a person who was a veteran for the purposes of any provisions of the Veterans’ Entitlements Act; or

a person who was a member of the forces for the purposes of Part IV of that Act; or

a person who was a member of a peacekeeping force for the purposes of Part IV of that Act; or

a person who was a member within the meaning of the Military Rehabilitation and Compensation Act for the purposes of that Act;

immediately before the death of the person.

armed services widower means a man who was the partner of: a person who was a veteran for the purposes of any provisions of the Veterans’ Entitlements Act; or a person who was a member of the Forces for the purposes of Part IV of that Act; or a person who was a member of a Peacekeeping Force for the purposes of Part IV of that Act; or a person who was a member within the meaning of the Military Rehabilitation and Compensation Act for the purposes of that Act; immediately before the death of the person.

a person who was a veteran for the purposes of any provisions of the Veterans’ Entitlements Act; or

a person who was a member of the Forces for the purposes of Part IV of that Act; or

a person who was a member of a Peacekeeping Force for the purposes of Part IV of that Act; or

a person who was a member within the meaning of the Military Rehabilitation and Compensation Act for the purposes of that Act;

immediately before the death of the person.

illness separated couple has the meaning given by subsection (7).

member of a couple has the meaning given by subsections (2), (3), (3A), (6) and (6A).

partner means the other member of the couple.

partnered has the meaning given by subsection (11).

partnered (partner getting benefit) has the meaning given by subsection (11).

partnered (partner getting neither pension nor benefit) has the meaning given by subsection (11).

partnered (partner getting pension) has the meaning given by subsection (11).

partnered (partner getting pension or benefit) has the meaning given by subsection (11).

partnered (partner in gaol) has the meaning given by subsection (11).

prohibited relationship has the meaning given by subsections (12) and (13).

respite care couple has the meaning given by subsection (8).

Member of a couple—general

the person is legally married to another person and is not, in the Secretary’s opinion (formed as mentioned in subsection (3)), living separately and apart from the other person on a permanent or indefinite basis; or

both of the following conditions are met:

(i) a relationship between the person and another person (whether of the same sex or a different sex) is registered under a law of a State or Territory prescribed for the purposes of Acts Interpretation Act 1901 as a kind of relationship prescribed for the purposes of that section;section 2E of the

the person is not, in the Secretary’s opinion (formed as mentioned in subsection (3)), living separately and apart from the other person on a permanent or indefinite basis; or

all of the following conditions are met:

(i) the person has a relationship with another person, whether of the same sex or a different sex (in this paragraph called the partner);

the person is not legally married to the partner;

the relationship between the person and the partner is, in the Secretary’s opinion (formed as mentioned in subsections (3) and (3A)), a de facto relationship;

both the person and the partner are over the age of consent applicable in the State or Territory in which they live;

the person and the partner are not within a prohibited relationship.

Member of a couple—criteria for forming opinion about relationship

the financial aspects of the relationship, including:

any joint ownership of real estate or other major assets and any joint liabilities; and

any significant pooling of financial resources especially in relation to major financial commitments; and

any legal obligations owed by one person in respect of the other person; and

the basis of any sharing of day-to-day household expenses;

the nature of the household, including:

any joint responsibility for providing care or support of children; and

the living arrangements of the people; and

the basis on which responsibility for housework is distributed;

the social aspects of the relationship, including:

whether the people hold themselves out as married to, or in a de facto relationship with, each other; and

the assessment of friends and regular associates of the people about the nature of their relationship; and

the basis on which the people make plans for, or engage in, joint social activities;

any sexual relationship between the people;

the nature of the people’s commitment to each other, including:

the length of the relationship; and

the nature of any companionship and emotional support that the people provide to each other; and

whether the people consider that the relationship is likely to continue indefinitely; and

whether the people see their relationship as a marriage-like relationship or a de facto relationship.

has claimed youth allowance and is not independent within the meaning of Part 3.5; or

is receiving a youth allowance and is not independent within the meaning of Part 3.5; or

is a member of a couple of which a person referred to in paragraph (b) is the other member;

is not a member of a couple for the purposes of:

the provisions of this Act referred to in the table at the end of this subsection; and

any provision of this Act that applies for the purposes of a provision mentioned in paragraph (d); and

any provision of this Act that applies for the purposes of Module E (Ordinary income test) of the Pension PP (Single) Rate Calculator in section 1068A.

Illness separated couple

they are unable to live together in their home as a result of the illness or infirmity of either or both of them; and

because of that inability to live together, their living expenses are, or are likely to be, greater than they would otherwise be; and

that inability is likely to continue indefinitely.

Respite care couple

one of the members of the couple has entered approved respite care; and

the member who has entered the approved respite care has remained, or is likely to remain, in that care for at least 14 consecutive days.

are members of a couple for the purposes of this Act; and

are living separately and apart from each other but not on a permanent or indefinite basis; and

are neither an illness separated nor a respite care couple.

Standard family situation categories

(a) a person is partnered if the person is a member of a couple; and

(b) a person is partnered (partner getting neither pension nor benefit) if the person is a member of a couple and the person’s partner:

is not receiving a social security pension; and

is not receiving a social security benefit; and

is not receiving a service pension, income support supplement or a veteran payment; and

(c) a person is partnered (partner getting pension or benefit) if the person is a member of a couple and the person’s partner is receiving:

a social security pension; or

a social security benefit; or

a service pension, income support supplement or a veteran payment; and

(d) a person is partnered (partner getting pension) if the person is a member of a couple and the person’s partner is receiving:

a social security pension; or

a service pension, income support supplement or a veteran payment; and

(e) a person is partnered (partner getting benefit) if the person is a member of a couple and the person’s partner is receiving a social security benefit; and

(f) a person is partnered (partner in gaol) if the person is a member of a couple and the person’s partner is:

in gaol; or

undergoing psychiatric confinement because the partner has been charged with committing an offence.

Prohibited relationship

an ancestor or a descendant of the partner; or

a brother, sister, half-brother or half-sister of the partner.

(except in Part 2.11, section 592L, subsection 1067A(10L) and the Youth Allowance Rate Calculator in section 1067G):

(i) in relation to a person (the relevant person), other than an adopted child—a natural parent or relationship parent of the relevant person; or

in relation to an adopted child—an adoptive parent of the child; or

(b) in relevant person):Part 2.11, section 592L, subsection 1067A(10L) and the Youth Allowance Rate Calculator in section 1067G, in relation to a person (

a natural parent, adoptive parent or relationship parent of the relevant person with whom the relevant person normally lives; or

if a parent referred to in subparagraph (b)(i) is a member of a couple and normally lives with the other member of the couple—the other member of the couple; or

any other person (other than the relevant person’s partner) on whom the relevant person is wholly or substantially dependent; or

if none of the preceding paragraphs applies—the natural parent, adoptive parent or relationship parent of the relevant person with whom the relevant person last lived.

prescribed educational scheme means:

the ABSTUDY Scheme; or

a Student Financial Supplement Scheme; or

the Veterans’ Children Education Scheme; or

the scheme to provide education and training under section 258 of the Military Rehabilitation and Compensation Act; or

the Post-Graduate Awards Scheme.

prescribed student child has the meaning given by subsection (11).

principal carer, of a child, has the meaning given by subsections (15) to (24).

relationship child has the meaning given by subsection (25).

relationship parent has the meaning given by subsection (25).

secondary pupil child has the meaning given by section 5F.

step-child: without limiting who is a step-child of a person for the purposes of this Act, someone who is a child of a partner of the person is the step-child of the person, if he or she would be the person’s step-child except that the person is not legally married to the partner.

step-parent: without limiting who is a step-parent of a person for the purposes of this Act, someone who is a partner of a parent of the person is the step-parent of the person, if he or she would be the person’s step-parent except that he or she is not legally married to the person’s parent.

student child has the meaning given by subsection (1A).

young person:

except in Part 2.20—has the meaning given by subsection (1B) of this section; and

in Part 2.20—means a person who is under 20 years of age.

at the time, the person:

has reached 16, but is under 22, years of age; and

is receiving full-time education at a school, college or university; and

the person’s income in the financial year in which that time occurs will not be more than $6,403.

is under 16 years of age; or

is a student child.

Dependent child—under 16

the adult is legally responsible (whether alone or jointly with another person) for the day-to-day care, welfare and development of the young person, and the young person is in the adult’s care; or

the young person:

is not a dependent child of someone else under paragraph (a) or (aa); and

is wholly or substantially in the adult’s care.

the young person is not in full-time education; and

the young person is in receipt of income; and

the rate of that income exceeds $107.70 per week.

Dependent child—16 to 21 years of age

at that time, the young person:

has reached 16, but is under 22, years of age; and

is wholly or substantially dependent on the other person; and

the young person’s income in the financial year in which that time occurs will not be more than $6,403.

the young person is receiving a social security pension; or

the young person is receiving a social security benefit; or

the young person is receiving payments under a program included in the programs known as Labour Market Programs.

Dependent child—residence requirements

if the adult is an Australian resident:

the young person is an Australian resident; or

the young person is living with the adult; or

if the adult is not an Australian resident:

the young person is an Australian resident; or

the young person has been an Australian resident and is living with the adult outside Australia; or

the young person had been living with the adult in Australia and is living with the adult outside Australia.

if the adult is an Australian resident:

the young person is an Australian resident or a resident of Australia; or

the young person is living with the adult; or

if the adult is not an Australian resident—the young person is an Australian resident or a resident of Australia.

the person is a young person who has reached 16, but is under 22, years of age; and

the young person is qualified to receive payments under a prescribed educational scheme.

the young person is receiving a payment under a prescribed educational scheme; or

someone else is receiving, in respect of the young person, a payment under a prescribed educational scheme; or

the Secretary has not formed the opinion that:

the young person will not, or would not if an application were duly made, receive a payment under a prescribed educational scheme; and

no other person will, or would if an application were duly made, receive, in respect of the young person, a payment under a prescribed educational scheme.

the young person is not receiving a payment under a prescribed educational scheme; and

no other person is receiving, in respect of the young person, a payment under a prescribed educational scheme; and

the Secretary is satisfied that the educational scheme rate would be less than the social security rate.

(a) the educational scheme rate is the total of the amounts that would be payable to or in respect of the young person under the prescribed educational scheme; and

(b) the social security rate is the Part A rate of family tax benefit for which a person would be eligible (in respect of the young person) if the young person were not a prescribed student child.

Principal carer

the child is a dependent child of the person; and

the child has not turned 16.

the adult to be legally responsible (whether alone or jointly with another person) for the day-to-day care, welfare and development of the child: subsection (16) deals with the circumstances in which a step-parent is taken to have such legal responsibility; and

a child to be in an adult’s care: subsection (17) deals with the circumstances in which a child is taken to remain in an adult’s care.

the person is the step-parent of the child; and

the person is living with the child and a parent of the child; and

the person and the parent are members of the same couple.

