Income Tax Assessment Act 1997
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.
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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