Overseas annuities do not satisfy the definition of an income stream [2] as they do not meet the requirements for prudential regulation. Overseas annuities are an assessable asset.
More ? [3]
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.
Generally when a person disposes of an income producing asset without adequate consideration [2], 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:
According to subsection 5J(1) of the VEA [6], an income stream includes:
but does not include any of the following:
For adequate financial consideration to be received when disposing of an asset [2], a person must receive value in the form of money or assets. Adequate financial consideration can be accepted when the amounts received reasonably equate to the market value of the asset. It may be necessary to obtain a valuation from a property valuation service provider.
When disposing of income [2], in order for adequate financial consideration to be received, the person must receive money, goods or services which approximate in value to the rate of disposed income. If a person disposes of an income producing asset and receives adequate financial consideration in money or money's worth for the asset, then it can be accepted that they have received adequate financial consideration for the disposal of both the income and the asset.
Links
[1] https://clik.dva.gov.au/user/login?destination=node/16372%23comment-form
[2] https://clik.dva.gov.au/%23
[3] https://clik.dva.gov.au/book/export/html/16372#tgt-cspol_part10_ftn329
[4] https://clik.dva.gov.au/compensation-and-support-policy-library/part-10-types-income-and-assets/105-income-streams
[5] https://clik.dva.gov.au/book/export/html/16372#ref-cspol_part10_ftn329
[6] http://clik.dva.gov.au/legislation-library