Document ID: chunk:federal_register_of_legislation:F2019L00450:reg:8:p1
Version: federal_register_of_legislation:F2019L00450
Segment Type: reg
Provision Reference: reg 8 (pt 1/2)
Character Range: 3850–6577

8   Guidelines
Requirements for in force actuarial certificate
       (1)   When determining whether an actuarial certificate is in force, for the purposes of sections 9A and 9B of the Act, the certificate is in force:
         (a)    for the financial years commencing 1 July 2017 and 1 July 2018, if it is prepared in accordance with the Institute of Actuaries of Australia Guidance Note 465 or the Institute of Actuaries of Australia Professional Standard 410 (Statements of Opinion Relating to Defined Benefit Provisions);
         (b)    for the financial year commencing 1 July 2019 and any later financial years, if it is prepared in accordance with the Institute of Actuaries of Australia Professional Standard 410 (Statements of Opinion Relating to Defined Benefit Provisions);
         (c)    if it is certified by the actuary no later than 26 weeks after the start of the financial year to which it applies and provided to the Human Services Department no later than 3 weeks after the end of that 26 week period;
         (d)    if it states whether the actuary is of the opinion (expressed as a percentage)  there is a high probability, as defined in subsection 8(2), as at the valuation date, of the provider of the income stream meeting the income stream payments arising under the contract, or governing rules, for the financial year to which the certificate relates; and
Note 1: An income stream provided to a person is an asset-test exempt income stream for the purposes of the Act, if the Secretary is satisfied there is a high probability that the provider of the income stream will be able to pay the income stream as required under the contract or governing rules (see paragraphs 9A(1)(b) and 9B(1A)(b) of the Act).
Note 2: Only the first certificate given to the Secretary in relation to income stream for a financial year can have effect for that financial year (see subsection 9A(1D).
         (e)    if it specifies an in force period for the financial year to which the certification relates.
High probability
       (2)   For paragraphs 8(1)(d) of this instrument and 9A(1)(b) and 9B(1A)(b) of the Act, there is a high probability a provider of an income stream in a class specified in section 7 of this instrument, will be able to pay the income stream as required under a contract, or governing rules, for the provision of the income stream if:
         (a)    the actuary has certified that in their opinion the provider has a probability of at least 70 per cent of being able to pay; or
         (b)    the actuary has certified that in their opinion the provider has a probability of at least 50 per cent of being able to pay and there are special circumstances which:
              (i)     gave