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INCOME TAX ASSESSMENT ACT 1997 - SECT 54.30

Requirements for payments of the annuity

  (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.


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