{"id":"F2019L00838","name":"Social Security (Value of Asset-tested Income Streams (Lifetime)) Determination 2019","slug":"social-security-value-of-asset-tested-income-streams-lifetime-determination-2019","collection":"legislative_instrument","jurisdiction":"commonwealth","status":"in_force","isInForce":true,"actNumber":null,"makingDate":null,"administeringDepartment":null,"currentVersion":{"id":99463,"registerId":"commonwealth-F2019L00838-current","compilationNumber":null,"startDate":"2026-04-02","status":"InForce","reasons":null,"registeredAt":null},"sections":[{"sectionNumber":"1","sectionType":"section","heading":"Name","content":"#### 1 Name\n\n  This instrument is the Social Security (Value of Asset‑tested Income Streams (Lifetime)) Determination 2019.","sortOrder":0},{"sectionNumber":"3","sectionType":"section","heading":"Authority","content":"#### 3 Authority\n\n  This instrument is made under subsection 1120AB(4) of the Social Security Act 1991.","sortOrder":1},{"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‑tested income stream (lifetime) (see section 9E of the Act);\n    (b) assessment day (see subsections 1120AB(6) and (7) of the Act);\n    (c) governing rules (see section 9 of the Act).\n  In this instrument:\n\n> access amount, for a particular day (the access day) for an asset‑tested income stream (lifetime), means the sum of:\n\n    (a) the maximum amount that would have been payable for the income stream, as determined by the contract or governing rules for the provision of the income stream, if the income stream had been commuted on the assessment day for the income stream; and\n    (b) any instalments paid for the income stream after the assessment day and before the access day.\n\n> Act means the Social Security Act 1991.\n\n> death benefit, for a particular day for an asset‑tested income stream (lifetime), means the maximum commutation amount that would be payable for the income stream, as determined by the contract or governing rules for the provision of the income stream, if the person, or persons, eligible to receive the income stream died on that day.\n\n> death benefit comparison value has the meaning given by subsection 6(3).\n\n> first half of the life expectancy period, for an asset‑tested income stream (lifetime), means the number of days in the period:\n\n    (a) starting on the assessment day for the income stream; and\n    (b) ending when the number of days equal to the life expectancy period for the income stream divided by 2, and rounded down to the nearest whole number, have passed.\n\n> life expectancy period, for an asset‑tested income stream (lifetime), means the number of days worked out by:\n\n    (a) using the Life Tables to calculate the number of days, as at the assessment day, in the life expectancy of:\n    (i) the person eligible to receive the income stream; or\n    (ii) for a joint income stream—the eldest of those eligible to receive the income stream; and\n    (b) rounding that number of days down to the nearest whole number of years; and\n    (c) converting those years to a number of days, assuming 365 days in a year.\n\n> Life Tables means:\n\n    (a) if a person's assessment day for an asset-tested income stream (lifetime) is before 1 January 2020—the Australian Life Tables 2010‑12 published by the Australian Government Actuary; or\n    (b) if a person's assessment day for an asset-tested income stream (lifetime) is between 1 January 2020 and 31 December 2024—the Australian Life Tables 2015‑17 published by the Australian Government Actuary; or\n    (c) if a person's assessment day for an asset-tested income stream (lifetime) is on or after 1 January 2025—the Australian Life Tables 2020‑22 published by the Australian Government Actuary.\n\n> surrender comparison value has the meaning given by subsection 5(3).\n\n> surrender value, for a particular day for an asset‑tested income stream (lifetime), means the maximum commutation amount that would be payable for the income stream, as determined by the contract or governing rules for the provision of the income stream, if the person, or persons, eligible to receive the income stream did not die on that day.","sortOrder":2},{"sectionNumber":"5","sectionType":"section","heading":"Surrender value method","content":"#### 5 Surrender value method\n\n  (1) This section sets out a method for working out the value of an asset‑tested income stream (lifetime) by reference to the surrender value of the income stream.\n  (2) The value of a person’s asset‑tested income stream (lifetime) on a particular day is the highest value for that day or any later day worked out using the following method statement.\n\nMethod statement\n\nStep 1. Determine the surrender value of the asset‑tested income stream (lifetime) for the day.\n\nStep 2. Compare the surrender value with the surrender comparison value of the income stream for the day (see subsection (3)).\n\nStep 3. The value of the income stream for the day is:\n\n(a) if the surrender value is more than the surrender comparison value and the income stream is not a joint income stream—the surrender value; or\n\n(b) if the surrender value is more than the surrender comparison value and the income stream is a joint income stream—the surrender value multiplied by the proportion of the income stream attributable to the person on that day; or\n\n(c) if the surrender value is less than or equal to the surrender comparison value—nil.