Assessing withdrawals from superannuation 108-05070020

This procedure is not for Family Tax Benefit (FTB) or Child Care Subsidy (CCS) customers. For FTB and CCS customers, see the following procedures:

• Taxable income for family assistance and Paid Parental Leave scheme payments
• Updating income estimates for the current financial year

Customer advises of a superannuation fund withdrawal

Is customer over Age Pension age?

• Yes, the superannuation fund is to be assessed as a managed investment
• No, go to Step 2

Due to legal advice from the Department of Social Services (DSS), Services Australia (the agency) must not request or record details of superannuation investments for customers who are below Age Pension age.

Note: If a superannuation investment is recorded, the details must not be changed after a withdrawal unless shares or managed investments require updating at the same time. Any updates will result in an unnecessary recalculation of all their managed investments and shares, with no legislative basis for such an action.

Depending on what the customer uses the withdrawn amount for, further assessment of the withdrawn funds may be necessary.

Has the customer deposited the funds into a managed investment, or used the money to purchase shares?

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

Set the customer's superannuation balance (if present) to zero (or code the new balance if partial withdrawal).

• select the superannuation investment from the Managed Investment Summary (MIS) screen, to go to the Managed Investments (MI) screen
• code '0' in the Super/Rollover $: field (or code the new balance if partial withdrawal)
• code the date the new managed investment or shares were purchased in the Event Date: field
• code the source of the information in the Source: field
• code the date of receipt in the DOR: field

Press Enter

• Update the customer's record with the new shares, or
• add the new managed investment.

Go to Step 6.

Do not alter any superannuation details (if present) on the customer's record. Doing so will trigger an unnecessary recalculation of their shares and investments, with no legislative basis for such action.

If the customer or their partner is in receipt of FTB or CCS, check if their current income estimate needs to be updated.

Advise the customer of the choices available to help reduce the chance of an overpayment during the reconciliation process. See Updating income estimates for the current financial year.

An asset purchased with the withdrawn funds must be coded on the customer's record. For example, the customer purchases a vehicle or places the money into a bank account.

Record details of changes on a DOC.