{"id":"F2019L00450","name":"Social Security (Actuarial Certificate – Life Expectancy Income Stream and Lifetime Income Stream Guidelines) Determination 2019","slug":"social-security-actuarial-certificate-life-expectancy-income-stream-and-lifetime-income-stream-guide","collection":"legislative_instrument","jurisdiction":"commonwealth","status":"in_force","isInForce":true,"actNumber":null,"makingDate":null,"administeringDepartment":null,"currentVersion":{"id":440007,"registerId":"F2019L00450-fast-fetch-1775955810843","compilationNumber":null,"startDate":"2026-04-12","status":"InForce","reasons":null,"registeredAt":null},"sections":[{"sectionNumber":"1","sectionType":"section","heading":"Social Security (Actuarial Certificate – Life Expectancy Income Stream and Lifetime Income Stream Guidelines) Determination 2019","content":"---\nmeta-content-style-type: text/css\nmeta-content-type: application/xhtml+xml; charset=utf-8\n---\n\n?xml version=\"1.0\" encoding=\"utf-8\" standalone=\"no\"?>\n\n![](image.001.jpeg)\n\n \n\nSocial Security (Actuarial Certificates – Life Expectancy Income Stream and Lifetime Income Stream Guidelines) Determination 2019\n\n \n\n \n\n \n\nI, Mary McLarty, Branch Manager Payment Structures Branch, Welfare and Housing Policy Group, Department of Social Services as delegate of Secretary of the Department of Social Services, make the following determination.\n\nDated 27 March 2019\n\nMary McLarty\n\nBranch Manager, Payment Structures Branch\n\n \n\n \n\n \n\nContents\n\n1 Name\n\n2 Commencement\n\n3 Authority\n\n4 Definitions\n\n5 Schedules\n\n6 Purpose\n\n7 Class of provider....................................................2\n\n8 Guidelines........................................................2\n\nSchedule 1—Repeals 4\n\nSocial Security (Actuarial Certificate – Life Expectancy Income Stream Guidelines) Determination 2012                                                                                                                                                              4\n\nSocial Security (Actuarial Certificate – Lifetime Income Stream Guidelines) Determination 2012                                                                                                                                                                4\n\n \n\n \n\n    \n\n1 Name\n\n  This instrument is the Social Security (Actuarial Certificate – Life Expectancy Income Stream and Lifetime Income Stream Guidelines) Determination 2019.\n\n2  Commencement\n\n              The day after this instrument is registered.\n\n3  Authority\n\n  This instrument is made under subsections 9A(1B) and 9B(1D) of the Social Security Act 1991.  \n\n4  Definitions\n\nNote: A number of expressions used in this instrument are defined in section 23 of the Act, including the following:\n\n(a) Human Services Department.\n\n  In this instrument:\n\nAct means the Social Security Act 1991.\n\nAPRA means the Australian Prudential Regulation Authority.\n\nannuity backed self managed superannuation fund means a self-managed superannuation fund with a lifetime income stream where that income stream is fully backed by an annuity that is sourced from a life insurance company.\n\nannuity backed small APRA fund means a small APRA fund with a lifetime income stream where that income stream is fully backed by an annuity that is sourced from a life insurance company.\n\nlife insurance company has the same meaning as in subsection 10(1) of the Superannuation Industry (Supervision) Act 1993.\n\nself managed superannuation fund has the same meaning as in section 17A of the Superannuation Industry (Supervision) Act 1993.\n\n5  Schedules\n\n  Each instrument that is specified in a Schedule to this instrument is amended or repealed as set out in the applicable items in the Schedule concerned, and any other item in a Schedule to this instrument has effect according to its terms.\n\n1.       Purpose\n\n\nThe purpose of this instrument is to set out the guidelines to be complied with when determining whether an actuarial certificate is in force and what constitutes a high probability that the provider of an income stream will be able to pay the income stream as required under a contract, or governing rules, for paragraphs 9A(1)(b) and 9B(1A)(b) of the Act, in order for that income stream to be an asset-test exempt income stream. This instrument also specifies the classes of providers of income streams who must provide an actuarial certificate for sections 9A and 9B of the Act.\n\n1.       Class of provider\n\n\n1.    For paragraphs 9A(1)(b) and 9B(1A)(b) of the Act, each of the following is a specified class of provider:\n\n\n1.     Self managed superannuation fund income stream providers - other than providers of income streams from annuity backed self managed superannuation funds.