Document ID: chunk:federal_register_of_legislation:C2004A01350:clause:1_19
Version: federal_register_of_legislation:C2004A01350
Segment Type: clause
Provision Reference: sch 1 cl 19
Character Range: 6330–7797

19  After subsection 9B(2A)
Insert:

Term of the income stream

 (2B) An income stream's term complies with this subsection if it is a period of whole years that:
 (a) starts on the income stream's commencement day; and
 (b) is at least as long as the primary beneficiary's life expectancy (rounded up, if not consisting of a whole number of years, to the next whole number) on the commencement day; and
 (c) is at most as long as what would be the primary beneficiary's life expectancy (rounded up, if not consisting of a whole number of years, to the next whole number) on the commencement day if the primary beneficiary were 5 years younger.

 (2C) An income stream's term complies with this subsection if it is a period of whole years that:
 (a) starts on the income stream's commencement day; and
 (b) is at least as long as the greater of 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; and
 (ii) the primary beneficiary's reversionary partner on that day; and
 (c) is at most as long as 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.