This subsection does not, by implication, affect the determination of whether a person is taken to be legally responsible (whether alone or jointly with another person) for the day-to-day care, welfare and development of a child in cases to which this subsection does not apply.

at the start of a period not exceeding 8 weeks, the child leaves the person’s care; and

throughout the period, the child is the dependent child of another person; and

the child returns, or the Secretary is satisfied that the child will return, to the first person’s care at the end of the period.

This subsection does not, by implication, affect the determination of whether a child is in the care of a person in cases to which this subsection does not apply (for example, if the period exceeds 8 weeks).

Principal carer—a child can only have one principal carer

make a written determination specifying one of the adults as the principal carer of the child; and

give a copy of the determination to each adult.

the person is a member of a couple; and

the other member of the couple is, or apart from this subsection would be, the principal carer of one or more children; and

the other member of the couple is receiving parenting payment, youth allowance, jobseeker payment or special benefit; and

the payment, allowance or benefit is based on or affected by the other member of the couple being the principal carer of a child.

a member of a couple is receiving, or has made a claim for, a social security payment that is or would be based on or affected by the person being the principal carer of a child; and

the other member of the couple is receiving, or has made a claim for, a social security payment that is or would be based on or affected by the person being the principal carer of a child; and

apart from subsection (20C), the application of subsection (20A) would, or would if the claim or claims were granted, prevent each member of the couple from being the principal carer of any child;

the Secretary must determine in writing that one of them can be a principal carer of a child.

leaves Australia temporarily; and

continues to be absent from Australia for more than 6 weeks;

a person cannot be the principal carer of the child at any time after the 6 weeks while the child remains absent from Australia unless, at that time:

the child is in the company of a person to whom Division 2 of Part 4.2 applies; and

but for this subsection, the person would be the principal carer of the child; and

the person’s portability period (within the meaning of that Division) for a social security payment:

that the person was receiving immediately before the person’s absence from Australia; or

the person’s claim for which was granted during the absence;

has not ended.

the purpose of the absence;

the intended duration of the absence;

the frequency of such absences.

is born outside Australia; and

continues to be absent from Australia for a period of more than 6 weeks immediately following the child’s birth;

a person cannot be the principal carer of the child at any time after the 6 weeks while the child remains absent from Australia unless, at that time:

the child is in the company of a person to whom Division 2 of Part 4.2 applies; and

but for this subsection, the person would be the principal carer of the child; and

the person’s portability period (within the meaning of that Division) for a social security payment:

that the person was receiving immediately before the person’s absence from Australia; or

the person’s claim for which was granted during the absence;

has not ended.

a person is not the principal carer of a child because of subsection (21) (absence from Australia) or (23) (birth outside Australia), or because of a previous application of this subsection; and

the child comes to Australia; and

the child leaves Australia less than 6 weeks later;

a person cannot be the principal carer of the child when the child leaves Australia as mentioned in paragraph (c).

Relationship child and relationship parent

someone is a child of a person because of:

(i) the definition of child in subsection (1); or

(ii) paragraph (b) of the definition of child in section 1207A; or

(iii) paragraph (b) of the definition of child in subsection 1209R(5); and

he or she is not a biological or adopted child of the person;

the child is the relationship child of the person and the person is the relationship parent of the child.

is not a member of a couple; and

has no dependent children; and

has, in common with one or more other people, the right to use at least one major area of accommodation.

pays, or is liable to pay, amounts for the person’s board and lodging; or

is residing in exempt accommodation (see subsections (5A), (5B) and (5C)); or

is the recipient of a disability support pension or a carer pension; or

is residing in a nursing home.

a person lives alone in a caravan or mobile home, or on board a vessel; or

a person shares accommodation in a caravan, mobile home or vessel solely with one or more recipient children of the person;

the person is not to be treated as a single person sharing accommodation solely because the person has the right, in common with one or more other people, to use one or more major areas of accommodation in a caravan park or marina.

the premises are known as a boarding house, guest house, hostel, hotel, private hotel, rooming house, lodging house or similar premises;

a manager or administrator (other than a real estate agent) is retained to manage the premises or administer the accommodation on a daily or other frequent regular basis;

staff are retained by the proprietor or manager of the premises to work in the premises on a daily or other frequent regular basis;

the residents lack control over the day-to-day management of the premises;

there are house rules, imposed by the proprietor or manager, that result in residents having rights that are more limited than those normally enjoyed by a lessee of private residential accommodation (for example, rules limiting the hours of residents’ access to their accommodation or limiting residents’ access to cooking facilities in the premises);

the person does not have obligations to pay for his or her costs of gas, water or electricity separately from the cost of the accommodation;

the accommodation is not private residential accommodation, having regard to:

the number and nature of bedrooms in the premises; or

the number of people who are not related to one another living at the premises; or

the number and nature of bathrooms in the premises;

the person’s accommodation has not been offered to the person on a leasehold basis;

there is no requirement that the person pay a bond as security for either the payment of rent or the cost of any damage caused by the person, or for both;

the person’s accommodation is available on a daily or other short-term basis.

a bathroom;

a kitchen;

a bedroom.

recipient child means a child who receives any of the following, but who does not receive any amount by way of rent assistance:

a social security payment;

a payment under the ABSTUDY Schooling scheme or the ABSTUDY Tertiary scheme;

a service pension;

a veteran payment;

a youth training allowance.

the person meets the requirements (if any) of the law of the State or Territory in which the person resides that the person must meet in order to be permitted, under the law of that State or Territory, to provide foster care in that State or Territory; and

the person is taken, in accordance with guidelines made under subsection (2), to be actively involved in providing foster care in that State or Territory.

the person is not the child’s parent or step-parent; and

any of the following apply to the person:

the person is related to the child by blood, adoption or marriage;

if the child is an Aboriginal or Torres Strait Islander child who has traditional Aboriginal or Torres Strait Islander kinship ties—the person is related to the child under Aboriginal or Torres Strait Islander kinship rules;

if the child is a member of a community that accepts relationships other than those referred to in subparagraphs (i) and (ii) as kinship ties—the person is accepted by the community to be related to the child.

a pensioner concession card; or

an automatic issue health care card.

automatic issue health care card means a health care card issued to a person qualified for the card under Subdivision A of Division 3 of Part 2A.1.

concession card means:

a pensioner concession card; or

a health care card; or

a seniors health card.

dependant, in relation to a person who is the holder of a pensioner concession card or an automatic issue health care card (other than a health care card for which the person is qualified under subsection 1061ZK(4)), means a person who is:

the partner; or

a dependent child;

of the holder of the card.

dependant, in relation to a person who is the holder of a health care card for which the person is qualified under subsection 1061ZK(4) or Subdivision B of Division 3 of Part 2A.1, means a person who is:

the partner; or

an FTB child; or

a regular care child;

of the holder of the card.

dependant, in relation to a person, other than a child in foster care, who has made a claim for a health care card (the claimant), means a person who is:

the partner; or

an FTB child; or

a regular care child;

of the claimant.

income-tested: a health care card is income-tested for a person if the person is required by paragraph 1061ZO(2)(d), (3)(e) or (4)(d) to satisfy the health care card income test in order to qualify for the health care card.

the child is an FTB child, or a regular care child, (as the case requires) of the adult within the meaning of the Family Assistance Act; and

either:

the child is under 16 years of age; or

the child is 16, but not yet 19, years of age and is undertaking secondary studies.

(a) a visa referred to in the regulations made under the Migration Act 1958 as a Subclass 192 (Pacific Engagement) visa; or

a visa of a kind determined under subsection (4C).

permanent visa, special category visa and visa have the same meaning as in the Migration Act 1958.

protected SCV holder has the meaning given by subsections (2A), (2B), (2C) and (2D).

qualifying Australian residence has the meaning given by subsection (5).

qualifying residence exemption has the meaning given in subsections (6) and (6AA).

resides in Australia; and

is one of the following:

an Australian citizen;

the holder of a permanent visa;

a special category visa holder who is a protected SCV holder.

the person was in Australia on 26 February 2001, and was a special category visa holder on that day; or

the person had been in Australia for a period of, or for periods totalling, 12 months during the period of 2 years immediately before 26 February 2001, and returned to Australia after that day.

was residing in Australia on 26 February 2001; and

was temporarily absent from Australia on 26 February 2001; and

was a special category visa holder immediately before the beginning of the temporary absence; and

was receiving a social security payment on 26 February 2001; and

returned to Australia before the later of the following:

the end of the period of 26 weeks beginning on 26 February 2001;

if the Secretary extended the person’s portability period for the payment under section 1218C—the end of the extended period.

the time is during the period of 3 years beginning on 26 February 2001; or

the time is after the end of that period, and either:

a determination under subsection (2E) is in force in respect of the person; or

the person claimed a payment under the social security law during that period, and the claim was granted on the basis that the person was a protected SCV holder.

was residing in Australia; and

was temporarily absent from Australia; and

was not receiving a social security payment;

is a protected SCV holder at a particular time if:

the time is during the period of 12 months beginning on 26 February 2001; or

the time is after the end of that period, and either:

at that time, a determination under subsection (2E) is in force in respect of the person; or

the person claimed a payment under the social security law during that period, and the claim was granted on the basis that the person was a protected SCV holder.

the person was residing in Australia on 26 February 2001, but was temporarily absent from Australia on that day; or

the person commenced, or recommenced, residing in Australia during the period of 3 months beginning on 26 February 2001.

the Secretary is satisfied that paragraph (2E)(a) or (2E)(b) applies to the person; and

the application was made within whichever of the following periods is applicable:

if paragraph (2E)(a) applies to the person—the period of 12 months beginning on 26 February 2001;

if paragraph (2E)(b) applies to the person—the period of 3 years beginning on 26 February 2001.

The Secretary must give a copy of the determination to the person.

the determination must state that the person was residing in Australia on 26 February 2001, but was temporarily absent from Australia on that day; and

the determination must be made within the period of 6 months of the person’s return to Australia; and

a copy of the determination must be given to the person.

the nature of the accommodation used by the person in Australia; and

the nature and extent of the family relationships the person has in Australia; and

the nature and extent of the person’s employment, business or financial ties with Australia; and

the nature and extent of the person’s assets located in Australia; and

the frequency and duration of the person’s travel outside Australia; and

any other matter relevant to determining whether the person intends to remain permanently in Australia.

Part 2.2 (age pension); and

Part 2.3 (disability support pension);

residence of a claimant in an external Territory is taken to be residence in Australia.

