{"id":"F2025L01202","name":"Social Security (Asset-test Exempt Income Stream Guidelines) Determination 2025","slug":"social-security-asset-test-exempt-income-stream-guidelines-determination-2025","collection":"legislative_instrument","jurisdiction":"commonwealth","status":"in_force","isInForce":true,"actNumber":null,"makingDate":null,"administeringDepartment":null,"currentVersion":{"id":107266,"registerId":"commonwealth-F2025L01202-current","compilationNumber":null,"startDate":"2026-04-03","status":"InForce","reasons":null,"registeredAt":null},"sections":[{"sectionNumber":"Part 1","sectionType":"part","heading":"Preliminary","content":"## Part 1—Preliminary\n\n#### 1 Name\n\n This instrument is the Social Security (Asset-test Exempt Income Stream Guidelines) Determination 2025.\n\n#### 2 Commencement\n\n Each provision of this instrument specified in column 1 of the table commences, or is taken to have commenced, in accordance with column 2 of the table. Any other statement in column 2 has effect according to its terms.\n\n```html\n

Commencement information

Column 1

Column 2

Column 3

Provisions

Commencement

Date/Details

1. The whole of this instrument

The day after this instrument is registered.

\n```\n\n> Note: This table relates only to the provisions of this instrument as originally made. It will not be amended to deal with any later amendments of this instrument.\n\n (2) Any information in column 3 of the table is not part of this instrument. Information may be inserted in this column, or information in it may be edited, in any published version of this instrument.\n\n#### 3 Authority\n\n This instrument is made under subsections 9A(6), 9B(5) and 9BA(12) of the Social Security Act 1991.\n\n#### 4 Definitions\n\n> Note: A number of expressions used in this instrument are defined in the Act, including the following:\n\n (a) asset-test exempt income stream;\n (b) commencement day;\n (c) defined benefit income stream;\n (d) family law affected income stream;\n (e) income stream;\n (f) Secretary.\n In this instrument:\n\n> 2005 Principles means the Social Security (Partially Asset‑test Exempt Income Stream — Exemption) (FaHCSIA) Principles 2005.\n\n> 2007 Determination means the Social Security (Guidelines for Determining whether Income Stream is Asset-test Exempt) (FaCSIA) Determination 2007 (No. 1).\n\n> 2011 Determination means the Social Security (Guidelines for determining whether income stream is asset-test exempt) (DSS) Determination 2011.\n\n> 2022 Determination means the Social Security (Guidelines for Determining Whether Income Stream is Asset-test Exempt) Determination 2022.\n\n> Act means the Social Security Act 1991.\n\n> benefit fund has the meaning given by subsection 16B(1) of the Life Insurance Act 1995.\n\n> defined benefit pension has the meaning given by regulation 9.04E of the Superannuation Industry (Supervision) Regulations 1994.\n\n> dependant means a dependant mentioned in subregulation 6.21(2A) of the Superannuation Industry (Supervision) Regulations 1994.\n\n> immediate annuity means an annuity that is presently payable.\n\n> life company has the meaning given in the Dictionary to the Life Insurance Act 1995.\n\n> lifetime income stream, in relation to a person, means an income stream in which payments are made, at least annually, throughout the life of the person and, if there is a reversionary beneficiary, throughout the life of the reversionary beneficiary.\n\n> private sector fund has the same meaning as in subsection 10(1) of the Superannuation Industry (Supervision) Act 1993.\n\n> public sector fund has the same meaning as in subsection 10(1) of the Superannuation Industry (Supervision) Act 1993.\n\n> public sector superannuation scheme has the same meaning as in subsection 10(1) of the Superannuation Industry (Supervision) Act 1993.\n\n> regulated superannuation fund has the meaning given by subsection 10(1) of the Superannuation Industry (Supervision) Act 1993.\n\n> self managed superannuation fund has the meaning given by sections 17A and 17B of the Superannuation Industry (Supervision) Act 1993.\n\n> statutory fund has the meaning given by section 29 of the Life Insurance Act 1995.\n\n> sub-fund means a sub-fund within a regulated superannuation fund that is taken to be a regulated superannuation fund for the purposes of section 69A of the Superannuation Industry (Supervision) Act 1993.\n\n> successor fund has the meaning given by subregulation 1.03(1) of the Superannuation Industry (Supervision) Regulations 1994.\n\n> superannuation fund has the same meaning as in subsection 10(1) of the Superannuation Industry (Supervision) Act 1993.\n\n> superannuation pension means a pension payable from a superannuation fund.\n\n> third party has the meaning given by section 90AB of the Family Law Act 1975.\n\n#### 5 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\n#### Part 2—Guidelines\n\n#### 6 Lifetime income stream arising under a public sector fund or public sector superannuation scheme\n\n The Secretary may determine that a lifetime income stream arising under a public sector fund or a public sector superannuation scheme is an asset-test exempt income stream for the purposes of the Act if:\n (a) it is a lifetime income stream that is a defined benefit income stream; and\n (b) it is paid from a public sector fund or a public sector superannuation scheme that was established before 20 September 1998; and\n (c) regardless of its commencement day, it would have been treated as a superannuation pension and had its value disregarded in calculating the person’s assets under section 1118 of the Act as in force immediately before 20 September 1998.\n\n#### 7 Lifetime income stream arising under a private sector fund\n\n (1) The Secretary may determine that a lifetime income stream arising under a private sector fund is an asset-test exempt income stream for the purposes of the Act if:\n (a) it is a lifetime income stream that is a defined benefit income stream; and\n (b) it is paid from a private sector fund that was established before 20 September 1998; and\n (c) regardless of its commencement day, it would have been treated as a superannuation pension and had its value disregarded in calculating the person’s assets under section 1118 of the Act as in force immediately before 20 September 1998.\n (2) The private sector fund mentioned in paragraph 1(b) must have a direct connection with the previous employment of the recipient of the lifetime income stream or, in the case of a reversionary beneficiary, the person who would be the recipient had they not died.\n (3) For subsection (2), a private sector fund has a direct connection with a person’s previous employment if the lifetime income stream from the private sector fund became payable to, or in respect of, the person because of that employment.\n\n#### 8 Income stream resulting from commutation or rollover because of regulation 6.21 of Superannuation Industry (Supervision) Regulations 1994\n\n The Secretary may determine that an income stream is an asset-test exempt income stream for the purposes of the Act if:\n (a) it would have been covered by subsection 9A(1) or 9B(1) of the Act if paragraph 9A(1)(aa) or subparagraph 9B(1)(a)(i) of the Act did not apply; and\n (b) it is purchased by the primary beneficiary on or after 1 July 2007; and\n (c) it results from another asset‑test exempt income stream (the original income stream) being commuted or rolled over to comply with subregulation 6.21(2A) of the Superannuation Industry (Supervision) Regulations 1994; and\n (d) the original income stream was covered by section 9A or 9B of the Act or would have been covered by those sections if paragraph 9A(1)(aa) or subparagraph 9B(1)(a)(i) of the Act did not apply; and\n (e) the original income stream:\n (i) was purchased before 20 September 2004; or\n (ii) was covered by the 2005 Principles during the period starting on 20 September 2004 and ending at the end of 19 September 2007; or\n (iii) was covered by the 2007 Determination during the period starting on 20 September 2007 and ending at the end of 28 November 2011; or\n (iv) was covered by the 2011 Determination during the period starting on 29 November 2011 and ending at the end of 28 March 2022; or\n (v) was covered by the 2022 Determination during the period starting on 29 March 2022 and ending at the end of the day immediately prior to the commencement of this Determination; or\n (vi) is covered by this Determination.\n\n#### 9 Income stream resulting from original asset‑test exempt income stream purchased before 20 September 2004\n\n (1) The Secretary may determine that an income stream is an asset‑test exempt income stream for the purposes of the Act if:\n (a) the income stream (the present income stream) would have been covered by subsection 9A(1) or 9B(1) of the Act if paragraph 9A(1)(aa) or subparagraph 9B(1)(a)(i) of the Act did not apply; and\n (b) it is purchased by the primary beneficiary on or after 20 September 2007 from funds arising from the commutation of another asset‑test exempt income stream (the original income stream); and\n (c) the original income stream was purchased before 20 September 2004; and\n (d) the original income stream is a kind of income stream to which one of the following subsections applies.\n (2) This subsection applies to an original income stream if:\n (a) it is covered by subsection 9A(1) or (1A) or section 9B of the Act; and\n (b) it was purchased by the primary beneficiary for the benefit of the primary beneficiary and a reversionary beneficiary; and\n (c) payments made under the income stream are calculated on the basis of the life expectancy of the reversionary beneficiary; and\n (d) the reversionary beneficiary predeceases the primary beneficiary.\n (3) This subsection applies to an original income stream if:\n (a) it is covered by subsection 9A(1) or (1A) or section 9B of the Act; and\n (b) it is not an income stream to which section 12 or 13 applies; and\n (c) it is purchased by the primary beneficiary for the benefit of the primary beneficiary and a reversionary beneficiary who, at the time of the purchase, are members of a couple together; and\n (d) the primary beneficiary and reversionary beneficiary are no longer members of a couple together.\n\n> Note: Example: On 1 March 2002, J purchased an income stream (the original income stream) covered by subsection 9A(1) of the Act for the benefit of J, the primary beneficiary, and H, the reversionary beneficiary. At the time of the purchase, J and H were members of a couple together. On 1 June 2025, J and H ceased to be members of a couple together. On 15 June 2025, J commutes the original income stream and purchases another income stream (the new income stream). The new income stream is covered by this Determination and retains the 100% exemption from the social security assets test.\n\n (4) This subsection applies to an original income stream if:\n (a) it is a defined benefit pension covered by section 9A or 9B of the Act that is provided by a regulated superannuation fund; and\n (b) it is an income stream in relation to which the Secretary is not satisfied as required by paragraph 9A(1)(b) or 9B(1A)(b) of the Act.\n\n> Note: Example: On 1 March 2002, P purchased an income stream (the original income stream) that is a defined benefit pension covered by section 9A of the Act that is provided by a regulated superannuation fund. Paragraph 9A(1)(b) of the Act applies to the original income stream. On 1 July 2025, the Secretary is not satisfied that the requirements of paragraph 9A(1)(b) of the Act are met in relation to the original income stream. On 15 July 2025, P commutes the original income stream to purchase another income stream (the new income stream) that is covered by section 9A of the Act. The new income stream is covered by this Determination and retains the 100% exemption from the social security assets test.\n\n> Note: Paragraphs 9A(1)(b) and 9B(1A)(b) of the Act require the Secretary to be satisfied, in relation to an income stream, that there is in force a current actuarial certificate stating that in the actuary’s opinion there is a high probability that the provider of the income stream will be able to pay the income stream as required under the income stream’s contract or governing rules.\n\n (5) This subsection applies to an original income stream if:\n (a) it is an immediate annuity under a statutory fund established by a life company, or under a benefit fund; and\n (b) it:\n (i) is an income stream in relation to which the Secretary is not satisfied as required by paragraph 9A(1)(b) or 9B(1A)(b) of the Act; or\n (ii) fails to satisfy relevant standards published by the Australian Prudential Regulation Authority about minimum surrender values and paid up values.\n\n> Note: Paragraphs 9A(1)(b) and 9B(1A)(b) of the Act require the Secretary to be satisfied, in relation to an income stream, that there is in force a current actuarial certificate stating that in the actuary’s opinion there is a high probability that the provider of the income stream will be able to pay the income stream as required under the income stream’s contract or governing rules.\n\n#### 10 Income stream resulting from commutation of asset‑test exempt income stream purchased on or after 20 September 2004 and before 20 September 2007\n\n (1) The Secretary may determine that an income stream is an asset‑test exempt income stream for the purposes of the Act if:\n (a) the income stream (the present income stream) would have been covered by subsection 9A(1) or 9B(1) of the Act if paragraph 9A(1)(aa) or subparagraph 9B(1)(a)(i) of the Act did not apply; and\n (b) it is purchased by the primary beneficiary on or after 20 September 2007 from the commutation of an income stream that was:\n (i) covered by section 9A or 9B of the Act; and\n (ii) purchased on or after 20 September 2004 and before 20 September 2007; and\n (iii) commuted from another income stream (the original income stream); and\n (c) the original income stream was purchased before 20 September 2004; and\n (d) the original income stream is a kind of income stream to which one of the following subsections applies.\n (2) This subsection applies to an original income stream if:\n (a) it is covered by subsection 9A(1) or (1A) or section 9B of the Act; and\n (b) it was purchased by the primary beneficiary for the benefit of the primary beneficiary and a reversionary beneficiary; and\n (c) payments made under the income stream are calculated on the basis of the life expectancy of the reversionary beneficiary; and\n (d) the reversionary beneficiary predeceases the primary beneficiary.\n (3) This subsection applies to an original income stream if:\n (a) it is covered by subsection 9A(1) or (1A) or section 9B of the Act; and\n (b) it is not an income stream to which section 12 or 13 applies; and\n (c) it is purchased by the primary beneficiary for the benefit of the primary beneficiary and a reversionary beneficiary who, at the time of the purchase, are members of a couple together; and\n (d) the primary beneficiary and reversionary beneficiary are no longer members of a couple together.\n\n> Note: Example: On 1 March 2002, J purchased an income stream (the original income stream) covered by subsection 9A(1) of the Act for the benefit of J, the primary beneficiary, and H, the reversionary beneficiary. As it was purchased before 20 September 2004, the income stream has a 100% exemption from the social security assets test. At the time of the purchase, J and H were members of a couple together.\n\n> Note: On 1 June 2025, J and H ceased to be members of a couple together. On 15 June 2025, J commutes the new income stream and purchases another income stream (the further income stream) that would be covered by subsection 9A(1) of the Act if paragraph 9A(1)(aa) of the Act did not apply. The further income stream is covered by this Determination and retains the 100% exemption from the social security assets test.\n\n (4) This subsection applies to an original income stream if:\n (a) it is a defined benefit pension covered by subsection 9A(1) or 9B(1A) of the Act that is provided by a regulated superannuation fund; and\n (b) it is an income stream in relation to which the Secretary is not satisfied as required by paragraph 9A(1)(b) or 9B(1A)(b) of the Act, as applicable.\n\n> Note: Example: On 1 March 2002, P purchased an income stream (the original income stream) that is a defined benefit pension covered by section 9A of the Act and provided by a regulated superannuation fund. Paragraph 9A(1)(b) of the Act applies to the original income stream. As it was purchased before 20 September 2004, the income stream has a 100% exemption from the social security assets test.\n\n> Note: On 1 September 2025, the Secretary is not satisfied that the requirements of paragraph 9A(1)(b) of the Act are met in relation to the new income stream. On 15 September 2025, P commutes the new income stream to purchase another income stream (the further income stream) that is covered by section 9A of the Act. The further income stream is covered by this Determination and retains the 100% exemption from the social security assets test.\n\n> Note: Paragraphs 9A(1)(b) and 9B(1A)(b) of the Act require the Secretary to be satisfied, in relation to an income stream, that there is in force a current actuarial certificate stating that in the actuary’s opinion there is a high probability that the provider of the income stream will be able to pay the income stream as required under the income stream’s contract or governing rules.\n\n (5) This subsection applies to an original income stream if:\n (a) it is an immediate annuity under a statutory fund established by a life company, or under a benefit fund; and\n (b) it:\n (i) is an income stream in relation to which the Secretary is not satisfied as required by paragraph 9A(1)(b) or 9B(1A)(b) of the Act, as applicable; or\n (ii) fails to satisfy relevant standards published by the Australian Prudential Regulation Authority about minimum surrender values and paid up values.\n\n> Note: Paragraphs 9A(1)(b) and 9B(1A)(b) of the Act require the Secretary to be satisfied, in relation to an income stream, that there is in force a current actuarial certificate stating that in the actuary’s opinion there is a high probability that the provider of the income stream will be able to pay the income stream as required under the income stream’s contract or governing rules.\n\n#### 11 Income stream resulting from transfer to successor fund\n\n The Secretary may determine that an income stream is an asset‑test exempt income stream for the purposes of the Act if:\n (a) it would have been covered by subsection 9A(1) or 9B(1) of the Act if paragraph 9A(1)(aa) or subparagraph 9B(1)(a)(i) of the Act did not apply; and\n (b) it results from the transfer, on or after 20 September 2007, of another income stream (the original income stream) to a successor fund; and\n (c) the original income stream was covered by section 9A or 9B of the Act or would have been covered by those sections if paragraph 9A(1)(aa) or subparagraph 9B(1)(a)(i) of the Act did not apply; and\n (d) the original income stream was provided by a regulated superannuation fund; and\n (e) the original income stream:\n (i) was purchased before 20 September 2004; or\n (ii) was covered by the 2005 Principles during the period starting on 20 September 2004 and ending at the end of 19 September 2007; or\n (iii) was covered by the 2007 Determination during the period starting on 20 September 2007 and ending at the end of 28 November 2011; or\n (iv) was covered by the 2011 Determination during the period starting on 29 November 2011 and ending at the end of 28 March 2022; or\n (v) was covered by the 2022 Determination during the period starting on 29 March 2022 and ending at the end of the day immediately prior to the commencement of this Determination; or\n (vi) is covered by this Determination.