provider
• 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 'N'
• Start Date Original Commuted Product field
• Leave blank
• Product Cancellation Reason field
• Leave blank when adding new income stream
• Note: if the product is fully commuted, cancel the income stream
  Do not delete. If the product is cancelled, it stops being assessed under income and assets test
  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
  Note: this date is displayed on the MS screen
• 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:
• Where the assessment of lump sum arrears result in a debt during the bereavement period for the surviving spouse waiver provisions may apply. They are in 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
• If there is a debt that might be able to be waived, record the details on a DOC. Debt Staff will make a decision when the debt is assessed

New claim

The Event Date will be the:

• date the income stream was purchased where the:
• customer has a partner who is current on an ISP, RCA or LIC before the purchase date, or
• income stream was purchased after the date of grant of the payment
• income stream was purchased after the lodgement of an early claim
• lodgement date for an early claim
• the 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 needed
• System displays whether the income stream was manually updated by staff or auto bulk updated with data sent by the provider (ISP)
• Product Category. No update needed. The system auto displays either:
• 2 - Assets Tested (Long Term) Income Stream
• 3 - Assets Tested (Short Term) Income Stream
• Gross Income Amount field:
• Code exactly as shown on the schedule (including cents, if stated)
• Do not convert to an annual amount unless specified on the schedule
• For joint income streams, halve the amount shown on the schedule
• Income Frequency field
• Code the frequency of payment
• The system uses this field to make automatic updates to the asset value of some income streams

• Residual Capital Value field:
• Code the amount that will be returned to the income stream owner as a lump sum at the end of the income stream term, coded as whole dollars only
• For joint income streams, halve the amount shown on the schedule
• Original Purchase Price field:
• Code amount originally paid for the income stream, not reduced by any commutations
• Code exactly as stated on the schedule (including cents, if stated)
• For existing products, if there is a whole dollar discrepancy, the product must be cancelled with cancellation reason 'OTH' and recoded
• For joint income streams, halve the amount shown on the schedule
• Commutation Date field:
• Code the date of the latest commutation
• This date is only for information and is not the date of effect
• Latest Commutation field:
• Code the most recent commutation amount
• Prev Commutations field:
• 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 9
• Category 3 Assets Tested (Short Term) Income Stream:
• Indexation fields will not display
• Go to Step 9

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

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

Is the Event Date historical?

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

Code indexation information for Category 2 Assets Tested (Long Term) Income Streams.

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

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

• Select Continue to return to the SUPS screen
• Select the product being added in this update. SUPI will display
• Select Continue to return to the SUPV screen

Check the additional coding now appears:

• Deductible Amt (Assets) field:
• System calculates and displays the deduction amount
• It is used, with the term elapsed, to determine the assessable asset amount
• Deductible Amt (Income) field - system calculated:
• Deduction amount for an asset-tested (long term) income stream (category 2) by which the gross income amount is reduced to determine assessable income
• Zero for an asset-tested (short term) income stream (category 3) as these are subject to deeming under the income test. The deemed income displays on the Financial Investment Summary (IVIS) screen
• Term Elapsed (Years) field:
• 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
• 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, calculate the term elapsed n 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) for asset-tested (long term) income stream (category 2)
• No value for asset-tested (short term) income streams (category 3) as these are subject to deeming under the income test
• Assessable Asset Amount field:
• The system calculates and displays the assessable asset amount
• This amount is included on the IVIS screen under Income Stream Cat3 and added to other financial investments for calculation of deemed income

Select Continue to return to the SUPS screen for the next part in 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 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 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 11

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

Additional Event Date(s) 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 ISP or LIC at any time since the date of purchase of the income stream
• determine the additional Event Date(s) needed

If the income stream is:

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

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

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

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

• 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 need 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, use it 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 ensure they receive correct entitlement:

• Request all of the information they must provide. See Requesting information (CLK)
• Use Mail Forms if a form needs to be sent
• Place the started income stream update on hold for 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 ensure the annual reviews are correctly generated by the system and updated each year
• Must be coded with the next future review date when adding the income stream with an indexation method
• Indexation % field:
• Code only if Indexation Method field is FIX
• If the indexation rate is greater than 5% the product cannot be section 9A/B/BA compliant

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