Document ID: chunk:federal_register_of_legislation:C2024C00866:section:5jb:p2
Version: federal_register_of_legislation:C2024C00866
Segment Type: section
Provision Reference: s 5JB (pt 2/6)
Character Range: 129225–131802

is in force in relation to an income stream, then paragraph (1A)(b) does not apply in relation to the next financial year (the later year) for the period:
 (a) beginning on 1 July of the later year; and
 (b) ending at the earlier of the following:
 (i) the start of the first day in the later year on which any actuarial certificate is given to the Commission in relation to that income stream;
 (ii) the end of the period of 26 weeks beginning on 1 July of the later year.

One certificate a financial year
 (1E) For the purposes of paragraph (1A)(b), if an actuarial certificate is given to the Commission in a financial year in relation to an income stream, then any actuarial certificate given to the Commission later in that financial year in relation to that income stream has no effect.

Requirements of contract/governing rules for provision of income stream
 (2) A contract, or the governing rules, for the provision of an income stream to a person meets the requirements of this subsection if the contract or governing rules specify:
 (a) the income stream's term, which must comply with subsection (2B), (2C) or (2E); and
 (aa) that payments under the income stream are to be made at least annually during the income stream's term; and
 (b) the total amount of the payments that may be made under the income stream in the first year after the commencement day of the income stream (not taking commuted amounts into account); and
 (c) that the total amount of the payments that may be made under the income stream in any other year (not taking commuted amounts into account) may not fall below the total amount of the payments made under the income stream in the immediately preceding year (the previous total), and may not exceed the previous total:
 (i) if subparagraph (ii) does not apply—by more than 5% of the previous total; or
 (ii) if the index number for the second last quarter before the day on which the first of those payments is to be made (recent index number) exceeds the index number for the same quarter in the immediately preceding year (base index number) by more than 4% of the base index number—by more than such percentage of the previous total as is worked out under the formula:

 (d) if the 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