Commonwealth Consolidated Acts Commonwealth Consolidated Acts(1) If the asset - test exempt income stream to which this Subdivision applies is a military invalidity pension 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.
"special reduction amount" means the sum of the amounts that would be the tax free components, worked out under Subdivision 307 - C of the Income Tax Assessment Act 1997 , of the payments received from the military invalidity pension income stream during the year, if it were assumed that the military invalidity pension income stream is a superannuation income stream within the meaning of that Act.
Cap on special reduction amount
(2) If:
(a) the military invalidity pension income stream:
(i) is an income stream of a kind mentioned in subparagraph 9(1G)(a)(iii); and
(ii) is not an income stream relating to military service; and
(b) apart from this subsection, the special reduction 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 special reduction amount is taken to be an amount equal to 10% of the amount payable to the person for the year under the income stream.