Document ID: chunk:federal_register_of_legislation:C2004A00948:clause:3_52zma
Version: federal_register_of_legislation:C2004A00948
Segment Type: clause
Provision Reference: sch 3 cl 52ZMA
Character Range: 31569–33781

52ZMA  Debt to result from commutation of asset‑test exempt income stream

 (1) If:
 (a) a person is provided with an asset‑test exempt income stream for a period beginning on the first day in respect of which an income stream payment was made to the person and ending on the last day in respect of which an income stream payment was made to the person; and
 (b) during the whole or any part of that period an amount of service pension or income support supplement has been paid to the person; and
 (c) the whole or any part of the income stream is commuted contrary to the contract or governing rules under which the income stream was provided on the commencement day of the income stream; and
 (d) the amount of service pension or income support supplement that has been paid to the person for that period is more than the amount that would have been payable to the person for that period had the income stream not been an asset‑test exempt income stream for the purposes of this Act for that period;
an amount worked out under subsection (2) is a debt due to the Commonwealth.

 (2) That amount is an amount equal to the difference between the amount of service pension or income support supplement that has been paid to the person during the period worked out under subsection (3) and the amount that would have been so paid to the person had the income stream not been an asset‑test exempt income stream for the purposes of this Act for that period.

 (3) The period for the purposes of subsection (2) is the period beginning on:
 (a) the day 5 years before the day the income stream was commuted; or
 (b) either:
 (i) the commencement day of the income stream; or
 (ii) 20 September 2001;
whichever occurs later.

 (4) In working out the asset value of the income stream had the income stream not been an asset‑test exempt income stream for the period referred to in subsection (2), assume that the income stream was asset tested from the commencement day and that the asset value of the income stream is depleted in accordance with the formula in subsection 52A(4).

 (5) This section does not apply to an income stream in relation to which a determination under subsection 5JA(5) or 5JB(4) is in force.