Document ID: chunk:federal_register_of_legislation:C2025C00162:section:9b:p1
Version: federal_register_of_legislation:C2025C00162
Segment Type: section
Provision Reference: s 9B (pt 1/6)
Character Range: 147242–149922

9B  Meaning of asset‑test exempt income stream—life expectancy income streams
 (1) An income stream provided to a person is also an asset‑test exempt income stream for the purposes of this Act if:
 (a) the following criteria are satisfied:
 (i) the income stream's commencement day happens before 20 September 2007;
 (ii) subsection (1A) applies; or
 (b) subsection (1B) applies.
 (1A) This subsection applies if:
 (aa) the person to whom the income stream is being provided is:
 (i) the primary beneficiary; or
 (ii) the primary beneficiary's reversionary partner (if any) on the day of the primary beneficiary's death; and
 (a) the income stream is an income stream arising under a contract, or governing rules, that meet the requirements of subsection (2) and the Secretary has not made a determination under subsection (3) in respect of the income stream; and
 (b) subject to subsections (1C), (1D) and (1E), the Secretary is satisfied that, in relation to an income stream provided by a class of provider specified by the Secretary for the purposes of this paragraph, there is in force a current actuarial certificate that states that the actuary is of the opinion that, for the financial year in which the certificate is given, there is a high probability that the provider of the income stream will be able to pay the income stream as required under the contract or governing rules; and
 (c) the Secretary is satisfied that the requirements of subsection (2) have been given effect to from the day the income stream commenced to be paid; and
 (d) in the case of an income stream acquired before 20 September 2004 that is provided to a primary beneficiary's reversionary beneficiary—the remaining term (in years) of the income stream is equal to the life expectancy (in years) of the primary beneficiary's reversionary beneficiary.
Note: For paragraph (b), financial year means a period of 12 months commencing on 1 July: see the Acts Interpretation Act 1901.
 (1B) This subsection applies if the Secretary has made a determination under subsection (4) in respect of the income stream.

Exception to paragraph (1A)(b)
 (1C) If, on 30 June in a financial year, an actuarial certificate referred to in paragraph (1A)(b) 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 Secretary in relation to that income stream;
 (ii) the end of the period of 26 weeks beginning on 1 July of