{"id":"F2019L00845","name":"Veterans’ Entitlements (Kind, Extent and Purchase Amount for Asset-tested Income Streams (Lifetime)) Determination 2019","slug":"veterans-entitlements-kind-extent-and-purchase-amount-for-asset-tested-income-streams-lifetime-deter","collection":"legislative_instrument","jurisdiction":"commonwealth","status":"in_force","isInForce":true,"actNumber":null,"makingDate":null,"administeringDepartment":null,"currentVersion":{"id":99468,"registerId":"commonwealth-F2019L00845-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 Veterans’ Entitlements (Kind, Extent and Purchase Amount for Asset-tested Income Streams (Lifetime)) Determination 2019.","sortOrder":0},{"sectionNumber":"2","sectionType":"section","heading":"Commencement","content":"#### 2 Commencement\n\nThis instrument commences on 1 July 2019 immediately after the commencement of Schedule 1 of the Social Services and Other Legislation Amendment (Supporting Retirement Incomes) Act 2019.","sortOrder":1},{"sectionNumber":"3","sectionType":"section","heading":"Authority","content":"#### 3 Authority\n\n  This instrument is made under the following provisions of the Veterans’ Entitlements Act 1986:\n    (a) subsection 5JE(3);\n    (b) subsection 52BAA(7);\n    (c) subsection 52BAB(16).","sortOrder":2},{"sectionNumber":"4","sectionType":"section","heading":"Definitions","content":"#### 4 Definitions\n\n> Note: Three expressions that are used in this instrument are defined in the Act, including the following:\n\n    (a) asset‑tested income stream (lifetime) (see subsection 5J(1) of the Act);\n    (b) governing rules (see subsection 5J(1) of the Act);\n    (c) income stream (see subsection 5J(1) of the Act).\n  In this instrument:\n\n> account‑based annuity has the same meaning as in the Superannuation Industry (Supervision) Regulations 1994.\n\n> account‑based pension has the same meaning as in the Superannuation Industry (Supervision) Regulations 1994.\n\n> Act means the Veterans’ Entitlements Act 1986.\n\n> allocated annuity means an annuity provided under a contract that meets the standards in subregulation 1.05(4) of the Superannuation Industry (Supervision) Regulations 1994.\n\n> allocated pension means a pension provided under governing rules that meet the standards in subregulation 1.06(4) of the Superannuation Industry (Supervision) Regulations 1994.\n\n> lifetime component has the meanings given by section 5.","sortOrder":3},{"sectionNumber":"5","sectionType":"section","heading":"Determination of kinds of income stream","content":"#### 5 Determination of kinds of income stream\n\n  (1) This section applies to an income stream in relation to which paragraphs 5JE(1)(a) to (d) of the Act are satisfied.\n  Guaranteed minimum income for life income stream\n  (2) The income stream is determined to be a kind of income stream for the purposes of paragraph 5JE(2)(b) of the Act if, under the contract or governing rules for the provision of the income stream, the income stream includes:\n    (a) a part that is an account‑based annuity, an account‑based pension, an allocated annuity or an allocated pension; and\n    (b) a part (the lifetime component) that makes regular payments to an individual and has the following elements:\n    (i) once they start, the payments are payable for the remainder of the life of the individual;\n    (ii) the payments become payable only after the account balance of the individual’s annuity or pension mentioned in paragraph (a) is reduced below a threshold specified in the contract or governing rules;\n    (iii) the value of the payments is specified in the contract or governing rules.\n  Lifetime income stream packaged with account‑based income stream\n  (3) The income stream is determined to be a kind of income stream for the purposes of paragraph 5JE(2)(b) of the Act if, under the contract or governing rules for the income stream, the income stream includes:\n    (a) a part that is an account‑based annuity, an account‑based pension, an allocated annuity or an allocated pension; and\n    (b) a part (the lifetime component) that makes regular payments to, or for the benefit of, an individual and has the following elements:\n    (i) once they start, the payments are payable for the remainder of the life of the individual;\n    (ii) the value of the payments is determined by having regard to the age, life expectancy or other factors relevant to the individual’s mortality;\n    (iii) in order to obtain the payments, the individual is (directly or indirectly) required to pay an amount or amounts into a specified fund or investment option held for the collective benefit of individuals who have invested in that fund or investment option;\n    (iv) amounts paid into the specified fund or investment option (whether by the individual or any other individual) can be forfeited if an income stream is commuted or a person dies;\n    (v) payments made by the specified fund or investment option are financed partly from amounts so forfeited.\n\n    Lifetime income stream packaged with a term-limited income stream\n  (4) The income stream is determined to be a kind of income stream for the purposes of paragraph 5JE(2)(b) of the Act if, under the contract or governing rules for the provision of the income stream, the income stream includes:\n    (a) a part that makes regular payments to an individual for a specified term; and\n    (b) a part (the lifetime component) that makes regular payments to an individual and has the following elements:\n    (i) once they start, the payments are payable for the remainder of the life of one or more individuals;\n    (ii) the value of the payments is determined by having regard to the age, life expectancy or other factors relevant to the individual’s mortality.","sortOrder":4},{"sectionNumber":"6","sectionType":"section","heading":"Determination of extent and purchase amount","content":"#### 6 Determination of extent and purchase amount\n\n    (1) This section is made for the purposes of the following provisions of the Act:\n    (a) subsection 5JE(2);\n    (b) paragraph 52BAA(4)(b);\n    (c) paragraph 52BAB(13)(b).