External
Policy
Assessment of overseas annuities
Overseas annuities do not satisfy the definition of an income stream as they do not meet the requirements for prudential regulation. Overseas annuities are an assessable asset.
Assessable value of an overseas annuity
The initial asset value of an overseas annuity is the purchase price. The purchase price should be re-assessed on each anniversary of the initial payment. For DVA purposes the reduction in the annuity's value is made in arrears by the amount of the annual payments.
Annuity surrendered
Generally when a person disposes of an income producing asset without adequate consideration, the assets value is maintained and deemed. It would be 'double-dipping' to also assess the forgone income as income deprivation. Therefore assets deprivation provisions are only applied if a person:
- surrenders their interest in a private annuity, or
- otherwise disposes of their rights under the contract and does not receive adequate consideration.