Document ID: chunk:federal_register_of_legislation:C2025C00162:section:1120ab:p1
Version: federal_register_of_legislation:C2025C00162
Segment Type: section
Provision Reference: s 1120AB (pt 1/5)
Character Range: 2169931–2172643

1120AB  Value of asset‑tested income streams (lifetime) that are not managed investments
 (1) This section applies to a person's asset‑tested income stream (lifetime) in relation to a day that is on or after the person's assessment day for the income stream.
Note 1: For asset‑tested income stream (lifetime), see subsection 9(1). For assessment day, see subsections (6) and (7) of this section.
Note 2: This section applies separately in relation to each asset‑tested income stream (lifetime) of a person.
 (2) However, this section does not apply to a family law affected income stream.
Note: For family law affected income streams, see section 1120A.

Value of income stream
 (3) Subject to this section, the value of the person's income stream is, for the purposes of the assets test, worked out as follows:
 (a) for a day in the period beginning on the person's assessment day for the income stream and ending at the end of the person's threshold day for the income stream:

 (b) for a day after the person's threshold day for the income stream:

Note: For threshold day, see subsections (9) and (10). For purchase amount, see subsection (12).
 (4) The Secretary may, by legislative instrument, determine one or more methods for working out the value of an asset‑tested income stream (lifetime) for persons to whom this section applies.
 (5) If one or more amounts worked out in accordance with the instrument are higher than the amount under subsection (3), then the value of the person's income stream is, for the purposes of the assets test, the highest of those amounts.

Assessment day
 (6) Subject to subsection (7), for the purposes of this section, a person's assessment day for an asset‑tested income stream (lifetime) is:
 (a) if the income stream arises under arrangements that are regulated by the Superannuation Industry (Supervision) Act 1993—the latest of the following:
 (i) the day the person first satisfies a condition of release that is mentioned in regulations under the Superannuation Industry (Supervision) Act 1993 and is of a kind determined in an instrument under subsection (8);
 (ii) the day the first amount was paid for the income stream;
 (iii) the day the person acquired the income stream (if no amount is identifiable as having been paid for the income stream); or
 (b) otherwise:
 (i) if the commencement day in relation to the income stream is before the day the person reaches pension age—the commencement day in relation to the income stream; or
 (ii) in any other case—the latest of the day the first amount was paid for the income stream, the day the person reaches pension age and the day the person acquired the income stream (if no amount is identifiable as having