Managed investments [2] include:
The assets value of a managed investment is the current market value.
Managed investments can be unit based or account based.
If the investment is... | then the asset value is worked out by... |
unit based | multiplying the number of units by the unit buy-back price stored on the DVA Managed Investment Database. More ? [4]
|
account based | buy-back value obtained from the fund manager. |
Note: The deeming provisions under the income test applies to managed investments.
More ? [5]
Unit buy-back prices are obtained each month for unit based managed investments from fund managers and stored on the DVA Managed Investment Database. Unit buy-back prices are updated in the middle of each month and reflect the last sale price for the last working day of the preceding calendar month. They are only applied to assessments:
The value of account based managed investments is only updated when the person notifies of a change in the value or the Department undertakes a revaluation. Pensioners are required to advise DVA if the value of their account based investments varies by more than $1,000.
Asset-tested lifetime income streams purchased on or after 1 July 2019 which were purchased with non-superannuation monies, are considered managed investments before the assessment day [7] (prior to payments commencing or the owner reaching pension age). The value is the purchase amount. If more than one amount has been paid, the purchase amount is the sum of those amounts, compounded using the ‘above threshold deeming rate’, less commuted amounts. More – see “Purchase Amount” in the Glossary.
After the assessment day, it is no longer considered a managed investment and other rules apply, see 10.5.4 Means Test Assessment of Lifetime Income Streams.
If a funeral bond does not meet the requirements to be an exempt asset [2], then the whole funeral bond is counted as an asset at its current value. Non-exempt funeral bonds are assessed as account-based managed investments.
More ? [8]
An investment is a managed investment if:
For a full definition see also:
Sections 5J(1A), 5J(1B) and 5J(1C) of the VEA [19].
A funeral bond is a managed investment [2] that will on maturity either offset or assist towards the payment of the funeral of the person or the person's partner. Up to two funeral bonds per person may be treated as exempt assets [2] if the combined amounts invested is within the funeral bond threshold [2].
A funeral bond cannot be exempt if the person has a prepaid funeral [2].
An exempt asset is one that is disregarded when calculating the value of a person's assets [2] under the assets test [2]. Examples of exempt assets include:
For a full legislative definition see section 52 of the VEA.
Links
[1] https://clik.dva.gov.au/user/login?destination=node/16490%23comment-form
[2] https://clik.dva.gov.au/%23
[3] https://clik.dva.gov.au/book/export/html/16490#tgt-cspol_part10_ftn294
[4] https://clik.dva.gov.au/book/export/html/16490#tgt-cspol_part10_ftn295
[5] https://clik.dva.gov.au/book/export/html/16490#tgt-cspol_part10_ftn296
[6] https://clik.dva.gov.au/book/export/html/16490#tgt-cspol_part10_ftn297
[7] https://clik.dva.gov.au/glossary/assessment-day
[8] https://clik.dva.gov.au/book/export/html/16490#tgt-cspol_part10_ftn298
[9] https://clik.dva.gov.au/service-eligibility-assistant-updates/all-determinations-order-date-signed-oldest-most-recent/determinations-under-vea
[10] https://clik.dva.gov.au/book/export/html/16490#ref-cspol_part10_ftn294
[11] https://clik.dva.gov.au/compensation-and-support-policy-library/part-9-principles-determining-pension-rate/95-deeming-provisions/952-general-provisions-deeming/investment-information-systems
[12] https://clik.dva.gov.au/book/export/html/16490#ref-cspol_part10_ftn295
[13] https://clik.dva.gov.au/compensation-and-support-policy-library/part-9-principles-determining-pension-rate/95-deeming-provisions/956-deeming-managed-investments/deemed-income-other-managed-investments
[14] https://clik.dva.gov.au/book/export/html/16490#ref-cspol_part10_ftn296
[15] https://clik.dva.gov.au/compensation-and-support-policy-library/part-9-principles-determining-pension-rate/97-statutory-increases
[16] https://clik.dva.gov.au/book/export/html/16490#ref-cspol_part10_ftn297
[17] https://clik.dva.gov.au/compensation-and-support-policy-library/part-10-types-income-and-assets/102-assets/1023-disregarded-assets/disregarded-assets-relating-deceased-estates-and-funeral-expenses
[18] https://clik.dva.gov.au/book/export/html/16490#ref-cspol_part10_ftn298
[19] http://www.comlaw.gov.au/Series/C2004A03268