Summary of Assessable Income from Trusts pre 01/01/2002
Summary table of assessable income for pensions
The following table summarises the assessment of income from [glossary:discretionary:139] and [glossary:non-discretionary trusts:512]. Assessable income from only one or the other kind of trust is covered elsewhere in this section.
|
Assessable Income |
Description |
|
Trust profit |
The trust's profit is not assessed. Only income paid to the person and deeming are assessed. |
Legally Irrecoverable Loans or Debts
Assets assessment of legally irrecoverable loan or debt
A loan or debt that is [glossary:legally irrecoverable:157] is a [glossary:disregarded asset:654], because it has no value.
Legally irrecoverable
A loan or debt is [glossary:legally irrecoverable:157] solely if it has not been repaid in full or in part according to the terms of the loan agreement and within the time frame specified in the statute of limitations of the relevant State. A loan or debt is not legally irrecoverable solely because there is no documentation of the loan or debt agreement.
Percentage Payment Splits - Asset Test Exempt Income Streams
Calculating the asset value
This table shows how to calculate the asset value of an asset-test exempt income stream where the superannuation agreement or court order specified that payments from the original Family Law Affected income stream owned by the member are to be split with the former partner (non-member) on a percentage basis.
For Allocated or Account-based Income Streams, Defined Benefit Income Streams, Asset-tested Long Term Income Streams or Lifetime Income Streams, see the relevant pages under 10.5.6 Family Law Affected Income Streams.
Exempt Income under the VEA
Exempt income for income support purposes under the VEA
The following table shows payments that are exempt income when calculating entitlement for income support payment. Payments not exempt for income support purposes are considered adjusted income.
Income Type |
Table of Life Expectancy for Income Streams with a Commencement Day on or after 01/01/2005 to 31/12/2009
Last amended: 14 February 2011
How to use life expectancy tables
The following table shows how to select and use the appropriate life expectancy table in the assessment of an income stream.
|
Step |
Action |
|
1 |
Determine the [glossary:commencement day:334] of the income stream to be assessed and ensure that the correct table is used. |
Table of Life Expectancy for Income Streams with a Commencement Day on or after 01/01/96 to 31/12/99
Last amended: 13 May 2008
How to use life expectancy tables
The following table shows how to select and use the appropriate [glossary:life expectancy:348] table in the assessment of an [glossary:income stream:406].
|
Step |
Action |
|
1 |
Determine the [glossary:commencement day:334] of the income stream to be assessed and ensure that the correct table is used. |
Distribution of capital on wind-up of a private trust or company
Distribution of capital on wind-up to an attributable stakeholder
Distributions of capital to an attributable stakeholder on the wind-up of a private trust or company are not regarded as income for pension purposes (provided the distribution is in proportion to the [glossary:attribution percentage:396] of the attributable stakeholder). However, the assets of the structure are still attributable in the proportions previously determined.
Additional Documentation Required from Self Managed Superannuation Funds and Small APRA Funds
Last amended: 10 March 2011
Documentation required to ensure ATE compliance for SMSFs and SAFs
In addition to the income stream schedule, a self managed superannuation fund (SMSF) or small APRA fund (SAF) must supply the following documentation to determine whether an income stream is an [glossary:asset test exempt income stream:236][glossary:.:]: