Document ID: chunk:federal_register_of_legislation:C2004A01350:clause:2_5jba:p2
Version: federal_register_of_legislation:C2004A01350
Segment Type: clause
Provision Reference: sch 2 cl 5JBA (pt 2/4)
Character Range: 31583–34231

or after the partner's death; or
 (iv) if subparagraph (iii) does not apply—on or after the primary beneficiary's death; or
 (v) to the extent necessary to cover any superannuation contributions surcharge relating to the income stream; or
 (vi) to the extent necessary to give effect to an entitlement of the person's spouse or former spouse under a payment split under Part VIIIB of the Family Law Act 1975; or
 (vii) to the extent necessary to pay a hardship amount; and

Note 1: For non‑commutation funded income stream, see subsection (14).

Note 2: For asset‑test exempt income stream, see section 5J.

Note 3: For hardship amount, see subsection (14).
 (g) that the income stream cannot be transferred except on death; and
 (h) that neither the capital value of the income stream, nor the income from it, can be used as security for a borrowing; and
 (i) that, if the income stream reverts, it must not have a reversionary component greater than the account balance immediately before the reversion; and
 (j) that, if the income stream is commuted, the commuted amount must not be greater than the account balance immediately before the commutation.

Term of the income stream

 (3) An income stream's term complies with this subsection if it is a period of whole years that:
 (a) starts on the income stream's commencement day; and
 (b) is at least as long as the primary beneficiary's life expectancy (rounded up, if not consisting of a whole number of years, to the next whole number) on the commencement day; and
 (c) is at most as long as what would be the primary beneficiary's life expectancy (rounded up, if not consisting of a whole number of years, to the next whole number) on the commencement day if the primary beneficiary were 5 years younger.

 (4) An income stream's term complies with this subsection if it is a period of whole years that:
 (a) starts on the income stream's commencement day; and
 (b) is at least as long as the greater of the life expectancies (rounded up, if not consisting of a whole number of years, to the next whole number), on the commencement day, of:
 (i) the primary beneficiary; and
 (ii) the primary beneficiary's reversionary partner on that day; and
 (c) is at most as long as the greater of what would be the life expectancies (rounded up, if not consisting of a whole number of years, to the next whole number), on the commencement 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)