Document ID: chunk:federal_register_of_legislation:C2004A00839:clause:2_1223a
Version: federal_register_of_legislation:C2004A00839
Segment Type: clause
Provision Reference: sch 2 cl 1223A
Character Range: 67436–69793

1223A  Debt resulting from commutation of asset‑test exempt income stream contrary to subsection 9A(2) or 9B(2)

 (1) If:
 (a) a person is provided with an asset‑test exempt income stream for a period beginning on the first day in respect of which an income stream payment was made to the person and ending on the last day in respect of which an income stream payment was made to the person; and
 (b) during the whole or any part of that period an amount has been paid to the person by way of an income support payment; and
 (c) the whole or any part of the income stream is commuted contrary to the contract or governing rules under which the income stream was provided on the commencement day of the income stream; and
 (d) the amount that has been paid to the person by way of a social security income support payment for that period is more than the amount that would have been payable to the person for that period had the income stream not been an asset‑test exempt income stream for the purposes of this Act for that period;
an amount worked out under subsection (2) is a debt due to the Commonwealth.

 (2) The amount for the purposes of subsection (1) is an amount equal to the difference between the amount that has been paid to the person by way of a social security income support payment during the period worked out under subsection (3) and the amount that would have been paid to the person by way of social security income support payment had the income stream not been an asset‑test exempt income stream for the purposes of this Act for that period.

 (3) The period for the purposes of subsection (2) is the period beginning on:
 (a) the day 5 years before the day the income stream was commuted; or
 (b) either:
 (i) the commencement day of the income stream; or
 (ii) 20 September 2001;
whichever occurs later.

 (4) For the purpose of working out the asset value of the income stream had the income stream not been an asset‑test exempt income stream for the period referred to in subsection (2), it is to be assumed that the income stream was asset tested from the commencement day and the asset value of the income stream is depleted in accordance with the formula specified in subsection 1119(4).

 (5) This section does not apply to an income stream in relation to which a determination under subsection 9A(5) or 9B(4) is in force.