Document ID: chunk:federal_register_of_legislation:C2024C00866:section:5jb:p3
Version: federal_register_of_legislation:C2024C00866
Segment Type: section
Provision Reference: s 5JB (pt 3/6)
Character Range: 131570–134277

to the period commencing on the day of that purchase; and
 (e) if the income stream is not purchased, but acquired, by or for the primary beneficiary—that the first payment under the income stream relates to the period commencing on the day of that acquisition; and
 (f) if the income stream is not a defined benefit income stream—that the amount paid as the purchase price for the income stream is wholly converted into income; and
 (g) that the income stream has no residual capital value; and
 (h) that the income stream cannot be commuted except:
 (i) if the income stream is a non‑commutation funded income stream and the commutation is made within 6 months after the commencement day of the income stream; or
 (ii) if the payment resulting from the commutation is transferred directly to the purchase of another income stream that is an asset‑test exempt income stream; or
 (iii) if the primary beneficiary's reversionary partner (if any) on the day of the primary beneficiary's death survives the primary beneficiary—on or after the partner's death; or
 (iv) if subparagraph (iii) does not apply—on or after the primary beneficiary's death; or
 (ivaa) to the extent necessary to cover any superannuation contributions surcharge relating to the income stream; or
 (iva) to the extent necessary to give effect to an entitlement of the person's partner or former partner under a payment split under Part VIIIB of the Family Law Act 1975; or
 (ivb) to the extent necessary to give effect to an order under Part VIIIAA of the Family Law Act 1975; or
 (ivc) to the extent necessary in order to comply with section 136‑80 in Schedule 1 to the Taxation Administration Act 1953; or
 (vi) to the extent necessary to pay a hardship amount; and
 (i) that the income stream cannot be transferred except on death; and
 (j) that neither the capital value of the income stream, nor the income from it, can be used as security for a borrowing; and
 (k) that, if the income stream reverts, it must not have a reversionary component greater than the benefit that was payable immediately before the reversion; and
 (l) that, if the income stream is commuted, the commuted amount must not be greater than the benefit that was payable immediately before the commutation.
Note: For paragraph (h), hardship amount, non‑commutation funded income stream and reversionary partner are defined in subsection (7) and asset‑test exempt income stream is defined in section 5J.

Compliance with subsection (2) if certain conditions are met
 (2A) A contract, or the governing rules, for the provision to a person of an income stream that meets all of the requirements of subsection (2), except the requirement of paragraph (2)(c), are