1.1.P.500 Purchase price

Usage

This definition applies to all payments.

Definition

'Purchase price' of an income stream is the nominal sum of the payments made to purchase the income stream less any commutations. It is used in the assessment of asset-tested income streams (short term) and asset-tested income streams (long term).

Note: In determining the means test assessment of asset-tested income streams (lifetime), the purchase price is not used. Rather, the grossed up 'purchase amount' (1.1.P.495) is used.

Act reference: SSAct section 9(1)-'purchase price'

Policy reference: SS Guide 4.9.2.30 Income Test Assessment of Asset-test Exempt Income Streams, 4.9.3.10 General provisions for asset-tested income streams

Last reviewed: 1 July 2019