Income Tax Assessment Act 1997



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 54-30   Requirements for payments of the annuity  

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.

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.

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.

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.

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.


Disclaimer and notice of copyright applicable to materials provided by CCH Australia Limited

CCH Australia Limited ("CCH") believes that all information which it has provided in this site is accurate and reliable, but gives no warranty of accuracy or reliability of such information to the reader or any third party. The information provided by CCH is not legal or professional advice. To the extent permitted by law, no responsibility for damages or loss arising in any way out of or in connection with or incidental to any errors or omissions in any information provided is accepted by CCH or by persons involved in the preparation and provision of the information, whether arising from negligence or otherwise, from the use of or results obtained from information supplied by CCH.

The information provided by CCH includes history notes and other value-added features which are subject to CCH copyright. No CCH material may be copied, reproduced, republished, uploaded, posted, transmitted, or distributed in any way, except that you may download one copy for your personal use only, provided you keep intact all copyright and other proprietary notices. In particular, the reproduction of any part of the information for sale or incorporation in any product intended for sale is prohibited without CCH's prior consent.