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This topic covers the treatment of withdrawal amounts.
The lump sum received from the superannuation fund is not itself held as income. Depending on what the income support recipient uses the withdrawn amount for, further assessment may be necessary.
IF the withdrawn amount is spent or used for other non-assessable purposes NO further assessment is necessary.
Example: A holiday, repairs or improvements to the income support recipient's principal place of residence.
If all or part of the amount withdrawn is used to purchase an assessable asset, the relevant income and assets test assessments will apply.
Example: If a car is purchased, its value is added to other assets. If money is placed in a bank account, the balance of the account is an asset and subject to deeming.
Act reference: SSAct section 1076 Deemed income from financial assets-persons other than members of couples, section 1077 Deemed income from financial assets-members of pensioner couples, section 1078 Deemed income from financial assets-members of non-pensioner couples, section 1081 Deeming threshold, section 1082 Below threshold rate, above threshold rate, section 1083 Actual return on financial assets not treated as ordinary income, section 1084 Certain money and financial investments not taken into account, section 1098 Income from asset-test exempt income stream, section 1099 Income-income stream not a defined benefit income stream, section 1099A Income-income stream is a defined benefit income stream, section 1099B Income from asset-tested income stream (long term), section 1099C Income-income stream not a defined benefit income stream, section 1099D Income-income stream is a defined benefit income stream, section 1118 Certain assets to be disregarded in calculating the value of a person's assets, section 1119 Value of asset-tested income streams that are not defined benefit income streams, section 1120 Value of asset-tested income streams that are defined benefit income streams
Policy reference: SS Guide 4.1 Deprivation of Income & Assets, 4.9 Income Streams
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Last reviewed: 7 December 2009
