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Family Law Affected Income Streams

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Last amended: 10 March 2011

    

What is a Family Law Affected income stream?

Any income stream, whether asset test exempt or asset tested, may become a [glossary:Family Law Affected (FLA):] income stream. An income stream becomes an FLA income stream when the primary beneficiary's former partner becomes entitled to be paid some or all of the income stream under:

  • a payment split under Part VIIIB of the Family Law Act 1975; or
  • an order under Part VIIIAA of the Family Law Act 1975.
Deprivation rules not to apply to splits under the Family Law Act 1975

The deprivation rules do not apply to the disposal of the whole or a part of a superannuation interest pursuant to an order under Part VIIB or VIIIAA of the Family Law Act 1975.

Assessment of family law affected income streams

Assessment of an FLA income stream depends on the type of income stream involved.      


According to section 5J(1) of the VEA, an income stream includes:

  • an income stream arising under arrangements that are regulated by the Superannuation Industry (Supervision) Act 1993; or
  • an income stream arising under a public sector scheme (within the meaning of that Act); or
  • an income stream arising under a retirement savings account; or
  • an income stream provided by a life insurance business (within the meaning of the Life Insurance Act 1995); or
  • an income stream provided by a friendly society (within the meaning of the Income Tax Assessment Act 1996); or
  • an income stream designated in writing by the Commission for the purposes of this definition, having regard to the guidelines determined under subsection 5J(1F) of the VEA;
  • but does not include any of the following:
  • available money;
  • deposit money;
  • a managed investment;
  • a listed security;
  • a loan that has not been repaid in full;
  • an unlisted public security; or
  • gold, silver or platinum bullion.

 

 

According to section 5J(1) of the VEA, an income stream includes:

  • an income stream arising under arrangements that are regulated by the Superannuation Industry (Supervision) Act 1993; or
  • an income stream arising under a public sector scheme (within the meaning of that Act); or
  • an income stream arising under a retirement savings account; or
  • an income stream provided by a life insurance business (within the meaning of the Life Insurance Act 1995); or
  • an income stream provided by a friendly society (within the meaning of the Income Tax Assessment Act 1996); or
  • an income stream designated in writing by the Commission for the purposes of this definition, having regard to the guidelines determined under subsection 5J(1F) of the VEA;
  • but does not include any of the following:
  • available money;
  • deposit money;
  • a managed investment;
  • a listed security;
  • a loan that has not been repaid in full;
  • an unlisted public security; or
  • gold, silver or platinum bullion.

 

 

A person's 'partner' is someone who is a member of a couple with that person.