Commonwealth Consolidated Acts Commonwealth Consolidated ActsIf the asset - tested income stream (long term) to which this Subdivision applies is not a defined benefit income stream, the amount that the person is taken to receive from the income stream each year is worked out as follows:
where:
"annual payment" means the amount payable to the person for the year under the income stream.
"purchase price" has the meaning given by subsection 9(1).
"relevant number" has the meaning given by subsection 9(1).
"residual capital value" has the meaning given by subsection 9(1).
Note: For treatment of asset - tested income streams (short term) see Division 1B of Part 3.10.
Example: Sally is 65 years old and single. She purchases a 10 year annuity for $150,000, with a residual capital value of $20,000. Her total annual annuity payment is $18,337. Sally's assessable income from her 10 year annuity is:
