Superannuation Industry (Supervision) Amendment Regulations 2005 (No. 2)¹

I, PHILIP MICHAEL JEFFERY, Governor-General of the Commonwealth of Australia, acting with the advice of the Federal Executive Council, make the following Regulations under the Superannuation Industry (Supervision) Act 1993.

Dated 23 March 2005

P. M. JEFFERY

Governor-General

By His Excellency’s Command

MAL BROUGH

1              Name of Regulations

                These Regulations are the Superannuation Industry (Supervision) Amendment Regulations 2005 (No. 2).

2              Commencement

                These Regulations commence on 1 July 2005.

3              Amendment of Superannuation Industry (Supervision) Regulations 1994

                Schedule 1 amends the Superannuation Industry (Supervision) Regulations 1994.

Schedule 1        Amendments

(regulation 3)

[1]           Subregulation 6.01 (2), after definition of lump sum

insert

non-commutable allocated annuity means an annuity provided under a contract that:

                (a)    meets the standards of subregulation 1.05 (4); and

               (b)    ensures that payments of benefits are made only in accordance with the rules set out in regulations 6.16, 6.18, 6.19 and 6.22A, as if:

                          (i)    the annuity were a regulated superannuation fund; and

                         (ii)    the annuitant were a member of the fund; and

                         (iii)    the annuity provider were a trustee of the fund; and

                (c)    ensures that, if the annuity is commuted, the resulting eligible termination payment cannot be cashed unless:

                          (i)    the purpose of the commutation is:

                                   (A)     to cash an unrestricted non-preserved benefit; or

                                   (B)     to pay a superannuation contributions surcharge; or

                                   (C)     to give effect to an entitlement of a non-member spouse under a payment split; or

                         (ii)    before commutation, the annuitant has satisfied a condition of release in respect of which the cashing restriction for preserved benefits and restricted non-preserved benefits is ‘Nil’.

non-commutable allocated pension means a pension provided under rules of a superannuation fund that:

                (a)    meet the standards of subregulation 1.06 (4); and

               (b)    ensure that, if the pension is commuted, the resulting eligible termination payment cannot be cashed unless:

                          (i)    the purpose of the commutation is:

                                   (A)     to cash an unrestricted non-preserved benefit; or

                                   (B)     to pay a superannuation contributions surcharge; or

                                   (C)     to give effect to an entitlement of a non-member spouse under a payment split; or

                         (ii)    before commutation, the pensioner has satisfied a condition of release in respect of which the cashing restriction for preserved benefits and restricted non-preserved benefits is ‘Nil’.

non-commutable annuity means an annuity provided under a contract that:

                (a)    meets the standards of subregulation 1.05 (2), (9) or (10); and

               (b)    ensures that payments of benefits are made only in accordance with the rules set out in regulations 6.16, 6.18, 6.19 and 6.22A, as if:

                          (i)    the annuity were a regulated superannuation fund; and

                         (ii)    the annuitant were a member of the fund; and

                         (iii)    the annuity provider were a trustee of the fund; and

                (c)    ensures that, if the annuity is commuted under subparagraph 1.05 (2) (f) (i), (9) (h) (i) or (10) (d) (i), the resulting eligible termination payment cannot be cashed unless:

                          (i)    the purpose of the commutation is to cash an unrestricted non-preserved benefit; or

                         (ii)    before commutation, the annuitant has satisfied a condition of release in respect of which the cashing restriction for preserved benefits and restricted non-preserved benefits is ‘Nil’.

non-commutable pension means a pension provided under rules of a superannuation fund that:

                (a)    meet the standards of subregulation 1.06 (2), (7) or (8); and

               (b)    ensure that, if the pension is commuted under subparagraph 1.06 (2) (e) (i), (7) (g) (i) or (8) (d) (i), the resulting eligible termination payment cannot be cashed unless:

                          (i)    the purpose of the commutation is to cash an unrestricted non-preserved benefit; or

                         (ii)    before commutation, the pensioner has satisfied a condition of release in respect of which the cashing restriction for preserved benefits and restricted non-preserved benefits is ‘Nil’.

[2]           Schedule 1, Part 1, after item 109

insert

[3]           Schedule 1, Part 2, after item 207

insert

1.       All legislative instruments and compilations are registered on the Federal Register of Legislative Instruments kept under the Legislative Instruments Act 2003. See www.frli.gov.au.