Income from Overseas Annuities

Assessment for overseas annuities

Overseas annuities do not satisfy the definition of an income stream as they do not meet the requirements for prudential regulation. Overseas annuities are assessed under the ordinary income and assets test.

Income assessment for overseas annuities

The gross annuity payments as specified in the annuity contract are fully assessable under the income test for DVA purposes. No deductible amount is allowed    

Annuity surrendered

Generally when a person disposes of an income producing asset without adequate consideration, the deprived amount is maintained and deemed. Assets deprivation provisions only are applied if a person:

• surrenders their interest in a private annuity, or
• otherwise disposes of their rights under the contract and does not receive adequate consideration.