Document ID: chunk:federal_register_of_legislation:C2024C00866:section:52zma:p1
Version: federal_register_of_legislation:C2024C00866
Segment Type: section
Provision Reference: s 52ZMA (pt 1/3)
Character Range: 837593–840165

52ZMA  Debt resulting from commutation of asset‑test exempt income stream contrary to subsection 5JA(2), 5JB(2) or 5JBA(2)
 (1) If:
 (a) a person is provided with an asset‑test exempt income stream for a period beginning on the first day in respect of which an income stream payment was made to the person and ending on the last day in respect of which an income stream payment was made to the person; and
 (b) during the whole or any part of that period an amount of service pension, income support supplement or veteran payment has been paid to the person; and
 (c) the whole or any part of the income stream is commuted contrary to the contract or governing rules under which the income stream was provided on the commencement day of the income stream; and
 (d) the amount of service pension, income support supplement or veteran payment that has been paid to the person for that period is more than the amount that would have been payable to the person for that period had the income stream not been an asset‑test exempt income stream for the purposes of this Act for that period;
an amount worked out under subsection (2) is a debt due to the Commonwealth.
 (2) That amount is an amount equal to the difference between the amount of service pension, income support supplement or veteran payment that has been paid to the person during the period worked out under subsection (3) and the amount that would have been so paid to the person had the income stream not been an asset‑test exempt income stream for the purposes of this Act for that period.
 (3) The period for the purposes of subsection (2) is the period that:
 (a) began on:
 (i) the day 5 years before the day the income stream was commuted; or
 (ii) the commencement day of the income stream; or
 (iii) 20 September 2001;
  whichever is the latest; and
 (b) ended when the income stream was commuted.
 (4) In working out the asset value of the income stream had the income stream not been an asset‑test exempt income stream for the period referred to in subsection (2), assume that the income stream was asset tested from the commencement day and that the asset value of the income stream is depleted in accordance with the formula in subsection 52A(4).
 (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