Last amended: 3 September 2013
These payment factors are used in determining the annual payment [2] to be paid by a market linked income stream [2].
The following rules determine which payment factor is to be used:
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.
Remaining term of income stream (years) | Payment factor | Remaining term of income stream (years) | Payment factor |
70 | 26.00 | 35 | 20.00 |
69 | 25.91 | 34 | 19.70 |
68 | 25.82 | 33 | 19.39 |
67 | 25.72 | 32 | 19.07 |
66 | 25.62 | 31 | 18.74 |
65 | 25.52 | 30 | 18.39 |
64 | 25.41 | 29 | 18.04 |
63 | 25.30 | 28 | 17.67 |
62 | 25.19 | 27 | 17.29 |
61 | 25.07 | 26 | 16.89 |
60 | 24.94 | 25 | 16.48 |
59 | 24.82 | 24 | 16.06 |
58 | 24.69 | 23 | 15.62 |
57 | 24.55 | 22 | 15.17 |
56 | 24.41 | 21 | 14.70 |
55 | 24.26 | 20 | 14.21 |
54 | 24.11 | 19 | 13.71 |
53 | 23.96 | 18 | 13.19 |
53 | 23.80 | 17 | 12.65 |
51 | 23.63 | 16 | 12.09 |
50 | 23.46 | 15 | 11.52 |
49 | 23.28 | 14 | 10.92 |
48 | 23.09 | 13 | 10.30 |
47 | 22.90 | 12 | 9.66 |
46 | 22.70 | 11 | 9.00 |
45 | 22.50 | 10 | 8.32 |
44 | 22.28 | 9 | 7.61 |
43 | 22.06 | 8 | 6.87 |
42 | 21.83 | 7 | 6.11 |
41 | 21.60 | 6 | 5.33 |
40 | 21.36 | 5 | 4.52 |
39 | 21.10 | 4 | 3.67 |
38 | 20.84 | 3 | 2.80 |
37 | 20.57 | 2 | 1.90 |
36 | 20.29 | 1 or less | 1.00 |
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 :
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.
Annual payment means the amount payable to the person for the year under the income stream.
According to subsection 5J(1) of the VEA [3], an income stream includes:
but does not include any of the following:
Links
[1] https://clik.dva.gov.au/user/login?destination=node/16367%23comment-form
[2] https://clik.dva.gov.au/%23
[3] http://clik.dva.gov.au/legislation-library