1.1.A.306 Asset-test exempt income stream
Usage
This definition applies to all payments.
Definition
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
- has
- 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 (4.9.4.40).
Note:
- For ATE income streams purchased or acquired before 20 September 2004, refer to 4.9.2.10.
- For ATE income streams purchased or acquired on or after 20 September 2004, and before 20 September 2007, refer to 4.9.2.15.
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 4.9.2.10 Characteristics of pre-20/09/2004 asset-test exempt income streams, 4.9.2.15 Characteristics of Asset-Test Exempt Income Streams Purchased from 20/09/2004 & before 20/09/2007, 4.9.4.40 Actuarial valuation certificate for lifetime or life expectancy ATE income streams paid from SMSFs or SAFs