An income stream is an asset-test exempt income stream if it is purchased before 20 September 2007 and must be:

  • paid for the income support recipient's lifetime for lifetime products; or
  • paid for a fixed period based on the income support recipient's life expectancy or that of their reversionary partner's;


  • make payments at least annually;
  • specify the payment to be made in the first year;
  • not pay less than the previous year's payments in any year;
  • limit indexation to no more than 5% or CPI plus 1% in any year;
  • convert the purchase price wholly into income;
  • have no residual capital value;
  • have limited commutation;
  • have limited reversionary benefits;
  • have limited transferability;
  • not be able to be borrowed against; and
  • in respect of market-linked income streams, must make payments according to the formula in the Superannuation Industry (Supervision) Regulations 1994.

Legislative reference:

Veterans' Entitlements Act 1986: