Pensions Centrelink – New Means-Test Rules for Lifetime Income Streams

Pensions Centrelink – New Means Test Rules for Lifetime Income Streams

Centrelink – New Means Test Rules for Lifetime Income Streams

From 1 July 2019, new means test rules for lifetime income streams came into effect. The Department of Human Services explains more

The new rules change the way we assess lifetime income streams (LIS) purchased from 1 July 2019.

Under the new rules we’ll assess:

  • A minimum of 60% of its purchase amount as an assessable asset;
  • 60% of the payments you get from the lifetime income stream as income.

We use the Capital Access Schedule (CAS) to help us determine how much of your income stream we’ll assess. The CAS is a part of the Superannuation Industry Supervision Regulations.

Some income stream products may have a surrender value or death benefit that’s higher than allowed under the CAS. Where this is the case we may assess more than 60% of the purchase amount.

The changes ensure fairer means test outcomes across all LIS.

If you’re under Age Pension age and your payments haven’t started yet, all LIS products you purchase with:

  • Savings may be subject to deeming;
  • Superannuation money may be exempt from means testing.

We’ll still assess LIS purchased before 1 July 2019 under the rules which applied prior to this date.

If you make any changes that may affect your circumstances you have to tell us. You have 14 days to tell us from the date they occur.

Next steps

Read more about Income streams.

Get your FREE 5 Easy Steps to Plan Retirement One-Page planner from the Resources

What are your thoughts? Start or continue the conversation here!

Got questions? If you want experts who have years of helping others, without the hype –

then call for a FREE strategy session today

No obligation call 0407 361 596, Paul


About SuperBenefitnews

Self-Managed Superannuation Service Providers in Australia. SuperBenefit provides a wholistic SMSF assistance, education and administration service continuum - 1. “assistance” is help of whatsoever nature where our overall SMSF experience and knowledge enables us to provide assistance/help without any legal (or “license”) limitations. 2. “education” involves providing knowledge through teaching, coaching and mentoring about all matters SMSF, including (but not limited to) investment issues such as equities and property, 3. “administration” encompasses all admin aspects of legally required SMSF trustee and member record keeping including (but not limited to) audit and ATO matters. In keeping with our key point that SuperBenefit does not provide Financial Advice, where issues arise from 1, 2, and/or 3 above Indicate a need for a legally authorized provider (such as a Financial Adviser) and the client does not have their own service provider, the client can utilize SuperBenefit’s ‘Connect Assist’ … SuperBenefit, in itself, does not provide Financial Advice, but it does provide the wherewithal for great SMSF service. WE do not provide Financial Advice or any other service that requires a legally authorized provider. However, where such advice or service is required we have our ‘Connect Assist’, a SuperBenefit resource we use to connect clients to a Licensed Advisor or other legally authorised service provider. Call us 0407 361 596, no obligation FREE Connection call to see how we can help you!
This entry was posted in Centrelink, Pensions / Income Streams, Retirement Planning and tagged , , , , , , , . Bookmark the permalink.

Leave a Reply

Fill in your details below or click an icon to log in: Logo

You are commenting using your account. Log Out /  Change )

Google photo

You are commenting using your Google account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s