Document ID: chunk:federal_register_of_legislation:C2024C00866:section:52bab:p4
Version: federal_register_of_legislation:C2024C00866
Segment Type: section
Provision Reference: s 52BAB (pt 4/5)
Character Range: 740949–743750

reversionary beneficiary's assessment day for the income stream worked out under subsection (7) is on or after the reversionary beneficiary's threshold day for the income stream worked out under paragraph (c) or (d) of this subsection:
 (i) paragraph (3)(a) is taken not to apply to the reversionary beneficiary and the income stream; and
 (ii) paragraph (3)(b) is taken to apply to the reversionary beneficiary and the income stream for a day that is on or after the reversionary beneficiary's assessment day for the income stream.
 (12) The Commission may make a notifiable instrument for the purposes of step 1 of the method statement in subsection (10). If there are Life Tables published by the Australian Government Actuary, the Commission must be satisfied that the instrument is consistent with the latest of those Life Tables.

Purchase amount
 (13) For the purposes of this section, the purchase amount for the income stream is:
 (a) subject to paragraph (b)—if one or more amounts have been paid for the income stream—the sum of:
 (i) each compounded amount in relation to an amount paid for the income stream before the person's assessment day for the income stream, as worked out under subsection (14); and
 (ii) each amount paid for the income stream on or after that assessment day;
  less any commuted amounts; or
 (b) if the circumstances determined in an instrument under subsection (16) apply in relation to the income stream—the amount worked out in accordance with that instrument.
 (14) A compounded amount in relation to an amount paid for the income stream before the person's assessment day for the income stream is worked out by applying the following formula for each relevant adjustment day (from the earliest to the latest):
where:
compounded amount for the relevant adjustment day means:
 (a) for the earliest relevant adjustment day—the amount that was paid for the income stream; or
 (b) for each later relevant adjustment day—the result of applying the formula for the most recent earlier relevant adjustment day.
relevant above threshold rate for the relevant adjustment day means:
 (a) if the relevant adjustment day is a 12‑month anniversary of the relevant payment day—the rate applicable under subsection 46J(2) for that relevant adjustment day, expressed as a decimal fraction; or
 (b) if the relevant adjustment day is the assessment day—the amount worked out in accordance with the following formula:

relevant adjustment day means each of the following:
 (a) each 12‑month anniversary of the relevant payment day that happens before the person's assessment day;
 (b) the person's assessment day.
Note: For assessment day, see subsections (6) and (7).
relevant number of days means the number of days in the period:
 (a) beginning on the day after:
 (i) if the