We need information about the income streams held by recipients and concession card holders to ensure they receive their correct entitlements.
From 1 January 2018, we’re introducing a new one-step electronic data transfer process for income stream reviews. Read more about Automation of Income Stream Reviews.
Why we need income stream information
We need to collect details about the income stream products held by recipients and concession card holders to ensure they are getting the correct entitlements.
Income stream products are reviewed at specified times each year depending on the type of product. The largest number of reviews are conducted in August and February each year.
The income streams we include in the August and February reviews are:
- account-based pensions also known as allocated pensions
- market-linked pensions also known as term allocated pensions
We send recipients a letter in August and February each year asking them to advise the amount of income they receive from their income stream products. We also ask them to confirm their account balance and any commutations that have been made.
For income stream providers and administrators, these reviews may mean an increase in enquiries. Recipients and their financial advisors may contact them to obtain these details.
To streamline this review process, we can get these details directly from income stream providers through an electronic data exchange. This replaces the need for providers to issue paper Income Stream Schedules for the August and February reviews.
Your organisation's involvement will help to improve the process for your members and your employees.
What's the benefits for your business
Electronic data transfers between us will save you time and money. It limits the need for our recipients to contact you to confirm their income stream details during the reviews.
This means fewer recipient contacts and may reduce the letters or income stream schedules sent during the review.
It will also improve customer service. The electronic transfer replaces a letter based review system. This gives you more time to focus on the things that are most important to your business.
It can help you manage your business in a changing environment. Australia's demographics are always changing and organisations need to change the way they do business.
With the Baby Boomer generation reaching the qualifying age for Age Pension, income stream providers will find themselves dealing with us on a much greater scale than ever before.
How electronic data transfer works
We transfer data using 128 bit encryption over a secure government website using comma separated value files (.csv).
If your IT systems are able to fill a simple spreadsheet of your client data, then it is likely that you are ready to start.
To find out more about how the data exchange process works and the file standards, email us at NBG Online Support.
What does automation of Income Stream Reviews involve
From 1 January 2018, we’re using a new one-step electronic data transfer process for income streams that are not paid from SMSFs and SAFs. It’s a more efficient and accurate way to get the information we need for income stream reviews.
Many providers currently give data to us electronically using a 2 step process. If a provider is not registered for this process, we need to manually collect this data from recipients.
This change allows you to easily give data to us on behalf of your members. In most cases, recipients and their partners won’t be asked to give their details to us manually.
You can voluntarily register for the new process during 2018, with provider registration mandatory from 1 January 2019.
Both the old and the new process will be in place from 1 January 2018 to 1 January 2019.
To help providers transition, we’re holding regular Information Sessions. You can email the Income Streams team for details or to register.