{"id":"F2019L00393","name":"Social Security (Financial Investment) (Requirements for Annuity Contracts) Determination 2019","slug":"social-security-financial-investment-requirements-for-annuity-contracts-determination-2019","collection":"legislative_instrument","jurisdiction":"commonwealth","status":"in_force","isInForce":true,"actNumber":null,"makingDate":null,"administeringDepartment":null,"currentVersion":{"id":98986,"registerId":"commonwealth-F2019L00393-current","compilationNumber":null,"startDate":"2026-04-02","status":"InForce","reasons":null,"registeredAt":null},"sections":[{"sectionNumber":"1","sectionType":"section","heading":"Social Security (Financial Investment) (Requirements for Annuity Contracts) Determination 2019","content":"![](image.001.jpeg)\n\nSocial Security (Financial Investment) (Requirements for Annuity Contracts) Determination 2019\n\nI, Paul Fletcher, Minister for Families and Social Services, make the following Determination.\n\nDated 16 March 2019\n\nPaul Fletcher\n\nMinister for Families and Social Services\n\n1 Name\n\nThis instrument is the Social Security (Financial Investment) (Requirements for Annuity Contracts) Determination 2019.\n\n2 Commencement\n\nThis instrument commences on the day after it is registered.\n\n3 Authority\n\nThis instrument is made under subsection 9(1EA) of the Social Security Act 1991.\n\n4 Definitions\n\nIn this instrument:\n\nAct means the Social Security Act 1991.\n\nSIS Regulations means the Superannuation Industry (Supervision) Regulations 1994.\n\n5 Requirements\n\nFor paragraph (j) of the definition of financial investment in subsection 9(1) of the Act, the requirements are the standards mentioned in:\n\n(a) subregulation 1.05(4) of the SIS Regulations; or\n\n(b) subregulation 1.05(11A) of the SIS Regulations.\n\nNote: If an asset-tested income stream (long term) that is an annuity (within the meaning of Superannuation Industry (Supervision) Act 1993) is provided under a contract that meets the requirements in either paragraph 5(a) or (b), that asset-tested income stream (long term) is a financial investment under subsection 9(1) of the Act.","sortOrder":0}],"analysis":{"kimi_summary":{"content_quality":"ok","complexity_score":2,"scope_assessment":{"changed":false,"description":"This Determination performs a narrow, technical function exactly as intended. It creates a legislative mechanism to specify which annuity standards satisfy the Social Security Act's definition of 'financial investment'. The scope remains tightly confined to this specific purpose with no expansion beyond the original intent."},"complexity_factors":["Extremely short instrument (only 5 sections, approximately 200 words)","Only 2 defined terms ('Act' and 'SIS Regulations')","No conditional logic or exceptions","Single operative provision (section 5) that simply cross-references two external regulations","No internal cross-references or nested structures","Purpose is purely mechanical: creating a legislative hook to import external standards"],"plain_english_summary":"This Determination prescribes the technical rules annuity contracts must meet to be treated as \"financial investments\" for Centrelink purposes. It links annuity contracts to two specific SIS Regulation standards—one for lifetime annuities and one for certain term annuities—so meeting either means Centrelink applies financial‑investment treatment rather than different asset/income testing.\n\nIt affects Centrelink clients with annuities, annuity providers, and Centrelink decision‑makers because the classification can change payment entitlements."},"flash_summary":{"complexity_score":3,"scope_assessment":{"changed":false,"description":"This instrument clarifies which annuity contracts satisfy paragraph (j) of the Social Security Act definition of ‘financial investment’ by specifying SIS Regulation standards (clause 5). It does not create new categories of annuities beyond those covered by the referenced SIS Regulations; it declares qualifying contracts will be treated as asset‑tested income streams (see clause 5 and Note)."},"complexity_factors":["Short, single-purpose instrument with few provisions (clauses 1–5) — low text complexity.","Relies on cross-reference to external regulatory standards (SIS Regulations subregs 1.05(4) and 1.05(11A)) which requires reading another instrument to apply the rule (see clause 5).","Legal effect interacts with the Social Security Act’s means‑testing regime and the definition of ‘financial investment’ (authority: clause 3; operative rule: clause 5 and Note).","Limited administrative discretion — Ministerial determination under s9(1EA) fixes the qualifying standard rather than delegating further decision‑making (clauses 3 and 5).","Implementation requires departmental adjustments to asset/income assessment processes and possible communications to annuity providers and claimants (implicit from the means‑testing effect in clause 5 Note)."],"plain_english_summary":"This Determination says that an annuity provided under a contract that meets the standards in Superannuation Industry (Supervision) Regulations subregulation 1.05(4) or 1.05(11A) will count as a “financial investment” for the Social Security Act’s asset‑testing rules. It therefore affects people who hold or buy long‑term, asset‑tested annuities from superannuation arrangements because those annuities will be treated as assessable investments for social security means testing. The Minister made the rule under subsection 9(1EA)."}},"importantCases":[],"_links":{"self":"/api/acts/social-security-financial-investment-requirements-for-annuity-contracts-determination-2019","history":"/api/acts/social-security-financial-investment-requirements-for-annuity-contracts-determination-2019/history","analysis":"/api/acts/social-security-financial-investment-requirements-for-annuity-contracts-determination-2019/analysis","conflicts":"/api/acts/social-security-financial-investment-requirements-for-annuity-contracts-determination-2019/conflicts","importantCases":"/api/acts/social-security-financial-investment-requirements-for-annuity-contracts-determination-2019/important-cases","documents":"/api/acts/social-security-financial-investment-requirements-for-annuity-contracts-determination-2019/documents"}}