\n\n#### 12 Income stream resulting from payment split\n\n The Secretary may determine that an income stream is an asset‑test exempt income stream for the purposes of the Act if:\n (a) it would have been covered by subsection 9A(1) or 9B(1) of the Act if paragraph 9A(1)(aa) or subparagraph 9B(1)(a)(i) of the Act did not apply; and\n (b) it is purchased or acquired by the primary beneficiary or the primary beneficiary’s partner or former partner on or after 20 September 2007; and\n (c) it results from another asset‑test exempt income stream (the original income stream) being commuted to give effect to an entitlement of the partner or former partner of the primary beneficiary in respect of the original income stream under a payment split under Part VIIIB or Part VIIIC of the Family Law Act 1975; and\n (d) the original income stream was covered by section 9A or 9B of the Act or would have been covered by those sections if paragraph 9A(1)(aa) or subparagraph 9B(1)(a)(i) of the Act did not apply; and\n (e) the original income stream:\n (i) was purchased before 20 September 2004; or\n (ii) was covered by the 2005 Principles during the period starting on 20 September 2004 and ending at the end of 19 September 2007; or\n (iii) was covered by the 2007 Determination during the period starting on 20 September 2007 and ending at the end of 28 November 2011; or\n (iv) was covered by the 2011 Determination during the period starting on 29 November 2011 and ending at the end of 28 March 2022; or\n (v) was covered by the 2022 Determination during the period starting on 29 March 2022 and ending at the end of the day immediately prior to the commencement of this Determination; or\n (vi) is covered by this Determination.\n\n> Note: Example: On 1 March 2002, P who was partnered to J at that date, purchased an income stream (the original income stream) covered by section 9A of the Act. On 1 February 2025, P and J separate. P’s original income stream is commuted to give effect to an entitlement of J in respect of the original income stream under a payment split under Part VIIIB or Part VIIIC of the Family Law Act 1975. On 15 February 2025, J uses the entitlement resulting from the payment split to purchase an income stream (the new income stream) covered by section 9A of the Act. The new income stream is covered by this Determination and retains the 100% exemption from the social security assets test.\n\n#### 13 Income stream resulting from Family Court order or injunction\n\n The Secretary may determine that an income stream is an asset‑test exempt income stream for the purposes of the Act if:\n (a) it would have been covered by subsection 9A(1) or 9B(1) of the Act if paragraph 9A(1)(aa) or subparagraph 9B(1)(a)(i) of the Act did not apply; and\n (b) it is purchased or acquired by the primary beneficiary or the primary beneficiary’s partner or former partner on or after 20 September 2007; and\n (c) it results from another asset‑test exempt income stream (the original income stream) being commuted to give effect to:\n (i) an order made under section 79, 90SM, 90SS or 114 of the Family Law Act 1975; or\n (ii) an injunction granted under section 90SS or 114 of that Act that is binding on a third party under Part VIIIAA of that Act; or\n (iii) any other order or injunction under that Act that relates specifically to the original income stream; and\n (d) the original income stream was covered by section 9A or 9B of the Act or would have been covered by those sections if paragraph 9A(1)(aa) or subparagraph 9B(1)(a)(i) of the Act did not apply; and\n (e) the original income stream:\n (i) was purchased before 20 September 2004; or\n (ii) was covered by the 2005 Principles during the period starting on 20 September 2004 and ending at the end of 19 September 2007; or\n (iii) was covered by the 2007 Determination during the period starting on 20 September 2007 and ending at the end of 28 November 2011; or\n (iv) was covered by the 2011 Determination during the period starting on 29 November 2011 and ending at the end of 28 March 2022; or\n (v) was covered by the 2022 Determination during the period starting on 29 March 2022 and ending at the end of the day immediately prior to the commencement of this Determination; or\n (vi) is covered by this Determination.\n\n> Note: Example: On 1 March 2002, J purchased an income stream (the original income stream) covered by subsection 9A(1) of the Act for the benefit of J, the primary beneficiary, and H, the reversionary beneficiary. As it was purchased before 20 September 2004, the income stream has a 100% exemption from the social security assets test. At the time of the purchase, J and H are partnered. On 1 February 2025, J and H separate. On 15 February 2025, J commutes the original income stream in response to a Family Court order and purchases another income stream (the new income stream) covered by subsection 9A(1) of the Act. The new income stream is covered by this Determination and retains the 100% exemption from the social security assets test.\n\n#### 14 Income stream resulting from payment of superannuation contributions surcharge debt\n\n The Secretary may determine that an income stream is an asset‑test exempt income stream for the purposes of the Act if:\n (a) it would have been covered by subsection 9A(1) or 9B(1) of the Act if paragraph 9A(1)(aa) or subparagraph 9B(1)(a)(i) of the Act did not apply; and\n (b) it is purchased by the primary beneficiary on or after 20 September 2007; and\n (c) it results from another asset‑test exempt income stream (the original income stream) being commuted to pay a superannuation contributions surcharge debt; and\n (d) the original income stream was covered by section 9A or 9B of the Act or would have been covered by those sections if paragraph 9A(1)(aa) or subparagraph 9B(1)(a)(i) of the Act did not apply; and\n (e) the original income stream:\n (i) was purchased before 20 September 2004; or\n (ii) was covered by the 2005 Principles during the period starting on 20 September 2004 and ending at the end of 19 September 2007; or\n (iii) was covered by the 2007 Determination during the period starting on 20 September 2007 and ending at the end of 28 November 2011; or\n (iv) was covered by the 2011 Determination during the period starting on 29 November 2011 and ending at the end of 28 March 2022; or\n (v) was covered by the 2022 Determination during the period starting on 29 March 2022 and ending at the end of the day immediately prior to the commencement of this Determination; or\n (vi) is covered by this Determination.\n\n#### 15 Income stream resulting from payment of excess contributions tax\n\n The Secretary may determine that an income stream is an asset‑test exempt income stream for the purposes of the Act if:\n (a) it would have been covered by subsection 9A(1) or 9B(1) of the Act if paragraph 9A(1)(aa) or subparagraph 9B(1)(a)(i) of the Act did not apply; and\n (b) it is purchased by the primary beneficiary on or after 20 September 2007; and\n (c) it results from another asset‑test exempt income stream (the original income stream) being commuted to pay an amount to give effect to a release authority, given in relation to the primary beneficiary, under:\n (i) former section 292-415 of the Income Tax Assessment Act 1997; or\n (ii) section 292-80C of the Income Tax (Transitional Provisions) Act 1997; and\n (d) the original income stream was covered by section 9A or 9B of the Act or would have been covered by those sections if paragraph 9A(1)(aa) or subparagraph 9B(1)(a)(i) of the Act did not apply; and\n (e) the original income stream:\n (i) was purchased before 20 September 2004; or\n (ii) was covered by the 2005 Principles during the period starting on 20 September 2004 and ending at the end of 19 September 2007; or\n (iii) was covered by the 2007 Determination during the period starting on 20 September 2007 and ending at the end of 28 November 2011; or\n (iv) was covered by the 2011 Determination during the period starting on 29 November 2011 and ending at the end of 28 March 2022; or\n (v) was covered by the 2022 Determination during the period starting on 29 March 2022 and ending at the end of the day immediately prior to the commencement of this Determination; or\n (vi) is covered by this Determination.\n\n#### 16 Income stream resulting from payment of hardship amount\n\n The Secretary may determine that an income stream is an asset‑test exempt income stream for the purposes of the Act if:\n (a) it would have been covered by subsection 9A(1) or 9B(1) of the Act if paragraph 9A(1)(aa) or subparagraph 9B(1)(a)(i) of the Act did not apply; and\n (b) it is purchased by the primary beneficiary on or after 20 September 2007; and\n (c) it results from another asset‑test exempt income stream (the original income stream) being commuted to pay a hardship amount; and\n (d) the original income stream was covered by section 9A or 9B of the Act or would have been covered by those sections if paragraph 9A(1)(aa) or subparagraph 9B(1)(a)(i) of the Act did not apply; and\n (e) the original income stream:\n (i) was purchased before 20 September 2004; or\n (ii) was covered by the 2005 Principles during the period starting on 20 September 2004 and ending at the end of 19 September 2007; or\n (iii) was covered by the 2007 Determination during the period starting on 20 September 2007 and ending at the end of 28 November 2011; or\n (iv) was covered by the 2011 Determination during the period starting on 29 November 2011 and ending at the end of 28 March 2022; or\n (v) was covered by the 2022 Determination during the period starting on 29 March 2022 and ending at the end of the day immediately prior to the commencement of this Determination; or\n (vi) is covered by this Determination.\n\n> Note: Example: On 1 March 2002, J purchased an income stream (the original income stream) covered by subsection 9A(1) of the Act for the benefit of J, the primary beneficiary, and H, the reversionary beneficiary. As it was purchased before 20 September 2004, the income stream has a 100% exemption from the social security assets test. On 3 March 2025, J commutes part of the new income stream to pay a hardship amount, and J purchases another income stream (the further income stream) from the remaining capital backing the new income stream. The further income stream is covered by this Determination and retains the 100% exemption from the social security assets test.\n\n#### 17 Income stream resulting from closure of a self managed superannuation fund\n\n The Secretary may determine that an income stream is an asset‑test exempt income stream for the purposes of the Act if:\n (a) it would have been covered by subsection 9A(1) or 9B(1) of the Act or those sections if paragraph 9A(1)(aa) or subparagraph 9B(1)(a)(i) of the Act did not apply; and\n (b) it is purchased by the primary beneficiary; and\n (c) it is not sourced from a self managed superannuation fund; and\n (d) it results from another asset‑test exempt income stream (the original income stream) being commuted as a result of the closure of a self managed superannuation fund because:\n (i) a member of the fund supporting the original income stream died; or\n (ii) the administrative responsibilities of the fund supporting the original income stream became too onerous due to the age or incapacity of a trustee; and\n (e) the original income stream was:\n (i) covered by section 9A or 9B of the Act or would have been covered by those sections if paragraph 9A(1)(aa) or subparagraph 9B(1)(a)(i) of the Act did not apply; and\n (ii) sourced from a self managed superannuation fund; and\n (f) the original income stream:\n (i) was covered by the 2005 Principles during the period starting on 20 September 2004 and ending at the end of 19 September 2007; or\n (ii) was covered by the 2007 Determination during the period starting on 20 September 2007 and ending at the end of 28 November 2011; or\n (iv) was covered by the 2011 Determination during the period starting on 29 November 2011 and ending at the end of 28 March 2022; or\n (v) was covered by the 2022 Determination during the period starting on 29 March 2022 and ending at the end of the day immediately prior to the commencement of this Determination; or\n (vi) is covered by this Determination.\n\n> Note: Example: F and W are trustees of their self managed superannuation fund. They both have lifetime asset‑test exempt income streams that were purchased on 1 July 2003 when F was 65 and W was 64. F dies on 26 January 2025. W subsequently decides that she does not have the expertise or inclination to continue as a fund trustee. W commutes her asset‑test exempt income stream and uses the proceeds to purchase from a retail income stream provider, an income stream that meets the provisions of section 9A of the Act. The new income stream is covered by this Determination and retains the 100% exemption from the social security assets test.\n\n#### 18 Income stream resulting from family law affected income stream\n\n (1) The Secretary may determine that a family law affected income stream that does not meet the requirements of subsection 9A(2) or 9B(2) of the Act is an asset-test exempt income stream for the purposes of the Act if:\n (a) either:\n (i) the income stream meets all the requirements of paragraphs 9A(2)(a) to (l) or 9B(2)(a) to (l) of the Act other than those that are not met because of the operation of an order under Part VIIIAA, or a payment split under Part VIIIB or Part VIIIC, of the Family Law Act 1975 relating to the income stream; or\n (ii) as a result of the operation of 1 or more orders under Part VIIIAA, or 1 or more payment splits under Part VIIIB or Part VIIIC, of the Family Law Act 1975, the income stream is derived from an income stream that was an asset-test exempt income stream to which subsection 9A(1A) or 9B(1B) of the Act applied at the time of the order or payment split, or of the last of them; and\n (b) the original family law affected income stream from which the income stream is derived as a result of the operation of 1 or more orders under Part VIIIAA, or 1 or more payment splits under Part VIIIB or Part VIIIC, of the Family Law Act 1975, was purchased before 20 September 2004; and\n (c) either:\n (i) for an income stream that is an immediate annuity under a statutory fund established by a life company, or under a benefit fund — the income stream satisfies standards published by the Australian Prudential Regulation Authority, about minimum surrender values and paid up values, that apply to the annuity; or\n (ii) in any other case — the income stream meets the requirements of subsection (2); and\n (d) the Secretary is satisfied that any amount of the original family law affected income stream that is rolled over, transferred, commuted or paid as a lump sum is not more than the amount required to satisfy the non-member partner’s entitlement under an order under Part VIIIAA, or under a payment split under Part VIIIB or Part VIIIC, of the Family Law Act 1975 relating to the original family law affected income stream; and\n (e) for an income stream to which subparagraph (a)(i) applies — the Secretary is satisfied that the income stream has met all the requirements mentioned in that subparagraph from the day the income stream began being paid.\n (2) An income stream meets the requirements of this subsection if:\n (a) the Secretary is satisfied that there is in force a current actuarial certificate that states that in the actuary’s opinion there is a high probability that the provider of the income stream will be able to pay the income stream as required under the contract or governing rules under which the income stream is provided; or\n (b) for a period beginning when an actuarial certificate mentioned in paragraph (a) ceases to be in force and ending not more than 26 weeks later, an actuarial certificate of that kind is not in force.\n (3) In considering the matter mentioned in paragraph (2)(a), the Secretary must have regard to any guidelines determined under subsection 9A(1B) or 9B(1D) of the Act that apply to the income stream.\n\n#### 19 Income stream that is defined benefit income stream\n\n The Secretary may determine that an income stream is an asset-test exempt income stream for the purposes of the Act if the Secretary is satisfied that:\n (a) it is a defined benefit income stream, and has been so from the day the income stream began being paid; and\n (b) if the income stream is also an original family law affected income stream — any amount of the income stream that is rolled over, transferred, commuted or paid as a lump sum is not more than the amount required to satisfy the non-member partner’s entitlement under a payment split under Part VIIIB or Part VIIIC of the Family Law Act 1975 relating to the original family law affected income stream.\n\n#### 20 Income stream resulting from the closure of a regulated superannuation fund or sub-fund\n\n The Secretary may determine that an income stream is an asset‑test exempt income stream for the purposes of the Act if:\n (a) it would have been covered by subsection 9A(1) or 9B(1) of the Act if paragraph 9A(1)(aa) or subparagraph 9B(1)(a)(i) of the Act did not apply; and\n (b) it is purchased on or after 20 September 2007; and\n (c) it results from another asset‑test exempt income stream (the original income stream) being commuted as a result of the closure of a regulated superannuation fund or sub-fund; and\n (d) it does not result from another asset‑test exempt income stream (the original income stream) being commuted as a result of the closure of a self managed superannuation fund; and\n (e) the original income stream was covered by section 9A or 9B of the Act or would have been covered by those sections if paragraph 9A(1)(aa) or subparagraph 9B(1)(a)(i) of the Act did not apply; and\n (f) the original income stream:\n (i) was purchased before 20 September 2004; or\n (ii) was covered by the 2005 Principles during the period starting on 20 September 2004 and ending at the end of 19 September 2007; or\n (iii) was covered by the 2007 Determination during the period starting on 20 September 2007 and ending at the end of 28 November 2011; or\n (iv) was covered by the 2011 Determination during the period starting on 29 November 2011 and ending at the end of 28 March 2022; or\n (v) was covered by the 2022 Determination during the period starting on 29 March 2022 and ending at the end of the day immediately prior to the commencement of this Determination; or\n (vi) is covered by this Determination.\n\n#### 21 Income stream that is a legacy product\n\n The Secretary may determine that an income stream is an asset-test exempt income stream for the purposes of the Act if:\n (a) the income stream was an asset-test exempt income stream under section 9A, 9B or 9BA of the Act immediately before the commencement of the Treasury Laws Amendment (Legacy Retirement Product Commutations and Reserves) Regulations 2024; and\n (b) the income stream complies with the requirements of subsection 9A(2), 9B(2) or 9BA(2) of the Act, except for paragraphs 9A(2)(h), 9B(2)(h) or 9BA(2)(f); and\n (c) the only reason the income stream does not comply with the requirements in paragraphs 9A(2)(h), 9B(2)(h) or 9BA(2)(f) of the Act is because the contract or governing rules allow for the income stream to be commuted in accordance with:\n (i) regulation 1.08AA of the Retirement Savings Accounts Regulations 1997; or\n (ii) regulation 1.05AA of the Superannuation Industry (Supervision) Regulations 1994; or\n (iii) regulation 1.06C of the Superannuation Industry (Supervision) Regulations 1994.\n\nSchedule 1—Repeals\n\nAsset-test Exempt Income Stream (Lifetime Income Stream Guidelines) (Social Security) Determination 2015\n\n1 The whole of the instrument\n\nRepeal the instrument\n\nSocial Security (Guidelines for Determining Whether Income Stream is Asset-test Exempt) Determination 2022\n\n2 The whole of the instrument\n\nRepeal the instrument","sortOrder":0},{"sectionNumber":"1","sectionType":"section","heading":"Name","content":"#### 1 Name\n\n This instrument is the Social Security (Asset-test Exempt Income Stream Guidelines) Determination 2025.","sortOrder":1},{"sectionNumber":"2","sectionType":"section","heading":"Commencement","content":"#### 2 Commencement\n\n Each provision of this instrument specified in column 1 of the table commences, or is taken to have commenced, in accordance with column 2 of the table. Any other statement in column 2 has effect according to its terms.\n\n```html\n

