Commonwealth Consolidated Acts

SOCIAL SECURITY ACT 1991 - SECT 1099D

  (1)   Subject to subsection   (2), if the asset - tested income stream (long term) to which this Subdivision applies is 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.

"deductible amount" has the meaning given by subsection   9(1).

Cap on deductible amount

  (2)   If:

  (a)   the defined benefit income stream is not a military defined benefit income stream; and

  (b)   apart from this subsection, the deductible amount under subsection   (1) in relation to the income stream for the year would exceed 10% of the amount payable to the person for the year under the income stream;

then that deductible amount is taken to be an amount equal to 10% of the amount payable to the person for the year under the income stream.