Commonwealth Consolidated Acts Commonwealth Consolidated ActsIf the asset - test exempt income stream to which this Subdivision applies is not a defined benefit income stream or 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.
"purchase price" has the meaning given by subsection 5J(1).
"relevant number" has the meaning given by subsection 5J(1).
Example: Mark is 65 years old and single. He purchases an annuity for $100,000 with a term based on life expectancy (i.e. 15.41 years, which he chooses to round up to 16 years). The annuity has all the revised characteristics listed in the legislation. His annual payment from the annuity totals $9,895. Mark's assessable income from this income stream is:
