Document ID: chunk:federal_register_of_legislation:C2004A00948:clause:3_20
Version: federal_register_of_legislation:C2004A00948
Segment Type: clause
Provision Reference: sch 3 cl 20
Character Range: 23594–25808

20  At the end of section 5JA
Add:

Definitions

 (7) In this section:

hardship amount, in relation to a person, means an amount determined by the Commission for the purposes of this definition if:
 (a) the person applies in writing to the Commission to be allowed to commute the whole or part of an income stream because of extreme financial hardship; and
 (b) the Commission is satisfied that:
 (i) the person's circumstances are exceptional and could not be reasonably foreseen at the time the person purchased the income stream; and
 (ii) the person has insufficient liquid assets or other assets (excluding the person's principal home) that could be realised to avoid the extreme financial hardship; and
 (iii) that amount is required to meet unavoidable expenditure.

liquid assets, in relation to a person, means the person's cash and readily realisable assets, and includes:
 (a) the person's shares and debentures in a public company; and
 (b) managed investments; and
 (c) insurance policies that can be surrendered for money; and
 (d) amounts deposited with, or lent to, a bank or other financial institution by the person (whether or not the amount can be withdrawn or repaid immediately); and
 (e) amounts due, and able to be paid, to the person by, or on behalf of, a former employer of the person.

non‑commutation funded income stream means an income stream that has not been purchased by transferring directly to the purchase of the income stream a payment resulting from the commutation of another asset‑test exempt income stream.

unavoidable expenditure, in relation to a person, means one or more of the following:
 (a) essential medical expenses of the person, or the person's partner, to the extent that the expenses are not covered by health insurance or other contracts or arrangements;
 (b) the cost of:
 (i) replacing the person's principal home; or
 (ii) essential repairs to the person's principal home;
  to the extent that the cost of the replacement or repairs is not covered by an insurance policy;
 (c) expenditure to buy replacement essential household goods because of the loss of those goods to the extent that the cost of replacement is not covered by an insurance policy.