Contents
Part 1—Preliminary 1
1.01....................... Name of Regulations.......................................................... 1
1.03....................... Interpretation....................................................................... 1
1.03A.................... Lost member..................................................................... 10
1.03AA................. Defined benefit interest..................................................... 12
1.03AAA.............. Defined benefit fund......................................................... 12
1.03AB.................. Meaning of growth phase................................................. 12
1.03C..................... Meaning of permanent incapacity.................................... 13
1.04....................... Prescribed matters (Act, s 10)........................................... 13
1.04AAAA........... Interdependency relationships (Act s 10A)....................... 16
1.04AAA.............. Modified meaning of member (Act s 15B)....................... 17
1.04AA................. Self managed superannuation funds—persons not taken to be employees (Act s 17A(8)).......................................................................................... 18
Part 1A—Annuities and pensions 19
Division 1A.1 19
1.05A.................... Interpretation..................................................................... 19
1.05....................... Meaning of annuity (Act, s 10)......................................... 19
1.06....................... Meaning of pension (Act, s 10)........................................ 33
1.06A.................... Standards for certain innovative superannuation income streams 46
1.06B..................... Maximum commutation amount for certain innovative superannuation income streams.......................................................................................... 48
1.07....................... Periods when beneficiary may not receive benefits........... 49
1.07A.................... Commutation of allocated annuities and pensions............. 49
1.07B..................... Commutation of other annuities and pensions.................. 50
1.07C..................... Commutation of market linked income stream.................. 51
1.07D.................... Commutation of superannuation income stream............... 53
Division 1A.2—Operating standards 54
1.08....................... Restriction on factors for converting pensions.................. 54
Part 2—Information for certain parties 55
Division 2.1—Introductory 55
2.01....................... Interpretation..................................................................... 55
2.02....................... Scope and application of this Part..................................... 55
2.03....................... Duties and requirements arising under this Part................ 56
2.04....................... Reasonable efforts are sufficient....................................... 56
2.05....................... Charges for information requested.................................... 56
Division 2.2—Information in connection with annual members’ meetings 57
2.08....................... Interpretation..................................................................... 57
2.09....................... Application....................................................................... 57
2.10....................... Information to be included with notice.............................. 57
2.11....................... How notice is to be given................................................. 59
Division 2.4—Information to be given for each reporting period 61
Subdivision 2.4.1—Preliminary 61
2.18....................... Application....................................................................... 61
Subdivision 2.4.3—Derivatives charge ratio 61
2.29....................... Specific requirements in particular cases........................... 61
Division 2.5—Information on request 62
2.30....................... Application....................................................................... 62
2.31....................... Documents may be made available for inspection............. 62
2.32....................... Time for compliance......................................................... 62
2.33....................... Specific requirements........................................................ 62
Division 2.5A—Information about superannuation interest subject to payment split 63
2.36B..................... Application....................................................................... 63
2.36C..................... Information to be provided by trustee when interest becomes subject to payment split.......................................................................................... 63
2.36D.................... Other information to be provided by trustee..................... 64
2.36E..................... Other information to be given by trustee—adverse effects on benefits 65
Part 3—Matters prescribed or specified in relation to public offer entities 66
3.01....................... Public offer superannuation fund—member of a prescribed class 66
3.04....................... Section 54 of the Act—prescribed percentages................. 67
3.04A.................... Removal of trustee of public offer entity—s 60A(2) of the Act 67
3.05....................... Policy committees—sections 91, 92 and 93 of the Act..... 68
3.06....................... Policy committees—functions (paragraphs 91(3)(b), 92(3)(b) and 93(3)(b) of the Act).......................................................................................... 69
3.07....................... Definition of policy committee in section 10 of the Act—matters specified for purposes of paragraph (a)..................................................................... 70
3.08....................... Policy committees—duties of trustee................................ 70
3.09....................... Dissolution of policy committees...................................... 70
3.10....................... Commission and brokerage.............................................. 71
3.11....................... Payment by trustee of a public offer entity of commission or brokerage 71
Part 3A—Matters prescribed or specified in relation to licensing of trustees and of groups of individual trustees 73
Division 3A.1—Classes of RSE licences 73
3A.01.................... Public offer entity licences................................................ 73
3A.02.................... Non‑public offer entity licences........................................ 73
3A.03.................... Extended public offer entity licences................................. 73
3A.03A................. Acting trustee licences...................................................... 73
Division 3A.3—Applying for RSE licences 75
3A.05.................... Definitions........................................................................ 75
3A.06.................... Application fees................................................................ 75
Part 3B—Superannuation data and payment matters 78
3B.01..................... Definitions........................................................................ 78
3B.02..................... Prescribed eligible superannuation entity for register........ 78
3B.03..................... Information to be given for register.................................. 78
Part 4—Management and trusteeship of superannuation entities 80
Division 4.1—Prescribed matters 80
4.01A.................... Covenants in governing rules of superannuation entity—trustee’s determination and benchmarks....................................................................... 80
4.01....................... Covenants in governing rules of superannuation entity—prescribed information and documents......................................................................... 80
4.02....................... Covenants in governing rules of self managed superannuation fund—beneficiary investment choice................................................................................ 80
4.02A.................... Trustee subject to direction—registrable superannuation entity other than regulated superannuation fund with no more than 6 members......... 81
4.02AA................. Operating standard—direction on investment option to trustee of regulated superannuation fund with no more than 6 members.................................. 82
4.03....................... Trustee of employer‑sponsored fund—prescribed direction by employer‑sponsor or associate of employer sponsor......................................................... 83
4.04....................... Governing rules of a superannuation entity—prescribed exercise of discretion by non‑trustee.......................................................................................... 84
4.05....................... Governing rules of a superannuation entity—prescribed circumstances of amendment.......................................................................................... 85
4.06....................... Removal of member representatives—prescribed circumstances 85
4.07....................... Removal of independent trustee or independent member—prescribed circumstances.......................................................................................... 86
Division 4.2—Operating standards 87
4.07C..................... Definitions........................................................................ 87
4.07D.................... Operating standard—permitted types of insurance........... 87
4.07E..................... Operating standard—self‑insurance.................................. 87
4.08....................... Operating standard—voting rule where equal representation applies 89
4.08A.................... Operating standard—member representation for certain regulated superannuation funds where a declaration under subsection 18(7) of the Act applies 89
4.09....................... Operating standard—investment strategy......................... 90
4.09A.................... Operating standard—money and other assets to be kept separate (self managed superannuation funds)...................................................... 91
4.10....................... Operating standard—investment by non‑complying superannuation funds 91
4.10A.................... Operating standard—ownership of units in a PST........... 91
4.11....................... Operating standard—investment by non‑complying approved deposit funds 91
4.11A.................... Operating standard—acceptance of deposits by an approved deposit fund 92
4.12....................... Operating standard—acceptance by regulated superannuation and approved deposit funds of rollovers and transfers...................................................... 92
4.13....................... Operating standard—lending to members of an approved deposit fund 92
Part 5—Benefit protection standards 94
Division 5.1—Preliminary 94
5.01....................... Interpretation..................................................................... 94
5.01A.................... Operating standards—determination of costs and investment return 97
5.01B..................... Trustee may provide greater protection than this Part requires 97
5.02....................... Determination of costs...................................................... 97
5.02B..................... Priority in deducting surcharge or instalment.................... 98
5.02C..................... Refund of costs................................................................. 98
5.03....................... Investment returns............................................................ 98
Division 5.2—Minimum benefits 100
5.04....................... Minimum benefits—regulated superannuation funds..... 100
5.05....................... Mandated employer contributions—regulated superannuation funds 100
5.06....................... Certain benefits rolled over or transferred to regulated superannuation funds taken to be minimum benefits........................................................... 101
5.06A.................... Benefits rolled over or transferred from an RSA to regulated superannuation funds taken to be minimum benefits....................................................... 102
5.06B..................... Minimum benefits if new interest created, or benefits rolled over or transferred, under Division 7A.2................................................................. 102
5.07....................... Minimum benefits—approved deposit funds.................. 102
Division 5.3—Treatment of minimum benefits 103
5.08....................... How minimum benefits are to be treated......................... 103
Part 6—Payment standards 106
Division 6.1—Introductory 106
Subdivision 6.1.1—General interpretation 106
6.01....................... Interpretation................................................................... 106
6.01AA................. Meaning of non‑commutable allocated annuity.............. 111
6.01AB.................. Meaning of non‑commutable allocated pension............. 112
6.01A.................... Meaning of terminal medical condition.......................... 112
6.01B..................... Conditions of release for temporary residents................. 113
Subdivision 6.1.2—Preserved benefits 113
6.02....................... Preserved benefits in regulated superannuation funds—before 1 July 1999 113
6.03....................... Preserved benefits in regulated superannuation funds—on and after 1 July 1999 114
6.05....................... Preserved benefits in approved deposit funds................. 114
6.06....................... Effect of rollover or transfer on preserved benefits......... 114
Subdivision 6.1.3—Restricted non‑preserved benefits 115
6.07....................... Restricted non‑preserved benefits in regulated superannuation funds—before 1 July 1999........................................................................................ 115
6.08....................... Restricted non‑preserved benefits in regulated superannuation funds—on and after 1 July 1999................................................................................ 116
6.09....................... Effect of rollover or transfer on restricted non‑preserved benefits 117
Subdivision 6.1.4—Unrestricted non‑preserved benefits 117
6.10....................... Unrestricted non‑preserved benefits—regulated superannuation funds 117
6.11....................... Unrestricted non‑preserved benefits—approved deposit funds 118
6.12....................... Movement of benefits between categories by satisfaction of conditions of release 119
6.13....................... Effect of rollover or transfer on unrestricted non‑preserved benefits 119
Subdivision 6.1.5—Miscellaneous 119
6.14....................... Indexation....................................................................... 119
6.15....................... Contributions and benefits taken to be preserved benefits 119
6.15A.................... Certain benefits taken to be unrestricted non‑preserved benefits 120
6.16....................... Redistribution of member benefits within a fund in certain circumstances by operation of governing rules or action of trustee................................. 121
6.16A.................... When non‑preserved benefits may be reduced................ 122
Division 6.2—Payment of benefits 123
6.17....................... Restriction on payment................................................... 123
6.17A.................... Payment of benefit on or after death of member (Act, s 59(1A)) 125
6.17AA................. Payments prevented under Family Law Act 1975........... 126
6.17B..................... Duty to seek information................................................ 126
6.17C..................... Payment and commutation of pension in breach of standards 127
6.17D.................... Benefits to be paid as soon as practicable where member satisfies compassionate ground relating to coronavirus.................................................... 127
Division 6.3—Cashing of benefits 128
Subdivision 6.3.1—Regulated superannuation funds 128
6.18....................... Voluntary cashing of preserved benefits in regulated superannuation funds 128
6.19....................... Voluntary cashing of restricted non‑preserved benefits in regulated superannuation funds........................................................................................ 128
6.19A.................... Release of benefits on compassionate grounds............... 129
6.19B..................... Release of benefits on compassionate ground—coronavirus 130
6.20....................... Voluntary cashing of unrestricted non‑preserved benefits in regulated superannuation funds........................................................................................ 132
6.20A.................... Compulsory cashing of benefits in a regulated superannuation fund that is not an unfunded public sector superannuation scheme—temporary residents 133
6.20B..................... Voluntary cashing of benefits in a regulated superannuation fund that is an unfunded public sector superannuation scheme—temporary residents...... 134
6.20C..................... Cashing of benefits in a regulated superannuation fund—payment to Commissioner of Taxation.......................................................................... 135
6.21....................... Compulsory cashing of benefits in regulated superannuation funds 135
6.22....................... Limitation on cashing of benefits in regulated superannuation funds in favour of persons other than members or their legal personal representatives 136
6.22A.................... Priority in cashing benefits in certain cases—regulated superannuation funds 138
6.22B..................... When benefits in regulated superannuation funds may be cashed in favour of persons except members......................................................................... 138
Subdivision 6.3.2—Approved deposit funds 138
6.23....................... Voluntary cashing of preserved benefits in approved deposit funds 138
6.24....................... Voluntary cashing of unrestricted non‑preserved benefits in approved deposit funds........................................................................................ 139
6.24A.................... Compulsory cashing of benefits in approved deposit funds—temporary residents 139
6.24B..................... Cashing of benefits in approved deposit funds—payment to Commissioner of Taxation........................................................................................ 140
6.25....................... Compulsory cashing of benefits in approved deposit funds 140
6.26....................... Limitation on cashing of benefits in approved deposit funds in favour of persons other than members or their legal personal representatives.............. 141
6.27....................... Limitation on cashing benefits in approved deposit funds of less than $500 141
6.27A.................... Priority in cashing benefits in certain cases—approved deposit funds 142
Division 6.4—General rules for rollover and transfer of benefits in regulated superannuation funds and approved deposit funds 143
6.27B..................... Definition........................................................................ 143
6.28....................... Rollover—regulated superannuation funds and approved deposit funds 143
6.29....................... Transfer—funds............................................................. 143
Division 6.5—Compulsory rollover and transfer of superannuation benefits in regulated superannuation funds and approved deposit funds 145
6.30....................... Application..................................................................... 145
6.31....................... Definitions for Division 6.5............................................ 145
6.32....................... Superannuation data and payment matters...................... 146
6.33....................... Request for rollover or transfer of withdrawal benefit.... 146
6.33A.................... Action by receiving fund on receipt of request............... 146
