Investment, Insurance, Superannuation
Further to an email we sent to advisers with clients in OneAnswer, ANZ OneAnswer and OptiMix Term Allocated Pensions (TAP) on 18 August 2025, we advise that the effective commencement date of the relevant social security debt waiver instrument has been revised to no earlier than 28 October 2025. This date was previously understood to be no earlier than 5 September 2025.
As published on the Australian Parliament website and assuming no further changes, 27 October 2025 is latest date the debt waiver instrument may be disallowed by the Federal Parliament.
Background
Eligible TAP accounts generally receive a 50% pension balance exemption from the Centrelink assets test. The balance of TAP accounts which are commuted as part of this legislation will no longer receive this exemption.
If the loss of any assets test exemption associated with the TAP account for the last five years would result in a lower social security benefit, a debt for the overpaid benefit is required to be raised against the client and is generally repayable to the Government.
On 28 March 2025, the Government registered the social security debt waiver instrument to provide that there would be no five-year claw-back of benefits paid. As described above, this measure cannot commence before 28 October 2025. If clients elect to take advantage of the amnesty and commute their TAP account after the commencement of the debt waiver, they will not have a social security debt raised.
More information
Refer to the Legacy Pension Adviser FAQs to find out more.
Any questions?
If you have any questions or would like further information, please: