Income—asset‑tested income stream (long term) that is not a defined benefit income stream
1099C Income—asset‑tested income stream (long term) that is not a defined benefit income stream
If the asset‑tested income stream (long term) to which this Subdivision applies is not a defined benefit income stream, the amount that the person is taken to receive from the income stream each year is worked out as follows:
Start formula Annual payment minus open bracket start fraction Purchase price minus Residual capital value over Relevant number end fraction close bracket end formula
where:
annual payment means the amount payable to the person for the year under the income stream.
purchase price has the meaning given by subsection 9(1).
relevant number has the meaning given by subsection 9(1).
residual capital value has the meaning given by subsection 9(1).
For treatment of asset‑tested income streams (short term) see Division 1B of Part 3.10.
Sally is 65 years old and single. She purchases a 10 year annuity for $150,000, with a residual capital value of $20,000. Her total annual annuity payment is $18,337. Sally’s assessable income from her 10 year annuity is:
Start formula $18,337 minus start fraction $150,000 minus $20,000 over 10 end fraction equals $5,337 end formula
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