6.33B..................... Transferring fund must electronically receive request..... 148
6.33C..................... Trustee may request information if not provided............ 148
6.33D.................... Validation of member’s details by transferring fund....... 149
6.33E..................... Verification of self managed superannuation fund and member’s details 150
6.34....................... Rollover or transfer of withdrawal benefit...................... 151
6.34A.................... Timeframes for rollovers and transfers........................... 152
6.34B..................... Member details for rollover or transfer........................... 154
6.34C..................... Receiving fund must electronically receive information and payment 154
6.34D.................... Receiving fund must allocate amount to member............ 155
6.35....................... When a trustee may refuse to roll over or transfer an amount 156
6.36....................... Suspension or variation of obligation to roll over or transfer amounts by APRA 156
6.37....................... Suspension or variation of obligation to roll over or transfer amounts by APRA—application by trustee........................................................................ 157
6.38....................... Trustee’s obligations if APRA suspends or varies obligation to roll over or transfer amounts........................................................................................ 157
Division 6.6—Additional standards for eligible rollover funds 158
6.39....................... Obligations of trustees.................................................... 158
Division 6.7—Spouse contributions‑splitting amounts 159
6.40....................... Interpretation................................................................... 159
6.41....................... Meaning of taxed splittable contribution, untaxed splittable contribution and untaxed splittable employer contribution..................................... 160
6.42....................... Meaning of splittable contribution.................................. 161
6.43....................... Application of Division 6.7............................................ 162
6.44....................... Application to roll over, transfer or allot an amount of contributions 162
6.45....................... Decision on application................................................... 163
6.46....................... Receiving spouse............................................................ 164
Division 6.8—Conditions for the use of tax file numbers to facilitate consolidation or rollover 165
6.47....................... Definitions for Division 6.8............................................ 165
6.48....................... Conditions for use of tax file numbers............................ 165
6.49....................... Consent to use beneficiary’s tax file number.................. 165
6.50....................... Procedure for searching for amounts to facilitate consolidation by rollover 165
Part 6A—Portability forms 166
6A.01.................... Establishment of scheme................................................. 166
6A.02.................... Request to rollover or transfer withdrawal benefit.......... 166
6A.03.................... Verification of data......................................................... 166
Part 7—Contribution and benefit accrual standards (regulated superannuation funds) 168
Division 7.1—General 168
7.01....................... Interpretation................................................................... 168
7.02....................... Application of Division 7.1............................................ 168
7.03....................... Restriction on accepting contributions or granting benefit accruals 168
7.03A.................... Acceptance of contributions—registrable superannuation entities 168
7.04....................... Acceptance of contributions—regulated superannuation funds 168
7.04A.................... Acceptance of contributions—public offer superannuation funds 172
7.05....................... Accrual of benefits—defined benefit funds.................... 172
Division 7.2—Contributions to be allocated to members 173
Subdivision 7.2.1—Superannuation data and payment matters 173
7.07....................... Superannuation data and payment matters...................... 173
7.07AA................. Application..................................................................... 173
7.07A.................... Initial registration of employee........................................ 173
7.07B..................... Validation of initial registration information................... 174
7.07C..................... Trustee may give membership or account number to Commissioner of Taxation 174
7.07D.................... Invalid initial registration information............................. 174
7.07E..................... Employee details for contribution................................... 175
7.07EA.................. Employee details may be passed through default fund.... 175
7.07F..................... Information and contributions sent electronically............ 176
7.07G.................... Incomplete contribution information............................... 176
7.07H.................... Contributions to be allocated to member......................... 177
Subdivision 7.2.2—Operating standards 178
7.07J...................... Application..................................................................... 178
7.08....................... Contributions to be allocated to members....................... 178
Division 7.3—Contributions to be allocated to members—certain other regulated superannuation funds 179
7.09....................... Application of Division 7.3............................................ 179
7.10....................... Operating standard.......................................................... 179
7.11....................... Contributions to be allocated to members....................... 179
Part 7A—Superannuation interests subject to payment split 180
Division 7A.1—General 180
7A.01.................... Purpose of Part 7A......................................................... 180
7A.01A................. Relevant condition of release.......................................... 180
7A.02.................... Operating standards........................................................ 180
7A.03.................... Trustee to give payment split notice................................ 180
Division 7A.1A—Options for trustee in relation to interests 182
7A.03A................. Application of Division 7A.1A...................................... 182
7A.03B.................. Trustee may create a new interest.................................... 182
7A.03C.................. Request to retain a non‑member spouse interest............. 184
7A.03D................. Request to roll over or transfer benefits.......................... 184
7A.03E.................. Request for lump sum payment...................................... 185
7A.03F.................. Requirements for requests.............................................. 185
7A.03G................. Giving effect to a request................................................ 185
7A.03H................. Trustee’s options if no request is received...................... 186
7A.03I................... Confirming that the non‑member spouse has an interest in the fund 188
7A.03J................... Rolling over or transferring the non‑member spouse’s interest 188
7A.03K.................. Paying a lump sum......................................................... 189
Division 7A.2—Options available for certain superannuation interests 190
7A.04.................... Application of Division 7A.2......................................... 190
7A.05.................... Request for new interest................................................. 190
7A.06.................... Request for transfer of benefits....................................... 190
7A.07.................... Request for lump sum payment...................................... 191
7A.08.................... Requirements for requests.............................................. 191
7A.09.................... Giving effect to request................................................... 191
7A.10.................... Trustee options if no request received............................. 192
7A.11.................... Creating a new interest.................................................... 193
7A.12.................... Rolling over or transferring transferable benefits............ 195
7A.13.................... Paying a lump sum......................................................... 197
Division 7A.3—Splittable payments—payment standards for non‑member spouse entitlements 199
7A.14.................... Application of Division 7A.3......................................... 199
7A.16.................... Preservation of non‑member spouse entitlements........... 199
7A.17.................... Payment of non‑member spouse entitlements from pension 201
7A.18.................... Cashing of non‑member spouse entitlements.................. 202
Division 7A.4—Superannuation interest split under the Family Law (Superannuation) Regulations 2001 204
7A.19.................... Application..................................................................... 204
7A.20.................... Creating a new interest.................................................... 204
7A.21.................... Rolling over or transferring benefits............................... 204
7A.22.................... Paying an amount........................................................... 205
Part 8—Financial reporting 206
8.01....................... Accounts—statement of financial position and financial statement 206
8.02....................... Accounts and statements that must be prepared.............. 206
8.02A.................... Period within which an auditor must be appointed......... 207
8.02B..................... Asset must be valued at market value............................. 207
8.03....................... Period within which audit report must be given.............. 207
Part 9—Financial management of funds 208
Division 9.1—Introductory 208
9.01....................... Interpretation................................................................... 208
Division 9.2—Financial position of funds 209
9.02....................... Application..................................................................... 209
9.02A.................... Interpretation................................................................... 209
9.03....................... Subsection 130(1) of the Act etc—obligations of actuaries and auditors 209
9.04....................... When the financial position of an entity is unsatisfactory 210
Division 9.2A—Size of defined benefit funds 211
9.04A.................... Application..................................................................... 211
9.04B..................... Sub‑funds to be treated as funds..................................... 211
9.04C..................... Operating standard.......................................................... 211
9.04D.................... Size of defined benefit funds.......................................... 211
Division 9.2B—Provision of defined benefit pensions 213
9.04E..................... Definition for Division 9.2B........................................... 213
9.04F..................... Application of Division 9.2B.......................................... 213
9.04G.................... Sub‑funds to be treated as funds..................................... 213
9.04H.................... Operating standard.......................................................... 213
9.04I...................... Provision of defined benefit pensions............................. 214
Division 9.3—Funding and solvency of defined benefit funds 215
9.05....................... Application..................................................................... 215
9.06....................... Interpretation................................................................... 215
9.07....................... Prescription of standards................................................ 216
9.08....................... Funding standard............................................................ 216
9.09....................... Funding and solvency certificates—operating standard.. 217
9.10....................... Contents of funding and solvency certificates................. 217
9.11....................... Effective date of funding and solvency certificates......... 218
9.12....................... Period of effect of funding and solvency certificates...... 218
9.13....................... Effect of notifiable events on funding and solvency certificates 219
9.14....................... Further funding and solvency certificates to be obtained 220
9.15....................... Minimum benefit index................................................... 220
9.16....................... Non‑compliance with solvency requirement—technical insolvency 221
9.17....................... Technical insolvency—operating standard...................... 222
9.18....................... Technical insolvency program—special funding and solvency certificate 222
9.19....................... Technical insolvency programs—procedure................... 223
Division 9.4—Winding‑up of defined benefit funds 225
9.20....................... Application..................................................................... 225
9.21....................... Interpretation................................................................... 225
9.22....................... Prescription of standards................................................ 226
9.23....................... Winding‑up of defined benefit funds.............................. 226
9.24....................... Alternative programs approved by the Regulator............ 226
9.25....................... Winding‑up proceedings—priorities............................... 227
Division 9.5—Actuarial standards relating to defined benefit funds that are self‑managed superannuation funds 228
9.26....................... Application..................................................................... 228
9.27....................... Interpretation................................................................... 228
9.28....................... Prescription of standards................................................ 228
9.29....................... Actuarial investigation standard...................................... 228
9.29A.................... Actuarial investigation standard—exemption.................. 229
9.30....................... Actuarial reporting standard............................................ 230
9.31....................... Contents of actuarial report............................................. 230
Division 9.6—Solvency of accumulation funds 232
9.34....................... Application..................................................................... 232
9.35....................... Interpretation................................................................... 232
9.36....................... Prescription of standards—accumulation funds.............. 233
9.37....................... Accumulation funds solvency standard.......................... 233
9.38....................... Technical insolvency of accumulation funds—operating standard 233
9.39....................... Technical insolvency program for accumulation funds—procedure 233
Division 9.7—Winding‑up of accumulation funds 235
9.40....................... Application..................................................................... 235
9.41....................... Interpretation................................................................... 235
9.42....................... Prescription of standards—winding‑up of accumulation funds 235
9.43....................... Winding‑up of accumulation funds................................. 236
9.44....................... Alternative programs approved by the Regulator for accumulation funds 236
9.45....................... Accumulation fund winding‑up proceedings—priorities 236
Part 9AA—Requirements relating to MySuper products 238
9.46....................... Notification—accrued default amount attributed to MySuper product 238
9.46A.................... Notification—periodic statements................................... 238
9.47....................... Other factors that may be used for a lifecycle MySuper product 239
9.48....................... Limitation imposed by governing rules........................... 239
9.49....................... Opt‑out insurance for MySuper members cannot be obtained at reasonable cost 240
9.50....................... Capped fees and costs..................................................... 240
9.51....................... Fee cap percentage.......................................................... 240
Part 9AB—Annual performance assessments etc. 241
Division 9AB.1—Preliminary 241
9AB.1.................... Definitions...................................................................... 241
9AB.2.................... Meaning of Part 6A product—trustee‑directed products 244
9AB.3.................... Meaning of lifecycle Part 6A product............................. 246
9AB.4.................... Meaning of lifestage weight............................................ 246
9AB.4A................. Meaning of representative administration fees and expenses or RAFE 247
9AB.5.................... Meaning of strategic asset allocation............................. 248
9AB.5A................. Meaning of index............................................................ 252
9AB.6.................... Meaning of lookback period........................................... 254
9AB.7.................... Specified circumstances and provisions where multiple Part 6A products treated as one Part 6A product—subsection 60G(1) of Act.................. 254
Division 9AB.2—Performance assessments 256
9AB.8.................... Period for making and giving annual performance assessment—paragraph 60C(4)(b) of Act........................................................................................ 256
9AB.9.................... Specified classes of Part 6A product.............................. 256
9AB.10.................. Requirements for assessment.......................................... 256
9AB.11.................. Meaning of actual return—standard Part 6A products.. 258
9AB.12.................. Meaning of actual return—lifecycle Part 6A products... 260
9AB.13.................. Meaning of benchmark return—standard Part 6A products 262
9AB.14.................. Meaning of benchmark return—lifecycle Part 6A products 263
9AB.15.................. APRA’s determination of sequence of lifestages............ 266
9AB.16.................. Meaning of benchmark RAFE........................................ 266
9AB.17.................. Meaning of covered asset class, assumed index, assumed annual fee and assumed rate of tax................................................................................... 267
9AB.18.................. APRA’s determination of alternative assumptions—paragraphs 60D(7)(b) and (c) of Act........................................................................................ 270
9AB.19.................. Requirements for notification of fail assessment—subsection 60E(6) of Act 271
9AB.20.................. Requirements for reopening determination—subsection 60F(4) of Act 271
Division 9AB.3—Comparison rankings 272
9AB.21.................. Specified formula as basis for ranking Part 6A products—performance assessment met........................................................................................ 272
9AB.22.................. Specified formula as basis for ranking Part 6A products—performance assessment not met........................................................................................ 272
9AB.23.................. Net return ranking formula............................................. 272
9AB.24.................. Fee ranking formula........................................................ 273
9AB.25.................. Specified methods for Part 6A ranking products—paragraph 60J(3)(b) of Act 275
