Commonwealth Consolidated Acts Commonwealth Consolidated Acts(1) The * annuity instrument must provide that payments of the * annuity are to be made at least annually:
(a) over a period of at least 10 years during the life of the * injured person; or
(b) for the life of the injured person.
(2) The * annuity instrument must specify:
(a) the date of the first payment of the * annuity; and
(b) if the annuity instrument specifies a period of years--the date of the last payment in that period; and
(c) the amount of each periodic payment of the annuity.
(3) The * annuity instrument may only allow the amount of a payment to be varied by increasing the amount:
(a) in order to maintain its real value:
(i) by indexation by reference to increases in the * All Groups Consumer Price Index number; or
(ii) by indexation by reference to increases in the full - time adult average weekly ordinary time earnings, published by the Australian Statistician; or
(b) by a percentage specified in the annuity instrument.
(4) The * annuity instrument may only allow the amount of a particular payment to be varied:
(a) by only one of the methods referred to in subsection (3); or
(b) by whichever of 2 or more of those methods would result in the biggest or smallest increase.
(5) A reference in this section to specifying a date or percentage requires an actual date or figure to be specified, not merely a method of determining a date or figure.
Example: Under subsection (2), "13 September 2002" would be allowed, but "The date on which the annuitant finishes university" would not be allowed.