Document ID: chunk:federal_register_of_legislation:F2020C00066:reg:6:p1
Version: federal_register_of_legislation:F2020C00066
Segment Type: reg
Provision Reference: reg 6 (pt 1/3)
Character Range: 7639–10472

6  Death benefit method
 (1) This section sets out a method for working out the value of an asset‑tested income stream (lifetime) by reference to the death benefit of the income stream.
 (2) The value of a person's asset‑tested income stream (lifetime) on a particular day is the highest value for that day or any later day worked out using the following method statement.

      Method statement
           Step 1. Determine the death benefit of the asset‑tested income stream (lifetime) for the day.
           Step 2. Compare the death benefit with the death benefit comparison value of the income stream for the day (see subsection (3)).
           Step 3. The value of the income stream for the day is:

                (a) if the death benefit is more than the death benefit comparison value and the income stream is not a joint income stream—the death benefit; or
                (b) if the death benefit is more than the death benefit comparison value and the income stream is a joint income stream—the death benefit multiplied by the proportion of the income stream attributable to the person on that day; or
                (c) if the death benefit is less than or equal to the death benefit comparison value—nil.
 (3) The death benefit comparison value of an asset‑tested income stream (lifetime) is:
 (a) for a day within the first half of the life expectancy period for the income stream—the access amount for the day;
 (b) for any other day:
 (i) unless subparagraph (ii) applies—the amount worked out for the day under subsection (4); or
 (ii) if the amount worked out for the day under subsection (4) is less than or equal to zero—nil.
 (4) For the purposes of paragraph (3)(b), the amount for a day (the access day) is worked out using the following formula:

where:
previously commuted amount means the sum of any amounts commuted from the income stream before the access day.
remaining life expectancy means the number of days remaining in the life expectancy period for the income stream after subtracting the number of days in the period:
 (a) starting on the assessment day for the income stream; and
 (b) ending on the access day.

Endnotes

Endnote 1—About the endnotes
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The following endnotes are included in every compilation:

Endnote 1—About the endnotes
Endnote 2—Abbreviation key
Endnote 3—Legislation history
Endnote 4—Amendment history

Abbreviation key—Endnote 2
The abbreviation key sets out abbreviations that may be used in the endnotes.

Legislation history and amendment history—Endnotes 3 and 4
Amending laws are annotated in the legislation history and amendment history.

The legislation history in endnote 3 provides information about each law that has amended (or will amend) the compiled law. The information