Part 9A—Approved SMSF auditors 276
9A.01.................... Qualifications.................................................................. 276
9A.02.................... Relevant courses............................................................. 276
9A.03.................... Practical experience......................................................... 277
9A.04.................... Continuing professional development requirements....... 277
9A.05.................... Professional indemnity requirements.............................. 277
9A.06.................... Auditor independence requirements................................ 278
9A.07.................... When fees must be paid.................................................. 278
Part 10—Eligible rollover funds 280
10.01..................... Application for authority to operate eligible rollover fund 280
10.02..................... Payment of benefit to eligible rollover fund.................... 280
Part 11—Information to be given to the Regulator and related matters 281
11.01..................... Definition........................................................................ 281
11.03..................... Period for giving information to the Regulator, Act, s 254(1) 281
11.04..................... Prescribed information (subsection 254(1))—regulated superannuation funds 281
11.05..................... Prescribed information (subsection 254(1))—approved deposit funds 282
11.06..................... Prescribed information (subsection 254(1))—PSTs....... 282
11.06A.................. Specified person or body (Act s 254(1))........................ 282
11.07..................... Operating standard—disclosure of certain information (funds other than self managed superannuation funds).................................................... 283
11.07AA............... Operating standard—disclosure of certain information (self managed superannuation funds)........................................................................................ 284
11.07A.................. Operating standard—disclosure on change of status...... 284
11.08..................... Operating standard—disclosure of successor fund transfer 285
Part 11A—Register to be kept by APRA 286
11A.01.................. Source of power for this Part.......................................... 286
11A.02.................. Definition........................................................................ 286
11A.03.................. APRA must keep register............................................... 286
11A.04.................. Regulated superannuation funds..................................... 286
11A.05.................. Approved deposit funds................................................. 287
11A.06.................. PSTs............................................................................... 287
Part 12—Pre‑1 July 1988 funding credits and debits 289
12.01..................... Definitions...................................................................... 289
12.02..................... Pre‑1 July 88 funding amounts....................................... 289
12.03..................... Shortfall‑in‑assets amount—calculation.......................... 290
12.04..................... Estimation of net market value of fund assets................. 291
12.05..................... Value A of accrued benefits............................................ 291
12.06..................... Value B of accrued benefits............................................ 292
12.07..................... Calculation of value A or B of accrued benefits.............. 293
12.08..................... Date before which applications to be made..................... 294
12.09..................... Application fees.............................................................. 294
12.10..................... Prescribed events for the purposes of paragraph 342(4)(a) of the Act 295
12.11..................... When and how APRA to be notified of prescribed events 295
12.12..................... Transfer of PJFCs—trustees of transferor funds............ 296
12.13..................... Transfer of PJFCs—trustees of transferee funds............ 296
12.14..................... Transfer of PJFCs—revocation of approval................... 297
12.15..................... Transfer of PJFCs—requirements to be satisfied........... 297
12.19..................... Actuaries to certify in relation to determinations............. 298
12.20..................... Substituted accounting periods....................................... 298
Part 12A—Trans‑Tasman retirement savings portability 299
Division 1—General 299
12A.01.................. Purpose of Part 12A....................................................... 299
12A.02.................. Definitions for Part 12A................................................. 299
12A.03.................. Payments to which this Part applies................................ 301
Division 2—New Zealand‑sourced amounts 302
12A.04.................. Application of Division 2............................................... 302
12A.05.................. Treatment of New Zealand‑sourced amounts.................. 302
12A.06.................. Benefit protection standards............................................ 302
12A.07.................. Payment standards.......................................................... 303
12A.08.................. Contribution and benefit accrual standards..................... 304
Division 3—Payment of amount to KiwiSaver scheme 306
12A.09.................. Application of Division 3............................................... 306
12A.10.................. Payment.......................................................................... 306
Division 4—Conditions of release of benefits 308
12A.11.................. Application of Division 4............................................... 308
12A.12.................. Conditions of release...................................................... 308
Part 13—Miscellaneous 309
Division 13.1A—Transitional arrangements arising out of the Superannuation Legislation Amendment Act (No. 3) 1999 309
13.10A.................. Transitional arrangement—preserved OSS Act provisions 309
13.10B................... Outstanding annual returns............................................. 310
13.10C................... Outstanding amounts...................................................... 310
13.10D.................. Certain annual returns and amounts for 1999‑2000 year of income 310
Division 13.2—Various operating standards 311
13.11..................... Interpretation................................................................... 311
13.12..................... Assignments of superannuation interests........................ 311
13.13..................... Charges over a member’s benefits.................................. 311
13.14..................... Charges over assets of funds.......................................... 311
13.15..................... Restrictions on the standards.......................................... 312
13.15A.................. Charges in relation to certain derivatives contracts.......... 312
13.16..................... Accrued benefits—restriction on alteration..................... 315
13.17..................... Approved deposit funds—restrictions on loans and investments 317
13.17A.................. Public offer superannuation funds—restrictions on loans and investments 318
13.17AA............... Rules for certain investments by funds in related bodies corporate 318
13.17C................... Funds that cease to be eligible rollover funds must maintain entitlements 319
13.17D.................. Cooperation with AFCA................................................ 319
Division 13.3—Various prescribed matters 320
13.18..................... Sole purpose test—specified age.................................... 320
13.18AA............... Self managed superannuation funds—investment in collectables and personal use assets........................................................................................ 320
13.18A.................. Conditional offer of goods or services—exemptions...... 322
13.19..................... Custodians of superannuation entities—specified amounts 322
13.20..................... Advertisement of scheme for winding‑up or dissolution of superannuation entity 322
13.21..................... Report of inspector—prescribed agencies....................... 323
13.22..................... Statements made at an examination—manner of authentication 323
Division 13.3A—In‑house assets of superannuation funds 324
13.22A.................. Definitions for Division 13.3A....................................... 324
13.22B................... Assets held at commencement of Division 13.3A (Act s 71).. 324
13.22C................... Assets acquired after commencement of Division 13.3A (Act s 71) 325
13.22D.................. When regulations 13.22B and 13.22C cease to apply to assets 326
Division 13.5—Reconsideration and review of decisions 328
13.24..................... Notice of reviewable decisions and reasons for decisions 328
13.25..................... Reconsideration of certain decisions............................... 328
13.26..................... Review by Tribunal of reconsidered decisions............... 329
Part 14—Transitional arrangements 330
Division 14.1—Transitional arrangements arising out of Superannuation Laws Amendment (Capital Gains Tax Relief and Other Efficiency Measures) Act 2012 330
14.01..................... Definition........................................................................ 330
14.02..................... Applications before 1 July 2013 as an approved SMSF auditor 330
Division 14.2—Transitional arrangements arising out of Superannuation Industry (Supervision) Amendment Regulation 2013 (No. 1) 331
14.03..................... Arrangements................................................................. 331
Division 14.3—Transitional arrangements arising out of the Superannuation Legislation Amendment (2013 Measures No. 2) Regulation 2013 332
14.04..................... Arrangements................................................................. 332
Division 14.4—Transitional arrangements arising out of the Superannuation Laws Amendment (2014 Measures No. 1) Regulation 2014 333
14.05..................... Arrangements................................................................. 333
Division 14.5—Transitional arrangements arising out of the Tax and Superannuation Laws Amendment (2014 Measures No. 4) Regulation 2014 334
14.06..................... Arrangements................................................................. 334
Division 14.6—Transitional arrangements arising out of the Tax and Superannuation Laws Amendment (Release Conditions for Non‑concessional Contributions) Regulation 2015 335
14.07..................... Arrangements................................................................. 335
Division 14.7—Transitional arrangements arising out of the Treasury Laws Amendment (2016 Measures No. 1) Regulation 2016 336
14.08..................... Arrangements................................................................. 336
Division 14.8—Transitional arrangements arising out of the Tax and Superannuation Laws Amendment (2016 Measures No. 1) Regulation 2016 337
14.09..................... Arrangements................................................................. 337
Division 14.9—Transitional arrangements arising out of the Tax and Superannuation Laws Amendment (2016 Measures No. 2) Regulation 2016 338
14.10..................... Arrangements................................................................. 338
Division 14.11—Transitional arrangements arising out of the Financial System Legislation Amendment (Resilience and Collateral Protection) Regulation 2016 339
14.12..................... Arrangements................................................................. 339
Division 14.13—Transitional arrangements arising out of the Treasury Laws Amendment (Fair and Sustainable Superannuation) Regulations 2017 340
14.13..................... Arrangements................................................................. 340
Division 14.14—Transitional arrangements arising out of the Treasury Laws Amendment (2017 Measures No. 1) Regulations 2017 341
14.14..................... Arrangements................................................................. 341
Division 14.15—Transitional arrangements arising out of the Treasury Laws Amendment (Putting Consumers First—Establishment of the Australian Financial Complaints Authority) Regulations 2018 342
14.15..................... Arrangements relating to membership of existing external dispute resolution schemes........................................................................................ 342
14.16..................... Arrangements relating internal dispute resolution........... 342
Division 14.16—Transitional arrangements arising out of the Treasury Laws Amendment (Release of Superannuation on Compassionate Grounds) Regulations 2018 343
14.16A.................. Arrangements relating to release of superannuation on compassionate grounds 343
Division 14.17—Transitional arrangements arising out of the Treasury Laws Amendment (2018 Measures No. 2) Regulations 2018 344
14.17..................... Arrangements................................................................. 344
Division 14.18—Transitional arrangements arising out of the Treasury Laws Amendment (Work Test Exemption) Regulations 2018 345
14.18..................... Arrangements................................................................. 345
Division 14.19—Transitional arrangements arising out of the Treasury Laws Amendment (Protecting Your Superannuation Package) Regulations 2019 346
14.19..................... Arrangements relating to when a trustee may refuse to roll over or transfer an amount........................................................................................ 346
Division 14.20—Transitional arrangements arising out of the Treasury Laws Amendment (AFCA Cooperation) Regulations 2019 347
14.20..................... Arrangements................................................................. 347
Division 14.21—Transitional arrangements arising out of the Treasury Laws Amendment (Miscellaneous Amendments) Regulations 2019 348
14.21..................... Arrangements................................................................. 348
Division 14.22—Transitional arrangements arising out of the Superannuation Legislation Amendment (2020 Measures No. 1) Regulations 2020 349
14.22..................... Arrangements................................................................. 349
Division 14.23—Transitional arrangements arising out of the Treasury Laws Amendment (Reuniting More Superannuation) Regulations 2021 350
14.23..................... Arrangements................................................................. 350
Division 14.25—Transitional arrangements arising out of the Treasury Laws Amendment (Miscellaneous and Technical Amendments) Regulations 2020 351
14.26..................... Arrangements................................................................. 351
Division 14.26—Transitional arrangements arising out of the Treasury Laws Amendment (Income Tax Assessment Repeal and Consequential Amendments) Regulations 2021 352
14.27..................... Arrangements................................................................. 352
Division 14.27—Transitional arrangements arising out of the Treasury Laws Amendment (Your Future, Your Super—Addressing Underperformance in Superannuation) Regulations 2021 353
14.28..................... Arrangements................................................................. 353
Division 14.29—Transitional arrangements arising out of the Superannuation Industry (Supervision) Amendment (Your Future, Your Super—Improving Accountability and Member Outcomes) Regulations 2021 354
14.30..................... Annual members’ meetings............................................ 354
14.31..................... Use of goods or services to influence employers............ 354
Division 14.30—Transitional arrangements arising out of the Treasury Laws Amendment (Enhancing Superannuation Outcomes) Regulations 2022 355
14.32..................... Arrangements................................................................. 355
Division 14.32—Transitional arrangements arising out of the Superannuation Legislation Amendment (Broadening Contribution Rules) Regulations 2022 356
14.34..................... Arrangements................................................................. 356
Division 14.33—Transitional arrangements arising out of the Treasury Laws Amendment (Military Superannuation Benefits) Regulations 2023 357
14.35..................... Arrangements................................................................. 357
Division 14.34—Transitional arrangements arising out of the Superannuation Industry (Supervision) Amendment (Your Future, Your Super—Addressing Underperformance in Superannuation) Regulations 2023 358
14.36..................... Arrangements................................................................. 358
Part 1—Preliminary
1.01 Name of Regulations
These Regulations are the Superannuation Industry (Supervision) Regulations 1994.
1.03 Interpretation
(1) In these regulations, unless the contrary intention appears:
1997 Tax Act means the Income Tax Assessment Act 1997.
access amount, at a particular time (the access time) for a benefit supported by a superannuation interest (within the meaning of the 1997 Tax Act), means the sum of:
(a) the maximum amount payable if the benefit were commuted on the retirement phase start day for the benefit, as determined by the contract or rules for the provision of the benefit; and
(b) any instalments paid for the benefit after the retirement phase start day for the benefit and before the access time.
account‑based annuity means an annuity provided under a contract that:
(a) is described in paragraph 1.05(11A)(a); and
(b) meets the standards of subregulation 1.05(11A).
account‑based pension means a pension that is provided in accordance with the rules of a fund that:
(a) are described in paragraph 1.06(9A)(a); and
(b) meet the standards of subregulation 1.06(9A).
accumulation fund means a regulated superannuation fund that is not a defined benefit fund.
accumulation interest means a superannuation interest that is not a defined benefit interest.
Act means the Superannuation Industry (Supervision) Act 1993.
adjusted base amount, in relation to a non‑member spouse at a particular date, means the adjusted base amount applicable to the non‑member spouse at that date worked out under Division 6.1A of the Family Law (Superannuation) Regulations 2001.
advance instalment of surcharge means the advance instalment payable under section 11 of the Superannuation Contributions Tax (Assessment and Collection) Act 1997.
AFCA (short for the Australian Financial Complaints Authority) has the same meaning as in Chapter 7 of the Corporations Act 2001.
AFCA scheme has the same meaning as in Chapter 7 of the Corporations Act 2001.
allocated pension means a pension that is provided under rules of a superannuation fund that meet the standards of subregulation 1.06(4).
allot, for Division 6.7, means to credit an amount from a member’s account to another account in the regulated superannuation fund held by, or created for, the receiving spouse otherwise than by transfer or roll‑over.
base amount payment split, in relation to a superannuation interest, means a payment split under which a base amount is allocated to the non‑member spouse in relation to the interest under Part VIIIB or VIIIC of the Family Law Act 1975.
benefit certificate has the meaning given by section 10 of the SG(A) Act.
capital gains tax exempt component has the same meaning as CGT exempt component in subsection 27A(1) of the Tax Act as in force immediately before 1 July 2007.
child contributions means contributions that are made to a regulated superannuation fund in respect of a child, other than:
(a) contributions made in respect of the child by, or on behalf of, an employer of the child; and
(b) contributions made by a child in respect of himself or herself.
