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 Assessing Private Annuities & Overseas Income Products

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