\n    (2) If, under section 5 of this instrument, an income stream is determined to be a kind of income stream for the purposes of paragraph 5JE(2)(b) of the Act:\n    (a) the lifetime component of the income stream is an asset‑tested income stream (lifetime); and\n    (b) the purchase amount for the lifetime component is:\n    (i) if the lifetime component is financed, wholly or partly, by fees or charges—the amount of any such fees or charges paid by the individual; and\n    (ii) if the lifetime component is financed, wholly or partly, by a specified fund or investment option into which the individual was required (directly or indirectly) to pay an amount or amounts in order to obtain the payments made by the lifetime component—the amount worked out in accordance with subsection (3) or (4).\n    (3) For the purposes of paragraph 52BAA(4)(b) of the Act, the amount is the sum of each compounded amount in relation to amounts paid by the individual into the specified fund or investment option. For this purpose, a compounded amount is worked out by applying the formula set out in subsection 52BAA(5) of the Act, as if references in that subsection to an amount paid for the income stream were references to an amount paid into the specified fund or investment option.\n\n    (4) For the purposes of paragraph 52BAB(13)(b) of the Act, the amount is the sum of:\n\n(a) each compounded amount in relation to amounts paid by the individual into the specified fund or investment option; and\n\n(b) each amount paid by the individual into the specified fund or investment option on or after the assessment day.\n\n    For this purpose, a compounded amount is worked out by applying the formula set out in subsection 52BAB(14) of the Act, as if references in that subsection to an amount paid for the income stream were references to an amount paid into the specified fund or investment option.\n  (5) However, if the Commission is satisfied that the lifetime component is not wholly financed by means specified in paragraph (2)(b), the purchase amount is the value that is certified by an actuary who is a Fellow or Accredited Member of the Institute of Actuaries of Australia as being attributable to the individual in relation to the lifetime component under the contract or governing rules for the income stream.","sortOrder":5}],"analysis":{"kimi_summary":{"content_quality":"ok","complexity_score":6,"scope_assessment":{"changed":false,"description":"The Determination appears tightly scoped to its original purpose of implementing the 2019 retirement income reforms for the veterans' pension system. It specifically addresses the asset testing of lifetime income streams as contemplated by the amending Act referenced in the commencement provision."},"complexity_factors":["Heavy cross-referencing to the Veterans' Entitlements Act 1986 (subsections 5JE, 52BAA, 52BAB) and Superannuation Industry (Supervision) Regulations 1994","Nested conditional logic in section 6 with multiple financing methods triggering different calculation methods","Requires understanding of actuarial concepts (compounded amounts, life expectancy factors, mortality factors)","Three distinct product structures with overlapping but distinct technical requirements","Incorporation of external formulas by reference (subsections 52BAA(5) and 52BAB(14) of the Act)","Fallback provision requiring actuarial certification if standard financing methods don't apply"],"plain_english_summary":"This Determination sets how specific lifetime income stream products are treated under the veterans’ pension assets test. It identifies three combined account-and-lifetime product types and prescribes how to value the portion counted as assets (via fees paid, pooled-fund formulas, or actuarial certification). It affects veterans and their dependants who buy these products and DVA assessors, ensuring fair treatment and alignment with social security rules."},"flash_summary_failed":{"failed":true,"reason":"Unauthenticated. Configure AI_GATEWAY_API_KEY or use a provider module. Learn more: https://ai-sdk.dev/unauthenticated-ai-gateway","source":"analysis-cron"},"flash_summary":{"complexity_score":6,"scope_assessment":{"changed":false,"description":"This instrument implements and clarifies how certain combined income streams are treated under existing provisions of the Act by defining eligible kinds and prescribing purchase‑amount rules (ss 5–6). It does not itself amend eligibility scope in the Act but supplies measurement and administrative detail, including Commission discretion and an actuary certification route where financing is not wholly by specified means."},"complexity_factors":["Extensive cross‑references to the Veterans’ Entitlements Act 1986 and Superannuation Industry (Supervision) Regulations (definitions and formulae).","Multiple product forms treated differently (account‑based annuity/pension, allocated annuity/pension, packaged lifetime parts).","Purchase amount calculations depend on compounded amounts defined in other Act subsections (requires applying external formulae).","Different computation routes depending on financing source (fees/charges, specified fund contributions, post‑assessment payments).","Assessment‑day timing and inclusion of amounts paid on/after that day affect calculations.","Commission satisfaction and actuarial certification introduce administrative discretion and evidentiary requirements."],"plain_english_summary":"This instrument sets out which retirement income products count as an \"asset‑tested income stream (lifetime)\" for veterans’ entitlements and how to work out the purchase amount used in means testing. It applies to products that combine an account‑based annuity/pension with a lifetime payment part. Individuals pay fees or contribute to specified funds; the Commission decides qualification and, if financing is mixed, an actuary may certify the attributable value (see sections 5–6). This changes how those payments are treated for asset tests."}},"importantCases":[],"_links":{"self":"/api/acts/veterans-entitlements-kind-extent-and-purchase-amount-for-asset-tested-income-streams-lifetime-deter","history":"/api/acts/veterans-entitlements-kind-extent-and-purchase-amount-for-asset-tested-income-streams-lifetime-deter/history","analysis":"/api/acts/veterans-entitlements-kind-extent-and-purchase-amount-for-asset-tested-income-streams-lifetime-deter/analysis","conflicts":"/api/acts/veterans-entitlements-kind-extent-and-purchase-amount-for-asset-tested-income-streams-lifetime-deter/conflicts","importantCases":"/api/acts/veterans-entitlements-kind-extent-and-purchase-amount-for-asset-tested-income-streams-lifetime-deter/important-cases","documents":"/api/acts/veterans-entitlements-kind-extent-and-purchase-amount-for-asset-tested-income-streams-lifetime-deter/documents"}}