DVA's assessment of a pensioner's superannuation assets depends on:
VEA → [3]
No income or asset value is assessed from superannuation in the accumulation phase where the person is below pension age [2]. If the person has reached pension age, the superannuation is assessed under the income and assets tests as a financial asset [2].
More → [8]
VEA → [9]
Superannuation in the accumulation phase may be exempted from the assets test in certain limited circumstances. Delegation to exempt superannuation in these circumstances is held by the National Manager, Rehabilitation and Entitlements Policy Group. Exemptions are only allowed where the person cannot access their superannuation due to:
VEA → [12]
Part IIIB, Division 4 [13] VEA – Income from income streams
Part IIIB, Division 11, Subdivision A [14] VEA – Value of person's assets
The income and asset value of superannuation in the drawdown phase is assessed according to the income stream [2] rules. This also applies if the superannuation is in the drawdown phase and the person is below pension age.
More → [16]
Whole of life superannuation policies are subject to the same rules as other superannuation funds. However, whole of life conventional life insurance products are treated differently.
More → [17]
The assessable asset value of whole of life superannuation policies is the accumulated superannuation benefit [2] shown on the pensioner's latest statement of account. The amount payable from the policy in the event of the death of the insured party is not relevant.
A superannuation interest in the accumulation phase may be split where members of a couple separate and one or both members of the couple have a superannuation interest. The split may be made under a superannuation agreement or a court order. The options available for splitting a superannuation interest are:
Regardless of the option chosen for splitting a superannuation interest, the non-member is not entitled to receive any further payments. Different rules apply to superannuation interests in the drawdown phase.
More → [18]
The deprivation rules do not apply to the splitting of a superannuation interest pursuant to an agreement or a court order.
Part IIIB, Division 4 [13] VEA – Income from income streams
Part IIIB, Division 11, Subdivision A [14] VEA – Value of person's assets
The accumulation phase is the period during a person's working life in which superannuation contributions are paid into a superannuation fund, with the aim of maximising the sum available for retirement through investment and tax concessions.
The draw down phase is the period, after retirement from the workforce, when a person receives regular payments of superannuation benefits from their superannuation fund or an income stream product.
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 section 5J(1) [27] of the VEA a financial asset means;
According to subsection 5J(1) of the VEA [27], an income stream includes:
but does not include any of the following:
Section 5J(1) of the VEA [27] defines a superannuation benefit, in relation to a person, as a benefit arising directly or indirectly from amounts contributed (whether by the person or by any other person) to a superannuation fund in respect of the person.
A superannuation fund is defined in the VEA as being:
To roll-over, in relation to an eligible termination payment, means to invest all or part of the payment in an approved superannuation or roll-over fund, according to the requirements of section 27D of the Income Tax Assessment Act, 1936.
Links
[1] https://clik.dva.gov.au/user/login?destination=node/16403%23comment-form
[2] https://clik.dva.gov.au/%23
[3] https://clik.dva.gov.au/book/export/html/16403#tgt-cspol_part10_ftn590
[4] clik://LEGIS/VEA/section 5H(8)
[5] clik://LEGIS/VEA/section 5J(1)
[6] clik://LEGIS/VEA/section 52(1)
[7] https://clik.dva.gov.au/book/export/html/16403#ref-cspol_part10_ftn590
[8] https://clik.dva.gov.au/book/export/html/16403#tgt-cspol_part10_ftn591
[9] https://clik.dva.gov.au/book/export/html/16403#tgt-cspol_part10_ftn592
[10] clik://LEGIS/VEA/section 52AA
[11] https://clik.dva.gov.au/book/export/html/16403#ref-cspol_part10_ftn592
[12] https://clik.dva.gov.au/book/export/html/16403#tgt-cspol_part10_ftn593
[13] clik://LEGIS/VEA/Div 4/Part IIIB
[14] clik://LEGIS/VEA/SubDiv A/Div 11/Part IIIB
[15] https://clik.dva.gov.au/book/export/html/16403#ref-cspol_part10_ftn593
[16] https://clik.dva.gov.au/book/export/html/16403#tgt-cspol_part10_ftn594
[17] https://clik.dva.gov.au/book/export/html/16403#tgt-cspol_part10_ftn595
[18] https://clik.dva.gov.au/book/export/html/16403#tgt-cspol_part10_ftn596
[19] https://clik.dva.gov.au/compensation-and-support-policy-library/part-9-principles-determining-pension-rate/95-deeming-provisions
[20] https://clik.dva.gov.au/book/export/html/16403#ref-cspol_part10_ftn591
[21] https://clik.dva.gov.au/compensation-and-support-policy-library/part-10-types-income-and-assets/105-income-streams
[22] https://clik.dva.gov.au/book/export/html/16403#ref-cspol_part10_ftn594
[23] https://clik.dva.gov.au/compensation-and-support-policy-library/part-10-types-income-and-assets/102-assets/1024-assessing-personal-assets-and-investments/assessing-life-insurance-policies
[24] https://clik.dva.gov.au/book/export/html/16403#ref-cspol_part10_ftn595
[25] https://clik.dva.gov.au/compensation-and-support-policy-library/part-10-types-income-and-assets/105-income-streams/1056-special-provisions-regarding-family-law-affected-income-streams
[26] https://clik.dva.gov.au/book/export/html/16403#ref-cspol_part10_ftn596
[27] http://clik.dva.gov.au/legislation-library
[28] http://clik.dva.gov.au/glossary/foreign-superannuation-fund