Co‑contribution Act means the Superannuation (Government Co‑contribution for Low Income Earners) Act 2003.
commencement day, in relation to a pension or an annuity, means the first day of the period to which the first payment of the pension or annuity relates.
contributions, in relation to a fund, includes:
(a) payments of shortfall components to the fund; and
(b) payments to the fund from the Superannuation Holding Accounts Special Account;
but does not include benefits that have been rolled over or transferred to the fund.
deferred superannuation income stream means a benefit supported by a superannuation interest (within the meaning of the 1997 Tax Act) if the contract or rules for the provision of the benefit provides for payments of the benefit:
(a) to start more than 12 months after the superannuation interest is acquired; and
(b) to be made at least annually afterwards.
defined benefit fund, subject to regulation 1.03AAA, means:
(a) a public sector superannuation scheme that:
(i) is a regulated superannuation fund; and
(ii) has at least 1 defined benefit member; or
(b) a regulated superannuation fund (other than a public sector superannuation scheme):
(i) that has at least 1 defined benefit member; and
(ii) some or all of the contributions to which (out of which, together with earnings on those contributions, the benefits are to be paid) are not paid into a fund, or accumulated in a fund, in respect of any individual member but are paid into and accumulated in a fund in the form of an aggregate amount.
defined benefit interest has the meaning given by regulation 1.03AA.
defined benefit member means a member who is entitled, on retirement or termination of employment, to be paid a benefit defined wholly or in part by reference to:
(a) the member’s salary on retirement, termination of employment or an earlier date; or
(b) the member’s salary averaged over a period before retirement; or
(c) both (a) and (b); or
(d) a specified amount.
defined benefit pension means a pension mentioned in section 10 of the Act, other than:
(a) a pension wholly determined by reference to policies of life assurance purchased or obtained by the trustee of a regulated superannuation fund, solely for the purposes of providing benefits to members of that fund; or
(b) an allocated pension; or
(c) a market linked pension; or
(d) an account‑based pension.
defined benefit sub‑fund means a sub‑fund of a defined benefit fund that:
(a) has at least one defined benefit member; and
(b) satisfies the conditions mentioned in section 69A of the Act.
eligible rollover fund has the same meaning as in Part 24 of the Act.
Note: As to what is an eligible rollover fund for Part 24 of the Act, see section 242 of the Act and regulation 10.01.
eligible spouse contribution means a contribution made by an individual to a superannuation fund:
(a) to provide superannuation benefits for the individual’s spouse, whether or not the benefits would be payable to the dependants of the individual’s spouse if the spouse dies before or after becoming entitled to receive the benefits; and
(b) in circumstances in which the individual:
(i) could not have deducted the contribution under section 82AAC of the Tax Act in the 2006–07 income year or a previous year; and
(ii) cannot deduct the contribution under Subdivision 290‑B of the 1997 Tax Act in the 2007–08 income year or a later year.
eligible termination payment has the same meaning as in Subdivision AA of Division 2 of Part III of the Tax Act.
employer contribution, in relation to a regulated superannuation fund, means a contribution by, or on behalf of, an employer‑sponsor of the fund.
EPSSS means an exempt public sector superannuation scheme.
first half of the life expectancy period, for a benefit supported by a superannuation interest (within the meaning of the 1997 Tax Act), means the number of days in the period:
(a) starting on the retirement phase start day for the benefit; and
(b) ending when the number of days equal to the life expectancy period for the benefit divided by 2, and rounded down to the nearest whole number, have passed.
flag lifting agreement means a flag lifting agreement within the meaning of Part VIIIB or VIIIC of the Family Law Act 1975.
FSR commencement has the same meaning as in section 1410 of the Corporations Act 2001.
Note: The FSR commencement is the commencement of item 1 of Schedule 1 to the Financial Services Reform Act 2001.
full‑time, in relation to being gainfully employed, means gainfully employed for at least 30 hours each week.
gainfully employed means employed or self‑employed for gain or reward in any business, trade, profession, vocation, calling, occupation or employment.
growth phase has the meaning given by regulation 1.03AB.
Immigration Department means the Department administered by the Minister administering the Migration Act 1958.
industrial authority means:
(a) a court, or a tribunal or other body or person, constituted under a law of the Commonwealth, a State or a Territory with power of conciliation or arbitration in relation to industrial disputes; or
(b) a special board constituted under the law of a State relating to factories.
life expectancy has the same meaning as life expectation factor in section 27H of the Tax Act.
life expectancy period, for a benefit supported by a superannuation interest (within the meaning of the 1997 Tax Act), means the number of days in the complete expectation of life (as worked out using the prescribed Life Tables) on the retirement phase start day for the benefit of:
(a) if the primary beneficiary of the benefit is alive on the retirement phase start day for the benefit—the primary beneficiary; or
(b) otherwise—the person (if any) to whom the benefit was transferred because of the primary beneficiary’s death, if at the time of that death the person was eligible under paragraph 6.21(2)(b) to be paid a benefit.
lost member has the meaning given by regulation 1.03A.
lost RSA holder has the meaning given by regulation 1.06 of the RSA Regulations.
market linked annuity means an annuity provided under a contract that meets the standards of subregulation 1.05(10).
market linked income stream means an annuity provided under a contract that meets the standards of subregulation 1.05(10), or a pension paid under rules that meet the standards of subregulation 1.06(8).
market linked pension means a pension paid under rules that meet the standards of subregulation 1.06(8).
member, except in Part 2, means:
(a) in relation to an approved deposit fund—a depositor in the fund; and
(b) in relation to a regulated superannuation fund—a member of the fund; and
(c) in relation to a PST—a unit‑holder in the PST.
Note: The meaning of the term ‘member’ in Part 2 is defined in subregulation 2.01(2).
member spouse, in relation to a superannuation interest that is subject to a payment split, means the person who is the member spouse within the meaning of Part VIIIB or VIIIC of the Family Law Act 1975 in relation to the interest.
minimum requisite benefit, in relation to a member, means the benefit certified by an actuary in a relevant benefit certificate as the minimum benefit in respect of the member.
non‑member spouse, in relation to a superannuation interest that is subject to a payment split, means the person who is the non‑member spouse within the meaning of Part VIIIB or VIIIC of the Family Law Act 1975 in relation to the interest.
old Regulations means these Regulations as in force immediately before the FSR commencement.
operative time, for a payment split, means the operative time for the purposes of Part VIIIB or VIIIC (as the case may be) of the Family Law Act 1975 for the payment split.
part‑time, in relation to being gainfully employed, means gainfully employed for at least 10 hours, and less than 30 hours, each week
payment split means a payment split within the meaning of Part VIIIB or VIIIC of the Family Law Act 1975.
payment split notice means a notice given by a trustee under regulation 7A.03.
pension age:
(a) in relation to a person other than a person mentioned in paragraph (b)—has the meaning given by subsections 23(5A), (5B), (5C) or (5D) of the Social Security Act 1991; and
(b) in relation to a person who is a veteran within the meaning of the Veterans’ Entitlement Act 1986—has the meaning that it has in section 5QA of that Act.
percentage‑only interest means percentage‑only interest within the meaning of Part VIIIB or VIIIC of the Family Law Act 1975.
percentage payment split, in relation to a superannuation interest, means a payment split under a superannuation agreement, flag lifting agreement or splitting order that specifies a percentage that is to apply to all splittable payments in respect of the interest.
prescribed Life Tables means the Life Tables prescribed by section 7 of the Income Tax Assessment (1936 Act) Regulation 2015, as if references in that section to:
(a) an annuity included a reference to a benefit supported by a superannuation interest (within the meaning of the 1997 Tax Act); and
(b) the year in which the annuity first commences to be payable were a reference to the year that includes the retirement phase start day for the benefit.
protected member has the meaning given by regulation 1.03B.
PST means a pooled superannuation trust.
receiving spouse has the meaning given by regulation 6.46.
registered company auditor has the same meaning as in section 9 of the Corporations Act 2001.
relevant benefit certificate, in relation to a regulated superannuation fund, means a benefit certificate that relates to a defined benefit superannuation scheme (within the meaning of the SG(A) Act) of which the fund forms part.
relevant entity means:
(a) a public offer entity; or
(b) an approved deposit fund.
Note: The expression relevant entity is defined in the same terms as in section 22 of the Act.
reserves, in relation to a superannuation entity, means reserves maintained under section 115 of the Act.
retirement phase has the same meaning as in the 1997 Tax Act.
retirement phase start day, for a benefit supported by a superannuation interest (within the meaning of the 1997 Tax Act), means:
(a) if the benefit is a deferred superannuation income stream—the later of:
(i) the day the primary beneficiary satisfies a condition of release mentioned in item 101, 102, 102A, 103 or 106 of Schedule 1; and
(ii) the day the superannuation interest is acquired; or
(b) otherwise—the day that payments of the benefit start to be payable.
reviewable decision means:
(a) a decision of APRA under paragraph 1.05(2)(c) refusing to approve a sum payable as benefit; or
(b) a decision of the Regulator under paragraph 1.06(2)(c) refusing to approve a sum payable as benefit; or
(c) a decision of the Regulator refusing to approve the use of a factor under subregulation 1.08(2); or
(d) a decision of APRA under paragraph 4.08A(2)(e) refusing to approve an arrangement for management and control of a fund; or
(e) a decision of the Regulator under paragraph 4.12(2)(b), 6.27B(b) or 7A.16(8)(b) to not determine the form of consent; or
(f) a decision of APRA to refuse to suspend or vary an obligation of a trustee under subregulation 6.37(6); or
(g) a decision of the Regulator under subparagraph 7A.03J(2)(a)(ii) refusing to allow a longer period for a rollover or transfer of a non‑member spouse’s interest; or
(h) a decision of the Regulator under paragraph 7A.03K(2)(b) or 7A.13(7)(b) refusing to allow a longer period to pay a lump sum; or
(i) a decision of the Regulator under subparagraph 7A.12(4)(a)(ii) refusing to allow a longer period for rolling over or transferring transferable benefits; or
(j) a decision of the Regulator under paragraph 7A.16(3)(b) refusing to allow a longer period to allocate, rollover or transfer non‑member spouse entitlements; or
(k) a decision of the Regulator to give a direction to a trustee to obtain a new or a replacement funding and solvency certificate under subregulation 9.09(1A); or
(l) a decision of the Regulator under subregulation 9.24(2) refusing to approve an actuary’s recommendation for a defined benefit fund; or
(m) a decision of the Regulator under subregulation 9.44(2) refusing to approve an actuary’s recommendation for an accumulation fund; or
(n) a decision of APRA refusing to approve a proposed element of an actuarial basis for calculation of value A under subregulation 12.05(5) or (6); or
(o) a decision of APRA refusing to approve a proposed assumption or element of an actuarial basis for calculation of value B under subregulation 12.06(5); or
(p) a decision of APRA under regulation 12.08 to specify a day on or before which an application is to be made; or
(q) a decision of APRA refusing to approve an application to transfer a PJFC under subregulation 12.12(2) or 12.13(2); or
(r) a decision of APRA under regulation 12.14 to revoke an approval of an application to transfer a PJFC; or
(s) a decision of the Regulator refusing to consent to an alteration of accrued benefits under subparagraph 13.16(2)(a)(ii) or (d)(ii); or
(t) a decision of the Regulator to confirm or vary a reviewable decision under regulation 13.25.
RSA Act means the Retirement Savings Accounts Act 1997.
RSA holder has the same meaning given to the term holder in section 9 of the RSA Act.
RSA institution has the meaning given by section 11 of the RSA Act.
RSA Regulations means the Retirement Savings Accounts Regulations.
SG(A) Act means the Superannuation Guarantee (Administration) Act 1992.
shortfall component has the same meaning as in the SG(A) Act.
splittable payment means a splittable payment within the meaning of Part VIIIB or VIIIC of the Family Law Act 1975.
splitting order means a splitting order within the meaning of Part VIIIB or VIIIC of the Family Law Act 1975.
successor fund, in relation to a transfer of benefits of a member from a fund (called the original fund), means a fund which satisfies the following conditions:
(a) the fund confers on the member equivalent rights to the rights that the member had under the original fund in respect of the benefits;
(b) before the transfer, the trustee of the fund has agreed with the trustee of the original fund that the fund will confer on the member equivalent rights to the rights that the member had under the original fund in respect of the benefits.
superannuation agreement means a superannuation agreement within the meaning of Part VIIIB or VIIIC of the Family Law Act 1975.
superannuation contributions surcharge means the superannuation contributions surcharge imposed by the Superannuation Contributions Tax Imposition Act 1997.
Superannuation Holding Accounts Special Account means the Special Account established by section 8 of the Small Superannuation Accounts Act 1995.
superannuation income stream has the same meaning as in the 1997 Tax Act.
superannuation lump sum has the meaning given by subsection 995‑1(1) of the 1997 Tax Act.
Tax Act means the Income Tax Assessment Act 1936.
traditional life insurance policy means a life policy within the meaning of section 9 of the Life Insurance Act 1995 if:
(a) the policy includes an investment component; and
(b) the premium is not dissected (whether by reference to the investment component or otherwise); and
(c) the sum insured, together with bonuses (if any), is payable only on:
(i) the death of the life insured; or
(ii) the occurrence of the earlier of the death of the life insured and the attainment by the life insured of the age specified in the policy.
transferable benefits, in relation to a superannuation interest that is subject to a payment split and in relation to the non‑member spouse in relation to that interest, means benefits that are equal to:
(a) if the payment split is a base amount payment split and an adjusted base amount applies to the non‑member spouse when the benefits are transferred—the adjusted base amount less the amount of any fees payable by the non‑member spouse in respect of the payment split; or
(b) if the payment split is a base amount payment split and an adjusted base amount does not apply to the non‑member spouse when the benefits are transferred—the base amount allocated to the non‑member spouse, within the meaning of regulation 45 of the Family Law (Superannuation) Regulations 2001, less the amount of any fees payable by the non‑member spouse in respect of the payment split; or
(c) if the payment split is a percentage payment split:
(i) for an entitlement, in respect of an accumulation interest in the growth phase that is not a partially vested accumulation interest, to which subparagraph (ii) does not apply—the amount in relation to the interest at the time when the benefits are transferred, determined in the way in which a court would determine an amount in accordance with regulation 28 and subregulation 31(2A) of the Family Law (Superannuation) Regulations 2001, multiplied by the specified percentage, less the amount of any fees payable by the non‑member spouse in respect of the payment split; or
(ii) for an entitlement in respect of an interest in a self‑managed superannuation fund—the amount in relation to the interest at the time when the benefits are transferred, determined by a method that a court might use if the court were acting under paragraph 90XT(2)(b) or 90YY(2)(b) (as the case may be) of the Family Law Act 1975, multiplied by the specified percentage, less the amount of any fees payable by the non‑member spouse in respect of the payment split; or
(iii) for an entitlement in respect of any other interest—the amount in relation to the interest at the time when the benefits are transferred, determined in the way in which a court would determine an amount in accordance with the relevant method in Part 5 of the Family Law (Superannuation) Regulations 2001, multiplied by the specified percentage, less the amount of any fees payable by the non‑member spouse in respect of the payment split.
unfunded public sector superannuation scheme means a regulated superannuation fund that is declared to be an unfunded defined benefits superannuation scheme under regulation 2A of the Superannuation Contributions Tax (Assessment and Collection) Regulations 1997.
withdrawal benefit, in relation to a member of a superannuation entity, means the total amount of the benefits that would be payable to:
(a) the member; and
(b) the trustee of another superannuation entity or an EPSSS in respect of the member; and
(c) an RSA in respect of the member; and
(d) another person or entity because of a payment split in respect of the member’s interest in the superannuation entity;
if the member voluntarily ceased to be a member.
