6Purpose

6 Purpose

These Principles specify: (a) under Part 2 — the criteria that exclude an asset-test exempt income stream from the class of partially asset‑test exempt income streams established by paragraph (a) of the definition of partially asset-test exempt income stream set out in subsection 1118(1A) of the Act; and (b) under Part 3 — the criteria to be satisfied by an income stream covered by paragraph (b) of that definition.

Note Section 1118 of the Act provides for certain assets to be disregarded in calculating the value of a person’s assets for the purposes of the assets test. Paragraph 1118(1)(d) of the Act provides that the value of an asset‑test exempt income stream, other than a partially asset‑test exempt income stream, is to be disregarded for the purposes of that calculation. Paragraph 1118(1)(da) of the Act provides that only half of the value of a partially asset‑test exempt income stream is to be disregarded for the purposes of the assets test.