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Date/Details

1. The whole of this instrument

The day after this instrument is registered.

\n```\n\n> Note: This table relates only to the provisions of this instrument as originally made. It will not be amended to deal with any later amendments of this instrument.\n\n (2) Any information in column 3 of the table is not part of this instrument. Information may be inserted in this column, or information in it may be edited, in any published version of this instrument.","sortOrder":2},{"sectionNumber":"3","sectionType":"section","heading":"Authority","content":"#### 3 Authority\n\n This instrument is made under subsections 9A(6), 9B(5) and 9BA(12) of the Social Security Act 1991.","sortOrder":3},{"sectionNumber":"4","sectionType":"section","heading":"Definitions","content":"#### 4 Definitions\n\n> Note: A number of expressions used in this instrument are defined in the Act, including the following:\n\n (a) asset-test exempt income stream;\n (b) commencement day;\n (c) defined benefit income stream;\n (d) family law affected income stream;\n (e) income stream;\n (f) Secretary.\n In this instrument:\n\n> 2005 Principles means the Social Security (Partially Asset‑test Exempt Income Stream — Exemption) (FaHCSIA) Principles 2005.\n\n> 2007 Determination means the Social Security (Guidelines for Determining whether Income Stream is Asset-test Exempt) (FaCSIA) Determination 2007 (No. 1).\n\n> 2011 Determination means the Social Security (Guidelines for determining whether income stream is asset-test exempt) (DSS) Determination 2011.\n\n> 2022 Determination means the Social Security (Guidelines for Determining Whether Income Stream is Asset-test Exempt) Determination 2022.\n\n> Act means the Social Security Act 1991.\n\n> benefit fund has the meaning given by subsection 16B(1) of the Life Insurance Act 1995.\n\n> defined benefit pension has the meaning given by regulation 9.04E of the Superannuation Industry (Supervision) Regulations 1994.\n\n> dependant means a dependant mentioned in subregulation 6.21(2A) of the Superannuation Industry (Supervision) Regulations 1994.\n\n> immediate annuity means an annuity that is presently payable.\n\n> life company has the meaning given in the Dictionary to the Life Insurance Act 1995.\n\n> lifetime income stream, in relation to a person, means an income stream in which payments are made, at least annually, throughout the life of the person and, if there is a reversionary beneficiary, throughout the life of the reversionary beneficiary.\n\n> private sector fund has the same meaning as in subsection 10(1) of the Superannuation Industry (Supervision) Act 1993.\n\n> public sector fund has the same meaning as in subsection 10(1) of the Superannuation Industry (Supervision) Act 1993.\n\n> public sector superannuation scheme has the same meaning as in subsection 10(1) of the Superannuation Industry (Supervision) Act 1993.\n\n> regulated superannuation fund has the meaning given by subsection 10(1) of the Superannuation Industry (Supervision) Act 1993.\n\n> self managed superannuation fund has the meaning given by sections 17A and 17B of the Superannuation Industry (Supervision) Act 1993.\n\n> statutory fund has the meaning given by section 29 of the Life Insurance Act 1995.\n\n> sub-fund means a sub-fund within a regulated superannuation fund that is taken to be a regulated superannuation fund for the purposes of section 69A of the Superannuation Industry (Supervision) Act 1993.\n\n> successor fund has the meaning given by subregulation 1.03(1) of the Superannuation Industry (Supervision) Regulations 1994.\n\n> superannuation fund has the same meaning as in subsection 10(1) of the Superannuation Industry (Supervision) Act 1993.\n\n> superannuation pension means a pension payable from a superannuation fund.\n\n> third party has the meaning given by section 90AB of the Family Law Act 1975.","sortOrder":4},{"sectionNumber":"5","sectionType":"section","heading":"Schedules","content":"#### 5 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.","sortOrder":5},{"sectionNumber":"Part 2","sectionType":"section","heading":"Guidelines","content":"## Part 1—Preliminary\n\n#### 1 Name\n\n This instrument is the Social Security (Asset-test Exempt Income Stream Guidelines) Determination 2025.\n\n#### 2 Commencement\n\n Each provision of this instrument specified in column 1 of the table commences, or is taken to have commenced, in accordance with column 2 of the table. Any other statement in column 2 has effect according to its terms.\n\n```html\n

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Date/Details

1. The whole of this instrument

The day after this instrument is registered.

