1.1.C.205 Commencement day for income streams
Usage
This definition applies to all payments.
Definition
The commencement day for an income stream means the first day of the period to which the first payment under the income stream relates. It is not the day on which the first payment is made or received from the income stream.
The commencement day must be determined by reference to the terms and conditions of the income stream agreed between the income stream provider and the individual purchasing or acquiring the income stream.
The commencement day cannot occur prior to:
- when all of the capital which is to support the income stream is available to the income stream provider
- the day established as the commencement day in relation to the terms and conditions agreed between the income stream provider and the individual, and
- in circumstances where the individual or their beneficiary becomes entitled to the income stream as per the terms and conditions, the time at which the entitlement to start the income stream arises.
Act reference: SSAct section 9(1)-'commencement day'