Policy

Last amended: 1 August 2014

Last amended: 5 March 2013

Order of reduction for service pension

Assessing income from conventional life insurance policies

Conventional life insurance policies are not [glossary:financial investments:437]. While the main purpose of conventional life insurance policies is to provide death cover, some policies include an investment element which may pay bonuses (profits) to the investor.  A person who invests in such a life insurance policy is seen as deriving income from a profit-making transaction.

Last amended: 7 October 2020

Description of private unit trusts

Private unit trusts are:

• generally small in size, and
• set up for participation by a small group of unit holders in a specific project, such as a real estate subdivision and development.    
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  Assessment of income from private unit trusts

Last amended: 25 July 2006

Last amended: 30 September 2008

Calculating a person's rate of service pension or ISS

In calculating a person's rate of [glossary:service pension:245] or income support supplement [glossary:ISS:118], the ordinary/adjusted [glossary:income test:288] and [glossary:assets tests:599] are applied as follows:     

Last amended: 1 July 2009

Definition of child

Last Amended: 29 June 2005

Impact of compensation

The compensation recovery assessment rules may apply to payments of compensation if:

• the compensation is regarded as wholly or partly for economic loss, and
• the compensation recipient is receiving a [glossary:compensation affected pension:] [glossary:(:][glossary:CAP:][glossary:):].

Different assessment rules apply to payments of compensation if:

Payments affected by deeming provisions

The following payments are affected by deeming:

• [glossary:service pension:245];
• [glossary:income support supplement:118];
• veteran payment.

Financial assets to which deeming applies

Deeming applies to [glossary:financial assets:241], which consist of: