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Purchased income stream

A purchased income stream is an income stream where the recipient buys an investment with a lump sum, known as the purchase price. The repayments are fully determined by the purchase price.

 

 

The purchase price of an income stream is the nominal sum of the paymetns made to purchase the income stream (including amounts paid by way of employer and employee contributions) less any commuted amounts.

Note: In determining the means test assessment of asset-tested income streams (lifetime), the purchase price is not used.  Rather, the grossed up purchase amount.

Legislation: Section 5J(1) of the VEA

 

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