INCOME TAX ASSESSMENT ACT 1997

CHAPTER 2 - LIABILITY RULES OF GENERAL APPLICATION  

PART 2-15 - NON-ASSESSABLE INCOME  

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

Subdivision 54-B - Tax exemption for personal injury annuities  

Operative provisions

SECTION 54-25   54-25   Requirements of the annuity instrument  


The *annuity instrument must:


(a) identify the *structured settlement or *structured order under which the *annuity is provided; and


(b) only allow for payments of the annuity to be made to:


(i) the injured person; or

(ii) a trustee of a trust of which the injured person is the beneficiary; or

(iii) a reversionary beneficiary, or the injured person ' s estate, in accordance with section 54-35; and


(c) contain a statement to the effect that the annuity cannot be assigned, and cannot be commuted except as mentioned in section 54-35.

Note:

Division 2A of Part 10 of the Life Insurance Act 1995 makes a purported assignment or commutation that is contrary to paragraph (c) ineffective.


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