\n\n  (3) The surrender comparison value of an asset‑tested income stream (lifetime) is:\n    (a) for a day during the 14 day period that begins on the assessment day for the income stream—the access amount for the day;\n    (b) for any other day:\n    (i) unless subparagraph (ii) applies—the amount worked out for the day under subsection (4); or\n    (ii) if the amount worked out for the day under subsection (4) is less than or equal to zero—nil.\n  (4) For the purposes of paragraph (3)(b), the amount for a day (the access day) is worked out using the following formula:\n  ![Start formula start open bracket start fraction Access amount for the income stream for the access day over Life expectancy period for the income stream end fraction times Remaining life expectancy end open bracket minus Previously commuted amount end formula](image.002.png)\n  where:\n\n> previously commuted amount means the sum of any amounts commuted from the income stream before the access day.\n\n> remaining life expectancy means the number of days remaining in the life expectancy period for the income stream after subtracting the number of days in the period:\n\n    (a) starting on the assessment day for the income stream; and\n    (b) ending on the access day.","sortOrder":3},{"sectionNumber":"6","sectionType":"section","heading":"Death benefit method","content":"#### 6 Death benefit method\n\n  (1) This section sets out a method for working out the value of an asset‑tested income stream (lifetime) by reference to the death benefit of the income stream.\n  (2) The value of a person’s asset‑tested income stream (lifetime) on a particular day is the highest value for that day or any later day worked out using the following method statement.\n\nMethod statement\n\nStep 1. Determine the death benefit of the asset‑tested income stream (lifetime) for the day.\n\nStep 2. Compare the death benefit with the death benefit comparison value of the income stream for the day (see subsection (3)).\n\nStep 3. The value of the income stream for the day is:\n\n(a) if the death benefit is more than the death benefit comparison value and the income stream is not a joint income stream—the death benefit; or\n\n(b) if the death benefit is more than the death benefit comparison value and the income stream is a joint income stream—the death benefit multiplied by the proportion of the income stream attributable to the person on that day; or\n\n(c) if the death benefit is less than or equal to the death benefit comparison value—nil.\n\n  (3) The death benefit comparison value of an asset‑tested income stream (lifetime) is:\n    (a) for a day within the first half of the life expectancy period for the income stream—the access amount for the day;\n    (b) for any other day:\n    (i) unless subparagraph (ii) applies—the amount worked out for the day under subsection (4); or\n    (ii) if the amount worked out for the day under subsection (4) is less than or equal to zero—nil.\n  (4) For the purposes of paragraph (3)(b), the amount for a day (the access day) is worked out using the following formula:\n  ![Start formula start open bracket start fraction Access amount for the income stream for the access day over Life expectancy period for the income stream end fraction times Remaining life expectancy end open bracket minus Previously commuted amount end formula](image.002.png)\n  where:\n\n> previously commuted amount means the sum of any amounts commuted from the income stream before the access day.\n\n> remaining life expectancy means the number of days remaining in the life expectancy period for the income stream after subtracting the number of days in the period:\n\n    (a) starting on the assessment day for the income stream; and\n    (b) ending on the access day.\n\n  \n\n> Note: Endnotes\n\n> Note: Endnote 1—About the endnotes\n\nThe endnotes provide information about this compilation and the compiled law.\n\nThe following endnotes are included in every compilation:\n\nEndnote 1—About the endnotes\n\nEndnote 2—Abbreviation key\n\nEndnote 3—Legislation history\n\nEndnote 4—Amendment history\n\nAbbreviation key—Endnote 2\n\nThe abbreviation key sets out abbreviations that may be used in the endnotes.\n\nLegislation history and amendment history—Endnotes 3 and 4\n\nAmending laws are annotated in the legislation history and amendment history.\n\nThe legislation history in endnote 3 provides information about each law that has amended (or will amend) the compiled law. The information includes commencement details for amending laws and details of any application, saving or transitional provisions that are not included in this compilation.\n\nThe amendment history in endnote 4 provides information about amendments at the provision (generally section or equivalent) level. It also includes information about any provision of the compiled law that has been repealed in accordance with a provision of the law.