INCOME TAX ASSESSMENT ACT 1997
|CHAPTER 2 - LIABILITY RULES OF GENERAL APPLICATION
Pt 2-15 (heading) substituted by No 66 of 2003.
Pt 2-15 inserted by No 121 of 1997.
|Division 54 - Exemption for certain payments made under structured settlements and structured orders
|| View history reference
Div 54 inserted by No 139 of 2002.
Subdiv 54-B inserted by No 139 of 2002.
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.
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.
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.
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.
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.
Under subsection (2), "13 September 2002" would be allowed, but "The date on which the annuitant finishes university" would not be allowed.
S 54-30 inserted by No 139 of 2002.