An explanation of key terms used by this calculator is set out below:

• "Illness separated couple": An illness separated couple is a couple that is unable to live together due to illness or infirmity. Both members of the couple are entitled to the single rate of Age Pension, while being subject to a combined income and assets test assessment.
• "Homeowner?": A client is generally a homeowner if they have an interest in the place that they occupy and that interest gives them reasonable security of tenure.
• "Personal assets": For the purpose of this calculator, personal assets include the net value of household contents and personal effects, such as, motor vehicles, motor cycles, boats and caravans. These are assessable under the assets test but are not deemed for income test purposes.
• "Other assets": For the purpose of this calculator, other assets may include the net value of investment properties, and interests in certain private trusts and companies. These are assessable under the assets test but are not deemed for income test purposes.
• "Financial assets (deemed)": For the purposes of this calculator, financial assets (deemed) include the assessable value of any financial assets, including bank accounts, term deposits, shares, managed funds, and accumulation phase superannuation. Also include deferred lifetime income streams purchased on or after 1 July 2019 with non-superannuation monies where the client is under age pension age. Refer to the FirstTech Super Guide for more information.
• "Income streams (deemed)": For the purpose of this calculator, income streams (deemed) are the value of account based pensions (excluding those that commenced prior to 1 January 2015 and are grandfathered), and the assessable value of short-term income streams. These assets are deemed for income test purposes.
• "Income stream (not deemed)": For the purposes of this calculator, income stream (not deemed) is the value of grandfathered account based pensions commenced prior to 1 January 2015, and the assessable asset value of long term annuities and complying income streams. These assets are not deemed for income test purposes. It does not include lifetime income streams purchased on or after 1 July 2019.
• "Annual payment": For the purpose of this calculator, annual payment means the gross amount paid from the income stream over the year. In the case of grandfathered account based pensions, this is calculated on a financial year basis, using the income stream payments received and expected to be received during the financial year.
• "Deductible amount": For the purpose of this calculator, deductible amount means the part of the annual income stream payment that is excluded from assessable income under the income test. The value of the deductible amount depends on the type of income stream, and can depend on the purchase price, whether the income stream has a residual capital value, the client's age, the term of the income stream, and whether the income stream has a reversionary beneficiary.

• Lifetime income streams (assessable asset value): For the purposes of this calculator, a lifetime income stream includes immediate and deferred lifetime annuities and group self annuitised products purchased on or after 1 July 2019. Where the income stream is not deferred and complies with the capital access schedule, for social security purposes 60% of the purchase price is an assessable asset until age 84 (or minimum five years) then 30% of the purchase price for the remainder of their life. Enter 60% of the purchase price in this field.

  Where the income stream is not deferred and does not comply with the capital access schedule, the assessable asset value is the higher of:

  • current or future surrender value
  • current or future death value
  • 60% of the purchase price assessable until age 84 (or minimum five years), then 30% of the purchase price assessable for the remainder of their life.

  Refer to the FirstTech Super Guide for more information.

  Where the income stream is deferred, the following table summarises assets test assessment:

  Superannuation	Exempt until the later of: Date income stream purchased Date clients satisfies condition of release From this date, 60% of purchase price assessable until age 84 (minimum 5 years), then 30% assessable
  Non-superannuation	Assessable asset until: Date income stream commences (if below age pension age), or Latest of: Date income stream purchased Date client reaches age pension age From this date, 60% of purchase price assessable until age 84 (minimum 5 years), then 30% assessable

  Refer to the FirstTech Super Guide for more information.
• "Assessable income (enter 60% of annual payment)": For the purposes of this calculator, a lifetime income stream includes immediate and deferred lifetime annuities and group self annuitised products purchased on or after 1 July 2019. For social security purposes, 60% of the annual payment is assessable income. Enter 60% of the annual payment in this field. Where the income stream is a deferred income stream and payments have not yet commenced, do not enter any income in this field.
• "Employment income": For the purpose of this calculator, employment income means annual salary and wages (as well as other similar remuneration) received by a client while an employee. The amount included should be net of the work bonus (see information about the work bonus: ).
  
• "Other income": For the purpose of this calculator, other income is any other income that is assessable for income test purposes, for example, net rental income from investment properties, business income and overseas pension income.

Age Pension rates and thresholds used by this calculator are those effective as at 20 September 2024.

• This calculator estimates the rate of age pension payable under both the assets test and the income test. For pension based on the assets test: A client's maximum pension reduces by $3 per fortnight for every $1,000 of their assessable assets (single or couple combined) that exceed the lower threshold.
• For pension based on the income test: A client's maximum pension reduces by 50 cents in the dollar for assessable income that exceeds the lower threshold (single or couple combined).
• The final pension is calculated as the lower of the pension based on the income test and the pension based on the assets test.

For grandfathered account based pensions commencing prior to 1 January 2015, actual payments from the income stream (less a deduction amount, which depends on the client's circumstances) are included in the income test. Details of these income streams must be entered into the 'Income Stream (not deemed)' fields.

For account based pensions commencing on or after 1 January 2015, as well as non-grandfathered account based pensions commenced prior to that date, the income stream account balance is deemed income for the income test. Details of these income streams must be entered into the 'Income Streams (deemed)' field.

For more information about income streams, and the circumstances where grandfathering can apply to pre-1 January 2015 account based pensions: .

See the FirstTech Social Security Guide: .