Document ID: chunk:federal_register_of_legislation:C2004A01113:clause:1_5:p1
Version: federal_register_of_legislation:C2004A01113
Segment Type: clause
Provision Reference: sch 1 cl 5 (pt 1/2)
Character Range: 4922–7593

5  Subsection 52ZMA(5)
Repeal the subsection, substitute:

 (5) Subject to subsection (6), if:
 (a) an asset‑test exempt income stream (the old income stream) is commuted, in whole or in part; and
 (b) part, but not the whole, of the payment resulting from the commutation of the old income stream (the commutation payment) is transferred directly to the purchase of another asset‑test exempt income stream (the new income stream);
the following paragraphs have effect for the purposes of this section:
 (c) the new income stream is taken to have the same commencement day as:
 (i) the old income stream; or
 (ii) if the old income stream was one of a succession of asset‑test exempt income streams—the first income stream in that succession;
 (d) if the old income stream was not one of a succession of asset‑test exempt income streams—income stream payments made under the old income stream are taken to have been made under the new income stream;
 (e) if the old income stream was one of a succession of asset‑test exempt income streams—income stream payments made under any of the income streams in that succession are taken to have been made under the new income stream.

 (6) Subsection (5) does not apply if the amount used in the purchase of the new income stream represents the whole of the commutation payment remaining after the use of part of the commutation payment in the payment of:
 (a) a hardship amount; or
 (b) superannuation contributions surcharge that the person is liable to pay in his or her capacity as purchaser of the old income stream.

 (7) Subject to subsection (8), if:
 (a) the whole of an asset‑test exempt income stream is commuted; and
 (b) no part of the payment resulting from the commutation of the income stream is transferred directly to the purchase of another asset‑test exempt income stream; and
 (c) the commuted income stream was one of a succession of asset‑test exempt income streams;
the following paragraphs have effect for the purposes of this section:
 (d) the commuted income stream is taken to have had the same commencement day as the first income stream in that succession;
 (e) income stream payments made under any of the income streams in that succession (other than the commuted income stream) are taken to have been, at the time when they were made, payments under the commuted income stream.

 (8) Subsection (7) does not apply if the whole of the payment resulting from the commutation of the old income stream is used in the payment of:
 (a) a hardship amount; or
 (b) superannuation contributions surcharge that the person is liable to pay in his or her capacity as purchaser of the old income stream.

 (9)