Social Security (Asset‑test Exempt Income Stream (Market‑linked) — Payment Factors) (FACS) Principles 2005

I, JEFFERY ALLAN HARMER, Secretary of the Department of Family and Community Services, determine these Principles under subsection 9BA (5) of the Social Security Act 1991.

Dated 22 December 2005

JEFFERY HARMER

1 Name of Principles

  These Principles are the Social Security (Asset‑test Exempt Income Stream (Market‑linked) — Payment Factors) (FACS) Principles 2005.

2 Commencement

  These Principles are taken to have commenced on 20 September 2004.

3 Definition

  In these Principles:

Act means the Social Security Act 1991.

4 Payment factors

 (1) For the purposes of the definition of PF in subsection 9BA (5) of the Act, the payment factor for working out the total amount of the payments to be made under an income stream for a financial year is the payment factor specified in column 3 of the item in the table in this section that relates to the remaining term of the income stream (expressed in whole years in accordance with subsection (3)):

 (a) on 1 July of the financial year for which the total amount is being worked out; or

 (b) if that financial year is the year in which the income stream commences — on the commencement day for the income stream.

 (2) If the amount worked out under subsection 9BA (5) of the Act (using the payment factor applicable under subsection (1)) is not $10, or a multiple of $10, the applicable payment factor is taken to be the factor that results in that amount rounding to $10, or the nearest multiple of $10, as appropriate.

 (3) For subsection (1), the remaining term of an income stream is rounded to the nearest whole year as follows:

 (a) if the commencement day of the income stream is on or after 1 January in a financial year, the term is rounded up to the nearest whole year;

 (b) if the commencement day is on or before 31 December in a financial year, the term is rounded down to the nearest whole year.

Payment factors