\n```\n\n> Note: This table relates only to the provisions of this instrument as originally made. It will not be amended to deal with any later amendments of this instrument.\n\n (2) Any information in column 3 of the table is not part of this instrument. Information may be inserted in this column, or information in it may be edited, in any published version of this instrument.\n\n#### 3 Authority\n\n This instrument is made under subsections 9A(6), 9B(5) and 9BA(12) of the Social Security Act 1991.\n\n#### 4 Definitions\n\n> Note: A number of expressions used in this instrument are defined in the Act, including the following:\n\n (a) asset-test exempt income stream;\n (b) commencement day;\n (c) defined benefit income stream;\n (d) family law affected income stream;\n (e) income stream;\n (f) Secretary.\n In this instrument:\n\n> 2005 Principles means the Social Security (Partially Asset‑test Exempt Income Stream — Exemption) (FaHCSIA) Principles 2005.\n\n> 2007 Determination means the Social Security (Guidelines for Determining whether Income Stream is Asset-test Exempt) (FaCSIA) Determination 2007 (No. 1).\n\n> 2011 Determination means the Social Security (Guidelines for determining whether income stream is asset-test exempt) (DSS) Determination 2011.\n\n> 2022 Determination means the Social Security (Guidelines for Determining Whether Income Stream is Asset-test Exempt) Determination 2022.\n\n> Act means the Social Security Act 1991.\n\n> benefit fund has the meaning given by subsection 16B(1) of the Life Insurance Act 1995.\n\n> defined benefit pension has the meaning given by regulation 9.04E of the Superannuation Industry (Supervision) Regulations 1994.\n\n> dependant means a dependant mentioned in subregulation 6.21(2A) of the Superannuation Industry (Supervision) Regulations 1994.\n\n> immediate annuity means an annuity that is presently payable.\n\n> life company has the meaning given in the Dictionary to the Life Insurance Act 1995.\n\n> lifetime income stream, in relation to a person, means an income stream in which payments are made, at least annually, throughout the life of the person and, if there is a reversionary beneficiary, throughout the life of the reversionary beneficiary.\n\n> private sector fund has the same meaning as in subsection 10(1) of the Superannuation Industry (Supervision) Act 1993.\n\n> public sector fund has the same meaning as in subsection 10(1) of the Superannuation Industry (Supervision) Act 1993.\n\n> public sector superannuation scheme has the same meaning as in subsection 10(1) of the Superannuation Industry (Supervision) Act 1993.\n\n> regulated superannuation fund has the meaning given by subsection 10(1) of the Superannuation Industry (Supervision) Act 1993.\n\n> self managed superannuation fund has the meaning given by sections 17A and 17B of the Superannuation Industry (Supervision) Act 1993.\n\n> statutory fund has the meaning given by section 29 of the Life Insurance Act 1995.\n\n> sub-fund means a sub-fund within a regulated superannuation fund that is taken to be a regulated superannuation fund for the purposes of section 69A of the Superannuation Industry (Supervision) Act 1993.\n\n> successor fund has the meaning given by subregulation 1.03(1) of the Superannuation Industry (Supervision) Regulations 1994.\n\n> superannuation fund has the same meaning as in subsection 10(1) of the Superannuation Industry (Supervision) Act 1993.\n\n> superannuation pension means a pension payable from a superannuation fund.\n\n> third party has the meaning given by section 90AB of the Family Law Act 1975.\n\n#### 5 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\n#### Part 2—Guidelines\n\n#### 6 Lifetime income stream arising under a public sector fund or public sector superannuation scheme\n\n The Secretary may determine that a lifetime income stream arising under a public sector fund or a public sector superannuation scheme is an asset-test exempt income stream for the purposes of the Act if:\n (a) it is a lifetime income stream that is a defined benefit income stream; and\n (b) it is paid from a public sector fund or a public sector superannuation scheme that was established before 20 September 1998; and\n (c) regardless of its commencement day, it would have been treated as a superannuation pension and had its value disregarded in calculating the person’s assets under section 1118 of the Act as in force immediately before 20 September 1998.\n\n#### 7 Lifetime income stream arising under a private sector fund\n\n (1) The Secretary may determine that a lifetime income stream arising under a private sector fund is an asset-test exempt income stream for the purposes of the Act if:\n (a) it is a lifetime income stream that is a defined benefit income stream; and\n (b) it is paid from a private sector fund that was established before 20 September 1998; and\n (c) regardless of its commencement day, it would have been treated as a superannuation pension and had its value disregarded in calculating the person’s assets under section 1118 of the Act as in force immediately before 20 September 1998.\n (2) The private sector fund mentioned in paragraph 1(b) must have a direct connection with the previous employment of the recipient of the lifetime income stream or, in the case of a reversionary beneficiary, the person who would be the recipient had they not died.\n (3) For subsection (2), a private sector fund has a direct connection with a person’s previous employment if the lifetime income stream from the private sector fund became payable to, or in respect of, the person because of that employment.\n\n#### 8 Income stream resulting from commutation or rollover because of regulation 6.21 of Superannuation Industry (Supervision) Regulations 1994\n\n The Secretary may determine that an income stream is an asset-test exempt income stream for the purposes of the Act if:\n (a) it would have been covered by subsection 9A(1) or 9B(1) of the Act if paragraph 9A(1)(aa) or subparagraph 9B(1)(a)(i) of the Act did not apply; and\n (b) it is purchased by the primary beneficiary on or after 1 July 2007; and\n (c) it results from another asset‑test exempt income stream (the original income stream) being commuted or rolled over to comply with subregulation 6.21(2A) of the Superannuation Industry (Supervision) Regulations 1994; and\n (d) the original income stream was covered by section 9A or 9B of the Act or would have been covered by those sections if paragraph 9A(1)(aa) or subparagraph 9B(1)(a)(i) of the Act did not apply; and\n (e) the original income stream:\n (i) was purchased before 20 September 2004; or\n (ii) was covered by the 2005 Principles during the period starting on 20 September 2004 and ending at the end of 19 September 2007; or\n (iii) was covered by the 2007 Determination during the period starting on 20 September 2007 and ending at the end of 28 November 2011; or\n (iv) was covered by the 2011 Determination during the period starting on 29 November 2011 and ending at the end of 28 March 2022; or\n (v) was covered by the 2022 Determination during the period starting on 29 March 2022 and ending at the end of the day immediately prior to the commencement of this Determination; or\n (vi) is covered by this Determination.\n\n#### 9 Income stream resulting from original asset‑test exempt income stream purchased before 20 September 2004\n\n (1) The Secretary may determine that an income stream is an asset‑test exempt income stream for the purposes of the Act if:\n (a) the income stream (the present income stream) would have been covered by subsection 9A(1) or 9B(1) of the Act if paragraph 9A(1)(aa) or subparagraph 9B(1)(a)(i) of the Act did not apply; and\n (b) it is purchased by the primary beneficiary on or after 20 September 2007 from funds arising from the commutation of another asset‑test exempt income stream (the original income stream); and\n (c) the original income stream was purchased before 20 September 2004; and\n (d) the original income stream is a kind of income stream to which one of the following subsections applies.\n (2) This subsection applies to an original income stream if:\n (a) it is covered by subsection 9A(1) or (1A) or section 9B of the Act; and\n (b) it was purchased by the primary beneficiary for the benefit of the primary beneficiary and a reversionary beneficiary; and\n (c) payments made under the income stream are calculated on the basis of the life expectancy of the reversionary beneficiary; and\n (d) the reversionary beneficiary predeceases the primary beneficiary.\n (3) This subsection applies to an original income stream if:\n (a) it is covered by subsection 9A(1) or (1A) or section 9B of the Act; and\n (b) it is not an income stream to which section 12 or 13 applies; and\n (c) it is purchased by the primary beneficiary for the benefit of the primary beneficiary and a reversionary beneficiary who, at the time of the purchase, are members of a couple together; and\n (d) the primary beneficiary and reversionary beneficiary are no longer members of a couple together.\n\n> Note: Example: On 1 March 2002, J purchased an income stream (the original income stream) covered by subsection 9A(1) of the Act for the benefit of J, the primary beneficiary, and H, the reversionary beneficiary. At the time of the purchase, J and H were members of a couple together. On 1 June 2025, J and H ceased to be members of a couple together. On 15 June 2025, J commutes the original income stream and purchases another income stream (the new income stream). The new income stream is covered by this Determination and retains the 100% exemption from the social security assets test.\n\n (4) This subsection applies to an original income stream if:\n (a) it is a defined benefit pension covered by section 9A or 9B of the Act that is provided by a regulated superannuation fund; and\n (b) it is an income stream in relation to which the Secretary is not satisfied as required by paragraph 9A(1)(b) or 9B(1A)(b) of the Act.\n\n> Note: Example: On 1 March 2002, P purchased an income stream (the original income stream) that is a defined benefit pension covered by section 9A of the Act that is provided by a regulated superannuation fund. Paragraph 9A(1)(b) of the Act applies to the original income stream. On 1 July 2025, the Secretary is not satisfied that the requirements of paragraph 9A(1)(b) of the Act are met in relation to the original income stream. On 15 July 2025, P commutes the original income stream to purchase another income stream (the new income stream) that is covered by section 9A of the Act. The new income stream is covered by this Determination and retains the 100% exemption from the social security assets test.\n\n> Note: Paragraphs 9A(1)(b) and 9B(1A)(b) of the Act require the Secretary to be satisfied, in relation to an income stream, that there is in force a current actuarial certificate stating that in the actuary’s opinion there is a high probability that the provider of the income stream will be able to pay the income stream as required under the income stream’s contract or governing rules.\n\n (5) This subsection applies to an original income stream if:\n (a) it is an immediate annuity under a statutory fund established by a life company, or under a benefit fund; and\n (b) it:\n (i) is an income stream in relation to which the Secretary is not satisfied as required by paragraph 9A(1)(b) or 9B(1A)(b) of the Act; or\n (ii) fails to satisfy relevant standards published by the Australian Prudential Regulation Authority about minimum surrender values and paid up values.\n\n> Note: Paragraphs 9A(1)(b) and 9B(1A)(b) of the Act require the Secretary to be satisfied, in relation to an income stream, that there is in force a current actuarial certificate stating that in the actuary’s opinion there is a high probability that the provider of the income stream will be able to pay the income stream as required under the income stream’s contract or governing rules.\n\n#### 10 Income stream resulting from commutation of asset‑test exempt income stream purchased on or after 20 September 2004 and before 20 September 2007\n\n (1) The Secretary may determine that an income stream is an asset‑test exempt income stream for the purposes of the Act if:\n (a) the income stream (the present income stream) would have been covered by subsection 9A(1) or 9B(1) of the Act if paragraph 9A(1)(aa) or subparagraph 9B(1)(a)(i) of the Act did not apply; and\n (b) it is purchased by the primary beneficiary on or after 20 September 2007 from the commutation of an income stream that was:\n (i) covered by section 9A or 9B of the Act; and\n (ii) purchased on or after 20 September 2004 and before 20 September 2007; and\n (iii) commuted from another income stream (the original income stream); and\n (c) the original income stream was purchased before 20 September 2004; and\n (d) the original income stream is a kind of income stream to which one of the following subsections applies.\n (2) This subsection applies to an original income stream if:\n (a) it is covered by subsection 9A(1) or (1A) or section 9B of the Act; and\n (b) it was purchased by the primary beneficiary for the benefit of the primary beneficiary and a reversionary beneficiary; and\n (c) payments made under the income stream are calculated on the basis of the life expectancy of the reversionary beneficiary; and\n (d) the reversionary beneficiary predeceases the primary beneficiary.\n (3) This subsection applies to an original income stream if:\n (a) it is covered by subsection 9A(1) or (1A) or section 9B of the Act; and\n (b) it is not an income stream to which section 12 or 13 applies; and\n (c) it is purchased by the primary beneficiary for the benefit of the primary beneficiary and a reversionary beneficiary who, at the time of the purchase, are members of a couple together; and\n (d) the primary beneficiary and reversionary beneficiary are no longer members of a couple together.\n\n> Note: Example: On 1 March 2002, J purchased an income stream (the original income stream) covered by subsection 9A(1) of the Act for the benefit of J, the primary beneficiary, and H, the reversionary beneficiary. As it was purchased before 20 September 2004, the income stream has a 100% exemption from the social security assets test. At the time of the purchase, J and H were members of a couple together.\n\n> Note: On 1 June 2025, J and H ceased to be members of a couple together. On 15 June 2025, J commutes the new income stream and purchases another income stream (the further income stream) that would be covered by subsection 9A(1) of the Act if paragraph 9A(1)(aa) of the Act did not apply. The further income stream is covered by this Determination and retains the 100% exemption from the social security assets test.\n\n (4) This subsection applies to an original income stream if:\n (a) it is a defined benefit pension covered by subsection 9A(1) or 9B(1A) of the Act that is provided by a regulated superannuation fund; and\n (b) it is an income stream in relation to which the Secretary is not satisfied as required by paragraph 9A(1)(b) or 9B(1A)(b) of the Act, as applicable.\n\n> Note: Example: On 1 March 2002, P purchased an income stream (the original income stream) that is a defined benefit pension covered by section 9A of the Act and provided by a regulated superannuation fund. Paragraph 9A(1)(b) of the Act applies to the original income stream. As it was purchased before 20 September 2004, the income stream has a 100% exemption from the social security assets test.\n\n> Note: On 1 September 2025, the Secretary is not satisfied that the requirements of paragraph 9A(1)(b) of the Act are met in relation to the new income stream. On 15 September 2025, P commutes the new income stream to purchase another income stream (the further income stream) that is covered by section 9A of the Act. The further income stream is covered by this Determination and retains the 100% exemption from the social security assets test.\n\n> Note: Paragraphs 9A(1)(b) and 9B(1A)(b) of the Act require the Secretary to be satisfied, in relation to an income stream, that there is in force a current actuarial certificate stating that in the actuary’s opinion there is a high probability that the provider of the income stream will be able to pay the income stream as required under the income stream’s contract or governing rules.\n\n (5) This subsection applies to an original income stream if:\n (a) it is an immediate annuity under a statutory fund established by a life company, or under a benefit fund; and\n (b) it:\n (i) is an income stream in relation to which the Secretary is not satisfied as required by paragraph 9A(1)(b) or 9B(1A)(b) of the Act, as applicable; or\n (ii) fails to satisfy relevant standards published by the Australian Prudential Regulation Authority about minimum surrender values and paid up values.\n\n> Note: Paragraphs 9A(1)(b) and 9B(1A)(b) of the Act require the Secretary to be satisfied, in relation to an income stream, that there is in force a current actuarial certificate stating that in the actuary’s opinion there is a high probability that the provider of the income stream will be able to pay the income stream as required under the income stream’s contract or governing rules.\n\n#### 11 Income stream resulting from transfer to successor fund\n\n The Secretary may determine that an income stream is an asset‑test exempt income stream for the purposes of the Act if:\n (a) it would have been covered by subsection 9A(1) or 9B(1) of the Act if paragraph 9A(1)(aa) or subparagraph 9B(1)(a)(i) of the Act did not apply; and\n (b) it results from the transfer, on or after 20 September 2007, of another income stream (the original income stream) to a successor fund; and\n (c) the original income stream was covered by section 9A or 9B of the Act or would have been covered by those sections if paragraph 9A(1)(aa) or subparagraph 9B(1)(a)(i) of the Act did not apply; and\n (d) the original income stream was provided by a regulated superannuation fund; and\n (e) the original income stream:\n (i) was purchased before 20 September 2004; or\n (ii) was covered by the 2005 Principles during the period starting on 20 September 2004 and ending at the end of 19 September 2007; or\n (iii) was covered by the 2007 Determination during the period starting on 20 September 2007 and ending at the end of 28 November 2011; or\n (iv) was covered by the 2011 Determination during the period starting on 29 November 2011 and ending at the end of 28 March 2022; or\n (v) was covered by the 2022 Determination during the period starting on 29 March 2022 and ending at the end of the day immediately prior to the commencement of this Determination; or\n (vi) is covered by this Determination.