Document ID: chunk:federal_register_of_legislation:C2024C00866:section:5jba:p1
Version: federal_register_of_legislation:C2024C00866
Segment Type: section
Provision Reference: s 5JBA (pt 1/5)
Character Range: 141046–143833

5JBA  Meaning of asset‑test exempt income stream—market‑linked income streams

General requirements
 (1) An income stream provided to a person is also an asset‑test exempt income stream for the purposes of this Act if:
 (a) all of the following criteria are satisfied:
 (i) the income stream's commencement day happens during the period from 20 September 2004 to 19 September 2007 (both dates inclusive);
 (ii) the person to whom the income stream is being provided is the primary beneficiary or the primary beneficiary's reversionary partner (if any) on the day of the primary beneficiary's death;
 (iii) the income stream is an income stream arising under a contract, or governing rules, that meets the requirements of subsection (2);
 (iv) the Commission has not made a determination under subsection (10) in respect of the income stream;
 (v) the Commission is satisfied that the requirements of subsection (2) have been given effect to from the day the income stream commenced to be paid; or
 (b) the Commission has made a determination under subsection (11) in respect of the income stream.
Note: For paragraph (a), reversionary partner is defined in subsection (14).

Requirements of contract/governing rules for provision of income stream
 (2) A contract, or the governing rules, for the provision of an income stream to a person meets the requirements of this subsection if the contract or governing rules specify:
 (a) the income stream's term, which must comply with subsection (3) or (4); and
 (b) obligations for the making of payments under the income stream that satisfy the requirements of subsections (5) to (9); and
 (c) if the income stream is purchased by or for the primary beneficiary—that the first payment under the income stream relates to the period commencing on the day of that purchase; and
 (d) if the income stream is not purchased, but acquired, by or for the primary beneficiary—that the first payment under the income stream relates to the period commencing on the day of that acquisition; and
 (e) that the income stream has no residual capital value; and
 (f) that the income stream cannot be commuted except:
 (i) if the income stream is a non‑commutation funded income stream and the commutation is made within 6 months after the commencement day of the income stream; or
 (ii) if the payment resulting from the commutation is transferred directly to the purchase of another income stream that is an asset‑test exempt income stream; or
 (iii) if the primary beneficiary's reversionary partner (if any) on the day of the primary beneficiary's death survives the primary beneficiary—on or after the partner's death; or
 (iv) if subparagraph (iii) does not apply—on or after the primary beneficiary's death; or
 (v) to the extent necessary to cover any