Last amended: 13 May 2008
The following table shows how to select and use the appropriate life expectancy [2] table in the assessment of an income stream [2].
Step |
Action |
1 |
Determine the commencement day [2] of the income stream to be assessed and ensure that the correct table is used. More ? [3] |
2 |
Determine which persons the relevant number [2] must be obtained for. More ? [4] |
3 |
Look down the age column to find the age of those persons at the commencement day in whole years. |
4 |
Move across to the corresponding life expectancy factor (one for males, the other for females) |
The following table shows life expectancy factors used for calculating the relevant number for males and females. The factors are based on the 1980 to 1982 life tables, published by the Australian Government Actuary.
The table relates to income streams with a commencement day on or after 1 September 1988 but before 1 May 1993. The age used refers to the age on the income stream's commencement day.
Age |
M |
F |
Age |
M |
F |
Age |
M |
F |
15 |
57.44 |
64.27 |
44 |
30.39 |
36.22 |
73 |
9.25 |
12.19 |
16 |
56.48 |
63.29 |
45 |
29.49 |
35.28 |
74 |
8.77 |
11.53 |
17 |
55.52 |
62.31 |
46 |
28.60 |
34.36 |
75 |
8.31 |
10.89 |
18 |
54.59 |
61.34 |
47 |
27.71 |
33.43 |
76 |
7.86 |
10.27 |
19 |
53.68 |
60.37 |
48 |
26.84 |
32.52 |
77 |
7.44 |
9.67 |
20 |
52.78 |
59.40 |
49 |
25.98 |
31.61 |
78 |
7.03 |
9.09 |
21 |
51.87 |
58.43 |
50 |
25.12 |
30.70 |
79 |
6.64 |
8.54 |
22 |
50.96 |
57.46 |
51 |
24.28 |
29.80 |
80 |
6.27 |
8.01 |
23 |
50.04 |
56.49 |
52 |
23.45 |
28.91 |
81 |
5.92 |
7.50 |
24 |
49.12 |
55.51 |
53 |
22.63 |
28.02 |
82 |
5.58 |
7.02 |
25 |
48.19 |
54.54 |
54 |
21.82 |
27.14 |
83 |
5.26 |
6.57 |
26 |
47.26 |
53.57 |
55 |
21.02 |
26.27 |
84 |
4.96 |
6.14 |
27 |
46.33 |
52.59 |
56 |
20.24 |
25.40 |
85 |
4.67 |
5.74 |
28 |
45.39 |
51.62 |
57 |
19.47 |
24.55 |
86 |
4.40 |
5.37 |
29 |
44.45 |
50.64 |
58 |
18.71 |
23.70 |
87 |
4.14 |
5.02 |
30 |
43.51 |
49.67 |
59 |
17.96 |
22.85 |
88 |
3.91 |
4.69 |
31 |
42.56 |
48.70 |
60 |
17.23 |
22.02 |
89 |
3.68 |
4.39 |
32 |
41.61 |
47.72 |
61 |
16.52 |
21.20 |
90 |
3.47 |
4.11 |
33 |
40.67 |
46.75 |
62 |
15.81 |
20.38 |
91 |
3.28 |
3.85 |
34 |
39.72 |
45.78 |
63 |
15.13 |
19.58 |
92 |
3.11 |
3.61 |
35 |
38.77 |
44.81 |
64 |
14.46 |
18.78 |
93 |
2.94 |
3.38 |
36 |
37.82 |
43.84 |
65 |
13.80 |
18.00 |
94 |
2.80 |
3.18 |
37 |
36.88 |
42.88 |
66 |
13.17 |
17.22 |
95 |
2.66 |
2.99 |
38 |
35.94 |
41.91 |
67 |
12.55 |
16.46 |
96 |
2.54 |
2.81 |
39 |
35.00 |
40.95 |
68 |
11.95 |
15.72 |
97 |
2.43 |
2.64 |
40 |
34.07 |
40.00 |
69 |
11.37 |
14.98 |
98 |
2.32 |
2.49 |
41 |
33.14 |
39.05 |
70 |
10.81 |
14.26 |
99 |
2.23 |
2.35 |
42 |
32.22 |
38.10 |
71 |
10.27 |
13.56 |
100 |
2.13 |
2.22 |
43 |
31.30 |
37.16 |
72 |
9.75 |
12.87 |
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Life expectancy is the length of time a person is expected to live and has the same meaning as 'life expectancy factor' under section 27H of the Income Tax Assessment Act 1936.
According to subsection 5J(1) of the VEA [12], an income stream includes:
but does not include any of the following:
The commencement day in relation to an income stream [2] is the first day of the period to which the first income stream payment relates. This is usually one instalment period before the date of the first income payment.
The commencement day cannot occur prior to:
Legislative reference: subsection 5J(1) of the Veterans' Entitlements Act 1986.
An income stream's relevant number is the length of time an income stream is paid for. It can be a fixed term or the life expectancy factor of the payee or reversionary beneficiary.
Links
[1] https://clik.dva.gov.au/user/login?destination=node/16461%23comment-form
[2] https://clik.dva.gov.au/%23
[3] https://clik.dva.gov.au/book/export/html/16461#tgt-cspol_part10_ftn688
[4] https://clik.dva.gov.au/book/export/html/16461#tgt-cspol_part10_ftn689
[5] https://clik.dva.gov.au/compensation-and-support-policy-library/part-10-types-income-and-assets/105-income-streams/1057-life-expectancy-tables-pension-valuation-factors-and-payment-factors
[6] https://clik.dva.gov.au/book/export/html/16461#ref-cspol_part10_ftn688
[7] https://clik.dva.gov.au/compensation-and-support-policy-library/part-10-types-income-and-assets/105-income-streams/1052-description-income-streams/asset-test-exempt-income-streams-lifetime
[8] https://clik.dva.gov.au/compensation-and-support-policy-library/part-10-types-income-and-assets/105-income-streams/1052-description-income-streams/asset-test-exempt-income-streams-life-expectancy
[9] https://clik.dva.gov.au/compensation-and-support-policy-library/part-10-types-income-and-assets/105-income-streams/1052-description-income-streams/asset-test-exempt-income-streams-defined-benefit
[10] https://clik.dva.gov.au/compensation-and-support-policy-library/part-10-types-income-and-assets/105-income-streams/1052-description-income-streams/asset-test-exempt-income-streams-market-linked
[11] https://clik.dva.gov.au/book/export/html/16461#ref-cspol_part10_ftn689
[12] http://clik.dva.gov.au/legislation-library