(2) In these Regulations, other than Part 2:
fund means:
(a) an approved deposit fund; or
(b) a regulated superannuation fund.
Note: For the meaning of fund in Part 2, see subregulation 2.01(3).
1.03A Lost member
(1) A member of a fund is taken to be a lost member at a particular time if:
(a) the member is uncontactable, that is, if and only if:
(i) either:
(A) the fund has never had an address (whether non‑electronic or electronic) for the member; or
(B) the trustee of the fund has made one or more attempts to send written communications to the member at the member’s last known address (or addresses), and the trustee believes, on reasonable grounds, that the member can no longer be contacted at any address known to the fund; and
(ia) the member has not contacted the fund (whether by written communication or otherwise) within the last 12 months of the member’s membership of the fund; and
(ib) the member has not accessed details about the member’s superannuation interest in the fund from any electronic facility provided by the fund within the last 12 months of the member’s membership of the fund; and
(ii) the fund has not received a contribution or rollover in respect of the member within the last 12 months of the member’s membership of the fund; or
(b) the member is an inactive member, that is, if and only if:
(i) he or she has been a member of the fund for longer than 2 years; and
(ia) he or she was, at the time he or she joined the fund, a person in respect of whom there was in effect a contribution arrangement of the kind referred to in subsection 16(5) of the Act (which deals with the definition of standard employer‑sponsored member); and
(ii) the fund has not received a contribution or rollover in respect of him or her within the last 5 years of his or her membership of the fund; or
(c) the member joined the fund from another fund or an EPSSS as a lost member; or
(ca) the member joined the fund from an RSA provider as a lost RSA holder;
unless:
(d) within the last 2 years of the member’s membership, the trustee of the fund has verified that the member’s address is correct and has no reason to believe that that address is now incorrect; or
(e) the member is permanently excluded from being a lost member.
(1A) To avoid doubt, for the purposes of this regulation, a written communication includes a written communication by non‑electronic means or by electronic means.
(2) For the purposes of subregulation (1), and subject to subregulation (3), a member of a fund is permanently excluded from being a lost member if:
(a) the member is an inactive member who has indicated by a positive act (for example, deferring a benefit in the fund) that he or she wishes to continue to be a member of the fund; or
(b) the member has contacted the fund at any time after the time at which he or she joined the fund and indicated that he or she wishes to continue being a member of the fund; or
(c) the member is a member of a self managed superannuation fund.
(3) The trustee of a fund may decide that:
(a) a member, a class of members, or all members of the fund cannot be permanently excluded from becoming lost members; or
(b) a member who is, a class of members who are, or all members of the fund who are permanently excluded from being lost is or are not to continue being permanently excluded from being lost.
Note: If a lost member is transferred to another fund or an EPSSS (the transferee fund), the trustee of the transferring fund must supply certain information about the member to the trustee of the transferee fund (see regulation 7.9.81 of the Corporations Regulations 2001).
Becoming a lost member may also have consequences regarding the information to be supplied to the member (see regulation 7.9.60A of, and Part 14 of Schedule 10A to, the Corporations Regulations 2001).
1.03AA Defined benefit interest
(1) A superannuation interest is a defined benefit interest if it is:
(a) an interest in an unfunded public sector superannuation scheme that has at least 1 defined benefit member; or
(b) an interest that entitles the member who holds the interest, when benefits in respect of the interest become payable, to be paid a benefit defined, wholly or in part, by reference to one or more of the following:
(i) the amount of:
(A) the member’s salary at the date of the termination of the member’s employment, the date of the member’s retirement, or another date; or
(B) the member’s salary averaged over a period; or
(C) salary, or allowance in the nature of salary, payable to another person (for example, a judicial officer, a member of the Commonwealth or a State Parliament, a member of the Legislative Assembly of a Territory);
(ii) a specified amount;
(iii) specified conversion factors.
(2) However, a superannuation interest is not a defined benefit interest if the only benefits defined by reference to any of the amounts or factors mentioned in subparagraphs (1)(b)(i) to (iii) are benefits payable on death or invalidity.
1.03AAA Defined benefit fund
For the following provisions, a fund is taken to be a defined benefit fund if at least one member of the fund receives a defined benefit pension:
(a) paragraph (c) of the definition of investment return in subregulation 5.01(1);
(b) subregulation 5.04(3);
(c) regulation 7.05;
(d) Divisions 9.3 to 9.5.
1.03AB Meaning of growth phase
(1) A superannuation interest is taken to be in the growth phase at a particular date if the member satisfies 1 of the following requirements at that date:
(a) the member has not satisfied a relevant condition of release;
(b) the member has satisfied a relevant condition of release but no benefit has been paid in respect of the superannuation interest, and no action has been taken by or for the member under the governing rules of the fund to cash any benefit that the member is entitled to be paid as a result of satisfying the condition of release;
(c) the member has satisfied a relevant condition of release and a benefit (other than a benefit that is paid as a pension) has been paid to or for the benefit of the member or, if the member has died, to his or her legal personal representative, but no action has been taken by or for the member, or his or her legal personal representative, under the governing rules of the fund to receive any other benefit that the member, or his or her estate, is entitled to be paid as a result of satisfying the condition of release.
(2) In this regulation:
relevant condition of release means a condition of release mentioned in item 101, 102, 103, 106, 108, 201, 202, 203 or 206 of Schedule 1.
1.03C Meaning of permanent incapacity
For subsection 10(1) of the Act, a member of a superannuation fund or an approved deposit fund is taken to be suffering permanent incapacity if a trustee of the fund is reasonably satisfied that the member’s ill‑health (whether physical or mental) makes it unlikely that the member will engage in gainful employment for which the member is reasonably qualified by education, training or experience.
1.04 Prescribed matters (Act, s 10)
(1) The purpose of this regulation is to prescribe matters for the purposes of various definitions in section 10 of the Act.
Defined benefit member
(2) For paragraph 10(1A)(b) of the Act, subregulations (3) and (3A) set out circumstances in which a member of a superannuation fund is to be taken to be a defined benefit member for section 20B, Part 2C or Part 6A of the Act.
(3) A circumstance is that the member:
(a) is a member of the scheme established under the Military Superannuation and Benefits Act 1991 (the military superannuation scheme); or
(b) holds an interest, as a non‑member spouse within the meaning of Part VIIIB or VIIIC of the Family Law Act 1975, in the military superannuation scheme; or
(c) has a preserved benefit in the military superannuation scheme; or
(d) has an ancillary account in the military superannuation scheme; or
(e) both:
(i) is a member of the scheme established under the Defence Force Retirement and Death Benefits Act 1973; and
(ii) has an ancillary account in the military superannuation scheme.
(3A) A circumstance is that the member:
(a) holds an interest, as a non‑member spouse within the meaning of Part VIIIB or VIIIC of the Family Law Act 1975, in a superannuation scheme established under the Superannuation Act 1976 or the Superannuation Act 1990; or
(b) has made an election under section 137 of the Superannuation Act 1976; or
(c) is a preserved benefit member within the meaning of the Public Sector Superannuation Scheme Trust Deed, as in force from time to time; or
(d) has either of the following in the scheme established under the Superannuation (State Public Sector) Act 1990 (Qld):
(i) a capital guaranteed interest in a voluntary preservation plan;
(ii) a deferred retirement benefit amount; or
(e) both:
(i) is covered by the Crown Employees (Fire and Rescue NSW Firefighting Staff Death and Disability) Award 2012 (the 2012 award) or by an award that replaces the 2012 award (a successor award); and
(ii) would be entitled, on the occurrence of an event mentioned in any of the following clauses, to a pension or lump sum mentioned in that clause:
(A) clause 7 of the 2012 award, or an equivalent clause of a successor award;
(B) clause 8 of the 2012 award, or an equivalent clause of a successor award;
(C) clause 10 of the 2012 award, or an equivalent clause of a successor award;
(D) clause 11 of the 2012 award, or an equivalent clause of a successor award.
Excluded approved deposit fund
(4) For the purposes of paragraph (b) of the definition of excluded approved deposit fund in section 10 of the Act, the following condition is specified, namely, that the fund must be:
(a) a fund established before 1 July 1994; or
(b) a fund that was established on or after 1 July 1994 using eligible termination payments (within the meaning of the Tax Act as in force when the fund was established) of the fund’s beneficiary that had an initial value of at least $400 000; or
(c) a fund that is established after 1 July 2007 using a superannuation lump sum or an employment termination payment (within the meaning of the 1997 Tax Act) of the fund’s beneficiary that had an initial value of at least $400 000.
Exempt public sector superannuation scheme
(4A) For the purposes of the definition of exempt public sector superannuation scheme in section 10 of the Act the schemes listed in Schedule 1AA are specified.
(4AA) A scheme that is listed, or established by or operated under legislation that is listed, in Schedule 1AA ceases to be an exempt public sector superannuation scheme at the time it is registered as a registrable superannuation entity under Division 2 of Part 2B of the Act.
(4B) If a scheme listed in Schedule 1AA is re‑named, the reference to that scheme includes the scheme as so re‑named.
(4C) Subregulation (4A) has effect in relation to a scheme specified in Part 1 of Schedule 1AA in respect of the 1994–95 and 1995–96 years of income of that scheme.
(4D) Subregulation (4A) applies in relation to a scheme specified in Part 2 of Schedule 1AA during the 1996‑97 year of income of that scheme.
(4E) Subregulation (4A) applies in relation to a scheme specified in Part 3 of Schedule 1AA during the 1997‑1998 year of income, and subsequent years of income, of that scheme.
Pooled superannuation trust
(5) For the purposes of paragraph (b) of the definition of pooled superannuation trust in section 10 of the Act, the definition applies to a unit trust that is:
(a) used only for investing the following kinds of assets:
(i) assets of a regulated superannuation fund;
(ii) assets of an approved deposit fund;
(iii) assets of a PST;
(iv) complying superannuation assets of a life insurance company within the meaning of the 1997 Tax Act;
(v) segregated exempt assets of a life insurance company within the meaning of the 1997 Tax Act; and
Note 1: PST is defined in regulation 1.03 to mean a pooled superannuation trust.
Note 2: Complying superannuation asset, life insurance company and segregated exempt assets are defined in subsection 995‑1(1) of the 1997 Tax Act.
(b) a resident unit trust within the meaning of section 102Q of the Tax Act; and
(c) a trust in relation to which each of the following circumstances applies:
(i) the trustee has confirmed in writing an intention to have the trust treated as a PST;
(ii) the confirmation was given to APRA, in the approved form, and signed and dated by the trustee;
(iii) the confirmation was given not later than:
(A) the time of lodgment, in accordance with subsection 36(1) of the Act, of the first return in relation to the trust after 12 July 2000 (the time of lodgment); or
(B) such later time as allowed, in writing, by APRA, either generally or in a particular case and whether allowed before or after the time of lodgment;
(iv) the confirmation has not been withdrawn.
(6) The trustee of a unit trust may confirm an intention under paragraph (5)(c) despite anything in the governing rules of the unit trust.
(7) The trustee of a unit trust mentioned in subregulation (6) must inform APRA in writing as soon as practicable after the unit trust ceases to be a PST because paragraph (5)(a) or (b) ceases to apply to the trust.
(8) The trustee may withdraw the confirmation of an intention under paragraph (5)(c) by giving to APRA a notice of the withdrawal that is signed and dated by the trustee.
1.04AAAA Interdependency relationships (Act s 10A)
(1) For paragraph 10A(3)(a) of the Act, the following matters are to be taken into account in determining whether 2 persons have an interdependency relationship, or had an interdependency relationship immediately before the death of 1 of the persons:
(a) all of the circumstances of the relationship between the persons, including (where relevant):
(i) the duration of the relationship; and
(ii) whether or not a sexual relationship exists; and
(iii) the ownership, use and acquisition of property; and
(iv) the degree of mutual commitment to a shared life; and
(v) the care and support of children; and
(vi) the reputation and public aspects of the relationship; and
(vii) the degree of emotional support; and
(viii) the extent to which the relationship is one of mere convenience; and
(ix) any evidence suggesting that the parties intend the relationship to be permanent;
(b) the existence of a statutory declaration signed by one of the persons to the effect that the person is, or (in the case of a statutory declaration made after the end of the relationship) was, in an interdependency relationship with the other person.
(2) For paragraph 10A(3)(b) of the Act, 2 persons have an interdependency relationship if:
(a) they satisfy the requirements of paragraphs 10A(1)(a) to (c) of the Act; and
(b) one or each of them provides the other with support and care of a type and quality normally provided in a close personal relationship, rather than by a mere friend or flatmate.
Examples of care normally provided in a close personal relationship rather than by a friend or flatmate:
1. Significant care provided for the other person when he or she is unwell.
2. Significant care provided for the other person when he or she is suffering emotionally.
(3) For paragraph 10A(3)(b) of the Act, 2 persons have an interdependency relationship if:
(a) they have a close personal relationship; and
(b) they do not satisfy the other requirements set out in subsection 10A(1) of the Act; and
(c) the reason they do not satisfy the other requirements is that they are temporarily living apart.
Example for paragraph (3)(c): One of the persons is temporarily working overseas or is in gaol.
(4) For paragraph 10A(3)(b) of the Act, 2 persons have an interdependency relationship if:
(a) they have a close personal relationship; and
(b) they do not satisfy the other requirements set out in subsection 10A(1) of the Act; and
(c) the reason they do not satisfy the other requirements is that either or both of them suffer from a disability.
