Document ID: chunk:federal_register_of_legislation:C2025C00162:section:9a:p3
Version: federal_register_of_legislation:C2025C00162
Segment Type: section
Provision Reference: s 9A (pt 3/6)
Character Range: 137524–140181

income stream is purchased by or for the primary beneficiary—that the first payment under the income stream relates 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 commutation is made to the benefit of a reversionary beneficiary or of the person's estate, on the death of the person within the life expectancy period for the income stream; or
 (iii) 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
 (iv) 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 or VIIIC 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
 (v) to the extent necessary to pay a hardship amount; and
 (i) that the income stream cannot be transferred to a person except:
 (i) on the death of the primary beneficiary, to a reversionary beneficiary; or
 (ii) on the death of a reversionary beneficiary, to another reversionary beneficiary; 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.
 (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 taken to meet the requirements of subsection (2) if the contract or governing rules specify that any provision included in