You are here

Asset-tested income stream (long term)

An income stream is an asset-tested long term income stream if it is:

  • and has:
    • a specified term greater than 5 years (i.e. not for the life of an individual or individuals);
    • a specified term of 5 years or less, that is equal to or greater than the purchaser's life expectancy; or
    • the income stream pays for the life of the individual or individuals and was purchased or acquired before 1 July 2019.

Note: income streams that pay for the life of an individual or individuals, purchased or acquired on or after 1 July 2019, are assessed as asset-tested lifetime income streams.

Legislative reference: subsection 5J(1) Veterans' Entitlements Act 1986

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:

There is currently no content classified with this term.