(4AA) Whether residence in a particular place is residence in an external territory for the purposes of subsection (4) is to be determined as at the time of residence.

if an initial decision maker decides to grant a visa to the person—that day; or

if:

an initial decision maker decides not to grant a visa to the person; and

on a review of the decision referred to in subparagraph (i), that decision is set aside (however described) and a visa is granted to the person;

the day on which the initial decision maker decided not to grant the visa to the person.

the kind of visa has replaced or will replace:

the kind of visa mentioned in paragraph (a) of that definition; or

a kind of visa previously determined under this subsection; and

the replacement kind of visa is intended to give the same benefits as the replaced kind of visa.

the person has, at any time, been an Australian resident for a continuous period of not less than 10 years; or

the person has been an Australian resident during more than one period and:

at least one of those periods is 5 years or more; and

the aggregate of those periods exceeds 10 years.

resides in Australia; and

is either:

a refugee; or

a former refugee.

(6AA) A person also has a qualifying residence exemption for a social security benefit (other than a special benefit), a pension PP (single), carer payment, carer allowance, a mobility allowance, a seniors health card or a health care card if, and only if, the person:

except in relation to pension PP (single), benefit PP (partnered), youth allowance, austudy payment, jobseeker payment, carer payment, carer allowance, mobility allowance, a seniors health card or a health care card—was a family member of a refugee, or former refugee, at the time the refugee or former refugee arrived in Australia; or

in any case—holds or was the former holder of a visa that is in a class of visas determined, by legislative instrument, by the Minister for the purposes of this paragraph.

is taken, under the Migration Reform (Transitional Provisions) Regulations, to be the holder of a transitional (permanent) visa because the person was, immediately before 1 September 1994, the holder of:

a visa or entry permit that fell within Division 1.3—Group 1.3 (Permanent resident (refugee and humanitarian) (offshore)) in Part 1 of Schedule 1 to the Migration (1993) Regulations as then in force; or

a visa or entry permit that fell within Division 1.5—Group 1.5 (Permanent resident (refugee and humanitarian) (on-shore)) in Part 1 of Schedule 1 to the Migration (1993) Regulations as then in force; or

was, immediately before 1 February 1993, the holder of a visa or entry permit of a class prescribed under the Migration Regulations as then in force that corresponds to a visa or entry permit referred to in subparagraph (a)(i) or (ii); or

is the holder of:

a permanent protection visa; or

a permanent visa of a class referred to in the Table at the end of this subsection; or

a permanent visa of a class referred to in a declaration of the Minister under section 25 that is in force.

a partner of the person; or

a dependent child of the person; or

another person who, in the opinion of the Secretary, should be treated for the purposes of this definition as a person described in paragraph (a) or (b).

set guidelines for the exercise of the Secretary’s power under paragraph (6D)(c); and

revoke or vary those guidelines.

throughout the period, the person was the holder of a special category visa; and

immediately before the period commenced, the person had been residing in Australia for a continuous period of at least 10 years, being a period commencing on or after 26 February 2001;

unless the person’s exemption from the residence requirement in respect of the period would result in the person:

receiving jobseeker payment or youth allowance for a continuous period of more than 6 months because of this subsection; or

receiving jobseeker payment or youth allowance for more than one non-continuous period because of this subsection; or

receiving more than one of that payment and that allowance because of this subsection.

is held by or on behalf of the person; and

is not deposit money of the person; and

is not the subject of a loan made by the person.

deposit money means the person’s money that is deposited in an account with a financial institution.

disposes of ordinary income has the meaning given by sections 1106 to 1111.

domestic payment has the meaning given by subsection (3).

earned, derived or received has the meaning given by subsection (2).

employment income means ordinary income of the person that comprises employment income under subsection (1A) and includes ordinary income that is characterised as employment income of the person because of the operation of subsection (1B).

exchange trading system has the meaning given by subsection (9).

exempt lump sum has the meaning given by subsection (11).

home equity conversion agreement means an agreement under which the repayment of an amount paid to or on behalf of the person, or the person’s partner, is secured by a mortgage of the principal home of the person or the person’s partner.

income, in relation to a person, means:

an income amount earned, derived or received by the person for the person’s own use or benefit; or

a periodical payment by way of gift or allowance; or

a periodical benefit by way of gift or allowance;

but does not include an amount that is excluded under subsection (4), (5) or (8).

income amount means:

valuable consideration; or

personal earnings; or

moneys; or

profits;

(whether of a capital nature or not).

income from personal exertion means an income amount that is earned, derived or received by a person by way of payment for personal exertion by the person but does not include an income amount received as compensation for the person’s inability to earn, derive or receive income through personal exertion.

instalment of parental leave pay means an instalment of parental leave pay under the Paid Parental Leave Act 2010.

ordinary income means income that is not maintenance income or an exempt lump sum.

student income bank means the student income bank set out: in Module J of the Youth Allowance Rate Calculator; or in Module E of the Austudy Payment Rate Calculator.

in Module J of the Youth Allowance Rate Calculator; or

in Module E of the Austudy Payment Rate Calculator.

working credit participant means a person who is a working credit participant within the meaning of section 1073D.

that is for remunerative work of the person as an employee in an employer/employee relationship; and

that includes, but is not limited to:

salary, wages, commissions and employment-related fringe benefits; and

if the person is engaged on a continuing basis in that employer/employee relationship—a leave payment to the person;

but does not include:

a superannuation payment to the person; or

a payment of compensation, or a payment to the person under an insurance scheme, in relation to the person’s inability to earn, derive or receive income from that remunerative work; or

if the person is not engaged on a continuing basis in that employer/employee relationship—a leave payment to the person; or

a payment to the person by a former employer of the person in relation to the termination of the person’s employment; or

a comparable foreign payment; or

an instalment of parental leave pay.

a person is treated, for the purposes of working out the person’s ordinary income, as having ordinary income of the person’s partner; and

that ordinary income would be characterised as employment income in the hands of the partner if the partner were not a member of a couple;

then, for the purposes of this Act, that ordinary income is to be similarly characterised in the hands of the person.

includes a payment in respect of personal/carer’s leave, annual leave, maternity leave or long service leave; and

may be made as a lump sum payment, a payment that is one of a series of regular payments or otherwise; and

is taken to be made to the person if it is made to another person:

at the direction of the first-mentioned person or of a court; or

on behalf of the first-mentioned person; or

for the benefit of the first-mentioned person; or

if the first-mentioned person waives or assigns his or her right to the payment.

Earned, derived or received

an income amount earned, derived or received by any means; and

an income amount earned, derived or received from any source (whether within or outside Australia).

Domestic payments

the person receives the payment on the disposal of an asset of the person; and

the asset was used, immediately before the disposal, by the person or the person’s partner for private or domestic purposes; and

the asset was used by the person or the person’s partner for those purposes for:

a period of 12 months before the disposal; or

if the Secretary considers it appropriate—a period of less than 12 months before the disposal.

Excluded amounts—home equity conversion (not member of a couple)

any amount representing mortgage fees; or

any amount representing interest; or

any similar liability whose repayment is also secured by the mortgage.

Home equity conversion (principal home)

a payment under this Act;

any return on a person’s investment in:

a superannuation fund; or

an approved deposit fund; or

an ATO small superannuation account;

until the person:

reaches pension age; or

starts to receive a pension or annuity out of the fund;

the value of emergency relief or like assistance;

(f) a payment under Disability Services Act 1986 or the value of any rehabilitation program (including any follow-up program) provided under that Part;Part III of the former

(fa) the value of supports or services that are specified in an instrument under subsection (8AAAB) and are provided under an arrangement or grant under the Disability Services and Inclusion Act 2023;

(g) a payment of domiciliary nursing care benefit under National Health Act 1953 as in force immediately before 1 July 1999;Part VB of the

a payment under a law of the Commonwealth, being a law having an object of assisting persons to purchase or build their own homes;

a payment made by a State or Territory for the purpose of assisting the person to purchase or build his or her own home;

a payment made to the person for or in respect of a dependent child of the person;

a payment of family assistance, or of one-off payment to families, economic security strategy payment to families, back to school bonus, single income family bonus, clean energy advance, ETR payment, first 2020 economic support payment, second 2020 economic support payment, additional economic support payment 2020 or additional economic support payment 2021, under the Family Assistance Act;

(jab) a payment under the scheme determined under Schedule 3 to the Family Assistance Legislation Amendment (More Help for Families—One-off Payments) Act 2004;

(jaba) a payment under the scheme determined under Family Assistance and Other Legislation Amendment (Schoolkids Bonus Budget Measures) Act 2012;Part 2 of Schedule 1 to the

(jac) a payment under the scheme determined under Schedule 2 to the Social Security Legislation Amendment (One-off Payments for Carers) Act 2005;

(jad) a payment under the scheme determined under Schedule 4 to the Social Security and Veterans’ Entitlements Legislation Amendment (One-off Payments to Increase Assistance for Older Australians and Carers and Other Measures) Act 2006;

(jae) a payment under the scheme determined under Schedule 4 to the Social Security and Veterans’ Affairs Legislation Amendment (One-off Payments and Other 2007 Budget Measures) Act 2007;

(jaf) a payment under the scheme determined under Schedule 4 to the Social Security and Veterans’ Entitlements Legislation Amendment (One-off Payments and Other Budget Measures) Act 2008;

an NDIS amount;

any return on a person’s NDIS amounts that the person earns, derives or receives;

a payment of a bursary under the program established by the Commonwealth and known as the Young Carer Bursary Programme;

disability expenses maintenance;

(jb) a payment under the Business Services Wage Assessment Tool Payment Scheme Act 2015;

(jc) a payment under the National Redress Scheme for Institutional Child Sexual Abuse Act 2018;

a payment under the scheme known as the Territories Stolen Generations Redress Scheme;

insurance or compensation payments made by reason of the loss of, or damage to, buildings, plant or personal effects;

where:

the person owes money under a mortgage or other arrangement; and

the person has insurance which requires the insurer to make payments to the creditor when the person is unemployed or ill or in other specified circumstances; and

payments are made to the creditor under the insurance;

a payment so made;

money from an investment that is:

an investment of payments of the kind referred to in paragraph (k); and

an investment for:

(A) a period of not more than 12 months after the person receives the payments; or

(B) if the Secretary thinks it appropriate—of 12 months or more after the person receives those payments;

money from an exempt funeral investment;

an amount paid, under a law of, or applying in, a country or part of a country, by way of compensation for a victim of National Socialist persecution;

in the case of a person who pays or who is liable to pay rent, a payment by way of rent subsidy made by the Commonwealth, by a State or Territory or by an authority of the Commonwealth or of a State or Territory to or on behalf of the person who pays or who is liable to pay rent;

a payment received by a trainee in full-time training under a program included in the programs known as Labour Market Programs, to the extent that the payment includes one or more of the following amounts:

an amount calculated by reference to a rate of jobseeker payment;

an amount known as the training component;

an amount by way of a living away from home allowance;

in the case of a person who is receiving a social security pension, a social security benefit, a service pension, income support supplement or a veteran payment and is in part-time training, or engaged in part-time work experience, under a program included in the programs known as Labour Market Programs—a payment received by the person under that program in respect of the person’s expenses associated with his or her participation in the training or work experience;

a payment received by the person under a self-employment program;

a payment made by the Commonwealth known as the Apprenticeship Wage Top-Up to the person;

a payment to the person made by the Commonwealth under the program known as Skills for Sustainability for Australian Apprentices;

a payment to the person made by the Commonwealth under the program known as Tools for Your Trade (within the program known as the Australian Apprenticeships Incentives Program);

a payment made by the Commonwealth, under the program established by the Commonwealth and known as “Youth Jobs PaTH”, to an individual placed in an internship under that program;

a benefit under a law of the Commonwealth that relates to the provision of:

pharmaceutical, sickness or hospital benefits; or

medical or dental services;

a payment (other than a periodical payment or a payment representing an accumulation of instalments) made for or in respect of expenses incurred by a person for hospital, medical, dental or similar treatment;

a payment made by the Mark Fitzpatrick Trust to a person by way of assistance with expenses incurred in relation to a person who has medically acquired HIV infection;

a payment made by the New South Wales Medically-Acquired HIV Trust to a person by way of financial assistance with expenses incurred in relation to a person who has medically acquired HIV infection;

a payment by the Thalidomide Australia Fixed Trust:

made to, or applied for the benefit of, a beneficiary of the Trust; or

made to a person in respect of a beneficiary of the Trust;

a payment under the program established by the Commonwealth and known as the Support for Australia’s Thalidomide Survivors program;

in the case of a member of:

the Naval Reserve; or

the Army Reserve; or

the Air Force Reserve;

the pay and allowances paid to the person as such a member (other than pay and allowances in respect of continuous full-time service);

a payment by way of:

pension under Part II or IV of the Veterans’ Entitlements Act (other than a pension that is payable under section 30 of that Act to a dependant of a deceased veteran); or

service pension, income support supplement or veteran payment; or

(ib) pension payable because of subsection 4(6) or (8B) of the Veterans’ Entitlements (Transitional Provisions and Consequential Amendments) Act 1986 (other than a pension payable in respect of a child); or

attendant allowance under section 98 of the Veterans’ Entitlements Act; or

recreation allowance under section 104 of that Act; or

an allowance for the running and maintenance of a motor vehicle under the Vehicle Assistance Scheme referred to in section 105 of that Act; or

decoration allowance under section 102 of that Act; or

Victoria Cross allowance under section 103 of that Act; or

a payment, by a foreign country, of an allowance or annuity that is of a similar kind to decoration allowance payable under section 102 of that Act or to Victoria Cross allowance payable under section 103 of that Act; or

clothing allowance under section 97 of that Act; or

prisoner of war recognition supplement under Part VIB of that Act; or

a payment known as a student start-up scholarship payment, or a relocation scholarship payment, under the scheme referred to in section 117 of the Veterans’ Entitlements Act; or

a payment known as a student start-up scholarship payment, or a relocation scholarship payment, under the scheme referred to in section 258 of the Military Rehabilitation and Compensation Act; or

veterans supplement under Part VIIA of the Veterans’ Entitlements Act; or

energy supplement under Part VIIAD of that Act; or

a bereavement payment under Part IIIB, or section 98A of that Act; or

a funeral benefit under Part VI of that Act;

a payment made by the Commonwealth and known as the one-off payment to the aged; or

(yc) a payment under a scheme determined under Schedule 2 to the Social Security and Veterans’ Entitlements Legislation Amendment (One-off Payments to Increase Assistance for Older Australians and Carers and Other Measures) Act 2006;

(ye) a payment under a scheme determined under Schedule 2 to the Social Security and Veterans’ Affairs Legislation Amendment (One-off Payments and Other 2007 Budget Measures) Act 2007;

(yg) a payment under a scheme determined under Schedule 2 to the Social Security and Veterans’ Entitlements Legislation Amendment (One-off Payments and Other Budget Measures) Act 2008;

a clean energy payment under the Veterans’ Entitlements Act;

(yi) a payment under the scheme determined under Schedule 4 to the Social Security and Other Legislation Amendment (Economic Security Strategy) Act 2008;

(yj) a payment under the scheme determined under Schedule 4 to the Household Stimulus Package Act (No. 2) 2009;

a one-off energy assistance payment under Part IIIF of the Veterans’ Entitlements Act;

a one-off energy assistance payment under Part IIIG of the Veterans’ Entitlements Act;

a first 2020 economic support payment under Division 1 of Part IIIH of the Veterans’ Entitlements Act;

a second 2020 economic support payment under Division 2 of Part IIIH of the Veterans’ Entitlements Act;

an additional economic support payment 2020 under Division 1 of Part IIIJ of the Veterans’ Entitlements Act;

an additional economic support payment 2021 under Division 2 of Part IIIJ of the Veterans’ Entitlements Act;

a 2022 cost of living payment under Division 1 of Part IIIK of the Veterans’ Entitlements Act;

a periodical payment by way of gift or allowance, or a periodical benefit by way of gift or allowance, from a parent, child, brother or sister of the person;

the value of board or lodging received by the person;

an amount received under the scheme known as the Western Australian Cost of Living Rebate Scheme;

the value of a benefit obtained by using a card known as the Western Australian Country Age Pension Fuel Card;

a payment, known as the Cost of Living Concession, made by the Government of South Australia;

a domestic payment;

so much of a payment received by the person as is, in accordance with an agreement between the Commonwealth and a foreign country, applied in reduction of the amount of social security payment that would otherwise be payable to the person under this Act;

a payment made to the person by the Government of New Zealand, being a payment known as:

accommodation benefit; or

disability allowance; or

home help payment; or

special benefit; or

training incentive allowance;

a payment made to the person by the Government of the United Kingdom, being a payment known as:

clothing allowance; or

constant attendance allowance; or

decoration allowance; or

mobility supplement;

a payment under the ABSTUDY Scheme;

a payment of financial supplement made to the person under a Student Financial Supplement Scheme;

a payment received by the person for serving, or being summoned to serve, on a jury;

a payment received by the person for expenses as a witness, other than an expert witness, before a court, tribunal or commission;

a payment towards the cost of personal care support services for the person, being a payment made under a scheme approved under section 35A;

the amount or value of a scholarship known as a Commonwealth Trade Learning Scholarship;

a payment of an approved scholarship awarded on or after 1 September 1990;

the amount or value of:

(ia) a scholarship provided for under Higher Education Support Act 2003 (Indigenous student assistance grants) and specified by the Secretary under subsection (8AAA) of this section.Part 2-2A of the

a scholarship known as a Commonwealth Education Costs Scholarship; or

a scholarship known as a Commonwealth Accommodation Scholarship;

an amount covered by subsection (8B) (about reductions of amounts payable for enrolment or tuition in certain courses);

a payment covered by subsection (8C) (about payments that are made to an educational institution or the Commonwealth to reduce a person’s liability to the educational institution or Commonwealth and that are made by someone other than the person);

a payment of a scholarship to a person during a calendar year (other than an excluded payment):

for the person to study, or to undertake research, at an educational institution; or

for the person’s achievement in studying, or in undertaking research, at an educational institution;

to the extent that the payment does not exceed the person’s threshold amount for that year;

an amount paid by a buyer under a sale leaseback agreement;

if a person is a member of an approved exchange trading system—an amount credited to the person’s account for the purposes of the scheme in respect of any goods or services provided by the person to another member.

if a person:

is a member of a couple; and

is receiving a social security benefit;

a payment received by the person either directly or indirectly from his or her partner.

(zma) a payment under Aged Care Act 2024;section 186 of the

while a person is accruing a liability to pay an accommodation charge—any rent from the person’s principal home that the person, or the person’s partner, earns, derives or receives from another person;

while a person is liable to pay all or some of an accommodation bond by periodic payments—any rent from the person’s principal home that the person, or the person’s partner, earns, derives or receives from another person;

while a person is liable to pay all or some of a daily accommodation payment or a daily accommodation contribution—any rent from the person’s principal home that the person, or the person’s partner, earns, derives or receives from another person;

a clean energy payment under the Military Rehabilitation and Compensation Act;

a payment under section 47, 56, 81, 205, 214, 217, 226, 239 or 266 of the Military Rehabilitation and Compensation Act to reimburse costs incurred in respect of the provision of goods or services (other than a payment to the person who provided the goods or service);

a payment (either as a weekly amount or a lump sum) under section 68, 71, 75 or 80 of the Military Rehabilitation and Compensation Act (permanent impairment);

a payment of a Special Rate Disability Pension under Part 6 of Chapter 4 of the Military Rehabilitation and Compensation Act;

if subsection 204(5) of the Military Rehabilitation and Compensation Act applies to a person—an amount per fortnight, worked out under subsection (12) of this section, that would, apart from this paragraph, be income of the person;

a payment under the Motor Vehicle Compensation Scheme under section 212 of the Military Rehabilitation and Compensation Act;

a payment under section 242 of the Military Rehabilitation and Compensation Act (continuing permanent impairment and incapacity etc. payments);

the value of the benefit provided under the initiative known as the Tools for Your Trade initiative;

a payment under an instrument made under any of the following:

(i) Military Rehabilitation and Compensation Act 2004;section 268B of the

(ii) Safety, Rehabilitation and Compensation (Defence-related Claims) Act 1988;section 41B of the

(iii) Veterans’ Entitlements Act 1986;section 115S of the

(zt) a cash flow boost (within the meaning of the Boosting Cash Flow for Employers (Coronavirus Economic Response Package) Act 2020);

a payment:

(i) paid in accordance with rules made under the Coronavirus Economic Response Package (Payments and Benefits) Act 2020; and

stated, in those rules, not to be income in relation to the person for the purposes of this Act;

a payment made by the Commonwealth to an individual under a program that is established by the Commonwealth and is determined in an instrument under subsection (8AC) to be an employment program;

a payment made by a State or Territory to an individual under a program that is established by the State or Territory and is determined in an instrument under subsection (8AC) to be an employment program.

(8AAAA) Paragraph (8)(a) does not apply to a payment under an arrangement or grant referred to in section 1062A. This subsection does not prevent another paragraph of subsection (8) from applying to such a payment.

(8AAAB) The Secretary may, by legislative instrument, specify supports or services for the purposes of paragraph (8)(fa). The supports or services must be employment supports or services within the meaning of the Disability Services and Inclusion Act 2023.

(8AAA) The Secretary may, by legislative instrument, specify a scholarship for the purposes of subparagraph (8)(zja)(ia).

(8AA) For the purposes of paragraph (8)(zjd), each of the following is an excluded payment:

a payment of a scholarship referred to in paragraph (8)(zia), (zj) or (zja);

a scholarship payment under Part 2.11B;

a scholarship payment under the ABSTUDY Scheme;

a payment known as a student start-up scholarship payment, or a relocation scholarship payment, under the scheme referred to in section 117 of the Veterans’ Entitlements Act;

a payment known as a student start-up scholarship payment, or a relocation scholarship payment, under the scheme referred to in section 258 of the Military Rehabilitation and Compensation Act.

(8AB) For the purposes of paragraph (8)(zjd), a person’s threshold amount, for a calendar year, means $6,762 less the amount of any payment made to that person during that year that is not income for the purposes of this Act because of that paragraph.

On 1 May 2010 the person is paid a scholarship of $5,000 to study at an educational institution. Of the $5,000, $3,762 is not income under that paragraph. The threshold amount is reduced to zero.

There can be no further payments excluded under that paragraph for that person for 2010.

(8AC) The Employment Secretary may, by notifiable instrument, determine programs to be employment programs for the purposes of:

(a) paragraph (8)(zv) of this section and paragraph 5H(8)(zzf) of the Veterans’ Entitlements Act 1986; or

(b) paragraph (8)(zw) of this section and paragraph 5H(8)(zzg) of the Veterans’ Entitlements Act 1986.

a student child; or

a dependent child of another person;

this section has effect as if paragraph (8)(zf) were not included.

to an educational institution for enrolment or tuition of the person by the institution in a course that:

(i) is determined, under Student Assistance Act 1973, to be a secondary course or a tertiary course for the purposes of that Act; orsection 5D of the

is a Masters or Doctoral degree course accredited as a higher education course by the authority responsible for accrediting higher education courses in the State or Territory in which the course is conducted or by the institution, if it is permitted by a law of the Commonwealth, a State or a Territory to accredit higher education courses that it conducts; or

is a course of vocational training; or

to the Commonwealth as a result of the person’s enrolment in, or undertaking of, such a course at an educational institution.

that is made to discharge, or to prevent from arising, to any extent:

a person’s actual or anticipated liability to an educational institution for enrolment or tuition of the person by the institution in a course described in paragraph (8B)(a); or

a person’s actual or anticipated liability to the Commonwealth resulting from the person’s enrolment in, or undertaking of, such a course at an educational institution; and

that is made by someone other than the person; and

that is made to the institution or the Commonwealth; and

that is not made at the direction of the person.

to which is credited:

the amount representing the value of any goods or services provided by the member to another member; or

if the goods or services were partly paid for in cash—the amount referred to in subparagraph (i) less the amount so paid in cash; and

to which is debited:

the amount representing the value of any goods or services supplied to the member by another member; or

if the goods or services were partly paid for in cash—the amount referred to in subparagraph (i) less the amount so paid in cash.

it is a local community-based system; and

its primary purpose is to help persons maintain their labour skills and keep them in touch with the labour market; and

it is not a system run by a person or organisation for profit.

(a) those paragraphs did not apply in relation to the person immediately before the commencement of the Aged Care Act 2024; or

a period of 28 consecutive days ends after that commencement in which the person:

was not provided with residential care or flexible care through a residential care service or a flexible care service; and

did not access ongoing funded aged care services in an approved residential care home;

other than because the person was on leave.

the amount is not a periodic amount (within the meaning of subsection (11A)); and

the amount is not a leave payment within the meaning of points 1067G-H20, 1067L-D16 and 1068-G7AR; and

the amount is not income from remunerative work undertaken by the person; and

the amount is an amount, or class of amounts, determined by the Secretary to be an exempt lump sum.

the amount of one payment in a series of related payments, even if the payments are irregular in time and amount; or

the amount of a payment making up for arrears in such a series.

is not an asset-test exempt income stream; and

has, on its commencement day:

a specified term of more than 5 years; or

if the person who has acquired the income stream has a life expectancy of 5 years or less—a specified term equal to or greater than the person’s life expectancy.

asset-tested income stream (short term) means an income stream that is an asset-tested income stream (short term) under section 9D or an income stream that is none of the following: an asset-test exempt income stream; an asset-tested income stream (long term); an asset-tested income stream (lifetime). asset-test exempt income stream has the meanings given by sections 9A, 9B, 9BA and 9BB.

an asset-test exempt income stream;

an asset-tested income stream (long term);

an asset-tested income stream (lifetime).

asset-test exempt income stream has the meanings given by sections 9A, 9B, 9BA and 9BB.

ATO small superannuation account means an account kept in the name of an individual under the Small Superannuation Accounts Act 1995.

commencement day means the first day of the period to which the first payment under the income stream relates.

deductible amount means the sum of the amounts that are the tax free components (worked out under Subdivision 307-C of the Income Tax Assessment Act 1997 or, if applicable, section 307-125 of the Income Tax (Transitional Provisions) Act 1997) of the payments received from the defined benefit income stream during the year.

defined benefit income stream has the meaning given by subsection (1F).

deprived asset has the meaning given by subsection (4).

designated NDIS amount means:

an NDIS amount that is deposited in an account with a financial institution; and

any return on the NDIS amount that a person earns, derives or receives.

family law affected income stream has the meaning given by section 9C.

financial asset means:

a financial investment; or

a deprived asset.

financial investment means:

available money; or

deposit money; or

a managed investment; or

a listed security; or

a loan that has not been repaid in full; or

an unlisted public security; or

gold, silver or platinum bullion; or

an asset-tested income stream (short term); or

(i) an asset-tested income stream (long term) that is an account-based pension within the meaning of the Superannuation Industry (Supervision) Regulations 1994; or

(j) an asset-tested income stream (long term) that is an annuity (within the meaning of the Superannuation Industry (Supervision) Act 1993) provided under a contract that meets the requirements determined in an instrument under subsection (1EA);

but does not include a designated NDIS amount.

friendly society means:

(a) a body that is a friendly society for the purposes of the Life Insurance Act 1995; or

a body that is registered or incorporated as a friendly society under a law of a State or Territory; or

(c) a body that is permitted, by a law of a State or Territory, to assume or use the expression friendly society; or

(d) a body that, immediately before the date that is the transfer date for the purposes of the Financial Sector Reform (Amendments and Transitional Provisions) Act (No. 1) 1999, was registered or incorporated as a friendly society under a law of a State or Territory; or

(e) a body that had, before 13 December 1987, been approved for the purpose of the definition of friendly society in subsection 115(1) of the 1947 Act.

governing rules means any trust instrument, other document or legislation, or combination of them, governing the establishment and operation of the income stream.

income stream means:

(a) an income stream arising under arrangements that are regulated by the Superannuation Industry (Supervision) Act 1993; or

an income stream arising under a public sector superannuation scheme (within the meaning of that Act); or

an income stream arising under a retirement savings account; or

(d) an income stream provided as life insurance business by a life company registered under Life Insurance Act 1995; orsection 21 of the

an income stream designated in writing by the Secretary for the purposes of this definition, having regard to the guidelines determined under subsection (1E); or

a family law affected income stream;

but does not include any of the following:

available money;

deposit money;

a managed investment;

a listed security;

a loan that has not been repaid in full;

an unlisted public security;

gold, silver or platinum bullion;

a payment of compensation to a person, or a payment to a person under an insurance scheme, in relation to:

the person’s inability to earn, derive or receive income from remunerative work; or

the person’s total and permanent disability or incapacity.

investment:

in relation to a superannuation fund or approved deposit fund—has the meaning given by subsection (9); or

in relation to an ATO small superannuation account—has the meaning given by subsection (9A).

investor means the person in whose name the account is kept.

life expectancy has the same meaning as life expectation factor has in section 27H of the Income Tax Assessment Act.

listed security means:

a share in a company; or

another security;

listed on a stock exchange.

managed investment has the meaning given by subsections (1A), (1B) and (1C).

military defined benefit income stream means a defined benefit income stream provided under: (a) the scheme provided for by the Defence Forces Retirement Benefits Act 1948; or (b) the scheme provided for by the Defence Force Retirement and Death Benefits Act 1973; or (c) the superannuation scheme referred to in Military Superannuation and Benefits Act 1991; orsection 4 of the a superannuation scheme specified in an instrument under subsection (2).

(a) the scheme provided for by the Defence Forces Retirement Benefits Act 1948; or

(b) the scheme provided for by the Defence Force Retirement and Death Benefits Act 1973; or

(c) the superannuation scheme referred to in Military Superannuation and Benefits Act 1991; orsection 4 of the

a superannuation scheme specified in an instrument under subsection (2).

military invalidity pension income stream has the meaning given by subsection (1G).

original family law affected income stream has the meaning given by section 9C.

pensioner couple means a couple, one or both of the members of which are receiving a social security pension, a service pension, income support supplement or a veteran payment.

primary FLA income stream has the meaning given by section 9C.

public unit trust means a unit trust that: except where paragraph (b) applies—was, in relation to the unit trust’s last year of income, a public unit trust for the purposes of Division 6B of Part III of the Income Tax Assessment Act; or where the first year of income of the unit trust has not yet finished—has, at some time since the trust was established, satisfied at least one of the paragraphs of subsection 102G(1) of the Income Tax Assessment Act.

except where paragraph (b) applies—was, in relation to the unit trust’s last year of income, a public unit trust for the purposes of Division 6B of Part III of the Income Tax Assessment Act; or

where the first year of income of the unit trust has not yet finished—has, at some time since the trust was established, satisfied at least one of the paragraphs of subsection 102G(1) of the Income Tax Assessment Act.

purchase price means the sum of the payments made to purchase the income stream (including amounts paid by way of employer and employee contributions) less any commuted amounts.

relevant number, in relation to an income stream, means:

if the income stream is payable for a fixed number of years—that number; or

if the income stream is payable during the lifetime of a person and no longer—the number of years of the person’s life expectancy; or

if the income stream:

is jointly owned by a person and his or her partner and is payable for the lifetime of the person or the partner; or

is payable during the lifetime of a person and then for the lifetime of a reversionary beneficiary;

the number of years of the longer of the relevant life expectancies; or

in any other case—the number that the Secretary considers appropriate having regard to the number of years in the total period during which the income stream will be, or may reasonably be expected to be, payable.

residual capital value means the capital amount payable on the termination of the income stream.

retirement savings account has the meaning that it has in the Retirement Savings Accounts Act 1997.

return:

in relation to an ATO small superannuation account—means so much of the balance of the account as is attributable to interest; or

in relation to any other investment in the nature of superannuation—means any increase, whether of a capital or income nature and whether or not distributed, in the value or amount of the investment.

secondary FLA income stream has the meaning given by section 9C.

superannuation benefit, in relation to a person, means:

a benefit arising directly or indirectly from amounts contributed (whether by the person or by any other person) to a superannuation fund in respect of the person; or

(b) a payment under Part 7 of the Small Superannuation Accounts Act 1995, where the payment is in respect of an ATO small superannuation account kept in the name of the person.

superannuation contributions surcharge has the meaning that it has in the Superannuation Contributions Tax (Assessment and Collection) Act 1997.

superannuation fund means:

(a) a fund that is or has been a complying superannuation fund Superannuation Industry (Supervision) Act 1993 in relation to any tax year; orwithin the meaning of section 45 of the

(b) an Australian superannuation fund (within the meaning of the Income Tax Assessment Act 1997) that is not a complying superannuation fund mentioned in paragraph (a) in relation to any tax year; or

a scheme for the payment of benefits upon retirement or death that is constituted by or under a law of the Commonwealth or of a State or Territory; or

(d) an RSA within the meaning of the Retirement Savings Accounts Act 1997; or

(e) any of the following funds (unless the fund is a foreign superannuation fund within the meaning of the Income Tax Assessment Act 1997):

(i) a fund to which paragraph 23(jaa), or Income Tax Assessment Act 1936 (as in force at any time before the commencement of section 1 of the Taxation Laws Amendment Act (No. 2) 1989) has applied in relation to any tax year;section 23FC, 121CC or 121DAB, of the

(ii) a fund to which paragraph 23(ja), or Income Tax Assessment Act 1936 (as in force at any time before the commencement of paragraph (a) of the definition of superannuation fund in former subsection 27A(1) of the Income Tax Assessment Act 1936) has applied in relation to the tax year that started on 1 July 1985 or an earlier tax year;section 23F or 23FB, of the

(iii) a fund to which Income Tax Assessment Act 1936 (as in force at any time before 25 June 1984) has applied in relation to the tax year that started on 1 July 1983 or an earlier tax year.section 79 of the

unlisted public security means:

a share in a public company; or

another security;

that is not listed on a stock exchange.

the money or property invested is paid by the investor directly or indirectly to a body corporate or into a trust fund; and

(b) the assets that represent the money or property invested (the invested assets) are not held in the names of investors; and

the investor does not have effective control over the management of the invested assets; and

the investor has a legally enforceable right to share in any distribution of income or profits derived from the invested assets.

an investment in a public unit trust;

an investment in an insurance bond;

an investment with a friendly society;

an investment in a superannuation fund;

an investment in an approved deposit fund;

an investment in an ATO small superannuation account;

(h) an asset-tested income stream (lifetime) that does not arise under arrangements that are regulated by the Superannuation Industry (Supervision) Act 1993.

an investment in a superannuation fund if the investor has not yet reached pension age;

an investment in an approved deposit fund if the investor has not yet reached pension age;

an investment in an ATO small superannuation account if the investor has not yet reached pension age;

deposit money;

a loan;

an asset-test exempt income stream;

an asset-tested income stream (long term);

an asset-tested income stream (short term);

(i) a person’s asset-tested income stream (lifetime) that arises under arrangements that are regulated by the Superannuation Industry (Supervision) Act 1993;

(j) a person’s asset-tested income stream (lifetime) that does not arise under arrangements that are regulated by the Superannuation Industry (Supervision) Act 1993 if the person’s assessment day (within the meaning of section 1120AB) for the income stream has occurred.

an accommodation bond;

an accommodation bond balance;

a refundable deposit;

a refundable deposit balance.

(a) under the Superannuation Industry (Supervision) Regulations 1994, the income stream is taken to be a pension for the purposes of the Superannuation Industry (Supervision) Act 1993; and

(b) except in the case of an income stream arising under a superannuation fund established before 20 September 1998—the income stream is provided under rules that meet the standards of subregulation 1.06(2) of the Superannuation Industry (Supervision) Regulations 1994; and

in the case of an income stream arising under a superannuation fund established before 20 September 1998—the income stream is provided under rules that meet the standards determined, by legislative instrument, by the Minister; and

(c) in any case—the income stream is attributable to a defined benefit interest within the meaning of the Superannuation Industry (Supervision) Regulations 1994 (for this purpose, disregard subparagraph 1.03AA(1)(b)(ii) of those regulations).

the income stream is:

(i) invalidity pay within the meaning of the Defence Force Retirement and Death Benefits Act 1973; or

(ii) an invalidity pension under the superannuation scheme established under the Military Superannuation and Benefits Act 1991; or

an income stream provided under a superannuation scheme and that is covered by an instrument under subsection (3); and

the income stream is not a defined benefit income stream.

specify an income stream;

describe an income stream;

determine requirements relating to an income stream;

regardless of whether the income stream relates to military service or invalidity.

different kinds of income streams; and

different kinds of circumstances.

a person has disposed of the asset; and

the value of the asset is included in the value of the person’s assets by section 1124A, 1125, 1125A, 1126, 1126AA, 1126AB, 1126AC or 1126AD or an amount is included in the value of the person’s assets in respect of the disposal by section 1126E (so far as that section relates to section 1126AA, 1126AB, 1126AC or 1126AD).

(a) a person has an investment in an ATO small superannuation account if:

the account is kept in the name of the person; and

the balance of the account exceeds nil; and

the amount or value of that investment equals the balance of the account.

subject to subsection (1AA), the income stream’s commencement day happens before 20 September 2007; and

it is an income stream arising under a contract, or governing rules, that meet the requirements of subsection (2) and the Secretary has not made a determination under subsection (4) in respect of the income stream; and

subject to subsections (1B), (1C) and (1D), the Secretary is satisfied that in relation to an income stream, provided by a class of provider specified by the Secretary for the purposes of this paragraph, there is in force a current actuarial certificate that states that the actuary is of the opinion that, for the financial year in which the certificate is given, there is a high probability that the provider of the income stream will be able to pay the income stream as required under the contract or governing rules; and

the Secretary is satisfied that the requirements of subsection (2) are being given effect to from the day the income stream commences to be paid.

Determination under subsection (5)

beginning on 1 July of the later year; and

ending at the earlier of the following:

the start of the first day in the later year on which any actuarial certificate is given to the Secretary in relation to that income stream;

the end of the period of 26 weeks beginning on 1 July of the later year.

One certificate a financial year

that payments under the income stream are to be made at least annually throughout the life of the person and, if there is a reversionary beneficiary:

throughout the reversionary beneficiary’s life; or

if the reversionary beneficiary is a child of the person or of a former reversionary beneficiary under the income stream—at least until he or she turns 16; or

if the child referred to in subparagraph (ii) is a full-time student who has turned 16—at least until the end of his or her full-time studies or until he or she turns 25, whichever occurs sooner; and

the total amount of the payments that may be made under the income stream in the first year after the commencement day of the income stream (not taking commuted amounts into account); and

(c) that the total amount of the payments that may be made under the income stream in any other year (not taking commuted amounts into account) may not fall below the total amount of the payments made under the income stream in the immediately preceding year (the previous total), and may not exceed the previous total:

if subparagraph (ii) does not apply—by more than 5% of the previous total; or

(ii) if the index number for the second last quarter before the day on which the first of those payments is to be made (recent index number) exceeds the index number for the same quarter in the immediately preceding year (base index number) by more than 4% of the base index number—by more than such percentage of the previous total as is worked out under the formula:

if the income stream is purchased by or for the primary beneficiary—that the first payment under the income stream relates to the period commencing on the day of that purchase; and

if the income stream is not purchased, but acquired, by or for the primary beneficiary—that the first payment under the income stream relates to the period commencing on the day of that acquisition; and

if the income stream is not a defined benefit income stream—that the amount paid as the purchase price for the income stream is wholly converted into income; and

that the income stream has no residual capital value; and

that the income stream cannot be commuted except:

if the income stream is a non-commutation funded income stream and the commutation is made within 6 months after the commencement day of the income stream; or

if the commutation is made to the benefit of a reversionary beneficiary or of the person’s estate, on the death of the person within the life expectancy period for the income stream; or

if the payment resulting from the commutation is transferred directly to the purchase of another income stream that is an asset-test exempt income stream; or

to the extent necessary to cover any superannuation contributions surcharge relating to the income stream; or

(iva) to the extent necessary to give effect to an entitlement of the person’s partner or former partner under a payment split under Family Law Act 1975; orPart VIIIB or VIIIC of the

(ivb) to the extent necessary to give effect to an order under Family Law Act 1975; orPart VIIIAA of the

to the extent necessary to pay a hardship amount; and

that the income stream cannot be transferred to a person except:

on the death of the primary beneficiary, to a reversionary beneficiary; or

on the death of a reversionary beneficiary, to another reversionary beneficiary; and

that neither the capital value of the income stream, nor the income from it, can be used as security for a borrowing; and

that, if the income stream reverts, it must not have a reversionary component greater than the benefit that was payable immediately before the reversion; and

that, if the income stream is commuted, the commuted amount must not be greater than the benefit that was payable immediately before the commutation.

the person ceases to receive income under an income stream jointly and begins to receive income under a single income stream; and

the total amount received in the year under the single income stream is less than the total amount received by the person in the previous year but is not nil.

Matters not required of income stream

if the primary beneficiary dies within the life expectancy period for the income stream, a surviving reversionary beneficiary may be paid an amount equal to the total of the payments that the primary beneficiary would (if he or she had not died) have received from the day of the death until the end of that period; and

if:

the primary beneficiary dies within the life expectancy period for the income stream; and

there is no surviving reversionary beneficiary;

an amount, not exceeding the difference between:

the sum of the amounts that would have been so payable to the primary beneficiary in that period; and

the sum of the amounts paid to the primary beneficiary;

is payable to the primary beneficiary’s estate, and

if:

the primary beneficiary dies within the life expectancy period for the income stream; and

there is a surviving reversionary beneficiary who also dies within that period;

there is payable to the reversionary beneficiary’s estate an amount determined as described in paragraph (b) as if that paragraph applied to the reversionary beneficiary.

Determination that income stream not asset-test exempt

the person applies in writing to the Secretary to be allowed to commute the whole or part of an income stream because of extreme financial hardship; and

the Secretary is satisfied that:

the person’s circumstances are exceptional and could not be reasonably foreseen at the time the person purchased the income stream; and

the person has insufficient liquid assets or other assets (excluding the person’s principal home) that could be realised to avoid the extreme financial hardship; and

that amount is required to meet unavoidable expenditure.

life expectancy period, for an income stream, means:

in a case where:

there was only one primary beneficiary on the commencement day; and

the primary beneficiary has decided not to round up his or her life expectancy for the purposes of this definition;

the period starting on the income stream’s commencement day, and equal to the shorter of:

the primary beneficiary’s life expectancy on the commencement day; and

20 years; or

in a case where:

there was only one primary beneficiary on the commencement day; and

paragraph (a) does not apply;

the period starting on the income stream’s commencement day, and equal to the shorter of:

the primary beneficiary’s life expectancy (rounded up, if not consisting of a whole number of years, to the next whole number) on the commencement day; and

20 years; or

in a case where:

there were 2 primary beneficiaries on the commencement day; and

those primary beneficiaries have decided not to round up their life expectancies for the purposes of this definition;

the period starting on the income stream’s commencement day, and equal to the shorter of:

the greater of the life expectancies, on the commencement day, of the primary beneficiaries; and

20 years; or

in a case where:

there were 2 primary beneficiaries on the commencement day; and

paragraph (c) does not apply;

the period starting on the income stream’s commencement day, and equal to the shorter of:

the greater of the life expectancies (rounded up, if not consisting of a whole number of years, to the next whole number), on the commencement day, of the primary beneficiaries; and

20 years.

liquid assets means the person’s cash and readily realisable assets, and includes: (a) the person’s shares and debentures in a public company within the meaning of the Corporations Act 2001; and managed investments; and insurance policies that can be surrendered for money; and amounts deposited with, or lent to, a bank or other financial institution by the person (whether or not the amount can be withdrawn or repaid immediately); and amounts due, and able to be paid, to the person by, or on behalf of, a former employer of the person; but does not include the sum of NDIS amounts paid to the person and any return on those amounts that the person earns, derives or receives, less the sum of amounts spent by the person in accordance with an NDIS plan under which the amounts were paid.

(a) the person’s shares and debentures in a public company within the meaning of the Corporations Act 2001; and

managed investments; and

insurance policies that can be surrendered for money; and

amounts deposited with, or lent to, a bank or other financial institution by the person (whether or not the amount can be withdrawn or repaid immediately); and

amounts due, and able to be paid, to the person by, or on behalf of, a former employer of the person; but does not include the sum of NDIS amounts paid to the person and any return on those amounts that the person earns, derives or receives, less the sum of amounts spent by the person in accordance with an NDIS plan under which the amounts were paid.

non-commutation funded income stream means an income stream that has not been purchased by transferring directly to the purchase of the income stream a payment resulting from the commutation of another asset-test exempt income stream.

unavoidable expenditure means one or more of the following: essential medical expenses of the person, or the person’s partner, to the extent that the expenses are not covered by health insurance or other contracts or arrangements; the cost of: replacing the person’s principal home; or essential repairs to the person’s principal home; to the extent that the cost of the replacement or repairs is not covered by an insurance policy; expenditure to buy replacement essential household goods because of the loss of those goods to the extent that the cost of replacement is not covered by an insurance policy.

essential medical expenses of the person, or the person’s partner, to the extent that the expenses are not covered by health insurance or other contracts or arrangements;

the cost of:

replacing the person’s principal home; or

essential repairs to the person’s principal home;

to the extent that the cost of the replacement or repairs is not covered by an insurance policy;

expenditure to buy replacement essential household goods because of the loss of those goods to the extent that the cost of replacement is not covered by an insurance policy.

the following criteria are satisfied:

the income stream’s commencement day happens before 20 September 2007;

subsection (1A) applies; or

subsection (1B) applies.

the person to whom the income stream is being provided is:

the primary beneficiary; or

the primary beneficiary’s reversionary partner (if any) on the day of the primary beneficiary’s death; and

the income stream is an income stream arising under a contract, or governing rules, that meet the requirements of subsection (2) and the Secretary has not made a determination under subsection (3) in respect of the income stream; and

subject to subsections (1C), (1D) and (1E), the Secretary is satisfied that, in relation to an income stream provided by a class of provider specified by the Secretary for the purposes of this paragraph, there is in force a current actuarial certificate that states that the actuary is of the opinion that, for the financial year in which the certificate is given, there is a high probability that the provider of the income stream will be able to pay the income stream as required under the contract or governing rules; and

the Secretary is satisfied that the requirements of subsection (2) have been given effect to from the day the income stream commenced to be paid; and

in the case of an income stream acquired before 20 September 2004 that is provided to a primary beneficiary’s reversionary beneficiary—the remaining term (in years) of the income stream is equal to the life expectancy (in years) of the primary beneficiary’s reversionary beneficiary.

beginning on 1 July of the later year; and

ending at the earlier of the following:

the start of the first day in the later year on which any actuarial certificate is given to the Secretary in relation to that income stream;

the end of the period of 26 weeks beginning on 1 July of the later year.

Guidelines relating to actuarial certificates

the income stream’s term, which must comply with subsection (2B), (2C) or (2E); and

that payments under the income stream are to be made at least annually during the income stream’s term; and

the total amount of the payments that may be made under the income stream in the first year after the commencement day of the income stream (not taking commuted amounts into account); and

(c) that the total amount of the payments that may be made under the income stream in any other year (not taking commuted amounts into account) may not fall below the total amount of the payments made under the income stream in the immediately preceding year (the previous total), and may not exceed the previous total:

if subparagraph (ii) does not apply—by more than 5% of the previous total; or

(ii) if the index number for the second last quarter before the day on which the first of those payments is to be made (recent index number) exceeds the index number for the same quarter in the immediately preceding year (base index number) by more than 4% of the base index number—by more than such percentage of the previous total as is worked out under the formula:

if the income stream is purchased by or for the primary beneficiary—that the first payment under the income stream relates to the period commencing on the day of that purchase; and

if the income stream is not purchased, but acquired, by or for the primary beneficiary—that the first payment under the income stream relates to the period commencing on the day of that acquisition; and

if the income stream is not a defined benefit income stream—that the amount paid as the purchase price for the income stream is wholly converted into income; and

that the income stream has no residual capital value; and

that the income stream cannot be commuted except:

if the income stream is a non-commutation funded income stream and the commutation is made within 6 months after the commencement day of the income stream; or

if the payment resulting from the commutation is transferred directly to the purchase of another income stream that is an asset-test exempt income stream; or

if the primary beneficiary’s reversionary partner (if any) on the day of the primary beneficiary’s death survives the primary beneficiary—on or after the partner’s death; or

if subparagraph (iii) does not apply—on or after the primary beneficiary’s death; or

to the extent necessary to cover any superannuation contributions surcharge relating to the income stream; or

(iva) to the extent necessary to give effect to an entitlement of the person’s partner or former partner under a payment split under Family Law Act 1975; orPart VIIIB or VIIIC of the

(ivb) to the extent necessary to give effect to an order under Family Law Act 1975; orPart VIIIAA of the

(ivc) to the extent necessary in order to comply with Taxation Administration Act 1953; orsection 136-80 in Schedule 1 to the

to the extent necessary to pay a hardship amount; and

that the income stream cannot be transferred except on death; and

that neither the capital value of the income stream, nor the income from it, can be used as security for a borrowing; and

that, if the income stream reverts, it must not have a reversionary component greater than the benefit that was payable immediately before the reversion; and

that, if the income stream is commuted, the commuted amount must not be greater than the benefit that was payable immediately before the commutation.

the person ceases to receive income under an income stream jointly and begins to receive income under a single income stream; and

the total amount received in the year under the single income stream is less than the total amount received by the person in the previous year but is not nil.

Term of the income stream

starts on the income stream’s commencement day; and

is at least as long as the primary beneficiary’s life expectancy (rounded up, if not consisting of a whole number of years, to the next whole number) on the commencement day; and

is at most as long as the greater of:

what would be the primary beneficiary’s life expectancy (rounded up, if not consisting of a whole number of years, to the next whole number) on the commencement day if the primary beneficiary were 5 years younger; and

the period (rounded up, if not consisting of a whole number of years, to the next whole number) starting on the commencement day and ending on the day on which the primary beneficiary reaches age 100 (assuming that the primary beneficiary lives until then).

starts on the income stream’s commencement day; and

is at least as long as the greater of the life expectancies (rounded up, if not consisting of a whole number of years, to the next whole number), on the commencement day, of:

the primary beneficiary; and

the primary beneficiary’s reversionary partner on that day; and

is at most as long as the period worked out under subsection (2D).

the greater of what would be the life expectancies (rounded up, if not consisting of a whole number of years, to the next whole number), on the commencement day, of:

the primary beneficiary, if the primary beneficiary were 5 years younger; and

the primary beneficiary’s reversionary partner on that day, if the partner were 5 years younger; and

the greater of:

the period (rounded up, if not consisting of a whole number of years, to the next whole number) starting on the commencement day and ending on the day on which the primary beneficiary reaches age 100 (assuming that the primary beneficiary lives until then); and

the period (rounded up, if not consisting of a whole number of years, to the next whole number) starting on the commencement day and ending on the day on which the primary beneficiary’s reversionary partner on the commencement day reaches age 100 (assuming that the partner lives until then).

starts on the income stream’s commencement day; and

is at least as long as the lesser of the life expectancies (rounded up, if not consisting of a whole number of years, to the next whole number), on the commencement day, of:

the first primary beneficiary; and

the second primary beneficiary; and

is at most as long as the period worked out under subsection (2F).

the greater of what would be the life expectancies (rounded up, if not consisting of a whole number of years, to the next whole number), on the commencement day, of:

the first primary beneficiary, if the first primary beneficiary were 5 years younger; and

the second primary beneficiary, if the second primary beneficiary were 5 years younger; and

the greater of:

the period (rounded up, if not consisting of a whole number of years, to the next whole number) starting on the commencement day and ending on the day on which the first primary beneficiary reaches age 100 (assuming that the first primary beneficiary lives until then); and

the period (rounded up, if not consisting of a whole number of years, to the next whole number) starting on the commencement day and ending on the day on which the second primary beneficiary reaches age 100 (assuming that the second primary beneficiary lives until then).

Determination that income stream not asset-test exempt

is a member of a couple with the primary beneficiary; and

is the person to whom the income stream will revert on the primary beneficiary’s death.

all of the following criteria are satisfied:

the income stream’s commencement day happens during the period from 20 September 2004 to 19 September 2007 (both dates inclusive);

the person to whom the income stream is being provided is the primary beneficiary or the primary beneficiary’s reversionary partner (if any) on the day of the primary beneficiary’s death;

the income stream is an income stream arising under a contract, or governing rules, that meets the requirements of subsection (2);

the Secretary has not made a determination under subsection (10) in respect of the income stream;

the Secretary is satisfied that the requirements of subsection (2) have been given effect to from the day the income stream commenced to be paid; or

the Secretary has made a determination under subsection (11) in respect of the income stream.

Requirements of contract/governing rules for provision of income stream

the income stream’s term, which must comply with subsection (3) or (4); and

obligations for the making of payments under the income stream that satisfy the requirements of subsections (5) to (9); and

if the income stream is purchased by or for the primary beneficiary—that the first payment under the income stream relates to the period commencing on the day of that purchase; and

if the income stream is not purchased, but acquired, by or for the primary beneficiary—that the first payment under the income stream relates to the period commencing on the day of that acquisition; and

that the income stream has no residual capital value; and

that the income stream cannot be commuted except:

if the income stream is a non-commutation funded income stream and the commutation is made within 6 months after the commencement day of the income stream; or

if the payment resulting from the commutation is transferred directly to the purchase of another income stream that is an asset-test exempt income stream; or

if the primary beneficiary’s reversionary partner (if any) on the day of the primary beneficiary’s death survives the primary beneficiary—on or after the partner’s death; or

if subparagraph (iii) does not apply—on or after the primary beneficiary’s death; or

to the extent necessary to cover any superannuation contributions surcharge relating to the income stream; or

(vi) to the extent necessary to give effect to an entitlement of the person’s partner or former partner under a payment split under Family Law Act 1975; orPart VIIIB or VIIIC of the

(via) to the extent necessary in order to comply with Taxation Administration Act 1953; orsection 136-80 in Schedule 1 to the

to the extent necessary to pay a hardship amount; and

that the income stream cannot be transferred except on death; and

that neither the capital value of the income stream, nor the income from it, can be used as security for a borrowing; and

that, if the income stream reverts, it must not have a reversionary component greater than the account balance immediately before the reversion; and

that, if the income stream is commuted, the commuted amount must not be greater than the account balance immediately before the commutation.

Term of the income stream

starts on the income stream’s commencement day; and

is at least as long as the primary beneficiary’s life expectancy (rounded up, if not consisting of a whole number of years, to the next whole number) on the commencement day; and

is at most as long as the greater of:

what would be the primary beneficiary’s life expectancy (rounded up, if not consisting of a whole number of years, to the next whole number) on the commencement day if the primary beneficiary were 5 years younger; and

the period (rounded up, if not consisting of a whole number of years, to the next whole number) starting on the commencement day and ending on the day on which the primary beneficiary reaches age 100 (assuming that the primary beneficiary lives until then).

starts on the income stream’s commencement day; and

is at least as long as the greater of the life expectancies (rounded up, if not consisting of a whole number of years, to the next whole number), on the commencement day, of:

the primary beneficiary; and

the primary beneficiary’s reversionary partner on that day; and

is at most as long as the period worked out under subsection (4A).

the greater of what would be the life expectancies (rounded up, if not consisting of a whole number of years, to the next whole number), on the commencement day, of:

the primary beneficiary, if the primary beneficiary were 5 years younger; and

the primary beneficiary’s reversionary partner on that day, if the partner were 5 years younger; and

the greater of:

the period (rounded up, if not consisting of a whole number of years, to the next whole number) starting on the commencement day and ending on the day on which the primary beneficiary reaches age 100 (assuming that the primary beneficiary lives until then); and

the period (rounded up, if not consisting of a whole number of years, to the next whole number) starting on the commencement day and ending on the day on which the primary beneficiary’s reversionary partner on the commencement day reaches age 100 (assuming that the partner lives until then).

Total amount payable in each financial year—general rule

if the financial year includes the income stream’s commencement day—the opening account balance for the income stream; or

otherwise—the account balance for the income stream at the start of the financial year.

PF means the payment factor for the income stream for the financial year, worked out under principles determined, by legislative instrument, by the Secretary.

Other rules about payments under the income stream

the income stream’s commencement day happens in June; and

no payment is made under the income stream for the financial year in which the commencement day happens;

subsections (5) and (6) do not apply to the income stream for that financial year.

is worked out by reference to a total amount worked out under subsection (5) (and subsection (6), if applicable) for the financial year; and

exceeds the income stream’s account balance on that day;

then:

the account balance (if any) must be paid instead of the test amount; and

that total amount described in paragraph (a) must be reduced by the amount of the excess.

the primary beneficiary has commuted an asset-test exempt income stream on at least 3 occasions since the person first received a social security payment; and

on at least 3 of those occasions, the commutation happened within 6 months after the commencement day of the income stream concerned.

Determination that income stream is asset-test exempt

is a member of a couple with the primary beneficiary; and

is the person to whom the income stream will revert on the primary beneficiary’s death.

an asset-tested income stream (long term); or

an asset-tested income stream (short term); or

an asset-tested income stream (lifetime);

then a secondary FLA income stream to which it is related is also to be treated as if it were assessed as an income stream of that kind.

If there is no primary FLA income stream

there is no primary FLA income stream in relation to a secondary FLA income stream; and

had there been a primary FLA income stream in relation to that secondary FLA income stream it would have been assessed for the purposes of this Act as an asset-tested income stream (long term), an asset-tested income stream (short term) or an asset-tested income stream (lifetime);

then the secondary FLA income stream is to be treated as if it were assessed as an income stream of that kind.

the contract, or governing rules, for the provision of the income stream ensure that, once payments of the income stream start, the income stream is to continue for the remainder of the life of one or more individuals; and

the contract, or governing rules, for the provision of the income stream ensure that the amounts of those payments are determined by having regard to the age, life expectancy or other factors relevant to the mortality of those individuals; and

the income stream is not an asset-test exempt income stream; and

the income stream is not a defined benefit income stream.

paragraphs (1)(a) to (d) are satisfied in relation to an income stream; and

the income stream is of a kind determined in an instrument under subsection (3);

the income stream is an asset-tested income stream (lifetime) only to the extent determined in the instrument.

the income stream satisfies the conditions determined in an instrument under subsection (5); and

the income stream is not an asset-test exempt income stream; and

the income stream is not a defined benefit income stream.

any agreement, arrangement, understanding, promise or undertaking, whether express or implied, and whether or not enforceable, or intended to be enforceable, by legal proceedings; and

any scheme, plan, proposal, action, course of action or course of conduct, whether unilateral or otherwise.

assessable fringe benefit means a fringe benefit that is: a car benefit (see section 1157C); or a school fees benefit (see section 1157E); or health insurance benefit (see section 1157F); or a loan benefit (see section 1157G); or a housing benefit (see section 1157I); or an expense benefit (see section 1157JA); or a financial investment benefit (see section 1157JC); but does not include a car benefit, loan benefit, housing benefit or expense benefit that is exempt.

a car benefit (see section 1157C); or

a school fees benefit (see section 1157E); or

health insurance benefit (see section 1157F); or

a loan benefit (see section 1157G); or

a housing benefit (see section 1157I); or

an expense benefit (see section 1157JA); or

a financial investment benefit (see section 1157JC);

but does not include a car benefit, loan benefit, housing benefit or expense benefit that is exempt.

associate has the same meaning as in the Fringe Benefits Tax Assessment Act 1986.

Australian Parliament means:

the Parliament of the Commonwealth of Australia; or

the Parliament of a State; or

the Legislative Assembly for the Australian Capital Territory; or

the Legislative Assembly of the Northern Territory of Australia.

car means a motor vehicle that is a road vehicle designed to carry a load of less than 1 tonne or fewer than 9 passengers but does not include a motor cycle or similar vehicle.

car benefit has the meaning given by section 1157C.

car fringe benefit means a fringe benefit that is a car benefit.

census population means the census count on an actual location basis of the population of that urban centre specified in the results of the Census of Population and Housing taken by the Australian Statistician on 30 June 1981, being the results published by the Australian Statistician in the document entitled “Persons and Dwellings in Local Government Areas and Urban Centres”.

current employee means:

a person who is an employee within the ordinary meaning of that word; and

a person who holds or performs the duties of an appointment, office or position under the Constitution or under a law of the Commonwealth, a State or a Territory; and

a person who is otherwise in the service of the Commonwealth, a State or a Territory (including service as a member of the Defence Force or as a member of a police force); and

a member of an Australian Parliament.

current employer means a person who pays or is liable to pay any salary or wages to an employee, and includes: in the case of an unincorporated body of persons other than a partnership—the manager or other principal officer of that body; and in the case of a partnership—each partner; and a government body.

in the case of an unincorporated body of persons other than a partnership—the manager or other principal officer of that body; and

in the case of a partnership—each partner; and

a government body.

disadvantaged person has the same meaning as in the Fringe Benefits Tax Assessment Act 1986.

dwelling has the meaning given by subsection (7).

eligible urban area means:

an area that:

is situated in an area described in Schedule 2 to the Income Tax Assessment Act; and

is an urban centre with a census population of 28,000 or more; or

any other area that is an urban centre with a census population of 14,000 or more.

employee means:

a current employee; or

a future employee; or

a former employee.

employer means:

a current employer; or

a future employer; or

a former employer.

employment means the holding of any office or appointment, the performance of any functions or duties, the engaging in of any work, or the doing of any acts or things that results, will result or has resulted in the person being treated as an employee.

expense benefit has the meaning given by section 1157JA.

expense fringe benefit means a fringe benefit that is an expense benefit.

financial investment benefit has the meaning given by section 1157JC.

financial investment fringe benefit means a fringe benefit that is a financial investment benefit.

foreign income, in relation to a person, means:

an income amount earned, derived or received by the person from a source outside Australia for the person’s own use or benefit; or

a periodical payment by way of gift or allowance from a source outside Australia; or

a periodical benefit by way of gift or allowance from a source outside Australia.

former employee means a person who has been a current employee.

former employer means a person who has been a current employer.

fringe benefit means a benefit that is provided to an employee or to an associate of the employee by: the employer of the employee; or an associate of the employer; or (c) a person (the arranger) other than the employer or an associate of the employer under an arrangement between: the employer or an associate of the employer; and the arranger or another person; and that is provided in respect of the employment of the employee.

the employer of the employee; or

an associate of the employer; or

(c) a person (the arranger) other than the employer or an associate of the employer under an arrangement between:

the employer or an associate of the employer; and

the arranger or another person;

and that is provided in respect of the employment of the employee.

future employee means a person who will become a current employee.

future employer means a person who will become a current employer.

government body means the Commonwealth, a State, a Territory or an authority of the Commonwealth or a State or Territory.

health insurance benefit has the meaning given by section 1157F.

health insurance fringe benefit means a fringe benefit that is a health insurance benefit.

housing benefit has the meaning given by section 1157I.

housing fringe benefit means a fringe benefit that is a housing benefit.

housing loan has the meaning given by subsection (9).

housing right means a lease or licence granted to the person to occupy or use a unit of accommodation, in so far as that lease or licence subsists at a time when the unit of accommodation is the person’s usual place of residence.

in respect of, in relation to the employment of an employee, includes by reason of, by virtue of, or for or in relation directly or indirectly to, that employment.

lease includes a sub-lease.

loan includes:

an advance of money; and

the provision of credit or any other form of financial accommodation; and

the payment of an amount for, on account of, on behalf of or at the request of a person where there is an obligation (whether expressed or implied) to repay the amount; and

a transaction (whatever its terms or form) which in substance effects a loan of money.

loan benefit has the meaning given by section 1157G.

loan fringe benefit means a fringe benefit that is a loan benefit.

mature person means a person who has reached the age of 60 years.

metropolitan location has the meaning given by subsection (3).

non-arm’s length arrangement means an arrangement other than an arm’s length arrangement.

non-metropolitan location has the meaning given by subsection (4).

obligation includes an obligation that is not enforceable by legal proceedings.

place of residence, in relation to a person, means:

a place at which the person resides; or

a place at which the person has sleeping accommodation;

whether on a permanent or temporary basis and whether or not on a shared basis.