(5) For paragraph 10A(3)(b) of the Act, 2 persons do not have an interdependency relationship if 1 of them provides domestic support and personal care to the other:
(a) under an employment contract or a contract for services; or
(b) on behalf of another person or organisation such as a government agency, a body corporate or a benevolent or charitable organisation.
1.04AAA Modified meaning of member (Act s 15B)
(1) This regulation applies if:
(a) a superannuation interest in a fund is subject to a payment split, or a non‑member spouse interest has been created under regulation 7A.03B; and
(b) the non‑member spouse in relation to the interest was not a member of the fund immediately before the operative time for the payment split.
(2) For the purposes of the provisions of the Act set out in Table 1, the non‑member spouse is to be treated as being a member of the fund in which the interest is held from the later of:
(a) the operative time for the payment split; and
(b) the time that the trustee receives the agreement or order under which the payment split is effected.
Table 1
| Item | Provision |
| 1 | subsection 17A, except subsection (5) (definition of self managed superannuation fund) |
| 2 | section 65 (lending to members of regulated superannuation fund prohibited) |
| 3 | Part 8 (in‑house asset rules applying to regulated superannuation funds) |
(3) For subsection 17A(5) of the Act, the non‑member spouse is to be treated as being a member of the fund in which the interest is held from the later of:
(a) the end of 6 months after the operative time for the payment split; and
(b) the end of 6 months after the time that the trustee receives the agreement or order under which the payment split is effected.
(4) For regulation 1.03A, the non‑member spouse is to be treated as being a member of the fund in which the interest is held from the operative time for the payment split.
(5) For subsection 17A(5) of the Act, a non‑member spouse who became a member of a fund as a result of the creation of a non‑member spouse interest under Division 7A.1A is not treated as a member of the fund until the earlier of:
(a) 6 months after the operative time for the payment split; and
(b) the time that the non‑member spouse’s interest in the fund is confirmed under regulation 7A.03H or 7A.03I.
1.04AA Self managed superannuation funds—persons not taken to be employees (Act s 17A(8))
(1) For the purposes of paragraph 17A(8)(b) of the Act, a class of persons is a specified class if it comprises persons each of whom is, in relation to a member of a superannuation fund, an exempt person mentioned in subregulation (2).
(2) A person is an exempt person in relation to a member of a superannuation fund if:
(a) the person is an employer‑sponsor of the fund; and
(b) the member is a director of the employer‑sponsor.
(3) For the purposes of paragraph 17A(8)(b) of the Act, a class of persons is a specified class if it comprises persons each of whom is a member of a superannuation fund in relation to which the following circumstances exist:
(a) the person is the employer, but not a relative, of a member of the fund (the employee);
(b) another member is the employer, and a relative, of that employee.
Part 1A—Annuities and pensions
Division 1A.1
1.05A Interpretation
In this Division, unless a contrary intention appears:
rolled over means paid as a superannuation lump sum within the superannuation system.
1.05 Meaning of annuity (Act, s 10)
(1) A benefit that is provided by a life insurance company or a registered organisation is taken to be an annuity for the purposes of the Act if:
(a) it arises under a contract that:
(i) meets the standards of subregulation (11A) or 1.06A(2); and
(ii) does not permit the capital supporting the annuity to be added to by way of contribution or rollover after the annuity has commenced; and
(b) for a benefit purchased on or after 3 August 1993 and before 1 July 2007—it is purchased with the whole or part of a rolled over amount within the meaning given to that term by section 27A of the Tax Act; and
(c) for a benefit purchased on or after 1 July 2007—it is purchased with the whole or part of:
(i) a roll‑over superannuation benefit within the meaning of the 1997 Tax Act; or
(ii) a directed termination payment within the meaning of the Income Tax (Transitional Provisions) Act 1997; and
(d) in the case of a contract to which paragraph (11A)(a) applies and that meets the standards of subregulation (11A)—the contract also meets the standards of regulation 1.07D; and
(e) in the case of a contract to which paragraph (11A)(b) applies and that meets the standards of subregulation (11A)—the contract also meets the standards of regulation 1.07B.
(1A) A benefit that is provided by a life insurance company or a registered organisation that commenced to be paid before 20 September 2007 is taken to be an annuity for the purposes of the Act if:
(a) it arises under a contract that meets the standards of subregulation (2), (4), (6), (7), (8), (9) or (10); and
(b) for a benefit purchased on or after 3 August 1993 and before 1 July 2007—it is purchased with the whole or part of a rolled over amount within the meaning given to that term by section 27A of the Tax Act; and
(c) for a benefit purchased on or after 1 July 2007 and before 20 September 2007—it is purchased with the whole or part of:
(i) a roll‑over superannuation benefit within the meaning of the 1997 Tax Act; or
(ii) a directed termination payment within the meaning of the Income Tax (Transitional Provisions) Act 1997; and
(d) for a benefit that arises under a contract that meets the standards of subregulation (9) and is purchased by the primary beneficiary on or after 20 September 1998—the commencement day under the contract is the day when the benefit was purchased; and
(e) for a benefit that arises under a contract that meets the standards of subregulation (4)—the contract also meets the standards of regulation 1.07A; and
(f) for a benefit that arises under a contract that meets the standards of subregulation (2), (6), (7) or (9)—the contract also meets the standards of regulation 1.07B; and
(g) for a benefit that arises under a contract that meets the standards of subregulation (8):
(i) the benefit can be taken to consist of two benefits:
(A) an annuity that arises from that part of the contract that provides for payments whose size is not fixed; and
(B) an annuity that arises from that part of the contract that provides for payments whose size in a year is fixed; and
(ii) the contract meets the standards of regulation 1.07A in relation to the annuity mentioned in sub‑subparagraph (i)(A); and
(iii) the contract meets the standards of regulation 1.07B in relation to the annuity mentioned in sub‑subparagraph (i)(B); and
(h) for a benefit that arises under a contract that meets the standards of subregulation (10), and has a commencement day on or after 20 September 2004—the contract also meets the standards of regulation 1.07C.
(1B) A benefit provided by a life insurance company or registered organisation that commenced to be paid on or after 20 September 2007 is taken to be an annuity for the purposes of the Act if:
(a) the benefit arises under a contract that meets the standards of:
(i) subregulation 1.05(9) or (10); and
(ii) subregulation 1.05(11A); and
(b) the benefit was purchased with a rollover superannuation benefit that resulted from the commutation of:
(i) an annuity provided under a contract that meets the standards of subregulation 1.05(2), (9) or (10); or
(ii) a pension provided under rules that meet the standards of subregulation 1.06(2), (7) or (8); or
(iii) a pension provided under terms and conditions that meet the standards of subregulation 1.07(3A) of the RSA Regulations; and
(c) for a benefit that arises under a contract that meets the standards of subregulation (9)—the contract also meets the standards of regulation 1.07B; and
(d) for a benefit that arises under a contract that meets the standards of subregulation (10)—the contract also meets the standards of regulation 1.07C.
(2) A contract for the provision of a benefit (in this subregulation called the annuity) meets the standards of this subregulation if it ensures that:
(a) the annuity is paid at least annually throughout the life of the primary beneficiary in accordance with paragraphs (b) and (c) and, if there is a reversionary beneficiary:
(i) throughout the reversionary beneficiary’s life; or
(ii) if he or she is a child of the primary beneficiary or of a former reversionary beneficiary under the annuity—at least until his or her 16th birthday; or
(iii) if the person referred to in subparagraph (ii) is a full‑time student at age 16—at least until the end of his or her full‑time studies or until his or her 25th birthday (whichever occurs sooner); and
(b) the size of payments of benefit in a year is fixed, allowing for variation only:
(i) as specified in the contract; or
(ii) to allow commutation to pay a superannuation contributions surcharge; or
(iii) to allow an amount to be paid under a payment split and reasonable fees in respect of the payment split to be charged; and
(c) unless APRA otherwise approves, the sum payable as benefit in each year to the primary beneficiary or to the reversionary beneficiary, as the case may be, is:
(i) if CPIc is not less than CPIp—not less than SPp; or
(ii) if CPIc is less than CPIp—not less than:
where:
CPIc means the quarterly CPI first published by the Australian Statistician for the second‑last quarter before the day on which payment is to be made.
CPIp means the quarterly CPI first published by the Australian Statistician for the same quarter in the immediately preceding year.
SPp means the sum payable in the immediately preceding year;
and
(d) the amount paid as the purchase price is wholly converted into annuity income; and
(e) the annuity does not have a residual capital value; and
(f) the annuity cannot be commuted except in any of the following circumstances:
(i) the annuity is not funded from the commutation of:
(A) an annuity that meets the standards of this subregulation or subregulation (3), (9) or (10); or
(B) a pension that meets the standards of subregulation 1.06(2), (3), (7) or (8); or
(C) a pension that meets the standards of subregulation 1.07(3A) of the RSA Regulations;
and the commutation is made within 6 months after the commencement day of the annuity;
(ii) the commutation is made to the benefit of a reversionary beneficiary on the death of the primary beneficiary and within one of the following periods after the commencement day of the annuity:
(A) if the primary beneficiary’s life expectancy on the commencement day, rounded up to the next whole number, is a period less than 20 years—that period;
(B) in any other case—20 years;
(iii) the superannuation lump sum resulting from the commutation is transferred directly for the purpose of purchasing another benefit provided under:
(A) a contract that meets the standards of this subregulation or subregulation (3), (9) or (10); or
(B) rules that meet the standards of subregulation 1.06(2), (3), (7) or (8); or
(C) terms and conditions that meet the standards of subregulation 1.07(3A) of the RSA Regulations;
(iv) to pay a superannuation contributions surcharge;
(v) to give effect to an entitlement of a non‑member spouse under a payment split;
(vi) for the purpose of paying an amount under Division 131 or 135 in Schedule 1 to the Taxation Administration Act 1953, or section 292‑80C of the Income Tax (Transitional Provisions) Act 1997, to give effect to a release authority in respect of the primary beneficiary;
(vii) the annuity was commenced in contravention of Part 6 and the commutation would result in an obligation to pay an amount to the Commissioner of Taxation under subsection 20F(1) of the Superannuation (Unclaimed Money and Lost Members) Act 1999; and
(g) if the annuity reverts or is commuted, it does not have a reversionary component greater than 100% of the benefit that was payable before the reversion or the commutation; and
(h) the annuity cannot be transferred to a person other than a reversionary beneficiary on the death of the primary beneficiary or of another reversionary beneficiary; and
(i) the capital value of the annuity, and the income from it, cannot be used as security for a borrowing.
(3) For the purpose of determining whether an annuity meets the standards in subregulation (2), it is immaterial that:
(a) if the primary beneficiary dies within the period used for subparagraph (2)(f)(ii), a surviving reversionary beneficiary may obtain a payment equal to the total payments that the primary beneficiary would have received, if the primary beneficiary had not died, from the day of the death until the end of the period; and
(b) if the primary beneficiary dies within the period used for subparagraph (2)(f)(ii) and there is no surviving reversionary beneficiary, an amount, not exceeding the difference between the sum of the amounts paid to the primary beneficiary and the sum of the amounts that would have been so payable in the period, is payable to the primary beneficiary’s estate; and
(c) if the primary beneficiary dies within the period used for subparagraph (2)(f)(ii) and there is a surviving reversionary beneficiary who also dies within that period, there is payable to the reversionary beneficiary’s estate an amount determined as described in paragraph (b) as if that paragraph applied to the reversionary beneficiary.
(4) A contract for the provision of a benefit (in this subregulation called the annuity):
(a) that does not meet the standards in subregulation (2); and
(b) that does not fix the size of payments of benefit in a year; and
(c) under which the commencement day is on or after 22 December 1992;
meets the standards of this subregulation if the contract at least ensures that:
(d) the standards in paragraphs (2)(h) and (i) are met; and
(e) payments are made at least annually; and
(f) for an annuity that has a commencement day on or after 22 December 1992 and before 1 January 2006—the payments in a year (excluding payments by way of commutation but including payments made under a payment split) are not larger or smaller in total than, respectively, the maximum and minimum limits calculated in accordance with Schedule 1A; and
(g) for an annuity that has a commencement day on or after 1 January 2006—the payments in a year (excluding payments by way of commutation but including payments made under a payment split) are not larger or smaller in total than the following:
(i) for payments made during the period starting on 1 January 2006 and ending on 30 June 2006—the respective maximum and minimum limits for the year calculated in accordance with 1 of the following Schedules:
(A) Schedule 1A;
(B) Schedule 1AAB;
(ii) for payments made on or after 1 July 2006—the respective maximum and minimum limits for the year calculated in accordance with Schedule 1AAB.
Note: 22 December 1992 was the date of Royal Assent to the Taxation Laws Amendment (Superannuation) Act 1992.
(5) For the purpose of determining whether an annuity meets the standards in subregulation (4), it is immaterial:
(a) that:
(i) the commencement day of the annuity occurs on or after 1 June in a financial year; and
(ii) the contract does not ensure that payments in that financial year meet the standard in that subregulation for the minimum amount; or
(b) that the contract does not ensure that the payments in the year in which the annuity is to end meet the standard in that subregulation for the minimum amount.
(6) A contract for the provision of a benefit (in this subregulation called the annuity):
(a) that does not meet the standards of subregulation (2); and
(b) that fixes the size of the payments of benefit in a year, allowing for variation only as specified in the contract or to allow payments to be made under a payment split; and
(c) under which the commencement day is on or after 1 July 1994;
meets the standards of this subregulation if the contract at least ensures that:
(d) the standards in paragraphs (2)(g), (h) and (i) are met; and
(e) except in relation to payments, by way of commutation, for superannuation contributions surcharge, variation in payments from year to year does not exceed, in any year, the average rate of increase of the CPI in the preceding 3 years; and
(f) payments in accordance with paragraph (b) are made at least annually; and
(g) the amount paid as the purchase price is wholly converted into annuity income.
