Document ID: chunk:federal_register_of_legislation:F2023C00049:clause:1_20:p1
Version: federal_register_of_legislation:F2023C00049
Segment Type: clause
Provision Reference: sch 1 cl 20 (pt 1/2)
Character Range: 31522–34258

20  Partially asset‑test exempt income stream resulting from original partially asset‑test exempt income stream purchased on or after 20 September 2004 but before 20 September 2007
 (1) These Principles cover an income stream if:
 (a) the income stream (the present income stream) is purchased by the primary beneficiary on or after 20 September 2007 from the commutation of a partially asset‑test exempt income stream (the original income stream); and
 (b) the original income stream was purchased on or after 20 September 2004 and before 20 September 2007; and
 (c) the original income stream is a kind of income stream in relation to which one of the following subsections applies.
 (2) This subsection applies to an original income stream if:
 (a) it was purchased by the primary beneficiary for the benefit of the primary beneficiary and a reversionary beneficiary; and
 (b) payments made under the income stream are calculated on the basis of the life expectancy of the reversionary beneficiary; and
 (c) the reversionary beneficiary predeceases the primary beneficiary.
 (3) This subsection applies to an original income stream if:
 (a) it is not an income stream to which section 22 or 23 of these Principles applies; and
 (b) it is purchased by the primary beneficiary for the benefit of the primary beneficiary and a reversionary beneficiary who, at the time of the purchase, are members of a couple together; and
 (c) the primary beneficiary and reversionary beneficiary are no longer members of a couple together.
       Example
       On 1 March 2005, J purchased an income stream (the original income stream) covered by subsection 5JA(1) of the Act for the benefit of J, the primary beneficiary, and H, the reversionary beneficiary. The income stream has a 50% exemption from the assets test. At the time of the purchase, J and H were members of a couple together. On 1 December 2008, J and H ceased to be members of a couple together. On 15 December 2008, J commutes the original income stream and purchases another income stream (the new income stream) covered by section 5JA) of the Act. The new income stream is covered by these Principles and retains the 50% exemption from the assets test under the Act.
 (4) This subsection applies to an original income stream if:
 (a) it is a defined benefit pension covered by subsection 5JA(1) or 5JB(1A) of the Act that is provided by a regulated superannuation fund; and
 (b) it is an income stream in relation to which the Commission is not satisfied that the applicable requirements under paragraph 5JA(1)(b) or 5JB(1A)(b) of the Act, are met.
       Example
       On 1 March 2005, P purchased an income stream (the original income stream) that is a defined benefit pension