Document ID: chunk:federal_register_of_legislation:C2024C00866:section:5ja:p1
Version: federal_register_of_legislation:C2024C00866
Segment Type: section
Provision Reference: s 5JA (pt 1/6)
Character Range: 111973–114670

5JA  Meaning of asset‑test exempt income stream—lifetime income streams

General requirements
 (1) An income stream provided to a person is an asset‑test exempt income stream for the purposes of this Act if:
 (aa) subject to subsection (1AA), the income stream's commencement day happens before 20 September 2007; and
 (a) it is an income stream arising under a contract, or governing rules, that meet the requirements of subsection (2) and the Commission has not made a determination under subsection (4) in respect of the income stream; and
 (b) subject to subsections (1B), (1C) and (1D), the Commission is satisfied that in relation to an income stream, provided by a class of provider specified by the Commission for the purposes of this paragraph, there is in force a current actuarial certificate that states that the actuary is of the opinion that, for the financial year in which the certificate is given, there is a high probability that the provider of the income stream will be able to pay the income stream as required under the contract or governing rules; and
 (c) the Commission is satisfied that the requirements of subsection (2) are being given effect to from the commencement day of the income stream.
Note: For paragraph (b), financial year means a period of 12 months commencing on 1 July: see the Acts Interpretation Act 1901.

Determination under subsection (5)
 (1A) An income stream provided to a person is an asset‑test exempt income stream for the purposes of this Act if the Commission has made a determination under subsection (5) in respect of the income stream.

Defined benefit income streams
 (1AA) Paragraph (1)(aa) does not apply if the income stream is a defined benefit income stream.

Guidelines relating to actuarial certificates
 (1B) The Commission may determine, by legislative instrument, guidelines to be complied with when determining whether an actuarial certificate is in force.

Exception to paragraph (1)(b)
 (1C) If, on 30 June in a financial year, an actuarial certificate referred to in paragraph (1)(b) is in force in relation to an income stream, then paragraph (1)(b) does not apply in relation to the next financial year (the later year) for the period:
 (a) beginning on 1 July of the later year; and
 (b) ending at the earlier of the following:
 (i) the start of the first day in the later year on which any actuarial certificate is given to the Commission in relation to that income stream;
 (ii) the end of the period of 26 weeks beginning on 1 July of the later year.

One certificate a financial year
 (1D) For the purposes of paragraph (1)(b), if an actuarial certificate is given to the Commission in a financial year in relation to