(7) A contract for the provision of a benefit (in this subregulation called the annuity) that:
(a) does not meet the standards of subregulation (2); and
(b) provides for payments whose size in a year is fixed, allowing for variation only as specified in the contract; and
(c) provides for additional payments (in this subregulation called bonus payments);
(d) the commencement day of which is on or after 1 July 1994;
meets the standards of this subregulation if it at least ensures that:
(e) in respect of the fixed‑size payments—the standards in subregulation (6) are met; and
(f) the fixed‑size payments amount to at least 50% of:
(i) if the provider provides annuities of the kind specified in subregulation (6)—the amount that would be payable if the annuity were wholly of that kind; or
(ii) if the provider does not provide annuities of the kind specified in subregulation (6)—the fixed‑size payments are at least equal in amount to 50% of the interest payable on Commonwealth bonds that have the same value as the purchase price of the annuity and that most closely correspond in term to the term of the annuity; and
(g) the amounts of the bonus payments (if any) are reasonably proportional to the investment income from which the payments purport to be derived; and
(h) the amount of a bonus payment (if any) is notified in writing by the provider each year and is paid to the beneficiary in the year next following (except when deferral of the payment would not result, in any future year, in the rate of increase in size of the total payments for the year exceeding the average rate of increase of the CPI in the preceding 3 years).
(8) A contract for the provision of a benefit (in this subregulation called the annuity):
(a) that does not meet all the standards in any other provision of this regulation; and
(b) under which the commencement day is on or after 22 December 1992; and
(c) that provides for:
(i) payments whose size in a year is fixed, allowing for variation only as specified in the contract; and
(ii) additional payments whose size is not fixed, derived from the application of part of the purchase price to investments by allocation of the annuity provider;
meets the standards of this subregulation if it at least ensures that:
(d) in respect of fixed‑size payments—if the commencement day is on or after 1 July 1994, the standards in subregulation (6) are met; and
(e) in respect of payments whose size is not fixed—the standards in subregulation (4) are met.
Note: 22 December 1992 was the date of Royal Assent to the Taxation Laws Amendment (Superannuation) Act 1992.
(9) A contract for the provision of a benefit (in this subregulation called the annuity) meets the standards of this subregulation if the contract ensures that:
(a) for an annuity that has a commencement day before 20 September 2004:
(i) if the life expectancy of the primary beneficiary on the commencement day is less than 15 years—the annuity is paid at least annually to the primary beneficiary or to a reversionary beneficiary throughout a period equal to the primary beneficiary’s life expectancy on the commencement day, rounded up, at the primary beneficiary’s option, to the next whole number if the primary beneficiary’s life expectancy does not consist of a whole number of years; or
(ii) if the life expectancy of the primary beneficiary on the commencement day is 15 years or more—the annuity is paid at least annually to the primary beneficiary or to a reversionary beneficiary throughout a period that is not less than 15 years but not more than the primary beneficiary’s life expectancy on the commencement day, rounded up, at the primary beneficiary’s option, to the next whole number if the primary beneficiary’s life expectancy does not consist of a whole number of years; and
(b) for an annuity that has a commencement day on or after 20 September 2004:
(i) the annuity is paid at least annually to the primary beneficiary or to a reversionary beneficiary throughout a period equal to the primary beneficiary’s life expectancy on the commencement day, rounded up to the next whole number if the primary beneficiary’s life expectancy does not consist of a whole number of years; or
(ii) the annuity is paid at least annually to the primary beneficiary or to a reversionary beneficiary throughout a period equal to the primary beneficiary’s life expectancy mentioned in subparagraph (i) calculated, at the option of the primary beneficiary, as if the primary beneficiary were up to 5 years younger on the commencement day; or
(iia) if the annuity has a commencement day on or after 1 January 2006—the annuity is paid at least annually to the primary beneficiary or reversionary beneficiary throughout a period that is not less than the period available under subparagraph 1.05(9)(b)(i), and not more than the greater of the following periods:
(A) the maximum period available under subparagraph 1.05(9)(b)(ii);
(B) the period of years equal to the number that is the difference between the age attained by the primary beneficiary at his or her most recent birthday before the commencement day, and 100; or
(iii) if:
(A) the annuity is an annuity that reverts to a surviving spouse on the death of the primary beneficiary; and
(B) the life expectancy of the primary beneficiary’s spouse is greater than the life expectancy of the primary beneficiary; and
(C) the primary beneficiary has not chosen to make an arrangement mentioned in subparagraph (i), (ii) or (iia) for the annuity;
the annuity is paid at least annually to the primary beneficiary or to a reversionary beneficiary throughout a period equal to:
(D) the life expectancy of the spouse on the commencement day; or
(E) the life expectancy of the spouse calculated, at the option of the primary beneficiary, as if the spouse were up to 5 years younger on the commencement day; or
(F) if the annuity has a commencement day on or after 1 January 2006—a period that is not less than the period available under sub‑subparagraph 1.05(9)(b)(iii)(D), and not more than the greater of the following periods:
(I) the maximum period available under sub‑subparagraph 1.05(9)(b)(iii)(E);
(II) the period of years equal to the number that is the difference between the age attained by the spouse at his or her most recent birthday before the commencement day, and 100;
at the option of the primary beneficiary, and rounded up to the next whole number if the life expectancy of the spouse, or the period, does not consist of a whole number of years; and
(c) the total amount of the payment, or payments, to be made in the first year after the commencement day (not taking commuted amounts into account) is fixed and that payment, or the first of those payments, relates to the period commencing on the day the benefit was purchased; and
(d) the total amount of the payments to be made in a year other than the first year after the commencement day (not taking commuted amounts into account) does not fall below the total amount of the payments made in the immediately preceding year (the previous total), and does not exceed the previous total:
(i) if CPIc is less than or equal to 4%—by more than 5% of the previous total; or
(ii) if CPIc is more than 4%—by more than CPIc + 1%;
where:
CPIc is the change (if any), expressed as a percentage, determined by comparing the quarterly CPI first published by the Australian Statistician for the second‑last quarter before the day on which the first of those payments is to be made and the quarterly CPI first published by the Australian Statistician for the same quarter in the immediately preceding year;
and
(e) the total amount of the payments to be made in a year in accordance with paragraph (c) or (d) may be varied only:
(i) to allow commutation to pay a superannuation contributions surcharge; or
(ii) to allow an amount to be paid under a payment split and reasonable fees to be charged in respect of the payment split; or
(iii) to allow commutation in order to comply with section 136‑80 in Schedule 1 to the Taxation Administration Act 1953; and
(f) the amount paid as the purchase price is wholly converted into annuity income; and
(g) the annuity does not have a residual capital value; and
(h) the annuity cannot be commuted except in any of the following circumstances:
(i) the annuity is not funded from the commutation of:
(A) an annuity that meets the standards of this subregulation or subregulation (2), (3) or (10); or
(B) a pension that meets the standards of subregulation 1.06(2), (3), (7) or (8); or
(C) a pension that meets the standards of subregulation 1.07(3A) of the RSA Regulations;
and the commutation is made within 6 months after the commencement day of the annuity;
(ii) subject to subparagraph (iv), by payment, on the death of the primary beneficiary, to the benefit of a reversionary beneficiary or, if there is no reversionary beneficiary, to the estate of the primary beneficiary;
(iii) subject to subparagraph (iv), by payment, on the death of a reversionary beneficiary, to the benefit of another reversionary beneficiary or, if there is no other reversionary beneficiary, to the estate of the reversionary beneficiary;
(iv) for subparagraphs (ii) and (iii), if the primary beneficiary has opted, under subparagraph (b)(iii), for a period worked out in relation to the life expectancy or age of the primary beneficiary’s spouse—the annuity cannot be commuted until the death of both the primary beneficiary and the spouse;
(v) the superannuation lump sum resulting from the commutation is transferred directly to the purchase of another benefit that is:
(A) an annuity provided under a contract that meets the standards of subregulation (2), (3) or (10) or this subregulation; or
(B) a pension that is provided under rules that meet the standards of subregulation 1.06(2), (3), (7) or (8); or
(C) a pension that is provided under terms and conditions that meet the standards of subregulation 1.07(3A) of the RSA Regulations;
(vi) to pay a superannuation contributions surcharge;
(vii) to give effect to an entitlement of a non‑member spouse under a payment split;
(viii) for the purpose of paying an amount under Division 131 or 135 in Schedule 1 to the Taxation Administration Act 1953, or section 292‑80C of the Income Tax (Transitional Provisions) Act 1997, to give effect to a release authority in respect of the primary beneficiary;
(ix) the annuity was commenced in contravention of Part 6 and the commutation would result in an obligation to pay an amount to the Commissioner of Taxation under subsection 20F(1) of the Superannuation (Unclaimed Money and Lost Members) Act 1999;
(x) in order to comply with section 136‑80 in Schedule 1 to the Taxation Administration Act 1953; and
(i) if the annuity reverts, it does not have a reversionary component greater than 100% of the benefit that was payable before the reversion; and
(j) if the annuity is commuted, the commuted amount cannot exceed the benefit that was payable immediately before the commutation; and
(k) the annuity cannot be transferred to a person except:
(i) on the death of the primary beneficiary, to a reversionary beneficiary or, if there is no reversionary beneficiary, to the estate of the primary beneficiary; or
(ii) on the death of a reversionary beneficiary, to another reversionary beneficiary or, if there is no other reversionary beneficiary, to the estate of the reversionary beneficiary; and
(l) the capital value of the annuity, and the income from it, cannot be used as security for a borrowing.
(10) A contract for the provision of a benefit (market linked annuity) meets the standards of this subregulation if the contract ensures that:
(a) the market linked annuity:
(i) is paid at least annually to the primary beneficiary or to a reversionary beneficiary throughout a period equal to the primary beneficiary’s life expectancy on the commencement day of the annuity, rounded up to the next whole number if the primary beneficiary’s life expectancy does not consist of a whole number of years; or
(ii) is paid at least annually to the primary beneficiary or to a reversionary beneficiary throughout a period equal to the primary beneficiary’s life expectancy mentioned in subparagraph (i) calculated, at the option of the primary beneficiary, as if the primary beneficiary were up to 5 years younger on the commencement day; or
(iia) if the annuity has a commencement day on or after 1 January 2006—the annuity is paid at least annually to the primary beneficiary or reversionary beneficiary throughout a period that is not less than the period available under subparagraph 1.05(10)(a)(i), and not more than the greater of the following periods:
(A) the maximum period available under subparagraph 1.05(10)(a)(ii);
(B) the period of years equal to the number that is the difference between the age attained by the primary beneficiary at his or her most recent birthday before the commencement day, and 100; or
(iii) if:
(A) the annuity is an annuity that reverts to a surviving spouse on the death of the primary beneficiary; and
(B) the life expectancy of the primary beneficiary’s spouse is greater than the life expectancy of the primary beneficiary; and
(C) the primary beneficiary has not chosen to make an arrangement mentioned in subparagraph (i), (ii) or (iia) for the annuity;
the annuity is paid at least annually to the primary beneficiary or to a reversionary beneficiary throughout a period equal to:
(D) the life expectancy of the spouse on the commencement day; or
(E) the life expectancy of the spouse calculated, at the option of the primary beneficiary, as if the spouse were up to 5 years younger on the commencement day; or
(F) if the annuity has a commencement day on or after 1 January 2006—a period that is not less than the period available under sub‑subparagraph 1.05(10)(a)(iii)(D), and not more than the greater of the following periods:
(A) the maximum period available under sub‑subparagraph 1.05(10)(a)(iii)(E);
(B) the period of years equal to the number that is the difference between the age attained by the spouse at his or her most recent birthday before the commencement day, and 100;
at the option of the primary beneficiary, and rounded up to the next whole number if the life expectancy of the spouse, or the period, does not consist of a whole number of years; and
(b) the total amount of the payments to be made in a year (excluding payments by way of commutation but including payments made under a payment split) is determined in accordance with Schedule 6; and
(c) the market linked annuity does not have a residual capital value; and
(d) the market linked annuity cannot be commuted except in any of the following circumstances:
(i) the annuity is not funded from the commutation of:
(A) another annuity that is provided under a contract that meets the standards of subregulation (2), (3) or (9) or this subregulation; or
(B) a pension that is provided under rules that meet the standards of subregulation 1.06(2), (3), (7) or (8); or
(C) a pension that is provided under terms and conditions that meet the standards of subregulation 1.07(3A) of the RSA Regulations;
and the commutation is made within 6 months after the commencement day of the annuity;
(ii) subject to subparagraph (iii), on the death of the primary beneficiary or reversionary beneficiary, by payment of:
(A) a lump sum or a new annuity to one or more dependants of either the primary beneficiary or reversionary beneficiary; or
(B) a lump sum to the legal personal representative of either the primary beneficiary or reversionary beneficiary; or
(C) if, after making reasonable enquiries, the provider of the annuity is unable to find a person mentioned in sub‑subparagraph (A) or (B)—a lump sum to another individual;
(iii) for subparagraph (ii), if the primary beneficiary has opted, under subparagraph (a)(iii), for a period worked out in relation to the life expectancy or age of the primary beneficiary’s spouse—the market linked annuity cannot be commuted until the death of both the primary beneficiary and the spouse;
(iv) the superannuation lump sum resulting from the commutation is transferred directly to the purchase of another benefit that is:
(A) an annuity provided under a contract that meets the standards of subregulation 1.05(2), (3) or (9) or this subregulation; or
(B) a pension that is provided under rules that meet the standards of subregulation 1.06(2), (3), (7) or (8); or
(C) a pension that is provided under terms and conditions that meet the standards of subregulation 1.07(3A) of the RSA Regulations;
(v) to pay a superannuation contributions surcharge;
(vi) to give effect to an entitlement of a non‑member spouse under a payment split;
(vii) for the purpose of paying an amount under Division 131 or 135 in Schedule 1 to the Taxation Administration Act 1953, or section 292‑80C of the Income Tax (Transitional Provisions) Act 1997, to give effect to a release authority in respect of the primary beneficiary;
(viii) the annuity was commenced in contravention of Part 6 and the commutation would result in an obligation to pay an amount to the Commissioner of Taxation under subsection 20F(1) of the Superannuation (Unclaimed Money and Lost Members) Act 1999;
(ix) in order to comply with section 136‑80 in Schedule 1 to the Taxation Administration Act 1953; and
(e) if the market linked annuity reverts, it does not have a reversionary component greater than 100% of the account balance immediately before the reversion; and
(f) if the market linked annuity is commuted, the commutation amount cannot exceed the account balance immediately before the commutation; and
(g) the market linked annuity can be transferred only:
(i) on the death of the primary beneficiary:
(A) to 1 of the dependants of the primary beneficiary; or
(B) to the legal personal representative of the primary beneficiary; or
(ii) on the death of the reversionary beneficiary:
(A) to 1 of the dependants of the reversionary beneficiary; or
(B) to the legal personal representative of the reversionary beneficiary; and
(h) the capital value of the market linked annuity, and the income from it, cannot be used as security for a borrowing.
