Document ID: chunk:federal_register_of_legislation:C2004A01350:clause:2_5jba:p3
Version: federal_register_of_legislation:C2004A01350
Segment Type: clause
Provision Reference: sch 2 cl 5JBA (pt 3/4)
Character Range: 33972–36621

day, of:
 (i) the primary beneficiary, if the primary beneficiary were 5 years younger; and
 (ii) the primary beneficiary's reversionary partner on that day, if the partner were 5 years younger.

Total amount payable in each financial year—general rule

 (5) For each financial year wholly or partly within the income stream's term, the total amount of the payments to be made under the income stream must equal the amount worked out under the formula:
where:

account balance means:
 (a) if the financial year includes the income stream's commencement day—the opening account balance for the income stream; or
 (b) otherwise—the account balance for the income stream at the start of the financial year.

PF means the payment factor for the income stream for the financial year, worked out under principles determined in writing by the Commission.

Other rules about payments under the income stream

 (6) If the income stream's commencement day is not a 1 July, the total amount worked out under subsection (5) for the financial year starting on the preceding 1 July must be reduced on a pro‑rata basis by reference to the number of days in the financial year that are on and after the commencement day.

 (7) If:
 (a) the income stream's commencement day happens in June; and
 (b) no payment is made under the income stream for the financial year in which the commencement day happens;
subsections (5) and (6) do not apply to the income stream for that financial year.

 (8) If the amount (the test amount) of a payment to be made under the income stream on a day in a financial year:
 (a) is worked out by reference to the total amount worked out under subsection (5) (and subsection (6), if applicable) for the financial year; and
 (b) exceeds the income stream's account balance on that day;
then:
 (c) the account balance (if any) must be paid instead of the test amount; and
 (d) that total amount described in paragraph (a) must be reduced by the amount of the excess.

 (9) If the income stream has a positive account balance at the end of its term, a payment equal to that account balance must be made within 28 days after the end of the term.

Determination that income stream not asset‑test exempt

 (10) The Commission may determine that an income stream that meets the requirements of subsection (2) is not an asset‑test exempt income stream if the Commission is satisfied that:
 (a) the primary beneficiary has commuted an asset‑test exempt income stream on at least 3 occasions since the person first received a service pension, an income support supplement or a social security payment; and
 (b) on at least 3 of those occasions,