Document ID: chunk:federal_register_of_legislation:C2025C00162:section:9ba:p3
Version: federal_register_of_legislation:C2025C00162
Segment Type: section
Provision Reference: s 9BA (pt 3/5)
Character Range: 166103–168733

beneficiary; and
 (ii) the primary beneficiary's reversionary partner on that day; and
 (c) is at most as long as the period worked out under subsection (4A).
 (4A) For the purposes of paragraph (4)(c), the period is the greater of:
 (a) 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; and
 (b) the greater of:
 (i) the period (rounded up, if not consisting of a whole number of years, to the next whole number) starting on the commencement day and ending on the day on which the primary beneficiary reaches age 100 (assuming that the primary beneficiary lives until then); and
 (ii) the period (rounded up, if not consisting of a whole number of years, to the next whole number) starting on the commencement day and ending on the day on which the primary beneficiary's reversionary partner on the commencement day reaches age 100 (assuming that the partner lives until then).

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 not be less than 90%, nor greater than 110%, of 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, by legislative instrument, by the Secretary.

Other rules about payments under the income stream
 (6) If the income stream's commencement day is not a 1 July, a 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