Document ID: chunk:federal_register_of_legislation:C2025C00162:section:9ba:p4
Version: federal_register_of_legislation:C2025C00162
Segment Type: section
Provision Reference: s 9BA (pt 4/5)
Character Range: 168540–171199

(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 a 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 Secretary may determine that an income stream that meets the requirements of subsection (2) is not an asset‑test exempt income stream if the Secretary 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 social security payment; and
 (b) on at least 3 of those occasions, the commutation happened within 6 months after the commencement day of the income stream concerned.

Determination that income stream is asset‑test exempt
 (11) The Secretary may determine, in writing, that an income stream is an asset‑test exempt income stream for the purposes of this Act. In making the determination, the Secretary must have regard to the guidelines (if any) determined under subsection (12).
 (11A) To avoid doubt, a determination under subsection (11) may be made in respect of an income stream regardless of the income stream's commencement day.
 (11B) A determination under subsection (11) is not a legislative instrument.

Guidelines to be complied with in making determination
 (12) The Secretary may determine, by legislative instrument, guidelines to be complied with when making a determination under subsection (11).

Definitions
 (14) In this section:
hardship amount has the same meaning as in section 9A.
non‑commutation funded income stream means an income stream that has not been purchased by transferring directly to the purchase of the income stream a payment resulting from the commutation of another asset‑test exempt income stream.
reversionary partner, in relation to the primary beneficiary of an income stream and a particular day, means another person who, on that day:
 (a) is a member of a couple with the primary beneficiary; and
 (b) is the person to whom the income stream will revert on the primary beneficiary's death.