Veterans’ Entitlements (Principles—Definition of PF (Payment Factor)) Determination 2025
1Veterans’ Entitlements (Principles—Definition of PF (Payment Factor)) Determination 2025
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specified year means a financial year commencing on 1 July 2019, 1 July 2020, 1 July 2021 or 1 July 2022.
Part 2—Principles
6 Principles
For the formula in subsection 5JBA(5) of the Act, PF means the payment factor specified in column 2 of the table in this section that corresponds with the remaining term of the income stream specified in column 1.
Note: Subsections (3) and (4) modify the applicable payment factor in certain circumstances.
The payment factor is to be applied:
(a) on 1 July of the financial year for which the total amount is being worked out; or
(b) if that financial year is the year in which the income stream commences—on the commencement day for the income stream.
(3) If the financial year identified under subsection (2) is a specified year, when applying the formula in subsection 5JBA(5) of the Act to determine the minimum amount of the payments to be made under the income stream, the applicable payment factor is taken to be twice the payment factor specified in column 2 of the table in this section that corresponds with the remaining term of the income stream specified in column 1.
(4) If the amount worked out under subsection 5JBA(5) of the Act (using the payment factor applicable under subsection (1) and, if required, adjusted under subsection (3)) is not $10, or a multiple of $10, the applicable payment factor is taken to be the factor that results in that amount rounding to $10, or the nearest multiple of $10, as appropriate.
(5) For subsection (1), the remaining term of an income stream is rounded to the nearest whole year as follows:
(a) if the commencement day of the income stream is on or after 1 January in a financial year, the term is rounded up to the nearest whole year;
(b) if the commencement day is on or before 31 December in a financial year, the term is rounded down to the nearest whole year.