Account-based income streams are retirement or transition to retirement income stream products purchased with superannuation money. Account-based income streams are tax free from 60 years of age. Account-based income streams owners are required by superannuation rules to drawdown at least a minimum amount of their account balance every year.
From 1 January 2015 account-based income streams are regarded as financial assets and have deemed income calculated on the current account balance if:
Other account-based income streams will continue to be assessed under the rules which applied prior to 1 January 2015.
More → [2]Account-based income streams that were assessed under the pre-1 January 2015 rules, but reverted to a reversionary beneficiary under the income stream contract following the death of the original owner will continue to be assessed under the pre-1 January 2015 rules if the reversionary beneficiary has been continuously in receipt of an income support payment since the reversion of the income stream.
Account-based income streams that were assessed under the pre-1 January 2015 rules, but were commuted as part of a divorce/separation settlement (a court order under Part VIIIAA or Part VIIIB of the Family Law Act 1975) and an account-based income stream is purchased by direct rollover of the proceeds, will continue to be assessed under the pre-1 January 2015 rules if the owner has been continuously in receipt of an income support payment since the commencement of the new income stream.
Veterans' Entitlements Act 1986 [3] section 5J(1) definition of financial investment includes:
(i) an asset tested income stream (long term) that is an account based pension within the meaning of the Superannuation Industry (Supervision) Regulations 1994; or
(ii) an asset tested income stream (long term) that is an annuity (within the meaning of the Superannuation Industry (Supervision) Act 1993) provided under a contract that meets the requirements determined in an instrument under subsection (1G).
Links
[1] https://clik.dva.gov.au/book/export/html/78613#tgt-VEA_ftn1
[2] https://clik.dva.gov.au/book/export/html/78613#tgt-More_ftn1
[3] http://www.comlaw.gov.au/Series/C2004A03268
[4] https://clik.dva.gov.au/book/export/html/78613#ref-VEA_ftn1
[5] https://clik.dva.gov.au/compensation-and-support-policy-library/part-10-types-income-and-assets/105-income-streams/1054-income-and-assets-assessment-income-streams
[6] https://clik.dva.gov.au/book/export/html/78613#ref-More_ftn1