\n\n#### 12 Income stream resulting from payment split\n\n The Secretary may determine that an income stream is an asset‑test exempt income stream for the purposes of the Act if:\n (a) it would have been covered by subsection 9A(1) or 9B(1) of the Act if paragraph 9A(1)(aa) or subparagraph 9B(1)(a)(i) of the Act did not apply; and\n (b) it is purchased or acquired by the primary beneficiary or the primary beneficiary’s partner or former partner on or after 20 September 2007; and\n (c) it results from another asset‑test exempt income stream (the original income stream) being commuted to give effect to an entitlement of the partner or former partner of the primary beneficiary in respect of the original income stream under a payment split under Part VIIIB or Part VIIIC of the Family Law Act 1975; and\n (d) the original income stream was covered by section 9A or 9B of the Act or would have been covered by those sections if paragraph 9A(1)(aa) or subparagraph 9B(1)(a)(i) of the Act did not apply; and\n (e) the original income stream:\n (i) was purchased before 20 September 2004; or\n (ii) was covered by the 2005 Principles during the period starting on 20 September 2004 and ending at the end of 19 September 2007; or\n (iii) was covered by the 2007 Determination during the period starting on 20 September 2007 and ending at the end of 28 November 2011; or\n (iv) was covered by the 2011 Determination during the period starting on 29 November 2011 and ending at the end of 28 March 2022; or\n (v) was covered by the 2022 Determination during the period starting on 29 March 2022 and ending at the end of the day immediately prior to the commencement of this Determination; or\n (vi) is covered by this Determination.\n\n> Note: Example: On 1 March 2002, P who was partnered to J at that date, purchased an income stream (the original income stream) covered by section 9A of the Act. On 1 February 2025, P and J separate. P’s original income stream is commuted to give effect to an entitlement of J in respect of the original income stream under a payment split under Part VIIIB or Part VIIIC of the Family Law Act 1975. On 15 February 2025, J uses the entitlement resulting from the payment split to purchase an income stream (the new income stream) covered by section 9A of the Act. The new income stream is covered by this Determination and retains the 100% exemption from the social security assets test.\n\n#### 13 Income stream resulting from Family Court order or injunction\n\n The Secretary may determine that an income stream is an asset‑test exempt income stream for the purposes of the Act if:\n (a) it would have been covered by subsection 9A(1) or 9B(1) of the Act if paragraph 9A(1)(aa) or subparagraph 9B(1)(a)(i) of the Act did not apply; and\n (b) it is purchased or acquired by the primary beneficiary or the primary beneficiary’s partner or former partner on or after 20 September 2007; and\n (c) it results from another asset‑test exempt income stream (the original income stream) being commuted to give effect to:\n (i) an order made under section 79, 90SM, 90SS or 114 of the Family Law Act 1975; or\n (ii) an injunction granted under section 90SS or 114 of that Act that is binding on a third party under Part VIIIAA of that Act; or\n (iii) any other order or injunction under that Act that relates specifically to the original income stream; and\n (d) the original income stream was covered by section 9A or 9B of the Act or would have been covered by those sections if paragraph 9A(1)(aa) or subparagraph 9B(1)(a)(i) of the Act did not apply; and\n (e) the original income stream:\n (i) was purchased before 20 September 2004; or\n (ii) was covered by the 2005 Principles during the period starting on 20 September 2004 and ending at the end of 19 September 2007; or\n (iii) was covered by the 2007 Determination during the period starting on 20 September 2007 and ending at the end of 28 November 2011; or\n (iv) was covered by the 2011 Determination during the period starting on 29 November 2011 and ending at the end of 28 March 2022; or\n (v) was covered by the 2022 Determination during the period starting on 29 March 2022 and ending at the end of the day immediately prior to the commencement of this Determination; or\n (vi) is covered by this Determination.\n\n> Note: Example: On 1 March 2002, J purchased an income stream (the original income stream) covered by subsection 9A(1) of the Act for the benefit of J, the primary beneficiary, and H, the reversionary beneficiary. As it was purchased before 20 September 2004, the income stream has a 100% exemption from the social security assets test. At the time of the purchase, J and H are partnered. On 1 February 2025, J and H separate. On 15 February 2025, J commutes the original income stream in response to a Family Court order and purchases another income stream (the new income stream) covered by subsection 9A(1) of the Act. The new income stream is covered by this Determination and retains the 100% exemption from the social security assets test.\n\n#### 14 Income stream resulting from payment of superannuation contributions surcharge debt\n\n The Secretary may determine that an income stream is an asset‑test exempt income stream for the purposes of the Act if:\n (a) it would have been covered by subsection 9A(1) or 9B(1) of the Act if paragraph 9A(1)(aa) or subparagraph 9B(1)(a)(i) of the Act did not apply; and\n (b) it is purchased by the primary beneficiary on or after 20 September 2007; and\n (c) it results from another asset‑test exempt income stream (the original income stream) being commuted to pay a superannuation contributions surcharge debt; and\n (d) the original income stream was covered by section 9A or 9B of the Act or would have been covered by those sections if paragraph 9A(1)(aa) or subparagraph 9B(1)(a)(i) of the Act did not apply; and\n (e) the original income stream:\n (i) was purchased before 20 September 2004; or\n (ii) was covered by the 2005 Principles during the period starting on 20 September 2004 and ending at the end of 19 September 2007; or\n (iii) was covered by the 2007 Determination during the period starting on 20 September 2007 and ending at the end of 28 November 2011; or\n (iv) was covered by the 2011 Determination during the period starting on 29 November 2011 and ending at the end of 28 March 2022; or\n (v) was covered by the 2022 Determination during the period starting on 29 March 2022 and ending at the end of the day immediately prior to the commencement of this Determination; or\n (vi) is covered by this Determination.\n\n#### 15 Income stream resulting from payment of excess contributions tax\n\n The Secretary may determine that an income stream is an asset‑test exempt income stream for the purposes of the Act if:\n (a) it would have been covered by subsection 9A(1) or 9B(1) of the Act if paragraph 9A(1)(aa) or subparagraph 9B(1)(a)(i) of the Act did not apply; and\n (b) it is purchased by the primary beneficiary on or after 20 September 2007; and\n (c) it results from another asset‑test exempt income stream (the original income stream) being commuted to pay an amount to give effect to a release authority, given in relation to the primary beneficiary, under:\n (i) former section 292-415 of the Income Tax Assessment Act 1997; or\n (ii) section 292-80C of the Income Tax (Transitional Provisions) Act 1997; and\n (d) the original income stream was covered by section 9A or 9B of the Act or would have been covered by those sections if paragraph 9A(1)(aa) or subparagraph 9B(1)(a)(i) of the Act did not apply; and\n (e) the original income stream:\n (i) was purchased before 20 September 2004; or\n (ii) was covered by the 2005 Principles during the period starting on 20 September 2004 and ending at the end of 19 September 2007; or\n (iii) was covered by the 2007 Determination during the period starting on 20 September 2007 and ending at the end of 28 November 2011; or\n (iv) was covered by the 2011 Determination during the period starting on 29 November 2011 and ending at the end of 28 March 2022; or\n (v) was covered by the 2022 Determination during the period starting on 29 March 2022 and ending at the end of the day immediately prior to the commencement of this Determination; or\n (vi) is covered by this Determination.\n\n#### 16 Income stream resulting from payment of hardship amount\n\n The Secretary may determine that an income stream is an asset‑test exempt income stream for the purposes of the Act if:\n (a) it would have been covered by subsection 9A(1) or 9B(1) of the Act if paragraph 9A(1)(aa) or subparagraph 9B(1)(a)(i) of the Act did not apply; and\n (b) it is purchased by the primary beneficiary on or after 20 September 2007; and\n (c) it results from another asset‑test exempt income stream (the original income stream) being commuted to pay a hardship amount; and\n (d) the original income stream was covered by section 9A or 9B of the Act or would have been covered by those sections if paragraph 9A(1)(aa) or subparagraph 9B(1)(a)(i) of the Act did not apply; and\n (e) the original income stream:\n (i) was purchased before 20 September 2004; or\n (ii) was covered by the 2005 Principles during the period starting on 20 September 2004 and ending at the end of 19 September 2007; or\n (iii) was covered by the 2007 Determination during the period starting on 20 September 2007 and ending at the end of 28 November 2011; or\n (iv) was covered by the 2011 Determination during the period starting on 29 November 2011 and ending at the end of 28 March 2022; or\n (v) was covered by the 2022 Determination during the period starting on 29 March 2022 and ending at the end of the day immediately prior to the commencement of this Determination; or\n (vi) is covered by this Determination.\n\n> Note: Example: On 1 March 2002, J purchased an income stream (the original income stream) covered by subsection 9A(1) of the Act for the benefit of J, the primary beneficiary, and H, the reversionary beneficiary. As it was purchased before 20 September 2004, the income stream has a 100% exemption from the social security assets test. On 3 March 2025, J commutes part of the new income stream to pay a hardship amount, and J purchases another income stream (the further income stream) from the remaining capital backing the new income stream. The further income stream is covered by this Determination and retains the 100% exemption from the social security assets test.\n\n#### 17 Income stream resulting from closure of a self managed superannuation fund\n\n The Secretary may determine that an income stream is an asset‑test exempt income stream for the purposes of the Act if:\n (a) it would have been covered by subsection 9A(1) or 9B(1) of the Act or those sections if paragraph 9A(1)(aa) or subparagraph 9B(1)(a)(i) of the Act did not apply; and\n (b) it is purchased by the primary beneficiary; and\n (c) it is not sourced from a self managed superannuation fund; and\n (d) it results from another asset‑test exempt income stream (the original income stream) being commuted as a result of the closure of a self managed superannuation fund because:\n (i) a member of the fund supporting the original income stream died; or\n (ii) the administrative responsibilities of the fund supporting the original income stream became too onerous due to the age or incapacity of a trustee; and\n (e) the original income stream was:\n (i) covered by section 9A or 9B of the Act or would have been covered by those sections if paragraph 9A(1)(aa) or subparagraph 9B(1)(a)(i) of the Act did not apply; and\n (ii) sourced from a self managed superannuation fund; and\n (f) the original income stream:\n (i) was covered by the 2005 Principles during the period starting on 20 September 2004 and ending at the end of 19 September 2007; or\n (ii) was covered by the 2007 Determination during the period starting on 20 September 2007 and ending at the end of 28 November 2011; or\n (iv) was covered by the 2011 Determination during the period starting on 29 November 2011 and ending at the end of 28 March 2022; or\n (v) was covered by the 2022 Determination during the period starting on 29 March 2022 and ending at the end of the day immediately prior to the commencement of this Determination; or\n (vi) is covered by this Determination.\n\n> Note: Example: F and W are trustees of their self managed superannuation fund. They both have lifetime asset‑test exempt income streams that were purchased on 1 July 2003 when F was 65 and W was 64. F dies on 26 January 2025. W subsequently decides that she does not have the expertise or inclination to continue as a fund trustee. W commutes her asset‑test exempt income stream and uses the proceeds to purchase from a retail income stream provider, an income stream that meets the provisions of section 9A of the Act. The new income stream is covered by this Determination and retains the 100% exemption from the social security assets test.\n\n#### 18 Income stream resulting from family law affected income stream\n\n (1) The Secretary may determine that a family law affected income stream that does not meet the requirements of subsection 9A(2) or 9B(2) of the Act is an asset-test exempt income stream for the purposes of the Act if:\n (a) either:\n (i) the income stream meets all the requirements of paragraphs 9A(2)(a) to (l) or 9B(2)(a) to (l) of the Act other than those that are not met because of the operation of an order under Part VIIIAA, or a payment split under Part VIIIB or Part VIIIC, of the Family Law Act 1975 relating to the income stream; or\n (ii) as a result of the operation of 1 or more orders under Part VIIIAA, or 1 or more payment splits under Part VIIIB or Part VIIIC, of the Family Law Act 1975, the income stream is derived from an income stream that was an asset-test exempt income stream to which subsection 9A(1A) or 9B(1B) of the Act applied at the time of the order or payment split, or of the last of them; and\n (b) the original family law affected income stream from which the income stream is derived as a result of the operation of 1 or more orders under Part VIIIAA, or 1 or more payment splits under Part VIIIB or Part VIIIC, of the Family Law Act 1975, was purchased before 20 September 2004; and\n (c) either:\n (i) for an income stream that is an immediate annuity under a statutory fund established by a life company, or under a benefit fund — the income stream satisfies standards published by the Australian Prudential Regulation Authority, about minimum surrender values and paid up values, that apply to the annuity; or\n (ii) in any other case — the income stream meets the requirements of subsection (2); and\n (d) the Secretary is satisfied that any amount of the original family law affected income stream that is rolled over, transferred, commuted or paid as a lump sum is not more than the amount required to satisfy the non-member partner’s entitlement under an order under Part VIIIAA, or under a payment split under Part VIIIB or Part VIIIC, of the Family Law Act 1975 relating to the original family law affected income stream; and\n (e) for an income stream to which subparagraph (a)(i) applies — the Secretary is satisfied that the income stream has met all the requirements mentioned in that subparagraph from the day the income stream began being paid.\n (2) An income stream meets the requirements of this subsection if:\n (a) the Secretary is satisfied that there is in force a current actuarial certificate that states that in the actuary’s opinion there is a high probability that the provider of the income stream will be able to pay the income stream as required under the contract or governing rules under which the income stream is provided; or\n (b) for a period beginning when an actuarial certificate mentioned in paragraph (a) ceases to be in force and ending not more than 26 weeks later, an actuarial certificate of that kind is not in force.\n (3) In considering the matter mentioned in paragraph (2)(a), the Secretary must have regard to any guidelines determined under subsection 9A(1B) or 9B(1D) of the Act that apply to the income stream.\n\n#### 19 Income stream that is defined benefit income stream\n\n The Secretary may determine that an income stream is an asset-test exempt income stream for the purposes of the Act if the Secretary is satisfied that:\n (a) it is a defined benefit income stream, and has been so from the day the income stream began being paid; and\n (b) if the income stream is also an original family law affected income stream — any amount of the income stream that is rolled over, transferred, commuted or paid as a lump sum is not more than the amount required to satisfy the non-member partner’s entitlement under a payment split under Part VIIIB or Part VIIIC of the Family Law Act 1975 relating to the original family law affected income stream.\n\n#### 20 Income stream resulting from the closure of a regulated superannuation fund or sub-fund\n\n The Secretary may determine that an income stream is an asset‑test exempt income stream for the purposes of the Act if:\n (a) it would have been covered by subsection 9A(1) or 9B(1) of the Act if paragraph 9A(1)(aa) or subparagraph 9B(1)(a)(i) of the Act did not apply; and\n (b) it is purchased on or after 20 September 2007; and\n (c) it results from another asset‑test exempt income stream (the original income stream) being commuted as a result of the closure of a regulated superannuation fund or sub-fund; and\n (d) it does not result from another asset‑test exempt income stream (the original income stream) being commuted as a result of the closure of a self managed superannuation fund; and\n (e) the original income stream was covered by section 9A or 9B of the Act or would have been covered by those sections if paragraph 9A(1)(aa) or subparagraph 9B(1)(a)(i) of the Act did not apply; and\n (f) the original income stream:\n (i) was purchased before 20 September 2004; or\n (ii) was covered by the 2005 Principles during the period starting on 20 September 2004 and ending at the end of 19 September 2007; or\n (iii) was covered by the 2007 Determination during the period starting on 20 September 2007 and ending at the end of 28 November 2011; or\n (iv) was covered by the 2011 Determination during the period starting on 29 November 2011 and ending at the end of 28 March 2022; or\n (v) was covered by the 2022 Determination during the period starting on 29 March 2022 and ending at the end of the day immediately prior to the commencement of this Determination; or\n (vi) is covered by this Determination.