Help for Annuities and Superannuation pensions (2024)

• Make a claim help index
• Annuity or Superannuation pension
• Income stream
• Self Managed Super Fund
• Small APRA Fund
• Income stream schedule
• Commute
• Provide these details later

Annuity or Superannuation pension

Annuities are income streams purchased from life insurance companies or friendly societies with either ordinary money or superannuation money. Superannuation pensions are income streams that are purchased or paid from a superannuation fund.

Superannuation is an investment for a person's retirement, to provide financial resources during their retirement years. Money is accumulated during the person's working life in specialised superannuation accounts. This period during which monies are contributed to the fund is known as the accumulation phase, and will not be displayed on the ASP pages.

Following retirement from the workforce, a person can access their superannuation money by either making lump sum withdrawals or receiving regular ongoing payments from an income stream product. This is known as the draw down phase. Note: regular withdrawals from a superannuation fund are not assessed as an income stream. When a person commences receiving a pension from their superannuation fund or uses their superannuation assets or ordinary money to purchase an income stream, it is assessed under income stream rules.

Please note that annuities and superannuation pensions which are outside Australia will not be listed here. Please see Foreign income and assets for information about annuities and superannuation pensions outside Australia.

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Income stream

Income streams enable investors to receive regular income and capital payment throughout retirement, often with taxation and Social Security advantages. These are usually Account Based Pensions which are considered lifetime products and must be purchased with superannuation monies. Alternatively, immediate annuities can be purchased with either superannuation or ordinary monies, and may be short term, long term or lifetime investments.

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Self Managed Super Fund

A Self Managed Superannuation Fund (SMSF) is a fund that you manage yourself. A SMSF is a super fund that your financial planner or accountant set up for you and/or your family and probably has your surname in the title of the fund. It must meet the following conditions:

• has fewer than 5 members;
• each individual trustee of the fund is a fund member;
• each member of the fund is a trustee;
• no member of the fund is an employee of another member of the fund, unless those members are related;
• no trustee of the fund receives any remuneration for his or her services as a trustee.

The Australian Tax Office regulates funds that meet the definition of an SMSF.

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Small APRA Fund

A Small APRA Fund (SAF) is similar to a Self Managed Superannuation fund except you have an independent trustee as you don't want to run it yourself. The following conditions apply to a SAF

• no more than 4 members
• do not meet requirements to be a SMSF
• corporate trustee

It is regulated by Australian Prudential Regulation Authority (APRA).

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Income stream schedule

A Centrelink income stream schedule is a 'Details of income stream product' form (SA330) A similar schedule completed by the provider for each income stream product is acceptable.

If the annuity or superannuation pension is sourced from a Self Managed Super Fund (SMSF) or Small APRA Fund (SAF) the Trustee of the fund must complete the SA330 or provide a similar schedule.

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Commute

To take future payments from an income stream as a lump sum in cash or direct transfer (rollover) to another income stream. In others words you make a lump sum withdrawal from your income stream for personal use or convert the lump sum into another income stream.

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Provide these details later

This option lets you defer providing details about this category. If selected, any information provided so far will be saved and you can continue with your claim online.

You can provide the remaining income and asset details for your claim in the following ways:

1. As part of this claim.

   Up to the point that you submit this online claim you can return to a category that you have chosen to defer, un-check the "I am unable to supply complete and accurate details" checkbox, and add further details about that category.

2. In a personalised income and assets form online.

   After you submit your claim, you will have access to a personalised Income and Assets form online that includes all the sections that you have opted to defer.

3. In a generic paper income and assets form.

   If you choose not to complete the tailored online form, you can download, complete and lodge the blank paper form equivalent from the DHS website.

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