Document ID: chunk:federal_register_of_legislation:F2022C01042:reg:9:p2
Version: federal_register_of_legislation:F2022C01042
Segment Type: reg
Provision Reference: reg 9 (pt 2/3)
Character Range: 16559–19219

J and H ceased to be members of a couple together. On 15 June 2022, J commutes the new income stream and purchases another income stream (the further income stream) that would be covered by subsection 9A(1) of the Act if paragraph 9A(1)(aa) of the Act did not apply. The further income stream is covered by this Determination and retains the 100% exemption from the social security assets test.
 (4) This subsection applies to an original income stream if:
 (a) it is a defined benefit pension covered by section 9A(1) or 9B(1A) of the Act that is provided by a regulated superannuation fund; and
 (b) it is an income stream in relation to which the Secretary is not satisfied as required by paragraph 9A(1)(b) or 9B(1A)(b) of the Act, as applicable.
Example
       On 1 March 2002, P purchased an income stream (the original income stream) that is a defined benefit pension covered by section 9A of the Act and provided by a regulated superannuation fund. Paragraph 9A(1)(b) of the Act applies to the original income stream. As it was purchased before 20 September 2004, the income stream has a 100% exemption from the social security assets test.
       On 1 September 2022, the Secretary is not satisfied that the requirements of paragraph 9A(1)(b) of the Act are met in relation to the new income stream. On 15 September 2022, P commutes the new income stream to purchase another income stream (the further income stream) that is covered by section 9A of the Act. The further income stream is covered by this Determination and retains the 100% exemption from the social security assets test.
       Note  Paragraphs 9A(1)(b) and 9B(1A)(b) of the Act require the Secretary to be satisfied, in relation to an income stream, that there is in force a current actuarial certificate stating that in the actuary's opinion there is a high probability that the provider of the income stream will be able to pay the income stream as required under the income stream's contract or governing rules.
 (5) This subsection applies to an original income stream if:
 (a) it is an immediate annuity under a statutory fund established by a life company, or under a benefit fund; and
 (b) it:
 (i) is an income stream in relation to which the Secretary is not satisfied as required by paragraph 9A(1)(b) or 9B(1A)(b) of the Act, as applicable; or
 (ii) fails to satisfy relevant standards published by the Australian Prudential Regulation Authority about minimum surrender values and paid up values.
       Note  Paragraphs 9A (1) (b) and 9B (1A) (b) of the Act require the Secretary to be satisfied, in relation to an income stream, that there is in force a current actuarial