Document ID: chunk:federal_register_of_legislation:F2023C00046:clause:1_15
Version: federal_register_of_legislation:F2023C00046
Segment Type: clause
Provision Reference: sch 1 cl 15
Character Range: 29829–31903

15  Guidelines for asset‑test exempt income stream resulting from payment of hardship amount
  The Commission may determine that an income stream is an asset‑test exempt income stream for the purposes of the Act if:
 (a) it would have been covered by section 5JA(1) or 5JB(1) of the Act, if:
  (i) paragraph 5JA(1)(aa); or
  (ii) subparagraph 5JB(1)(a)(i);
  of the Act did not apply; and
 (b) it is purchased by the primary beneficiary on or after 20 September 2007; and
 (c) it results from another asset‑test exempt income stream (the original income stream) being commuted to pay a hardship amount; and
 (d) the original income stream was covered by section 5JA or 5JB of the Act or would have been covered by those sections if paragraph 5JA(1)(aa) or subparagraph 5JB(1)(a)(i) of the Act did not apply; and
 (e) the original income stream:
 (i) was purchased before 20 September 2004; or
 (ii) was covered by the 2005 Principles during the period starting on 20 September 2004 and ending at the end of 19 September 2007; or
 (iii) was covered by the 2007 Determination during the period starting on 20 September 2007 and ending at the end of 24 November 2011; or
 (iv) was covered by the 2011 Determination during the period starting on 25 November 2011 and ending at the end of the day immediately prior to the commencement of this Determination; or
 (v) is covered by this Determination.
       Example
       On 1 March 2002, J purchased an income stream (the original income stream) covered by subsection 5JA(1) of the Act for the benefit of J, the primary beneficiary, and H, the reversionary beneficiary.  As it was purchased before 20 September 2004, the income stream has a 100% exemption from the assets test under the Act.  On 3 March 2023, J commutes part of the new income stream to pay a hardship amount, and J purchases another income stream (the further income stream) from the remaining capital backing the new income stream. The further income stream is covered by this Determination and retains the 100% exemption from the assets test under the Act.