Last amended: 3 September 2013
Use of payment valuation factors and percentage factors
These factors are used in determining the minimum and maximum payment limits for allocated income streams which are now commonly referred to as account based income streams. The relevant payment factor depends on the commencement day of the income stream.
Commencement day | Table |
Before 1 January 2006* | Table 1 |
From 1 January 2006 to 30 June 2007* | Table 2 |
From 1 July 2007 | Table 3 |
* Table 3 applies to income streams with a commencement day before 1 July 2007 if the owner of the income stream elects for Table 3 to apply instead of Table 1 or Table 2 as appropriate.
Table 1 – Determining the payment valuation factor
This table prescribes which maximum and minimum payment factors to use based on the person's age in whole years on the commencement day of the income stream and then on each 1 July thereafter for income streams commencing before 1 January 2006.
Age | Maximum payment valuation factor | Minimum payment valuation factor | Age | Maximum payment valuation factor | Minimum payment valuation factor |
41 | 10 | 24.3 | 71 | 6.2 | 13.1 |
42 | 10 | 24.0 | 72 | 5.8 | 12.6 |
43 | 10 | 23.7 | 73 | 5.4 | 12.2 |
44 | 10 | 23.4 | 74 | 4.8 | 11.7 |
45 | 10 | 23.1 | 75 | 4.3 | 11.3 |
46 | 10 | 22.8 | 76 | 3.7 | 10.8 |
47 | 10 | 22.5 | 77 | 3.0 | 10.4 |
48 | 10 | 22.2 | 78 | 2.2 | 10.0 |
49 | 10 | 21.9 | 79 | 1.4 | 9.5 |
50 | 9.9 | 21.5 | 80 | 1 | 9.1 |
51 | 9.9 | 21.2 | 81 | 1 | 8.7 |
52 | 9.8 | 20.9 | 82 | 1 | 8.3 |
53 | 9.7 | 20.5 | 83 | 1 | 7.9 |
54 | 9.7 | 20.1 | 84 | 1 | 7.5 |
55 | 9.6 | 19.8 | 85 | 1 | 7.1 |
56 | 9.5 | 19.4 | 86 | 1 | 6.8 |
57 | 9.4 | 19.0 | 87 | 1 | 6.4 |
58 | 9.3 | 18.6 | 88 | 1 | 6.1 |
59 | 9.1 | 18.2 | 89 | 1 | 5.8 |
60 | 9.0 | 17.8 | 90 | 1 | 5.5 |
61 | 8.9 | 17.4 | 91 | 1 | 5.3 |
62 | 8.7 | 17.0 | 92 | 1 | 5.0 |
63 | 8.5 | 16.6 | 93 | 1 | 4.8 |
64 | 8.3 | 16.2 | 94 | 1 | 4.6 |
65 | 8.1 | 15.7 | 95 | 1 | 4.4 |
66 | 7.9 | 15.3 | 96 | 1 | 4.2 |
67 | 7.6 | 14.9 | 97 | 1 | 4.0 |
68 | 7.3 | 14.4 | 98 | 1 | 3.8 |
69 | 7.0 | 14.0 | 99 | 1 | 3.7 |
70 | 6.6 | 13.5 | 100 or more | 1 | 3.5 |
Table 2 – Determining the payment valuation factor
This table prescribes which maximum and minimum payment factors to use based on the person's age in whole years on the commencement day of the income stream and then on each 1 July thereafter for income streams commencing from 1 January 2006 to 30 June 2007.
Age | Maximum payment valuation factor | Minimum payment valuation factor | Age | Maximum payment valuation factor | Minimum payment valuation factor |
41 | 12 | 25.3 | 71 | 8.0 | 14.6 |
42 | 12 | 25.0 | 72 | 7.6 | 14.2 |
43 | 12 | 24.8 | 73 | 7.2 | 13.7 |
44 | 12 | 24.5 | 74 | 6.7 | 13.3 |
45 | 12 | 24.2 | 75 | 6.2 | 12.8 |
46 | 12 | 24.0 | 76 | 5.7 | 12.3 |
47 | 12 | 23.7 | 77 | 5.1 | 11.9 |
48 | 12 | 23.4 | 78 | 4.5 | 11.4 |
49 | 12 | 23.1 | 79 | 3.8 | 10.9 |
50 | 12 | 22..8 | 80 | 3.1 | 10.5 |
51 | 11.9 | 22.5 | 81 | 2.3 | 10.0 |
52 | 11.8 | 22.2 | 82 | 1.4 | 9.6 |
53 | 11.8 | 21.8 | 83 | 1 | 9.1 |
54 | 11.7 | 21.5 | 84 | 1 | 8.7 |
55 | 11.5 | 21.1 | 85 | 1 | 8.3 |
56 | 11.4 | 20.8 | 86 | 1 | 7.9 |
57 | 11.3 | 20.4 | 87 | 1 | 7.5 |
58 | 11.2 | 20.1 | 88 | 1 | 7.2 |
59 | 11.0 | 19.7 | 89 | 1 | 6.9 |
60 | 10.9 | 19.3 | 90 | 1 | 6.6 |
61 | 10.7 | 18.9 | 91 | 1 | 6.3 |
62 | 10.5 | 18.5 | 92 | 1 | 6.0 |
63 | 10.3 | 18.1 | 93 | 1 | 5.8 |
64 | 10.1 | 17.7 | 94 | 1 | 5.5 |
65 | 9.9 | 17.3 | 95 | 1 | 5.3 |
66 | 9.6 | 16.8 | 96 | 1 | 5.1 |
67 | 9.3 | 16.4 | 97 | 1 | 4.9 |
68 | 9.1 | 16.0 | 98 | 1 | 4.7 |
69 | 8.7 | 15.5 | 99 | 1 | 4.5 |
70 | 8.4 | 15.1 | 100 or more | 1 | 4.4 |
Table 3 - Determining the percentage factor
The following table describes which percentage factor to use depending on the person's age in whole years on the commencement day of the income stream and then on each 1 July thereafter.
Age | Percentage factor |
Under 65 | 4 |
65 - 74 | 5 |
75 - 79 | 6 |
80 - 84 | 7 |
85 - 89 | 9 |
90 - 94 | 11 |
95 or more | 14 |
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.