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Assets Value of Managed Investments

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Last amended: Types of managed investments

Managed investments include:

  • public unit trusts (including property, equity, bond, cash management and mortgage trusts, and common funds) offered by unit trust managers,
  • insurance bonds (including investment bonds, savings plans, insurance certificates and single premium insurance policies) offered by insurance companies,
  • friendly society bonds,
  • superannuation fund investments (including public superannuation funds, approved deposit funds, deferred annuities, retirement savings accounts and self managed superannuation funds) offered by a range of institutions,
  • non-exempt funeral bonds.
Assets value

    

The assets value of a managed investment is the current market value.

Managed investments can be unit based or account based.

If the investment is...

then the asset value is worked out by...

unit based

multiplying the number of units by the unit buy-back price stored on the DVA Managed Investment Database.    

account based

buy-back value obtained from the fund manager.

Note: The deeming provisions under the income test applies to managed investments.    

Unit-based managed investments

Unit buy-back prices are obtained each month for unit based managed investments from fund managers and stored on the DVA Managed Investment Database. Unit buy-back prices are updated in the middle of each month and reflect the last sale price for the last working day of the preceding calendar month. They are only applied to assessments:

  • at automatic bulk updates of pension statutory increases in March and September each year for all persons holding unit based managed investments, or     
  • when a person asks for a re-assessment, or
  • when a change is notified for any managed investment or public company share.
Account-based managed investments

The value of account based managed investments is only updated when the person notifies of a change in the value or the Department undertakes a revaluation. Pensioners are required to advise DVA if the value of their account based investments varies by more than $1,000.

Non-exempt funeral bonds

If a funeral bond does not meet the requirements to be an exempt asset, then the whole funeral bond is counted as an asset at its current value. Non-exempt funeral bonds are assessed as account-based managed investments.    


An investment is a managed investment if:

  • the money or property invested is paid by the investor directly or indirectly to a body corporate or into a trust fund,
  • the assets that represent the money or property invested (the invested assets) are not held in the names of investors,
  • the investor does not have effective control over the management of the invested assets, and
  • the investor has a legally enforceable right to share in any distribution of income or profits derived from the invested assets.

For a full definition see also:

Sections 5J(1A), 5J(1B) and 5J(1C) of the VEA.

 

 

A funeral bond is a managed investment that will on maturity either offset or assist towards the payment of the funeral of the person or the person's partner. Up to two funeral bonds per person may be treated as exempt assets if the combined amounts invested is within the funeral bond threshold.

A funeral bond cannot be exempt if the person has a prepaid funeral.

 

 

An exempt asset is one that is disregarded when calculating the value of a person's assets under the assets test.  Examples of exempt assets include:

For a full legislative definition see section 52 of the VEA.