Document ID: chunk:federal_register_of_legislation:F2023C00049:clause:1_20:p2
Version: federal_register_of_legislation:F2023C00049
Segment Type: clause
Provision Reference: sch 1 cl 20 (pt 2/2)
Character Range: 33996–36373

which the Commission is not satisfied that the applicable requirements under paragraph 5JA(1)(b) or 5JB(1A)(b) of the Act, are met.
       Example
       On 1 March 2005, P purchased an income stream (the original income stream) that is a defined benefit pension covered by section 5JA of the Act that is provided by a regulated superannuation fund. Paragraph 5JA(1)(b) of the Act applies to the original income stream. The income stream has a 50% exemption from the assets test under the Act. On 1 September 2022, the Commission is not satisfied that the requirements of paragraph 5JA(1)(b) of the Act are met in relation to the original income stream. On 15 September 2022, P commutes the original income stream to purchase another income stream (the new income stream) that is covered by section 5JA of the Act. The new income stream is covered by these Principles and retains the 50% exemption from the assets test under the Act.
       Note  Paragraphs 5JA(1)(b) and 5JB(1A)(b) of the Act require the Commission to be satisfied, in relation to an income stream, that there is in force a current actuarial certificate stating that in the actuary's opinion there is a high probability that the provider of the income stream will be able to pay the income stream as required under the income stream's contract or governing rules.
 (5) This subsection applies to an original income stream if:
 (a) the income stream is an immediate annuity under a statutory fund established by a life company, or under a benefit fund; and
 (b) the income stream:
 (i) is an income stream to which paragraph 5JA(1)(b) or 5JB(1A)(b) of the Act applies or would have applied if paragraph 5JA(1)(aa) or subparagraph 5JB(1)(a)(i) of the Act did not apply, and in relation to which the Commission is not satisfied as required by that paragraph; or
 (ii) fails to satisfy relevant standards published by the Australian Prudential Regulation Authority about minimum surrender values and paid up values.
       Note  Paragraphs 5JA(1)(b) and 5JB(1A)(b) of the Act require the Commission to be satisfied, in relation to an income stream, that there is in force a current actuarial certificate stating that in the actuary's opinion there is a high probability that the provider of the income stream will be able to pay the income stream as required under the income stream's contract or governing rules.