Income from financial investments [2] including cash, deposits accounts, managed investments, listed securities, loans, unlisted securities, gold, silver, platinum bullion, and asset-tested short term income streams is assessed using the deeming provisions [2].
More ? [3]
Superannuation fund investments are assessed in a variety of ways depending on whether or not the owner has attained pension age [2] and whether or not withdrawals are made from the investment prior to the owner attaining 55 years of age.
More ? [4]
Income from income streams [2] is subject to the income streams [2] assessment rules.
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According to section 5J of the VEA, a financial investment means:
but does not include an investment in an FHSA (within the meaning of the First Home Saver Accounts Act 2008) or a designated NDIS amount.
In 1990 the government introduced legislative changes called “deeming” to simplify the assessment of cash deposits and income from certain investments. These changes were made:
Deemed income is the minimum rate that the government expects income support pensioners to earn from investments.
Banks created “pensioner accounts” which paid interest at the deeming rate set by the government.
On 1 July 1996 further changes meant the deeming rate was applied to all financial assets as defined in section 5J(1) of the VEA [12].
Currently, the pension age for a veteran is 60 years of age (VEA 5QA).
The pension age for a non-veteran is determined by the table below:
Date of birth (both dates inclusive) | Age Pension age |
1 July 1952 to 31 December 1953 | 65 years and 6 months |
1 January 1954 to 30 June 1955 | 66 years |
1 July 1955 to 31 December 1956 | 66 years and 6 months |
On or after 1 January 1957 | 67 years |
According to subsection 5J(1) of the VEA [12], an income stream includes:
but does not include any of the following:
According to subsection 5J(1) of the VEA [12], an income stream includes:
but does not include any of the following:
Links
[1] https://clik.dva.gov.au/user/login?destination=node/16389%23comment-form
[2] https://clik.dva.gov.au/%23
[3] https://clik.dva.gov.au/book/export/html/16389#tgt-cspol_part10_ftn219
[4] https://clik.dva.gov.au/book/export/html/16389#tgt-cspol_part10_ftn220
[5] https://clik.dva.gov.au/book/export/html/16389#tgt-cspol_part10_ftn221
[6] https://clik.dva.gov.au/compensation-and-support-policy-library/part-9-principles-determining-pension-rate/95-deeming-provisions
[7] https://clik.dva.gov.au/book/export/html/16389#ref-cspol_part10_ftn219
[8] https://clik.dva.gov.au/compensation-and-support-policy-library/part-10-types-income-and-assets/104-superannuation-funds
[9] https://clik.dva.gov.au/book/export/html/16389#ref-cspol_part10_ftn220
[10] https://clik.dva.gov.au/compensation-and-support-policy-library/part-10-types-income-and-assets/105-income-streams
[11] https://clik.dva.gov.au/book/export/html/16389#ref-cspol_part10_ftn221
[12] http://clik.dva.gov.au/legislation-library