4.4.4.40 Deemed Income from Superannuation & Roll-over Investments

Summary

This topic provides information on the following:

• the application of deeming to income from superannuation and roll-over investments for people who have reached age pension age, and
• exemption of specified superannuation and roll-over investments.

Other related topics include:

• 4.6.5.75 Treatment of Superannuation and Roll-over Investments Under the Assets Test
• 4.8 Superannuation Funds
• 4.9 Income Streams

General application of deeming

Superannuation and roll-over investments are treated differently depending on the age and circumstances of the person as described in the following table.

Act reference: SSAct section 9(1B) Without limiting the generality of…the following are managed investments..., section 9(1C) The following are not managed investments...

Policy reference: SS Guide 4.9 Income Streams

Exemption of specified superannuation & roll-over investments

In a very small number of cases, the Minister for FaHCSIA grants exemptions for superannuation assets of age pensioners from assessment.

The Minister is the only person with the legislative power to exempt a superannuation investment.

Between 20 September 1997 and 1 July 2001, income support recipients of age pension age and aged between 55 years of age and age pension age, who had received income support for at least 39 weeks after reaching age 55, had their superannuation assets assessed.

From 1 July 2001 only people of age pension age have their superannuation assets assessed.

Explanation: Some income support recipients of age pension age may be able to gain an exemption.

Example: Female income support recipients of age pension age, but not yet 65, and still working more than 10 hours per week may be able to obtain an exemption on the grounds that they cannot access their superannuation investment.

Exemptions are considered if the investment cannot be assessed where:

• the superannuation investment is inaccessible because the rules of the superannuation prevent release, OR
• the superannuation investment is inaccessible because of a legislative bar. This may arise where a person cannot access their superannuation because they do not satisfy any of the 'conditions of release' specified in the superannuation regulations. There may also be other circumstances where a legislative bar prevents access to a person's superannuation benefits, such as a Family Law Court decision.

Act reference: SSAct section 1084(1) Certain money and financial investments not taken into account, section 1118B Value of superannuation investments determined by Minister to be disregarded

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Last reviewed: 4 January 2010