Centrelinkdoes not assess the full value of many superannuation income streams and annuities as income.  Instead, part of the income stream will be ignored.

To calculate the amount which is not assessed, divide the purchase price of that income stream by the "relevant number".

For fixed term income streams including term annuities and term allocated pensions, the relevant number is the term of the income stream.

For allocated pensions and annuities and lifetime pensions/annuities the relevant number is your life expectancy .

When there is a reversionary beneficiary, the relevant number is the greater of the life expectancy of the primary beneficiary or the reversionary beneficiary.

For example, if a 65 year old invests $100,000 in a 15 year term allocated pension or annuity, the first $100,000/15 =$6,667 of annual income will be exempt from the income test

If a 65 year old male takes out a $100,000 allocated pension or lifetime pension, the relevant number will be 17.7, which is a male 65 year old's average life expectancy according to the 2000/02 Austrailan Life Tables, so in this person will be exempt from the income test on the first $100,000/17.7 = $5,650 of annual income.

If that 65 year old male appointed his 62 year old wife as his reversionary beneficiary, the relevant number would be 23.71, the average life expectancy of a 62 year old female, so the deductible amount is $100,000/23.71 = $4,218. 

Note that the deductible amount (exempt amount) is lower when there is a reversionary beneficiary with a longer life expectancy than the primary beneficiary, so you should take this into account.  It means that electing to have a reversionary beneficiary may mean you receive less age pension.