Changes to lifetime income streams

From 1 July 2019, there are new means test rules for lifetime income stream products.

senior male looking at ipad with staff member

For lifetime income stream (LIS) products purchased from 1 July 2019, changes to the means test rules mean:

  • we’ll assess the value of an asset at a minimum of 60% of the purchase price
  • we’ll assess 60% of the payments made from the lifetime income stream as income.

If your client is under Age Pension age and their payments haven’t started yet, all LIS products they purchase:

  • with savings may be subject to deeming
  • with superannuation money may be exempt from means testing.

We’ll continue to assess all LIS products purchased before 1 July 2019 under the exisiting rules.

Next steps

Read about the More Choices for a Longer life – finances for a longer life measure for more information.

Page last updated: 6 June 2019

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