Document ID: chunk:federal_register_of_legislation:F2023C00049:clause:1_22
Version: federal_register_of_legislation:F2023C00049
Segment Type: clause
Provision Reference: sch 1 cl 22
Character Range: 37359–39328

22  Partially asset‑test exempt income stream resulting from payment split
  These Principles cover an income stream if:
 (a) it is purchased or acquired by the primary beneficiary or the primary beneficiary's partner or former partner on or after 20 September 2007; and
 (b) it results from a partially asset‑test exempt income stream (the original income stream) being commuted to give effect to an entitlement of the partner or former partner of the primary beneficiary in respect of the original income stream under a payment split under Part VIIIB or Part VIIIC of the Family Law Act 1975; and
 (c) the original income stream was covered by section 5JA, 5JB or 5JBA of the Act or would have been covered by those sections if paragraph 5JA(1)(aa), subparagraph 5JB(1)(a)(i) or subparagraph 5JBA(1)(a)(i) of the Act did not apply; and
 (d) the original income stream:
 (i) was purchased on or after 20 September 2004 and before 20 September 2007; or
 (ii) was covered by the 2007 Principles during the period starting on 20 September 2007 and ending at the end of 24 November 2011; or
 (iii) until the commencement of these Principles, was covered by the 2011 Principles; or
 (iv) was covered by these Principles.
       Example
       On 1 March 2005, P, who was partnered to J at that date, purchased an income stream (the original income stream) covered by section 5JA of the Act. The income stream has a 50% exemption from the assets test under the Act. On 1 February 2023, P and J separate. P's original income stream is commuted to give effect to an entitlement of J in respect of the original income stream under a payment split under Part VIIIB of the Family Law Act 1975. On 15 February 2023, J uses the entitlement resulting from the payment split to purchase an income stream (the new income stream) covered by section 5JA of the Act. The new income stream is covered by these Principles and retains the 50% exemption from the assets test under the Act.