\n\n#### 21 Income stream that is a legacy product\n\n The Secretary may determine that an income stream is an asset-test exempt income stream for the purposes of the Act if:\n (a) the income stream was an asset-test exempt income stream under section 9A, 9B or 9BA of the Act immediately before the commencement of the Treasury Laws Amendment (Legacy Retirement Product Commutations and Reserves) Regulations 2024; and\n (b) the income stream complies with the requirements of subsection 9A(2), 9B(2) or 9BA(2) of the Act, except for paragraphs 9A(2)(h), 9B(2)(h) or 9BA(2)(f); and\n (c) the only reason the income stream does not comply with the requirements in paragraphs 9A(2)(h), 9B(2)(h) or 9BA(2)(f) of the Act is because the contract or governing rules allow for the income stream to be commuted in accordance with:\n (i) regulation 1.08AA of the Retirement Savings Accounts Regulations 1997; or\n (ii) regulation 1.05AA of the Superannuation Industry (Supervision) Regulations 1994; or\n (iii) regulation 1.06C of the Superannuation Industry (Supervision) Regulations 1994.\n\nSchedule 1—Repeals\n\nAsset-test Exempt Income Stream (Lifetime Income Stream Guidelines) (Social Security) Determination 2015\n\n1 The whole of the instrument\n\nRepeal the instrument\n\nSocial Security (Guidelines for Determining Whether Income Stream is Asset-test Exempt) Determination 2022\n\n2 The whole of the instrument\n\nRepeal the instrument","sortOrder":6},{"sectionNumber":"6","sectionType":"section","heading":"Lifetime income stream arising under a public sector fund or public sector superannuation scheme","content":"#### 6 Lifetime income stream arising under a public sector fund or public sector superannuation scheme\n\n The Secretary may determine that a lifetime income stream arising under a public sector fund or a public sector superannuation scheme is an asset-test exempt income stream for the purposes of the Act if:\n (a) it is a lifetime income stream that is a defined benefit income stream; and\n (b) it is paid from a public sector fund or a public sector superannuation scheme that was established before 20 September 1998; and\n (c) regardless of its commencement day, it would have been treated as a superannuation pension and had its value disregarded in calculating the person’s assets under section 1118 of the Act as in force immediately before 20 September 1998.","sortOrder":7},{"sectionNumber":"7","sectionType":"section","heading":"Lifetime income stream arising under a private sector fund","content":"#### 7 Lifetime income stream arising under a private sector fund\n\n (1) The Secretary may determine that a lifetime income stream arising under a private sector fund is an asset-test exempt income stream for the purposes of the Act if:\n (a) it is a lifetime income stream that is a defined benefit income stream; and\n (b) it is paid from a private sector fund that was established before 20 September 1998; and\n (c) regardless of its commencement day, it would have been treated as a superannuation pension and had its value disregarded in calculating the person’s assets under section 1118 of the Act as in force immediately before 20 September 1998.\n (2) The private sector fund mentioned in paragraph 1(b) must have a direct connection with the previous employment of the recipient of the lifetime income stream or, in the case of a reversionary beneficiary, the person who would be the recipient had they not died.\n (3) For subsection (2), a private sector fund has a direct connection with a person’s previous employment if the lifetime income stream from the private sector fund became payable to, or in respect of, the person because of that employment.","sortOrder":8},{"sectionNumber":"8","sectionType":"section","heading":"Income stream resulting from commutation or rollover because of regulation 6.21 of Superannuation Industry (Supervision) Regulations 1994","content":"#### 8 Income stream resulting from commutation or rollover because of regulation 6.21 of Superannuation Industry (Supervision) Regulations 1994\n\n The Secretary may determine that an income stream is an asset-test exempt income stream for the purposes of the Act if:\n (a) it would have been covered by subsection 9A(1) or 9B(1) of the Act if paragraph 9A(1)(aa) or subparagraph 9B(1)(a)(i) of the Act did not apply; and\n (b) it is purchased by the primary beneficiary on or after 1 July 2007; and\n (c) it results from another asset‑test exempt income stream (the original income stream) being commuted or rolled over to comply with subregulation 6.21(2A) of the Superannuation Industry (Supervision) Regulations 1994; and\n (d) the original income stream was covered by section 9A or 9B of the Act or would have been covered by those sections if paragraph 9A(1)(aa) or subparagraph 9B(1)(a)(i) of the Act did not apply; and\n (e) the original income stream:\n (i) was purchased before 20 September 2004; or\n (ii) was covered by the 2005 Principles during the period starting on 20 September 2004 and ending at the end of 19 September 2007; or\n (iii) was covered by the 2007 Determination during the period starting on 20 September 2007 and ending at the end of 28 November 2011; or\n (iv) was covered by the 2011 Determination during the period starting on 29 November 2011 and ending at the end of 28 March 2022; or\n (v) was covered by the 2022 Determination during the period starting on 29 March 2022 and ending at the end of the day immediately prior to the commencement of this Determination; or\n (vi) is covered by this Determination.","sortOrder":9},{"sectionNumber":"9","sectionType":"section","heading":"Income stream resulting from original asset‑test exempt income stream purchased before 20 September 2004","content":"#### 9 Income stream resulting from original asset‑test exempt income stream purchased before 20 September 2004\n\n (1) The Secretary may determine that an income stream is an asset‑test exempt income stream for the purposes of the Act if:\n (a) the income stream (the present income stream) would have been covered by subsection 9A(1) or 9B(1) of the Act if paragraph 9A(1)(aa) or subparagraph 9B(1)(a)(i) of the Act did not apply; and\n (b) it is purchased by the primary beneficiary on or after 20 September 2007 from funds arising from the commutation of another asset‑test exempt income stream (the original income stream); and\n (c) the original income stream was purchased before 20 September 2004; and\n (d) the original income stream is a kind of income stream to which one of the following subsections applies.\n (2) This subsection applies to an original income stream if:\n (a) it is covered by subsection 9A(1) or (1A) or section 9B of the Act; and\n (b) it was purchased by the primary beneficiary for the benefit of the primary beneficiary and a reversionary beneficiary; and\n (c) payments made under the income stream are calculated on the basis of the life expectancy of the reversionary beneficiary; and\n (d) the reversionary beneficiary predeceases the primary beneficiary.\n (3) This subsection applies to an original income stream if:\n (a) it is covered by subsection 9A(1) or (1A) or section 9B of the Act; and\n (b) it is not an income stream to which section 12 or 13 applies; and\n (c) it is purchased by the primary beneficiary for the benefit of the primary beneficiary and a reversionary beneficiary who, at the time of the purchase, are members of a couple together; and\n (d) the primary beneficiary and reversionary beneficiary are no longer members of a couple together.\n\n> Note: Example: On 1 March 2002, J purchased an income stream (the original income stream) covered by subsection 9A(1) of the Act for the benefit of J, the primary beneficiary, and H, the reversionary beneficiary. At the time of the purchase, J and H were members of a couple together. On 1 June 2025, J and H ceased to be members of a couple together. On 15 June 2025, J commutes the original income stream and purchases another income stream (the new income stream). The new income stream is covered by this Determination and retains the 100% exemption from the social security assets test.\n\n (4) This subsection applies to an original income stream if:\n (a) it is a defined benefit pension covered by section 9A or 9B of the Act that is provided by a regulated superannuation fund; and\n (b) it is an income stream in relation to which the Secretary is not satisfied as required by paragraph 9A(1)(b) or 9B(1A)(b) of the Act.\n\n> Note: Example: On 1 March 2002, P purchased an income stream (the original income stream) that is a defined benefit pension covered by section 9A of the Act that is provided by a regulated superannuation fund. Paragraph 9A(1)(b) of the Act applies to the original income stream. On 1 July 2025, the Secretary is not satisfied that the requirements of paragraph 9A(1)(b) of the Act are met in relation to the original income stream. On 15 July 2025, P commutes the original income stream to purchase another income stream (the new income stream) that is covered by section 9A of the Act. The new income stream is covered by this Determination and retains the 100% exemption from the social security assets test.\n\n> Note: Paragraphs 9A(1)(b) and 9B(1A)(b) of the Act require the Secretary to be satisfied, in relation to an income stream, that there is in force a current actuarial certificate stating that in the actuary’s opinion there is a high probability that the provider of the income stream will be able to pay the income stream as required under the income stream’s contract or governing rules.\n\n (5) This subsection applies to an original income stream if:\n (a) it is an immediate annuity under a statutory fund established by a life company, or under a benefit fund; and\n (b) it:\n (i) is an income stream in relation to which the Secretary is not satisfied as required by paragraph 9A(1)(b) or 9B(1A)(b) of the Act; or\n (ii) fails to satisfy relevant standards published by the Australian Prudential Regulation Authority about minimum surrender values and paid up values.\n\n> Note: Paragraphs 9A(1)(b) and 9B(1A)(b) of the Act require the Secretary to be satisfied, in relation to an income stream, that there is in force a current actuarial certificate stating that in the actuary’s opinion there is a high probability that the provider of the income stream will be able to pay the income stream as required under the income stream’s contract or governing rules.","sortOrder":10},{"sectionNumber":"10","sectionType":"section","heading":"Income stream resulting from commutation of asset‑test exempt income stream purchased on or after 20 September 2004 and before 20 September 2007","content":"#### 10 Income stream resulting from commutation of asset‑test exempt income stream purchased on or after 20 September 2004 and before 20 September 2007\n\n (1) The Secretary may determine that an income stream is an asset‑test exempt income stream for the purposes of the Act if:\n (a) the income stream (the present income stream) would have been covered by subsection 9A(1) or 9B(1) of the Act if paragraph 9A(1)(aa) or subparagraph 9B(1)(a)(i) of the Act did not apply; and\n (b) it is purchased by the primary beneficiary on or after 20 September 2007 from the commutation of an income stream that was:\n (i) covered by section 9A or 9B of the Act; and\n (ii) purchased on or after 20 September 2004 and before 20 September 2007; and\n (iii) commuted from another income stream (the original income stream); and\n (c) the original income stream was purchased before 20 September 2004; and\n (d) the original income stream is a kind of income stream to which one of the following subsections applies.\n (2) This subsection applies to an original income stream if:\n (a) it is covered by subsection 9A(1) or (1A) or section 9B of the Act; and\n (b) it was purchased by the primary beneficiary for the benefit of the primary beneficiary and a reversionary beneficiary; and\n (c) payments made under the income stream are calculated on the basis of the life expectancy of the reversionary beneficiary; and\n (d) the reversionary beneficiary predeceases the primary beneficiary.\n (3) This subsection applies to an original income stream if:\n (a) it is covered by subsection 9A(1) or (1A) or section 9B of the Act; and\n (b) it is not an income stream to which section 12 or 13 applies; and\n (c) it is purchased by the primary beneficiary for the benefit of the primary beneficiary and a reversionary beneficiary who, at the time of the purchase, are members of a couple together; and\n (d) the primary beneficiary and reversionary beneficiary are no longer members of a couple together.\n\n> Note: Example: On 1 March 2002, J purchased an income stream (the original income stream) covered by subsection 9A(1) of the Act for the benefit of J, the primary beneficiary, and H, the reversionary beneficiary. As it was purchased before 20 September 2004, the income stream has a 100% exemption from the social security assets test. At the time of the purchase, J and H were members of a couple together.\n\n> Note: On 1 June 2025, J and H ceased to be members of a couple together. On 15 June 2025, J commutes the new income stream and purchases another income stream (the further income stream) that would be covered by subsection 9A(1) of the Act if paragraph 9A(1)(aa) of the Act did not apply. The further income stream is covered by this Determination and retains the 100% exemption from the social security assets test.\n\n (4) This subsection applies to an original income stream if:\n (a) it is a defined benefit pension covered by subsection 9A(1) or 9B(1A) of the Act that is provided by a regulated superannuation fund; and\n (b) it is an income stream in relation to which the Secretary is not satisfied as required by paragraph 9A(1)(b) or 9B(1A)(b) of the Act, as applicable.\n\n> Note: Example: On 1 March 2002, P purchased an income stream (the original income stream) that is a defined benefit pension covered by section 9A of the Act and provided by a regulated superannuation fund. Paragraph 9A(1)(b) of the Act applies to the original income stream. As it was purchased before 20 September 2004, the income stream has a 100% exemption from the social security assets test.\n\n> Note: On 1 September 2025, the Secretary is not satisfied that the requirements of paragraph 9A(1)(b) of the Act are met in relation to the new income stream. On 15 September 2025, P commutes the new income stream to purchase another income stream (the further income stream) that is covered by section 9A of the Act. The further income stream is covered by this Determination and retains the 100% exemption from the social security assets test.\n\n> Note: Paragraphs 9A(1)(b) and 9B(1A)(b) of the Act require the Secretary to be satisfied, in relation to an income stream, that there is in force a current actuarial certificate stating that in the actuary’s opinion there is a high probability that the provider of the income stream will be able to pay the income stream as required under the income stream’s contract or governing rules.\n\n (5) This subsection applies to an original income stream if:\n (a) it is an immediate annuity under a statutory fund established by a life company, or under a benefit fund; and\n (b) it:\n (i) is an income stream in relation to which the Secretary is not satisfied as required by paragraph 9A(1)(b) or 9B(1A)(b) of the Act, as applicable; or\n (ii) fails to satisfy relevant standards published by the Australian Prudential Regulation Authority about minimum surrender values and paid up values.\n\n> Note: Paragraphs 9A(1)(b) and 9B(1A)(b) of the Act require the Secretary to be satisfied, in relation to an income stream, that there is in force a current actuarial certificate stating that in the actuary’s opinion there is a high probability that the provider of the income stream will be able to pay the income stream as required under the income stream’s contract or governing rules.","sortOrder":11},{"sectionNumber":"11","sectionType":"section","heading":"Income stream resulting from transfer to successor fund","content":"#### 11 Income stream resulting from transfer to successor fund\n\n The Secretary may determine that an income stream is an asset‑test exempt income stream for the purposes of the Act if:\n (a) it would have been covered by subsection 9A(1) or 9B(1) of the Act if paragraph 9A(1)(aa) or subparagraph 9B(1)(a)(i) of the Act did not apply; and\n (b) it results from the transfer, on or after 20 September 2007, of another income stream (the original income stream) to a successor fund; and\n (c) the original income stream was covered by section 9A or 9B of the Act or would have been covered by those sections if paragraph 9A(1)(aa) or subparagraph 9B(1)(a)(i) of the Act did not apply; and\n (d) the original income stream was provided by a regulated superannuation fund; and\n (e) the original income stream:\n (i) was purchased before 20 September 2004; or\n (ii) was covered by the 2005 Principles during the period starting on 20 September 2004 and ending at the end of 19 September 2007; or\n (iii) was covered by the 2007 Determination during the period starting on 20 September 2007 and ending at the end of 28 November 2011; or\n (iv) was covered by the 2011 Determination during the period starting on 29 November 2011 and ending at the end of 28 March 2022; or\n (v) was covered by the 2022 Determination during the period starting on 29 March 2022 and ending at the end of the day immediately prior to the commencement of this Determination; or\n (vi) is covered by this Determination.","sortOrder":12},{"sectionNumber":"12","sectionType":"section","heading":"Income stream resulting from payment split","content":"#### 12 Income stream resulting from payment split\n\n The Secretary may determine that an income stream is an asset‑test exempt income stream for the purposes of the Act if:\n (a) it would have been covered by subsection 9A(1) or 9B(1) of the Act if paragraph 9A(1)(aa) or subparagraph 9B(1)(a)(i) of the Act did not apply; and\n (b) it is purchased or acquired by the primary beneficiary or the primary beneficiary’s partner or former partner on or after 20 September 2007; and\n (c) it results from another asset‑test exempt income stream (the original income stream) being commuted to give effect to an entitlement of the partner or former partner of the primary beneficiary in respect of the original income stream under a payment split under Part VIIIB or Part VIIIC of the Family Law Act 1975; and\n (d) the original income stream was covered by section 9A or 9B of the Act or would have been covered by those sections if paragraph 9A(1)(aa) or subparagraph 9B(1)(a)(i) of the Act did not apply; and\n (e) the original income stream:\n (i) was purchased before 20 September 2004; or\n (ii) was covered by the 2005 Principles during the period starting on 20 September 2004 and ending at the end of 19 September 2007; or\n (iii) was covered by the 2007 Determination during the period starting on 20 September 2007 and ending at the end of 28 November 2011; or\n (iv) was covered by the 2011 Determination during the period starting on 29 November 2011 and ending at the end of 28 March 2022; or\n (v) was covered by the 2022 Determination during the period starting on 29 March 2022 and ending at the end of the day immediately prior to the commencement of this Determination; or\n (vi) is covered by this Determination.