Payment Factors for Market Linked Income Streams

Last amended: 3 September 2013

Use of payment factors

These payment factors are used in determining the annual payment to be paid by a market linked income stream.

Rules determining the choice of payment factor

The following rules determine which payment factor is to be used:

• for income streams commencing between 1 July and 31 December, the remaining term of the income stream is rounded down to the next whole number
• for income streams commencing between 1 January and 30 June, the remaining term of the income stream is rounded up to the next whole number

This table prescribes which minimum payment factors to use based for the term of the income stream at its commencement day and then for the remaining term of the income stream on each 1 July thereafter.

For the period commencing on 1 July 2008 and ending 30 June 2013, temporary relief measures were applied by the Government in response to the Global Financial Crisis to allow all account-based income stream recipients to elect to reduce their minimum annual payment to :

• 50% of the required minimum payment for the period commencing 1 July 2008 and ending 30 June 2011; and
• 75% of the required minimum payment for the period commencing 1 July 2011 and ending 30 June 2013.

These temporary relief measures ceased to apply from 1 July 2013.

Temporary relief was again applied over the period 1 July 2019 to 30 June 2022 in response to the Coronavirus pandemic.  Income stream recipients were able to elect to reduce their minimum annual payment to 50%  of the required minimum payment for the periodcommencing 1 July 2019 to 30 June 2022.