\n\nMisdescribed amendments\n\nA misdescribed amendment is an amendment that does not accurately describe how an amendment is to be made. If, despite the misdescription, the amendment can be given effect as intended, then the misdescribed amendment can be incorporated through an editorial change made under section 15V of the Legislation Act 2003.\n\nIf a misdescribed amendment cannot be given effect as intended, the amendment is not incorporated and “(md not incorp)” is added to the amendment history.\n\n> Note: Endnote 2—Abbreviation key\n\n| ad = added or inserted                         | orig = original                     |\n| ---------------------------------------------- | ----------------------------------- |\n| am = amended                                   | par = paragraph(s)/subparagraph(s)  |\n| amdt = amendment                               | /sub‑subparagraph(s)                |\n| c = clause(s)                                  | pres = present                      |\n| C[x] = Compilation No. x                       | prev = previous                     |\n| Ch = Chapter(s)                                | (prev…) = previously                |\n| def = definition(s)                            | Pt = Part(s)                        |\n| Dict = Dictionary                              | r = regulation(s)/rule(s)           |\n| disallowed = disallowed by Parliament          | reloc = relocated                   |\n| Div = Division(s)                              | renum = renumbered                  |\n| exp = expires/expired or ceases/ceased to have | rep = repealed                      |\n| effect                                         | rs = repealed and substituted       |\n| F = Federal Register of Legislation            | s = section(s)/subsection(s)        |\n| gaz = gazette                                  | Sch = Schedule(s)                   |\n| LA = Legislation Act 2003                      | Sdiv = Subdivision(s)               |\n| LIA = Legislative Instruments Act 2003         | SLI = Select Legislative Instrument |\n| (md not incorp) = misdescribed amendment       | SR = Statutory Rules                |\n| cannot be given effect                         | Sub‑Ch = Sub‑Chapter(s)             |\n| mod = modified/modification                    | SubPt = Subpart(s)                  |\n| No. = Number(s)                                | underlining = whole or part not     |\n| o = order(s)                                   | commenced or to be commenced        |\n| Ord = Ordinance                                |                                     |\n\n> Note: Endnote 3—Legislation history\n\n| Name                                                                                                   | Registration               | Commencement                | Application, saving and transitional provisions |\n| ------------------------------------------------------------------------------------------------------ | -------------------------- | --------------------------- | ----------------------------------------------- |\n| Social Security (Value of Asset-tested Income Streams (Lifetime)) Determination 2019                   | 18 June 2019 (F2019L00838) | 1 July 2019 (s 2(1) item 1) |                                                 |\n| Social Security (Value of Asset-tested Income Streams (Lifetime)) Amendment Determination 2019 (No. 2) | 23 Dec 2019 (F2019L01693)  | 1 Jan 2020 (s 2(1) item 1)  |                                                 |\n| Social Security (Value of Asset-tested Income Streams (Lifetime)) Amendment Determination 2025         | 25 Feb 2025(F2025L00199)   | 1 Jan 2025 (s 2(1) item 1)  |                                                 |\n\n> Note: Endnote 4—Amendment history\n\n| Provision affected | How affected   |\n| ------------------ | -------------- |\n| s 2……………………………….   | rep LA s 48D   |\n| s 4………………………………..  | am F2019L01693 |\n| s 4………………………………..  | am F2025L00199 |","sortOrder":4}],"analysis":{"kimi_summary":{"content_quality":"ok","complexity_score":7,"scope_assessment":{"changed":false,"description":"This Determination appears to maintain its original scope as a technical valuation instrument for asset-tested lifetime income streams under the Social Security Act 1991. The amendments noted in the endnotes (2019 and 2025) appear to update the Life Tables references and minor definitional matters rather than expand the substantive scope beyond calculating asset values for means testing purposes."},"complexity_factors":["Multiple defined terms (11 explicit definitions in section 4, plus references to Act definitions)","Two alternative calculation methods (surrender value vs death benefit) with similar but distinct logic","Nested conditional logic: primary method statements with step-by-step decision trees, plus sub-conditions for joint vs single income streams","Mathematical formulas with multiple variables (access amount, life expectancy period, remaining life expectancy, previously commuted amount)","Time-based triggers using external statutory instruments (Australian Life Tables 2010-12, 2015-17, and 2020-22) with date-based applicability rules","Cross-references to primary legislation (Social Security Act 1991, sections 9, 9E, 1120AB)","Rounding rules and specific date calculations (14-day periods, first half of life expectancy, rounding down to whole years then converting to days)","Dynamic valuation concept: \"highest value for that day or any later day\" requires forward-looking assessment"],"plain_english_summary":"This Determination prescribes how Centrelink values lifetime income streams (annuity-style products) for the assets test, affecting retirees who hold them and assessors determining Age Pension eligibility. It gives a clear rule for converting these guaranteed income products into an asset value (using surrender-value or death-benefit approaches), applies life‑expectancy tables, and treats any excess over the calculated benchmark as assessable—so payments may be reduced if a stream’s cash value is high."},"flash_summary":{"complexity_score":6,"scope_assessment":{"changed":false,"description":"This Determination is a technical valuation instrument that implements the valuation rules authorised by subsection 1120AB(4) of the Social Security Act. The amendments recorded in the history (2019 and 2025) updated definitions—principally the Life Tables that apply to different assessment dates—and did not broaden the instrument's policy scope. In other words, the instrument continues to serve the same core purpose (prescribing valuation mechanics for asset‑tested lifetime income streams); the changes are updates to technical inputs (life tables and timing) rather than expansions of who or what is captured."},"complexity_factors":["Multiple defined terms in section 4 that feed into calculations (access amount, surrender value, death benefit, life expectancy, Life Tables, previously commuted amount, etc.).","Two separate valuation methods (surrender and death benefit) with parallel but not identical conditional rules (Parts 5 and 6).","Date‑dependent Life Tables with three date bands (pre‑2020, 2020–24, 2025 onward) and rounding rules (s4).","Conditional special cases: 14‑day special rule for surrender comparison (s5(3)(a)), and \"first half of life expectancy\" special rule for death benefit comparison (s6(3)(a)).","A look‑ahead requirement—take the highest value for the day or any later day (s5(2) and s6(2))—which creates path dependency in valuation.","Formulaic calculation that prorates the access amount across the life expectancy period and subtracts previously commuted amounts (s5(4)/s6(4)); includes rounding to whole years then converting to days (s4).","Joint income stream treatment requiring pro‑rata attribution to an individual (s5(3)(b) and s6(3)(b)).","Cross‑references to the Social Security Act (e.g. section 9, 9E, and subsection 1120AB(6)–(7)) which import other definitions and procedural rules outside this instrument."],"plain_english_summary":"**What this instrument does, in plain English**\n\n- **Purpose and immediate effect:** This Determination tells the Department of Social Services (and decision-makers under the Social Security Act) how to put a dollar value on an \"asset‑tested income stream (lifetime)\" when assessing someone's assets for social security purposes. It does not change who is eligible for a pension or benefit; it sets the arithmetic used to convert particular retirement income products into an asset figure that counts for the asset test. (Authority: made under subsection 1120AB(4) of the Social Security Act 1991; defined terms at section 4.)\n\n- **Two alternative valuation methods:** The instrument provides two ways to value a lifetime income stream and uses whichever gives the highest value for the relevant day (and in fact the highest value for that day or any later day):\n  - The \"surrender value method\" — values the income stream by reference to the amount that would be received if the income stream were commuted or surrendered (see section 5).\n  - The \"death benefit method\" — values the income stream by reference to the amount payable on death (the death benefit) (see section 6).\n  (Both methods follow the same overall three‑step structure: determine the relevant benefit, compare it to a comparison value, and take the benefit only if it exceeds the comparison value.)\n\n- **Key building blocks used in the calculations:**\n  - \"Access amount\": essentially the maximum commutation amount at the assessment day, plus any instalments paid after the assessment day and before the day being valued (definition, s4).\n  - \"Surrender value\" and \"death benefit\": these are the maximum commutation amounts the contract or governing rules would pay on the day (definitions, s4).\n  - Life expectancy: calculated from the Australian Government Actuary Life Tables that apply depending on the assessment day (s4). The instrument specifies which Life Tables apply by date (2010‑12, 2015‑17, or 2020‑22) and requires rounding to whole years then converting to days.\n  - \"Previously commuted amount\": any sums already commuted from the income stream before the valuation day; these reduce the comparison value used in the formula (s5(4)/s6(4)).\n  - Joint income streams are pro‑rated so only the portion attributable to the person is counted (see s5(3)(a)(b) and s6(3)(a)(b)).\n\n- **How the comparison works (mechanics):**\n  - For the surrender method (s5): if the surrender value exceeds a \"surrender comparison value\" the surrender value (or the person’s share of it for a joint stream) is the asset value; otherwise the asset value is nil. The surrender comparison value is the access amount for any day within the 14‑day period starting on the assessment day; for later days it is calculated by a proportional formula that spreads the access amount across the Life expectancy period and reduces it by any previously commuted amounts (s5(3)–(4)).\n  - For the death benefit method (s6): the death benefit must exceed a \"death benefit comparison value\". For days within the first half of the life expectancy period the comparison value is the access amount; for later days the same proportional formula applies as under the surrender method (s6(3)–(4)).\n  - The instrument also requires decision‑makers to take the highest value for the day or any later day when determining the value (see s5(2) and s6(2)).\n\n- **Who this affects and why it matters**\n  - Individuals who hold lifetime income streams (e.g. lifetime annuities, some products sold by superannuation funds or insurers) and who claim or are assessed for means‑tested social security payments. The value assigned under this Determination feeds into the asset test and can affect payment rates or eligibility.\n  - Product providers and trustees: they must be able to supply the contract or governing‑rule figures (surrender/commutation and death benefit amounts) and any instalments paid, because those figures are inputs to the formula.\n  - The Department/decision‑makers: they must apply the specified Life Tables, rounding rules, proportional calculations and the look‑ahead rule (highest of day or any later day).\n\n- **Why the instrument claims to be needed (official rationale and a practical test of that rationale)**\n  - Officially: it provides a clear, uniform method for converting lifetime income streams into an asset value for the social security asset test (so assessments are consistent and comparable across claimants).\n  - Practical implications and trade‑offs to consider:\n    - Costs and compliance: providers and the Department need accurate contract commutation/death benefit figures and must apply date‑dependent Life Tables and rounding rules. That creates some reporting and calculation burden (see definitions and the Life Tables schedule in s4).\n    - Effects on behaviour and product design: because the instrument uses the higher of surrender/death benefit values and applies a comparison that can decline over a life expectancy period, product features (commutation options, size of death benefits, joint versus single annuities) become consequential for the asset test outcome. That can influence consumer choices and how providers structure products (see s5 and s6). For example, holding a joint stream reduces the amount counted to the person’s attributable proportion (s5(3)(b), s6(3)(b)).\n    - Lock‑in and timing incentives: the rules look at the highest value for a day or any later day; combined with the way the comparison value is calculated, this can create timing incentives about when a person might commute an income stream or accept instalments. The instrument treats instalments after assessment day as adding to the access amount (s4), which can increase the comparison value used shortly afterwards.\n    - Administrative discretion and dispute risk: the instrument relies on contract/governing rules to produce the raw commutation/death figures. Disputes may arise if parties disagree about the contractually‑determined \"maximum commutation amount\" or the correct proportion for joint income streams; the Department must resolve those factual questions (see definitions in s4 and steps in s5/s6).\n\n- **Concrete references to where the mechanics live in the instrument**\n  - Definitions and Life Tables: section 4.  \n  - Surrender‑value valuation method and its comparison rules: section 5.  \n  - Death‑benefit valuation method and its comparison rules: section 6.\n\nOverall, this Determination translates contractual figures from lifetime income products into a statutory asset value for the Social Security Act asset test by prescribing which inputs to use (surrender/death amounts, instalments, Life Tables) and exact formulae and timing rules for comparing those inputs. It is primarily a technical, arithmetic instrument that creates predictable valuation outcomes provided accurate contract figures are available (see s4–s6)."},"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-value-of-asset-tested-income-streams-lifetime-determination-2019","history":"/api/acts/social-security-value-of-asset-tested-income-streams-lifetime-determination-2019/history","analysis":"/api/acts/social-security-value-of-asset-tested-income-streams-lifetime-determination-2019/analysis","conflicts":"/api/acts/social-security-value-of-asset-tested-income-streams-lifetime-determination-2019/conflicts","importantCases":"/api/acts/social-security-value-of-asset-tested-income-streams-lifetime-determination-2019/important-cases","documents":"/api/acts/social-security-value-of-asset-tested-income-streams-lifetime-determination-2019/documents"}}