1.1.P.425 Private annuity

Usage

This definition applies to all payments.

Definition

A 'private annuity' is a legally binding contract between 2 parties, where one party provides an income in exchange for payment or valuable consideration.

Example: A rural industry landowner exchanges title to a farming property in exchange for a series of payments over a defined period.

Policy reference: SS Guide 4.6.5.100 Assessing Private Annuities & Overseas Income Products

Last reviewed: 1 July 2016