1.1.P.425 Private annuity
This definition applies to all payments.
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 184.108.40.206 Assessing Private Annuities & Overseas Income Products