1.1.A.306 Asset-test exempt income stream
This definition applies to all payments.
An ATE income stream:
- is payable for
- the income support recipient's lifetime for lifetime products, OR
- a term based on the income support recipient's life expectancy, or their reversionary partner's life expectancy (if relevant), AND
- commences on the day it is purchased or acquired, AND
- converts the purchase price wholly into income, AND
- has nil RCV, AND
- is non-commutable except in limited circumstances, AND
- has limited reversionary benefits, AND
- cannot be used as security for borrowing, AND
- for lifetime and life expectancy products provided by a class of providers (SMSFs or SAFs), a current actuarial certificate is in force (126.96.36.199).
- For ATE income streams purchased or acquired before 20 September 2004, refer to 188.8.131.52.
- For ATE income streams purchased or acquired on or after 20 September 2004, and before 20 September 2007, refer to 184.108.40.206.
Act reference: SSAct section 9(1)-'life expectancy', section 9(1)-'purchase price', section 9(1)-'residual capital value', section 9A Meaning of asset-test exempt income stream-lifetime income streams, section 9B Meaning of asset-test exempt income stream-life expectancy income streams
Policy reference: SS Guide 220.127.116.11 Characteristics of pre-20/09/2004 Asset-Test Exempt Income Streams, 18.104.22.168 Characteristics of Asset-Test Exempt Income Streams Purchased from 20/09/2004 & before 20/09/2007, 22.214.171.124 Actuarial valuation certificate for lifetime or life expectancy ATE income streams paid from SMSFs or SAFs