Division of the Repatriation Commission’s discret - Asset-test Exempt Income Stream (Lifetime Income Stream Guidelines) Determination 1998 - of the Repatriation Commission’s discretion, under subsection 5JA(5) of the | Zoe
Asset-test Exempt Income Stream (Lifetime Income Stream Guidelines) Determination 1998
of the Repatriation Commission’s discretof the Repatriation Commission’s discretion, under subsection 5JA(5) of the
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This determination is the Asset-test Exempt Income Stream (Lifetime
Income Stream Guidelines) Determination 1998.
1.2 Commencement
This determination commences on 20 September 1998.
1.3 Definitions
In this determination:
Act means the Veterans’ Entitlements Act 1986.
defined benefit fund has the same meaning as in subregulation 1.03(1) of the Superannuation Industry Supervision Regulations.
defined benefit superannuation pension means a pension product that pays a superannuation pension from a defined benefit fund.
lifetime income stream, in relation to a person, means an income stream in which payments are made, at least annually, throughout the life of the person and, if there is a reversionary beneficiary, throughout the life of the reversionary beneficiary.
private sector fund has the same meaning as in subsection 10 (1) of the Superannuation Industry (Supervision) Act 1993
public sector fund has the same meaning as in subsection 10(1) of the Superannuation Industry (Supervision) Act 1993.
public sector superannuation scheme has the same meaning as in subsection 10(1) of the Superannuation Industry (Supervision) Act 1993.
superannuation fund has the same meaning as in subsection 10(1) of the Superannuation Industry (Supervision) Act 1993.
superannuation pension means a pension payable from a superannuation
fund.
Note The following expressions used in this determination are defined in the Act (see ss 5J(1), 5J(1E), 5JA and 5JB):
asset-test exempt income stream
commencement day
defined benefit income stream
governing rules
income stream.
1.4 Purpose
The purpose of this determination is to set out the guidelines for the exercise
of the Repatriation Commission’s discretion, under subsection 5JA(5) of the
Act, to determine that an income stream that does not meet the requirements
of subsection 5JA(2) is an asset-test exempt income stream for the purposes
of the Act.
Part 2 — Guidelines
2.1 Lifetime income stream under a public sector fund or superannuation scheme
(1) In making a determination under subsection 5JA(5) of the Act in relation to an income stream arising under a public sector fund or a public sector superannuation scheme, the Commission must have regard to this section.
(2) The income stream must be a lifetime income stream that is a defined benefit income stream, the amount of payments under which is determined by the governing rules of the fund or scheme, and that:
(a) is a defined benefit superannuation pension; or
(b) is a superannuation pension under an exempt public sector superannuation scheme, within the meaning of section 10 of the Superannuation Industry (Supervision) Act 1993, being a scheme to which subregulation 1.04 (4A) of the
Superannuation Industry (Supervision) Regulations 1994 applies in accordance with subregulation 1.04 (4E) of those Regulations.
(3) The fund or scheme must have been established before
20 September 1998 and:
(a) for an income stream commencing before
20 September 1998 — the value of the income stream is disregarded in calculating the value of the assets of the person concerned, because of section 52 of the Act as in force immediately before 20 September l998 (the previous section 52); or
(b) for an income Stream commencing on or after
20 September 1998, that is a defined benefit superannuation pension existing before 20 September 1998 — the value of the income stream would have been disregarded in
calculating the value of the person's assets under the previous section 52 as it would have applied if:
(i) the commencement day of the income stream was before 20 September 1998; and
(ii) defined benefit superannuation pension payments were made before 20 September 1998.
2.2 Lifetime income stream under a private sector fund
(1) In making a determination under subsection 5JA(5) of the Act in relation to an income stream arising under a private sector fund, the Commission must have regard to this section.
(2) The income stream must be a lifetime income stream that:
(a) is a defined benefit income stream, the amount of payments under which is determined by the governing rules of the fund; and
(b) is a defined benefit superannuation pension.
(3) The fund must have been established before 20 September 1998 and:
(a) for an income stream commencing before
20 September 1998 — the value of the income stream is disregarded in calculating the value of the assets of the person concerned, because of section 52 of the Act as in force immediately before 20 September 1998 (the previous section 52); or
(b) for an income stream commencing on or after
20 September 1998, that is a defined benefit superannuation pension existing before 20 September 1998 — the value of the income stream would have been disregarded in calculating the value of the person's
assets under the previous section 52 as it would have applied if:
(i) the commencement day of the income stream was before 20 September 1998; and
(ii) defined benefit superannuation pension payments were made before 20 September 1998.
(4) The fund must have a direct connection with the previous employment of the recipient of the income stream or, in the case of a reversionary beneficiary, the person who would be the recipient if he or she had not died.
(5) For subsection (4), a fund has a direct connection with a
person's previous employment if the income stream from the fund became payable to, or in respect of, the person because of that employment.
Notes to the Asset-test Exempt Income Stream (Lifetime Income Stream Guidelines) Determination 1998
Note 1
The Asset-test Exempt Income Stream (Lifetime Income Stream Guidelines) Determination 1998 (in force under the Veterans’ Entitlements Act 1986) as shown in this compilation comprises the legislative instruments indicated in the Table below.