A T O home
Legal Database
Search   
for 
 
Access the database 
Browse database
Searches  
View last document
Quick access 
View legislation
View a document
Email Cross Reference Material Previous/Next Section Contents Previous/Next Result
Printable version
Printable
version

INCOME TAX ASSESSMENT ACT 1997

CHAPTER 2 - LIABILITY RULES OF GENERAL APPLICATION  

PART 2-15 - NON-ASSESSABLE INCOME    View history reference

Division 54 - Exemption for certain payments made under structured settlements and structured orders    View history reference

Subdivision 54-B - Tax exemption for personal injury annuities    View history reference

Operative provisions

SECTION 54-30  Requirements for payments of the annuity  

 View history reference

54-30(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.

54-30(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.

54-30(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.

54-30(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.

54-30(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.


 



This information is provided by CCH Australia Limited. View the disclaimer and notice of copyright.
Top of page
More information on page