\n2.     Small APRA fund income stream providers - other than providers of income streams from annuity backed small APRA funds.\n\n\n8   Guidelines\n\nRequirements for in force actuarial certificate\n\n1.   When determining whether an actuarial certificate is in force, for the purposes of sections 9A and 9B of the Act, the certificate is in force:\n\n\n1.     for the financial years commencing 1 July 2017 and 1 July 2018, if it is prepared in accordance with the Institute of Actuaries of Australia Guidance Note 465 or the Institute of Actuaries of Australia Professional Standard 410 (Statements of Opinion Relating to Defined Benefit Provisions);\n2.     for the financial year commencing 1 July 2019 and any later financial years, if it is prepared in accordance with the Institute of Actuaries of Australia Professional Standard 410 (Statements of Opinion Relating to Defined Benefit Provisions);\n3.     if it is certified by the actuary no later than 26 weeks after the start of the financial year to which it applies and provided to the Human Services Department no later than 3 weeks after the end of that 26 week period;\n4.     if it states whether the actuary is of the opinion (expressed as a percentage)  there is a high probability, as defined in subsection 8(2), as at the valuation date, of the provider of the income stream meeting the income stream payments arising under the contract, or governing rules, for the financial year to which the certificate relates; and\n\n\nNote 1: An [income](http://www6.austlii.edu.au/cgi-bin/viewdoc/au/legis/cth/consol_act/ssa1991186/s1071a.html#income) stream provided to a person is an asset-test exempt [income](http://www6.austlii.edu.au/cgi-bin/viewdoc/au/legis/cth/consol_act/ssa1991186/s1071a.html#income) stream for the purposes of the Act, if the Secretary is satisfied there is a high probability that the provider of the [income](http://www6.austlii.edu.au/cgi-bin/viewdoc/au/legis/cth/consol_act/ssa1991186/s1071a.html#income) stream will be able to pay the [income](http://www6.austlii.edu.au/cgi-bin/viewdoc/au/legis/cth/consol_act/ssa1991186/s1071a.html#income) stream as required under the contract or governing rules (see paragraphs 9A(1)(b) and 9B(1A)(b) of the Act).\n\nNote 2: Only the first certificate given to the Secretary in relation to income stream for a financial year can have effect for that financial year (see subsection 9A(1D).\n\n1.     if it specifies an in force period for the financial year to which the certification relates.\n\n\nHigh probability\n\n1.   For paragraphs 8(1)(d) of this instrument and 9A(1)(b) and 9B(1A)(b) of the Act, there is a high probability a provider of an income stream in a class specified in section 7 of this instrument, will be able to pay the income stream as required under a contract, or governing rules, for the provision of the income stream if:\n\n\n1.     the actuary has certified that in their opinion the provider has a probability of at least 70 per cent of being able to pay; or\n2.     the actuary has certified that in their opinion the provider has a probability of at least 50 per cent of being able to pay and there are special circumstances which:\n  1.      gave rise to the probability of less than 70 percent; and\n  2.    but for those circumstances, the provider would, have had a probability of at least 70 per cent of being able to pay.\n\n\n\n\n\nSchedule 1—Repeals\n\nSocial Security (Actuarial Certificate – Life Expectancy Income Stream Guidelines) Determination 2012\n\n1  The whole of the instrument\n\nRepeal the instrument\n\nSocial Security (Actuarial Certificate – Lifetime Income Stream Guidelines) Determination 2012\n\n2  The whole of the instrument\n\nRepeal the instrument\n\n \n","sortOrder":0}],"analysis":{"flash_summary":{"complexity_score":5,"scope_assessment":{"changed":true,"description":"This instrument repeals the 2012 determinations (Schedule 1) and replaces them with updated guidelines that (a) specify the classes of providers required to supply actuarial certificates (s 7), (b) set which Institute of Actuaries standards apply and from which financial years (s 8(1)(a)-(b)), and (c) fix timing, probability thresholds and procedural requirements for certificates (s 8(1)(c)-(e), s 8(2)). The practical scope therefore shifts to the updated standards, deadlines and probability rules set out in this 2019 determination."},"complexity_factors":["Cross-references to other legislation and external standards: relies on the Social Security Act 1991 (ss 9A/9B) and Institute of Actuaries of Australia Professional Standard 410 / Guidance Note 465 (see Authority at s 3 and Guidelines at s 8(1)(a)-(b)).","Specified provider classes and exclusions: defines which providers must supply certificates and excludes annuity‑backed SMFs and small APRA funds (see Class of provider, s 7).","Timing and filing deadlines create compliance burden: actuary must certify no later than 26 weeks after financial‑year start and provide the certificate to the Department within 3 weeks after that period (see s 8(1)(c)).","Quantitative probability thresholds with conditional exception: default high‑probability threshold set at 70%; a 50% threshold may suffice only if 'special circumstances' caused the shortfall and the counterfactual would meet 70% (see High probability, s 8(2)).","Administrative dependency on actuarial opinion and Secretary satisfaction: the certificate must state the actuary's percentage opinion, but the Secretary’s satisfaction that a high probability exists remains the statutory condition (see Note 1 and ss 9A/9B referenced in Purpose).","Only the first certificate lodged per income stream per year has effect, limiting corrective filings (see Note 2, s 8(1) note).","Requirement to specify an 'in force period' and valuation date introduces technical actuarial timing issues (see s 8(1)(e) and s 8(1)(d)).","Repeal and replacement of prior instruments: consolidates or replaces the 2012 determinations, which may change administrative practices (see Schedule 1—Repeals)."],"plain_english_summary":"This instrument sets the rules for when an actuarial certificate makes a superannuation income stream exempt from the social security assets test. It requires certain providers (self‑managed super funds and small APRA funds, excluding annuity‑backed streams) to supply certificates meeting Institute of Actuaries standards, within specified timeframes, and stating a probability that the provider can meet payments.\n\nMechanically it fixes certification standards, timing, and probability thresholds (70%, or 50% with defined special circumstances) that determine asset‑test exemption."},"flash_summary_failed":{"failed":true,"reason":"A positive credit balance is required for all requests, including BYOK, so fallback providers remain available. Add credits at https://vercel.com/d?to=%2F%5Bteam%5D%2F%7E%2Fai%3Fmodal%3Dtop-up to continue.","source":"analysis-cron"},"kimi_summary":{"content_quality":"ok","complexity_score":4,"scope_assessment":{"changed":false,"description":"This instrument consolidates and replaces two previous Determinations from 2012, but does not expand scope beyond the original purpose of setting actuarial certificate guidelines for asset-test exempt income streams. The addition of 'special circumstances' exception for the 50% probability threshold appears to be a refinement rather than scope expansion."},"complexity_factors":["Multiple cross-references to the Social Security Act 1991 (sections 9A, 9B, and section 23 definitions)","References to external professional standards (Institute of Actuaries Guidance Note 465 and Professional Standard 410) that aren't reproduced in the instrument","Conditional logic for 'high probability' with nested exception (70% standard rule vs 50% with special circumstances)","Time-bound transitional provisions (different standards apply for 2017-18 vs 2019 onwards)","Defined terms that reference other legislation (Superannuation Industry (Supervision) Act 1993)","Dual repeal of previous instruments consolidated into one new instrument"],"plain_english_summary":"This Determination sets when lifetime or life-expectancy pensions from SMSFs and small APRA funds are asset-test exempt for Centrelink, meaning they won’t be counted as assets for Age Pension calculations.  \n\nTo qualify trustees must supply an actuary’s certificate showing a “high probability” (generally ≥70%, or 50% in special cases) the fund can meet promised payments, certified to professional standards and lodged within specified timeframes. This affects retirees’ pension rates and actuaries’ certification duties."}},"importantCases":[],"_links":{"self":"/api/acts/social-security-actuarial-certificate-life-expectancy-income-stream-and-lifetime-income-stream-guide","history":"/api/acts/social-security-actuarial-certificate-life-expectancy-income-stream-and-lifetime-income-stream-guide/history","analysis":"/api/acts/social-security-actuarial-certificate-life-expectancy-income-stream-and-lifetime-income-stream-guide/analysis","conflicts":"/api/acts/social-security-actuarial-certificate-life-expectancy-income-stream-and-lifetime-income-stream-guide/conflicts","importantCases":"/api/acts/social-security-actuarial-certificate-life-expectancy-income-stream-and-lifetime-income-stream-guide/important-cases","documents":"/api/acts/social-security-actuarial-certificate-life-expectancy-income-stream-and-lifetime-income-stream-guide/documents"}}