Document ID: chunk:federal_register_of_legislation:C2024C00866:section:5jb:p4
Version: federal_register_of_legislation:C2024C00866
Segment Type: section
Provision Reference: s 5JB (pt 4/6)
Character Range: 134039–136627

subsection (2) if certain conditions are met
 (2A) A contract, or the governing rules, for the provision to a person of an income stream that meets all of the requirements of subsection (2), except the requirement of paragraph (2)(c), are taken to meet the requirements of subsection (2) if the contract or governing rules specify that any provision included in the contract or governing rules in accordance with paragraph (2)(c) does not apply in any year in which:
 (a) the person ceases to receive income under an income stream jointly and begins to receive income under a single income stream; and
 (b) the total amount received in the year under the single income stream is less than the total amount received by the person in the previous year but is not nil.

Term of the income stream
 (2B) If, on an income stream's commencement day, there is only one primary beneficiary, the 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 the greater of:
 (i) 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; and
 (ii) the period (rounded up, if not consisting of a whole number of years, to the next whole number) starting on the commencement day and ending on the day on which the primary beneficiary reaches age 100 (assuming that the primary beneficiary lives until then).
 (2C) If, on an income stream's commencement day, there is only one primary beneficiary, the 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 period worked out under subsection (2D).
 (2D) For the purposes of paragraph (2C)(c), the period is the greater of:
 (a) 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: