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Assessment of Base Amount Payment Splits - Defined Benefit Income Streams

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Last amended: 13 May 2008

Calculating the asset value

Defined benefit income streams are not included in a person's assessable assets.

Income test assessment

This table shows how to calculate the assessable income from the income stream.

Step

Action

1

Any income paid between the operative time and the date of the first splittable payment is an exempt lump sum.

Any amount paid out of the first splittable payment is also an exempt lump sum.

Any income stream payments after the first splittable payment are assessable income.

2

All required information for the primary and secondary FLA income streams is calculated by the income stream provider. The assessable income is the gross income less the deductible amount.


According to section 5J of the VEA, a deductible amount, in relation to an income stream, means the sum of the amounts that are the tax free component, worked out under the tax law, of the payments received from the DBIS.