\n\n> Note: Example: On 1 March 2002, P who was partnered to J at that date, purchased an income stream (the original income stream) covered by section 9A of the Act. On 1 February 2025, P and J separate. P’s original income stream is commuted to give effect to an entitlement of J in respect of the original income stream under a payment split under Part VIIIB or Part VIIIC of the Family Law Act 1975. On 15 February 2025, J uses the entitlement resulting from the payment split to purchase an income stream (the new income stream) covered by section 9A of the Act. The new income stream is covered by this Determination and retains the 100% exemption from the social security assets test.","sortOrder":13},{"sectionNumber":"13","sectionType":"section","heading":"Income stream resulting from Family Court order or injunction","content":"#### 13 Income stream resulting from Family Court order or injunction\n\n The Secretary may determine that an income stream is an asset‑test exempt income stream for the purposes of the Act if:\n (a) it would have been covered by subsection 9A(1) or 9B(1) of the Act if paragraph 9A(1)(aa) or subparagraph 9B(1)(a)(i) of the Act did not apply; and\n (b) it is purchased or acquired by the primary beneficiary or the primary beneficiary’s partner or former partner on or after 20 September 2007; and\n (c) it results from another asset‑test exempt income stream (the original income stream) being commuted to give effect to:\n (i) an order made under section 79, 90SM, 90SS or 114 of the Family Law Act 1975; or\n (ii) an injunction granted under section 90SS or 114 of that Act that is binding on a third party under Part VIIIAA of that Act; or\n (iii) any other order or injunction under that Act that relates specifically to the original income stream; and\n (d) the original income stream was covered by section 9A or 9B of the Act or would have been covered by those sections if paragraph 9A(1)(aa) or subparagraph 9B(1)(a)(i) of the Act did not apply; and\n (e) the original income stream:\n (i) was purchased before 20 September 2004; or\n (ii) was covered by the 2005 Principles during the period starting on 20 September 2004 and ending at the end of 19 September 2007; or\n (iii) was covered by the 2007 Determination during the period starting on 20 September 2007 and ending at the end of 28 November 2011; or\n (iv) was covered by the 2011 Determination during the period starting on 29 November 2011 and ending at the end of 28 March 2022; or\n (v) was covered by the 2022 Determination during the period starting on 29 March 2022 and ending at the end of the day immediately prior to the commencement of this Determination; or\n (vi) is covered by this Determination.\n\n> Note: Example: On 1 March 2002, J purchased an income stream (the original income stream) covered by subsection 9A(1) of the Act for the benefit of J, the primary beneficiary, and H, the reversionary beneficiary. As it was purchased before 20 September 2004, the income stream has a 100% exemption from the social security assets test. At the time of the purchase, J and H are partnered. On 1 February 2025, J and H separate. On 15 February 2025, J commutes the original income stream in response to a Family Court order and purchases another income stream (the new income stream) covered by subsection 9A(1) of the Act. The new income stream is covered by this Determination and retains the 100% exemption from the social security assets test.","sortOrder":14},{"sectionNumber":"14","sectionType":"section","heading":"Income stream resulting from payment of superannuation contributions surcharge debt","content":"#### 14 Income stream resulting from payment of superannuation contributions surcharge debt\n\n The Secretary may determine that an income stream is an asset‑test exempt income stream for the purposes of the Act if:\n (a) it would have been covered by subsection 9A(1) or 9B(1) of the Act if paragraph 9A(1)(aa) or subparagraph 9B(1)(a)(i) of the Act did not apply; and\n (b) it is purchased by the primary beneficiary on or after 20 September 2007; and\n (c) it results from another asset‑test exempt income stream (the original income stream) being commuted to pay a superannuation contributions surcharge debt; and\n (d) the original income stream was covered by section 9A or 9B of the Act or would have been covered by those sections if paragraph 9A(1)(aa) or subparagraph 9B(1)(a)(i) of the Act did not apply; and\n (e) the original income stream:\n (i) was purchased before 20 September 2004; or\n (ii) was covered by the 2005 Principles during the period starting on 20 September 2004 and ending at the end of 19 September 2007; or\n (iii) was covered by the 2007 Determination during the period starting on 20 September 2007 and ending at the end of 28 November 2011; or\n (iv) was covered by the 2011 Determination during the period starting on 29 November 2011 and ending at the end of 28 March 2022; or\n (v) was covered by the 2022 Determination during the period starting on 29 March 2022 and ending at the end of the day immediately prior to the commencement of this Determination; or\n (vi) is covered by this Determination.","sortOrder":15},{"sectionNumber":"15","sectionType":"section","heading":"Income stream resulting from payment of excess contributions tax","content":"#### 15 Income stream resulting from payment of excess contributions tax\n\n The Secretary may determine that an income stream is an asset‑test exempt income stream for the purposes of the Act if:\n (a) it would have been covered by subsection 9A(1) or 9B(1) of the Act if paragraph 9A(1)(aa) or subparagraph 9B(1)(a)(i) of the Act did not apply; and\n (b) it is purchased by the primary beneficiary on or after 20 September 2007; and\n (c) it results from another asset‑test exempt income stream (the original income stream) being commuted to pay an amount to give effect to a release authority, given in relation to the primary beneficiary, under:\n (i) former section 292-415 of the Income Tax Assessment Act 1997; or\n (ii) section 292-80C of the Income Tax (Transitional Provisions) Act 1997; and\n (d) the original income stream was covered by section 9A or 9B of the Act or would have been covered by those sections if paragraph 9A(1)(aa) or subparagraph 9B(1)(a)(i) of the Act did not apply; and\n (e) the original income stream:\n (i) was purchased before 20 September 2004; or\n (ii) was covered by the 2005 Principles during the period starting on 20 September 2004 and ending at the end of 19 September 2007; or\n (iii) was covered by the 2007 Determination during the period starting on 20 September 2007 and ending at the end of 28 November 2011; or\n (iv) was covered by the 2011 Determination during the period starting on 29 November 2011 and ending at the end of 28 March 2022; or\n (v) was covered by the 2022 Determination during the period starting on 29 March 2022 and ending at the end of the day immediately prior to the commencement of this Determination; or\n (vi) is covered by this Determination.","sortOrder":16},{"sectionNumber":"16","sectionType":"section","heading":"Income stream resulting from payment of hardship amount","content":"#### 16 Income stream resulting from payment of hardship amount\n\n The Secretary may determine that an income stream is an asset‑test exempt income stream for the purposes of the Act if:\n (a) it would have been covered by subsection 9A(1) or 9B(1) of the Act if paragraph 9A(1)(aa) or subparagraph 9B(1)(a)(i) of the Act did not apply; and\n (b) it is purchased by the primary beneficiary on or after 20 September 2007; and\n (c) it results from another asset‑test exempt income stream (the original income stream) being commuted to pay a hardship amount; and\n (d) the original income stream was covered by section 9A or 9B of the Act or would have been covered by those sections if paragraph 9A(1)(aa) or subparagraph 9B(1)(a)(i) of the Act did not apply; and\n (e) the original income stream:\n (i) was purchased before 20 September 2004; or\n (ii) was covered by the 2005 Principles during the period starting on 20 September 2004 and ending at the end of 19 September 2007; or\n (iii) was covered by the 2007 Determination during the period starting on 20 September 2007 and ending at the end of 28 November 2011; or\n (iv) was covered by the 2011 Determination during the period starting on 29 November 2011 and ending at the end of 28 March 2022; or\n (v) was covered by the 2022 Determination during the period starting on 29 March 2022 and ending at the end of the day immediately prior to the commencement of this Determination; or\n (vi) is covered by this Determination.\n\n> Note: Example: On 1 March 2002, J purchased an income stream (the original income stream) covered by subsection 9A(1) of the Act for the benefit of J, the primary beneficiary, and H, the reversionary beneficiary. As it was purchased before 20 September 2004, the income stream has a 100% exemption from the social security assets test. On 3 March 2025, J commutes part of the new income stream to pay a hardship amount, and J purchases another income stream (the further income stream) from the remaining capital backing the new income stream. The further income stream is covered by this Determination and retains the 100% exemption from the social security assets test.","sortOrder":17},{"sectionNumber":"17","sectionType":"section","heading":"Income stream resulting from closure of a self managed superannuation fund","content":"#### 17 Income stream resulting from closure of a self managed superannuation fund\n\n The Secretary may determine that an income stream is an asset‑test exempt income stream for the purposes of the Act if:\n (a) it would have been covered by subsection 9A(1) or 9B(1) of the Act or those sections if paragraph 9A(1)(aa) or subparagraph 9B(1)(a)(i) of the Act did not apply; and\n (b) it is purchased by the primary beneficiary; and\n (c) it is not sourced from a self managed superannuation fund; and\n (d) it results from another asset‑test exempt income stream (the original income stream) being commuted as a result of the closure of a self managed superannuation fund because:\n (i) a member of the fund supporting the original income stream died; or\n (ii) the administrative responsibilities of the fund supporting the original income stream became too onerous due to the age or incapacity of a trustee; and\n (e) the original income stream was:\n (i) covered by section 9A or 9B of the Act or would have been covered by those sections if paragraph 9A(1)(aa) or subparagraph 9B(1)(a)(i) of the Act did not apply; and\n (ii) sourced from a self managed superannuation fund; and\n (f) the original income stream:\n (i) was covered by the 2005 Principles during the period starting on 20 September 2004 and ending at the end of 19 September 2007; or\n (ii) was covered by the 2007 Determination during the period starting on 20 September 2007 and ending at the end of 28 November 2011; or\n (iv) was covered by the 2011 Determination during the period starting on 29 November 2011 and ending at the end of 28 March 2022; or\n (v) was covered by the 2022 Determination during the period starting on 29 March 2022 and ending at the end of the day immediately prior to the commencement of this Determination; or\n (vi) is covered by this Determination.\n\n> Note: Example: F and W are trustees of their self managed superannuation fund. They both have lifetime asset‑test exempt income streams that were purchased on 1 July 2003 when F was 65 and W was 64. F dies on 26 January 2025. W subsequently decides that she does not have the expertise or inclination to continue as a fund trustee. W commutes her asset‑test exempt income stream and uses the proceeds to purchase from a retail income stream provider, an income stream that meets the provisions of section 9A of the Act. The new income stream is covered by this Determination and retains the 100% exemption from the social security assets test.","sortOrder":18},{"sectionNumber":"18","sectionType":"section","heading":"Income stream resulting from family law affected income stream","content":"#### 18 Income stream resulting from family law affected income stream\n\n (1) The Secretary may determine that a family law affected income stream that does not meet the requirements of subsection 9A(2) or 9B(2) of the Act is an asset-test exempt income stream for the purposes of the Act if:\n (a) either:\n (i) the income stream meets all the requirements of paragraphs 9A(2)(a) to (l) or 9B(2)(a) to (l) of the Act other than those that are not met because of the operation of an order under Part VIIIAA, or a payment split under Part VIIIB or Part VIIIC, of the Family Law Act 1975 relating to the income stream; or\n (ii) as a result of the operation of 1 or more orders under Part VIIIAA, or 1 or more payment splits under Part VIIIB or Part VIIIC, of the Family Law Act 1975, the income stream is derived from an income stream that was an asset-test exempt income stream to which subsection 9A(1A) or 9B(1B) of the Act applied at the time of the order or payment split, or of the last of them; and\n (b) the original family law affected income stream from which the income stream is derived as a result of the operation of 1 or more orders under Part VIIIAA, or 1 or more payment splits under Part VIIIB or Part VIIIC, of the Family Law Act 1975, was purchased before 20 September 2004; and\n (c) either:\n (i) for an income stream that is an immediate annuity under a statutory fund established by a life company, or under a benefit fund — the income stream satisfies standards published by the Australian Prudential Regulation Authority, about minimum surrender values and paid up values, that apply to the annuity; or\n (ii) in any other case — the income stream meets the requirements of subsection (2); and\n (d) the Secretary is satisfied that any amount of the original family law affected income stream that is rolled over, transferred, commuted or paid as a lump sum is not more than the amount required to satisfy the non-member partner’s entitlement under an order under Part VIIIAA, or under a payment split under Part VIIIB or Part VIIIC, of the Family Law Act 1975 relating to the original family law affected income stream; and\n (e) for an income stream to which subparagraph (a)(i) applies — the Secretary is satisfied that the income stream has met all the requirements mentioned in that subparagraph from the day the income stream began being paid.\n (2) An income stream meets the requirements of this subsection if:\n (a) the Secretary is satisfied that there is in force a current actuarial certificate that states that in the actuary’s opinion there is a high probability that the provider of the income stream will be able to pay the income stream as required under the contract or governing rules under which the income stream is provided; or\n (b) for a period beginning when an actuarial certificate mentioned in paragraph (a) ceases to be in force and ending not more than 26 weeks later, an actuarial certificate of that kind is not in force.