Document ID: chunk:federal_register_of_legislation:C2024C00866:section:5jba:p4
Version: federal_register_of_legislation:C2024C00866
Segment Type: section
Provision Reference: s 5JBA (pt 4/5)
Character Range: 148458–151182

be reduced on a pro‑rata basis by reference to the number of days in the financial year that are on and after the commencement day.
 (7) If:
 (a) the income stream's commencement day happens in June; and
 (b) no payment is made under the income stream for the financial year in which the commencement day happens;
subsections (5) and (6) do not apply to the income stream for that financial year.
 (8) If the amount (the test amount) of a payment to be made under the income stream on a day in a financial year:
 (a) is worked out by reference to a total amount worked out under subsection (5) (and subsection (6), if applicable) for the financial year; and
 (b) exceeds the income stream's account balance on that day;
then:
 (c) the account balance (if any) must be paid instead of the test amount; and
 (d) that total amount described in paragraph (a) must be reduced by the amount of the excess.
 (9) If the income stream has a positive account balance at the end of its term, a payment equal to that account balance must be made within 28 days after the end of the term.

Determination that income stream not asset‑test exempt
 (10) The Commission may determine that an income stream that meets the requirements of subsection (2) is not an asset‑test exempt income stream if the Commission is satisfied that:
 (a) the primary beneficiary has commuted an asset‑test exempt income stream on at least 3 occasions since the person first received a service pension, income support supplement, a veteran payment or a social security payment; and
 (b) on at least 3 of those occasions, the commutation happened within 6 months after the commencement day of the income stream concerned.

Determination that income stream is asset‑test exempt
 (11) The Commission may determine, in writing, that an income stream is an asset‑test exempt income stream for the purposes of this Act. In making the determination, the Commission must have regard to the guidelines (if any) determined under subsection (12).
 (11A) To avoid doubt, a determination under subsection (11) may be made in respect of an income stream regardless of the income stream's commencement day.
 (11B) A determination under subsection (11) is not a legislative instrument.

Guidelines to be complied with in making determination
 (12) The Commission may determine, by legislative instrument, guidelines to be complied with when making a determination under subsection (11).

Definitions
 (14) In this section:
hardship amount has the same meaning as in section 5JA (see subsection 5JA(7)).
non‑commutation funded income stream means an income stream that has not been purchased by transferring directly to the purchase of the income stream a payment resulting from