Veterans' Entitlements (Asset-test Exempt Income Stream (Market-linked) - Payment Factors) Principles 2005 (Cth)

Veterans’ Entitlements (Asset-test Exempt Income Stream (Market-linked) — Payment Factors) Principles 2005

The REPATRIATION COMMISSION determines these Principles under subsection 5JBA (5) of the Veterans’ Entitlements Act 1986.

Dated 19 September 2005

MARK SULLIVAN   ED KILLESTEYN            SIMON HARRINGTON

President   Deputy President   Commissioner

1. Name of Principles

These Principles are the Veterans’ Entitlements (Asset-test Exempt Income Stream (Market-linked) — Payment Factors) Principles 2005.

1. Commencement

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

1. Definition

In these Principles:

Act means the Veterans’ Entitlements Act 1986.

1. Payment factors

(1)   For the purposes of the definition of PF in subsection 5JBA (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 5JBA (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

Item	Term of income stream remaining	Payment factors
1	70 or more	26.00
2	69	25.91
3	68	25.82
4	67	25.72
5	66	25.62
6	65	25.52
7	64	25.41
8	63	25.30
9	62	25.19
10	61	25.07
11	60	24.94
12	59	24.82
13	58	24.69
14	57	24.55
15	56	24.41
16	55	24.26
17	54	24.11
18	53	23.96
19	52	23.80
20	51	23.63
21	50	23.46
22	49	23.28
23	48	23.09
24	47	22.90
25	46	22.70
26	45	22.50
27	44	22.28
28	43	22.06
29	42	21.83
30	41	21.60
31	40	21.36
32	39	21.10
33	38	20.84
34	37	20.57
35	36	20.29
36	35	20.00
37	34	19.70
38	33	19.39
39	32	19.07
40	31	18.74
41	30	18.39
42	29	18.04
43	28	17.67
44	27	17.29
45	26	16.89
46	25	16.48
47	24	16.06
48	23	15.62
49	22	15.17
50	21	14.70
51	20	14.21
52	19	13.71
53	18	13.19
54	17	12.65
55	16	12.09
56	15	11.52
57	14	10.92
58	13	10.30
59	12	9.66
60	11	9.00
61	10	8.32
62	9	7.61
63	8	6.87
64	7	6.11
65	6	5.33
66	5	4.52
67	4	3.67
68	3	2.80
69	2	1.90
70	1 or less	1.00