\n (3) In considering the matter mentioned in paragraph (2)(a), the Secretary must have regard to any guidelines determined under subsection 9A(1B) or 9B(1D) of the Act that apply to the income stream.","sortOrder":19},{"sectionNumber":"19","sectionType":"section","heading":"Income stream that is defined benefit income stream","content":"#### 19 Income stream that is defined benefit income stream\n\n The Secretary may determine that an income stream is an asset-test exempt income stream for the purposes of the Act if the Secretary is satisfied that:\n (a) it is a defined benefit income stream, and has been so from the day the income stream began being paid; and\n (b) if the income stream is also an original family law affected income stream — any amount of the income stream that is rolled over, transferred, commuted or paid as a lump sum is not more than the amount required to satisfy the non-member partner’s entitlement under a payment split under Part VIIIB or Part VIIIC of the Family Law Act 1975 relating to the original family law affected income stream.","sortOrder":20},{"sectionNumber":"20","sectionType":"section","heading":"Income stream resulting from the closure of a regulated superannuation fund or sub-fund","content":"#### 20 Income stream resulting from the closure of a regulated superannuation fund or sub-fund\n\n The Secretary may determine that an income stream is an asset‑test exempt income stream for the purposes of the Act if:\n (a) it would have been covered by subsection 9A(1) or 9B(1) of the Act if paragraph 9A(1)(aa) or subparagraph 9B(1)(a)(i) of the Act did not apply; and\n (b) it is purchased on or after 20 September 2007; and\n (c) it results from another asset‑test exempt income stream (the original income stream) being commuted as a result of the closure of a regulated superannuation fund or sub-fund; and\n (d) it does not result from another asset‑test exempt income stream (the original income stream) being commuted as a result of the closure of a self managed superannuation fund; and\n (e) the original income stream was covered by section 9A or 9B of the Act or would have been covered by those sections if paragraph 9A(1)(aa) or subparagraph 9B(1)(a)(i) of the Act did not apply; and\n (f) the original income stream:\n (i) was purchased before 20 September 2004; or\n (ii) was covered by the 2005 Principles during the period starting on 20 September 2004 and ending at the end of 19 September 2007; or\n (iii) was covered by the 2007 Determination during the period starting on 20 September 2007 and ending at the end of 28 November 2011; or\n (iv) was covered by the 2011 Determination during the period starting on 29 November 2011 and ending at the end of 28 March 2022; or\n (v) was covered by the 2022 Determination during the period starting on 29 March 2022 and ending at the end of the day immediately prior to the commencement of this Determination; or\n (vi) is covered by this Determination.","sortOrder":21},{"sectionNumber":"21","sectionType":"section","heading":"Income stream that is a legacy product","content":"#### 21 Income stream that is a legacy product\n\n The Secretary may determine that an income stream is an asset-test exempt income stream for the purposes of the Act if:\n (a) the income stream was an asset-test exempt income stream under section 9A, 9B or 9BA of the Act immediately before the commencement of the Treasury Laws Amendment (Legacy Retirement Product Commutations and Reserves) Regulations 2024; and\n (b) the income stream complies with the requirements of subsection 9A(2), 9B(2) or 9BA(2) of the Act, except for paragraphs 9A(2)(h), 9B(2)(h) or 9BA(2)(f); and\n (c) the only reason the income stream does not comply with the requirements in paragraphs 9A(2)(h), 9B(2)(h) or 9BA(2)(f) of the Act is because the contract or governing rules allow for the income stream to be commuted in accordance with:\n (i) regulation 1.08AA of the Retirement Savings Accounts Regulations 1997; or\n (ii) regulation 1.05AA of the Superannuation Industry (Supervision) Regulations 1994; or\n (iii) regulation 1.06C of the Superannuation Industry (Supervision) Regulations 1994.\n\nSchedule 1—Repeals\n\nAsset-test Exempt Income Stream (Lifetime Income Stream Guidelines) (Social Security) Determination 2015\n\n1 The whole of the instrument\n\nRepeal the instrument\n\nSocial Security (Guidelines for Determining Whether Income Stream is Asset-test Exempt) Determination 2022\n\n2 The whole of the instrument\n\nRepeal the instrument","sortOrder":22}],"analysis":{"kimi_summary":{"_metrics":{"provider":"moonshot","completionTokens":2768},"content_quality":"ok","complexity_score":8,"scope_assessment":{"changed":false,"description":"The Determination consolidates and replaces the 2015 and 2022 Determinations without materially expanding the scope. It maintains the established framework of providing discretionary exemptions for transitional and exceptional circumstances (rollovers, commutations, family law splits). The only substantive update is Section 21, which accommodates the 2024 Legacy Retirement Product Commutations reforms—an incremental evolution rather than a scope expansion. The core purpose (preserving asset-test exempt status for specific grandfathered and transitional income streams) remains unchanged."},"complexity_factors":["20+ defined terms importing definitions from four separate statutes (Social Security Act 1991, Superannuation Industry (Supervision) Act 1993, Life Insurance Act 1995, Family Law Act 1975)","Multiple temporal cutoff dates creating layered eligibility (pre-20 September 1998, pre-20 September 2004, 20 September 2004–2007, post-1 July 2007, post-20 September 2007)","Extensive nested conditional logic, particularly in Sections 9 and 10 where subsections (2)–(5) create parallel but distinct pathways based on beneficiary death, relationship breakdown, or actuarial certificate failure","Double and triple cross-referencing to repealed or superseded instruments (2005 Principles, 2007/2011/2022 Determinations) requiring historical legislative knowledge","Family law interaction complexity involving Part VIIIB, VIIIC, and VIIIAA of the Family Law Act 1975 with specific constraints on payment splits and non-member entitlements","Regulatory references to APRA standards and SIS Regulations (particularly reg 6.21 and 9.04E) creating external compliance dependencies","Section 18’s bifurcated test structure combining actuarial certification requirements with 26-week grace period exceptions"],"plain_english_summary":"**What this is:** This Determination sets the rules for when the government (Centrelink) will **ignore the value of your superannuation pension or annuity** when calculating whether you qualify for the Age Pension or other social security payments.\n\nNormally, Centrelink counts your super balance as an asset. If you have too many assets, your pension gets reduced or cut off. However, some older super arrangements are **\"asset-test exempt\"**—meaning Centrelink pretends that money doesn't exist when doing the sums. This document explains when the Secretary can grant that exemption.\n\n**Who it affects:**\n- **Older public sector and private sector workers** with lifetime defined benefit pensions from funds established before 1998\n- **People with \"grandfathered\" income streams** bought before September 2004 who need to roll them over or commute them (cash them in) due to specific life events\n- **Couples separating or divorcing** who are splitting super pensions under Family Court orders\n- **People closing self-managed super funds (SMSFs)** due to death of a member or incapacity of a trustee\n- **Anyone with \"legacy\" retirement products** affected by recent 2024 regulatory changes\n\n**What it covers:**\nThe guidelines protect your asset-test exempt status when:\n- You transfer your pension to a **successor fund** (Section 11)\n- Your super fund closes down (Sections 17, 20)\n- You commute your pension to pay **tax debts, surcharge debts, or hardship amounts** (Sections 14–16)\n- A **reversionary beneficiary** (the person who inherits your pension) dies, or you separate from a partner who was your reversionary beneficiary (Sections 9–10)\n- Family law splits occur—ensuring ex-partners don't lose exemption status when dividing assets (Sections 12–13, 18)\n- You hold certain **defined benefit pensions** that have existed since the start date (Section 19)\n\n**Why it matters:** Without these rules, changing your super arrangements (even for reasons beyond your control, like a fund closing or a divorce) could cost you thousands in pension payments because the new income stream would suddenly count as an asset. This Determination ensures that if you had an exempt income stream under the old rules, you can keep that protection when moving to a new one—provided you meet the specific conditions."},"flash_summary":{"complexity_score":8,"scope_assessment":{"changed":false,"description":"This instrument largely consolidates, preserves and clarifies existing rules and transitional arrangements rather than expanding the policy’s reach. It replaces the 2015 and 2022 Determinations (Schedule 1) and carries forward multiple grandfathering pathways (commutations, transfers, family law splits, fund closures, legacy products) that preserve historically exempt status for specified retirement income products. The only substantive additions are technical clarifications and an explicit \"legacy product\" provision (s 21) tied to the Treasury Laws Amendment (Legacy Retirement Product Commutations and Reserves) Regulations 2024; these preserve exemptions for products affected by that 2024 regulatory change rather than enlarging the core exemption policy. Overall, the scope remains consistent with the original purpose of maintaining grandfathered exemptions and managing transitions."},"complexity_factors":["Extensive cross‑references to the Social Security Act 1991 (sections 9A, 9B, 9BA) and to multiple prior instruments (2005 Principles, 2007 Determination, 2011 Determination, 2022 Determination)","Multiple historical cut‑off dates and timing conditions (e.g. 20 Sep 1998; 20 Sep 2004; 20 Sep 2007; 1 July 2007) repeated across provisions","Large number of conditional pathways: commutation, rollover, transfer to successor fund, payment split, Family Court order/injunction, superannuation surcharge/excess contributions, hardship payments, SMSF closure, legacy product rules (s 8–21)","Nested eligibility tests and exceptions (for example, original income stream must be of particular types and satisfy multiple subsidiary conditions in s 9–10)","Secretary discretion and evidentiary thresholds (frequent requirement that the Secretary be satisfied about actuarial certificates or APRA standards)","Multiple defined terms and external statutory definitions invoked (definitions section plus cross‑references to SIS Regulations, Life Insurance Act, Family Law Act)","Repeal and consolidation of earlier instruments (Schedule 1) requiring transitional reading across three instruments historically","Examples embedded in several provisions that illustrate but also add interpretive nuance (increases interpretive workload)"],"plain_english_summary":"**What this instrument does (mechanical change first)**\n\n- This Determination gives the Secretary of the Department of Social Services a set of rules to decide when particular retirement income streams (pensions, annuities and similar products) are to be treated as *asset-test exempt income streams* for social security purposes (see Part 2; in particular sections 6–21). \"Asset-test exempt\" means the asset-test used to assess social security eligibility does not count the value of that income stream.\n- It repeals and replaces earlier guidelines (see Schedule 1): the 2015 Lifetime Income Stream Guidelines and the 2022 Determination. Those instruments are expressly repealed (Schedule 1).\n\n**Who is directly affected**\n\n- Individuals who receive, or who will receive, retirement income streams (defined benefit pensions, lifetime income streams, annuities, and legacy superannuation pensions).\n- Superannuation funds and sub-funds (public sector, private sector, regulated funds, self-managed superannuation funds (SMSFs)), life insurance companies and statutory/benefit funds that provide those income streams.\n- People involved in family law splits of superannuation (partners/former partners subject to payment splits or Family Court orders).\n- Income-stream providers that must supply actuarial certificates and supporting documentation when solvency or prudential standards are relevant.\n\n**Core rules, in plain terms (key sections cited)**\n\n- The Secretary may treat a lifetime defined benefit income stream from a public or private sector fund established before 20 September 1998 as asset-test exempt if it would historically have been treated as a superannuation pension (s 6–7).\n- The Determination preserves exemptions when an asset-test exempt income stream is commuted, rolled over, transferred, split under family law, transferred to a successor fund, or re-purchased following fund closure, provided specific timing and origin conditions are met (see s 8–17, 20). Many paragraphs require the original income stream to have been purchased before 20 September 2004 or to have been covered under a named earlier guideline for particular periods (s 8(e), 9(d), 10(c), 11(e), etc.).\n- Family-law related conversions (payment splits, court orders, injunctions, Part VIIIAA/VIIIB/VIIIC) are captured where the new income stream derives from an originally exempt product and certain conditions hold (s 12–13, 18).\n- The Secretary must be satisfied about provider solvency in several circumstances: many provisions refer to paragraph 9A(1)(b) or 9B(1A)(b) of the Act, which require a current actuarial certificate showing a high probability the provider can meet payments; where that certificate is missing the Determination sets out transitional tolerances in some cases (s 9(4)–(5), s 18(2)).\n- A specific category for \"legacy products\" preserves asset-test exemption for products that were exempt immediately before the 2024 Treasury Regulations change, even if they now fail limited technical requirements because their contracts allow certain commutations (s 21).\n\n**Why it matters (purpose claims and practical tests)**\n\n- The instrument’s stated purpose is to set out consistent guidelines for continuing to treat certain old and converted retirement income products as asset-test exempt (this is explicit in the instrument). That preserves historical exemptions (grandfathering) and manages transitions when products move between providers, funds close, or family law splits occur (see s 6–21 and Schedule 1).\n\n- Cost and incentives: treating an income stream as asset-test exempt typically increases a recipient’s chance of higher social security payments (by excluding the stream’s capital from the assets test). The fiscal cost is borne by taxpayers through the social security system; the Determination does not itself create payments but affects eligibility calculations. Providers and funds face compliance costs (documentation, actuarial certificates) and may need to redesign offerings or record-keeping to preserve clients’ exempt status (see references to actuarial certificates in s 9(4), s 18(2)).\n\n- Trade-offs and risks:\n - Administrative discretion: many provisions use the Secretary’s discretion (“may determine”) and tie outcomes to the Secretary being satisfied about actuarial certificates or compliance with prudential standards (e.g. s 9(4)–(5), s 18(2)–(3)). That creates case-by-case decision-making which can increase administrative load and create uncertainty for claimants and providers.\n - Complexity and timing: multiple historical date cut‑offs and cross‑references to earlier instruments and other legislation (Social Security Act, SIS Regulations, Family Law Act) increase legal and operational complexity (see s 4 definitions and repeated date conditions in s 6–21).\n - Behavioural effects: individuals and advisers may be incentivised to commute, transfer or re-purchase income streams (or choose particular providers/products) to retain exemption status; funds and product designers may respond by offering products structured to satisfy these guidelines.\n\n**Who pays and who decides**\n\n- Who decides: the Secretary (the Department of Social Services) exercises the decision power under multiple provisions (see s 6–21); the instrument is made under subsections 9A(6), 9B(5) and 9BA(12) of the Social Security Act 1991 (s 3).\n- Who pays: any change in social security eligibility arising from these exemptions affects public expenditure (taxpayers). Private parties (funds, life companies) may incur compliance costs; individuals may face transaction costs when commutations, transfers or replacement purchases are undertaken.\n\n**Implementation and compliance burden**\n\n- Implementation requires the Department to interpret numerous historical-labelling rules and to check actuarial certificates and prudential compliance in many cases. Providers must maintain or supply actuarial evidence and records of product provenance and dates (s 4 definitions, s 9(4), s 18(2)).\n\n**Net effect**\n\n- The Determination primarily preserves and clarifies existing grandfathered exemptions and transitional arrangements for legacy retirement products, while consolidating earlier instruments and setting detailed pathways (commutation, rollover, transfer, family law splits, fund closures) under which new or replacement income streams can retain asset-test exemption (see Part 2, s 6–21; Schedule 1)."},"summary":{"content_quality":"ok","complexity_score":5,"scope_assessment":{"changed":true,"description":"This determination repeals the Social Security (Asset-test Exempt Income Stream (Lifetime Income Stream Guidelines)) Determination 2015 and the Social Security (Guidelines for Determining Whether Income Stream is Asset-test Exempt) Determination 2022, and issues new consolidated guidelines for the Secretary to decide asset-test exempt status of income streams."},"complexity_factors":["Numerous legislative cross-references to the Social Security Act, Superannuation Industry (Supervision) Act and Regulations, Life Insurance Act, Family Law Act, and Income Tax Assessment Act.","Extremely detailed transitional provisions with multiple alternative date windows (pre-20 September 2004, 2004-2007 periods, and specific cut-off dates for successive prior determinations).","Highly technical terms including defined benefit income stream, family law affected income stream, reversionary beneficiary, commutation, payment split, successor fund, and statutory fund.","Interplay between superannuation law, family law, and social security means-testing rules.","Consolidation of multiple previous guidelines while preserving all historical exemption pathways."],"plain_english_summary":"This determination tells the Secretary when a superannuation income stream remains fully exempt from the social security assets test after an older, grandfathered exempt income stream is commuted and used to buy a new one. It preserves the exemption where commutation occurs for specific permitted reasons, and consolidates prior guidance into a single instrument.\n\nWho it affects: social security claimants with legacy exempt income streams, plus financial advisers and trustees administering them — because losing the exemption can raise assessable assets and reduce payments."},"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"}},"importantCases":[],"_links":{"self":"/api/acts/social-security-asset-test-exempt-income-stream-guidelines-determination-2025","history":"/api/acts/social-security-asset-test-exempt-income-stream-guidelines-determination-2025/history","analysis":"/api/acts/social-security-asset-test-exempt-income-stream-guidelines-determination-2025/analysis","conflicts":"/api/acts/social-security-asset-test-exempt-income-stream-guidelines-determination-2025/conflicts","importantCases":"/api/acts/social-security-asset-test-exempt-income-stream-guidelines-determination-2025/important-cases","documents":"/api/acts/social-security-asset-test-exempt-income-stream-guidelines-determination-2025/documents"}}