(11) A contract mentioned in subregulation (10) is not prevented from meeting the standards of that subregulation by reason only that the contract provides that, if the commencement day of the annuity is on or after 1 June in a financial year, no payment is required to be made for that financial year.
(11A) A contract for the provision of a benefit (the annuity) meets the standards of this subregulation if the contract ensures that payment of the annuity is made at least annually, and also ensures that:
(a) for an annuity in relation to which there is an account balance attributable to the annuitant—the total of payments in any year (excluding payments by way of commutation but including payments under a payment split) is at least the amount calculated under clause 1 of Schedule 7; and
(b) for an annuity that is not described in paragraph (a):
(i) both of the following apply:
(A) the contract does not provide for a residual capital value, commutation value or withdrawal benefit greater than 100% of the purchase price of the annuity;
(B) the total of payments in any year (excluding payments by way of commutation but including payments under a payment split) is at least the amount calculated under clause 2 of Schedule 7; or
(ii) each of the following applies:
(A) the annuity is payable throughout the life of the beneficiary (primary or reversionary), or for a fixed term of years that is no greater than the difference between the primary beneficiary’s age on the commencement day and age 100;
(B) the amount paid as the purchase price is wholly converted into annuity payments;
(C) there is no arrangement for an amount (or a percentage of the purchase price) prescribed by the contract to be returned to the recipient when the annuity ends;
(D) the total of payments from the annuity in the first year (excluding payments by way of commutation but including payments under a payment split) is at least the amount calculated under clause 2 of Schedule 7;
(E) the total of payments from the annuity in a subsequent year cannot vary from the total of payments in the previous year unless the variation is as a result of an indexation arrangement or the transfer of the annuity to another person;
(F) if the annuity is commuted, the commutation amount cannot exceed the benefit that was payable immediately before the commutation; or
(iii) the standards of subregulation (2) are met; and
(c) the annuity is transferable to another person only on the death of the beneficiary (primary or reversionary, as the case may be); and
(d) the capital value of the annuity and the income from it cannot be used as a security for a borrowing.
(11B) A contract for the provision of a benefit does not meet the standards of any of subregulations (2) to (11A) if, in relation to the death of the annuity recipient on or after 1 July 2007, the annuity is transferred or paid to a person who would not be eligible to be paid a benefit in the form of an annuity under paragraph 6.21(2)(b) or subregulation 6.21(2A) or (2B).
(12) Despite section 7 of the Income Tax Assessment (1936 Act) Regulation 2015, for an annuity that has a commencement day on or after 20 September 2004 and on or before 31 December 2004, one of the following life tables are to be used in ascertaining the life expectancy of a person under this regulation:
(a) the most recently published Australian Life Tables;
(b) the 1995‑97 Australian Life Tables.
(13) In this regulation:
indexation arrangement, in relation to an annuity, means an arrangement specified in the contract for the provision of the annuity that:
(a) results in the total amount of annuity payments in each year:
(i) increasing by the same percentage factor; or
(ii) being adjusted in line with movements in the Consumer Price Index; or
(iii) being adjusted in line with movements in an index of average weekly earnings published by the Australian Statistician; or
(iv) being adjusted in accordance with subparagraph (ii) or (iii) but with an increase capped at a maximum level; and
(b) ensures that, unless APRA otherwise approves, an adjustment is made at least annually to the amount of the annuity payments.
1.06 Meaning of pension (Act, s 10)
(1) A benefit is taken to be a pension for the purposes of the Act if:
(a) it is provided under rules of a superannuation fund that:
(i) meet the standards of subregulation (9A) or 1.06A(2); and
(ii) do not permit the capital supporting the pension to be added to by way of contribution or rollover after the pension has commenced; and
(b) in the case of rules to which paragraph (9A)(a) applies and that meet the standards of subregulation (9A)—the rules also meet the standards of regulation 1.07D; and
(c) in the case of rules to which paragraph (9A)(b) applies and that meet the standards of subregulation (9A)—the rules also meet the standards of regulation 1.07B.
(1A) A benefit that commenced to be paid before 20 September 2007 is taken to be a pension for the purposes of the Act if:
(a) it is provided under rules of a superannuation fund that meet the standards of subregulation (2), (4), (6), (7) or (8); and
(b) where the primary beneficiary became entitled to the benefit on or after 20 September 1998 under rules of a superannuation fund that meet the standards of subregulation (7)—those rules provide that the commencement day is the day when the primary beneficiary became entitled to the pension; and
(c) for a benefit that is provided under rules of a superannuation fund that meet the standards of subregulation (4)—the rules also meet the standards of regulation 1.07A; and
(d) for a benefit that is provided under rules of a superannuation fund that meet the standards of subregulation (2), (6) or (7)—the rules also meet the standards of regulation 1.07B; and
(e) for a benefit that is provided under rules of a superannuation fund that meet the standards of subregulation (8), and has a commencement day on or after 20 September 2004—the rules also meet the standards of regulation 1.07C.
(1B) A benefit that commenced to be paid on or after 20 September 2007 is taken to be a pension for the purposes of the Act if:
(a) the benefit arises under rules of a superannuation fund that meet the standards of:
(i) subregulation 1.06(7) or (8); and
(ii) subregulation 1.06(9A); and
(b) the benefit was purchased with a rollover superannuation benefit that resulted from the commutation of:
(i) an annuity provided under a contract that meets the standards of subregulation 1.05(2), (9) or (10); or
(ii) a pension provided under rules that meet the standards of subregulation 1.06(2), (7) or (8); or
(iii) a pension provided under terms and conditions that meet the standards of subregulation 1.07(3A) of the RSA Regulations; and
(c) for a benefit that arises under rules that meet the standards of subregulation (7)—the rules also meet the standards of regulation 1.07B; and
(d) for a benefit that arises under rules that meet the standards of subregulation (8)—the rules also meet the standards of regulation 1.07C.
(2) Rules meet the standards of this subregulation if they ensure that:
(a) the pension is paid at least annually throughout the life of the primary beneficiary in accordance with paragraphs (b) and (c) and, if there is a reversionary beneficiary:
(i) throughout the reversionary beneficiary’s life; or
(ii) if he or she is a child of the primary beneficiary or of a former reversionary beneficiary under the pension—at least until his or her 16th birthday; or
(iii) if the person referred to in subparagraph (ii) is a full‑time student at age 16—at least until the end of his or her full‑time studies or until his or her 25th birthday (whichever occurs sooner); and
(b) the size of payments of benefit in a year is fixed, allowing for variation only:
(i) as specified in the governing rules; or
(ii) to allow commutation to pay a superannuation contributions surcharge; or
(iii) to allow an amount to be paid under a payment split and reasonable fees in respect of the payment split to be charged; and
(c) unless the Regulator otherwise approves, the sum payable as benefit in each year to the primary beneficiary or to the reversionary beneficiary, as the case may be, is:
(i) if CPIc is not less than CPIp—not less than SPp; or
(ii) if CPIc is less than CPIp—not less than:
where:
CPIc means the quarterly CPI first published by the Australian Statistician for the second‑last quarter before the day on which payment is to be made.
CPIp means the quarterly CPI first published by the Australian Statistician for the same quarter in the immediately preceding year.
SPp means the sum payable in the immediately preceding year;
and
(d) the pension does not have a residual capital value; and
(e) the pension cannot be commuted except in any of the following circumstances:
(i) the pension is not funded from the commutation of:
(A) an annuity that meets the standards of subregulation 1.05(2), (3), (9) or (10); or
(B) a pension that meets the standards of this subregulation or subregulation (3), (7) or (8); or
(C) a pension that meets the standards of subregulation 1.07(3A) of the RSA Regulations;
and the commutation is made within 6 months after the commencement day of the pension;
(ii) the commutation is made to the benefit of a reversionary beneficiary on the death of the primary beneficiary and within one of the following periods after the commencement day of the pension:
(A) if the primary beneficiary’s life expectancy on the commencement day, rounded up to the next whole number, is a period less than 20 years—that period;
(B) in any other case—20 years;
(iii) the superannuation lump sum resulting from the commutation is transferred directly for the purpose of purchasing another benefit provided under:
(A) rules that meet the standards of this subregulation or subregulation (3), (7) or (8); or
(B) a contract that meets the standards of subregulation 1.05(2), (3), (9) or (10); or
(C) terms and conditions that meet the standards of subregulation 1.07(3A) of the RSA Regulations;
(iv) to pay a superannuation contributions surcharge;
(v) to give effect to an entitlement of a non‑member spouse under a payment split;
(vi) for the purpose of paying an amount under Division 131 or 135 in Schedule 1 to the Taxation Administration Act 1953, or section 292‑80C of the Income Tax (Transitional Provisions) Act 1997, to give effect to a release authority in respect of the primary beneficiary;
(vii) the pension was commenced in contravention of Part 6 and the commutation would result in an obligation to pay an amount to the Commissioner of Taxation under subsection 20F(1) of the Superannuation (Unclaimed Money and Lost Members) Act 1999; and
(f) if the pension reverts or is commuted, it does not have a reversionary component greater than 100% of the benefit that was payable before the reversion or the commutation; and
(g) the pension is not able to be transferred to a person other than a reversionary beneficiary on the death of the primary beneficiary or of another reversionary beneficiary; and
(h) the capital value of the pension and the income from it, cannot be used as security for a borrowing.
(3) For the purpose of determining whether rules meet the standards in subregulation (2), it is immaterial that:
(a) if the primary beneficiary dies within the period used for subparagraph (2)(e)(ii), a surviving reversionary beneficiary may obtain a payment equal to the total payments that the primary beneficiary would have received, if the primary beneficiary had not died, from the day of the death until the end of the period; and
(b) if the primary beneficiary dies within the period used for subparagraph (2)(e)(ii) and there is no surviving reversionary beneficiary, an amount, not exceeding the difference between the sum of the amounts paid to the primary beneficiary and the sum of the amounts that would have been so payable in the period, is payable to the primary beneficiary’s estate; and
(c) if the primary beneficiary dies within the period used for subparagraph (2)(e)(ii) and there is a surviving reversionary beneficiary who also dies within that period, there is payable to the reversionary beneficiary’s estate an amount determined as described in paragraph (b) as if that paragraph applied to the reversionary beneficiary.
(4) Rules:
(a) that do not meet the standards in subregulation (2); and
(b) that do not fix the size of payments of benefit in a year; and
meet the standards of this subregulation if they at least ensure that:
(c) the standards in paragraphs (2)(g) and (h) are met; and
(d) payments are made at least annually; and
(e) for a pension that has a commencement day on or after 22 December 1992 and before 1 January 2006—the payments in a year (excluding payments by way of commutation but including payments made under a payment split) are not larger or smaller in total than, respectively, the maximum and minimum limits calculated in accordance with Schedule 1A; and
(f) for a pension that has a commencement day on or after 1 January 2006—the payments in a year (excluding payments by way of commutation but including payments made under a payment split) are not larger or smaller in total than the following:
(i) for payments made during the period starting on 1 January 2006 and ending on 30 June 2006—the respective maximum and minimum limits for the year calculated in accordance with 1 of the following Schedules:
(A) Schedule 1A;
(B) Schedule 1AAB;
(ii) for payments made on or after 1 July 2006—the respective maximum and minimum limits for the year calculated in accordance with Schedule 1AAB.
Note: 22 December 1992 was the date of Royal Assent to the Taxation Laws Amendment (Superannuation) Act 1992.
(5) For the purpose of determining whether rules meet the standards in subregulation (4), it is immaterial:
(a) that:
(i) the commencement day of the pension occurs on or after 1 June in a financial year; and
(ii) the rules do not provide for the payment of an amount in that financial year that meets the standard for the minimum amount in that subregulation; or
(b) that the rules do not ensure that the payments in the year in which the pension is to end meet the standard for the minimum amount in that subregulation.
(6) Rules:
(a) that do not meet the standards in subregulation (2); and
(b) that provide that the size of the payments of benefit in a year is fixed, allowing for variation only as specified in the rules or to allow payments to be made under a payment split; and
(c) under which the commencement day is on or after 1 July 1994;
meet the standards in this subregulation if they at least ensure that:
(d) the standards in paragraphs (2)(f), (g) and (h) are met; and
(e) except in relation to payments, by way of commutation, for superannuation contributions surcharge, variation in payments from year to year does not exceed, in any year, the average rate of increase of the CPI in the preceding 3 years; and
(f) payments in accordance with the contracted size are made at least annually; and
(g) if, under the rules, the pension can be commuted—except if conversion is in relation to a commutation to pay a superannuation contributions surcharge, the conversion to a lump sum is limited to a sum that is not greater than the sum determined by applying the appropriate pension valuation factor under Schedule 1B to the pension as if the commencement day were the day on which the commutation occurs.
(7) Rules meet the standards of this subregulation if the rules ensure that:
(a) for a pension that has a commencement day before 20 September 2004:
(i) if the life expectancy of the primary beneficiary on the commencement day is less than 15 years—the pension is paid at least annually to the primary beneficiary or to a reversionary beneficiary throughout a period equal to the primary beneficiary’s life expectancy on the commencement day, rounded up, at the primary beneficiary’s option, to the next whole number if the primary beneficiary’s life expectancy does not consist of a whole number of years; or
(ii) if the life expectancy of the primary beneficiary on the commencement day is 15 years or more—the pension is paid at least annually to the primary beneficiary or to a reversionary beneficiary throughout a period that is not less than 15 years but not more than the primary beneficiary’s life expectancy on the commencement day, rounded up, at the primary beneficiary’s option, to the next whole number if the primary beneficiary’s life expectancy does not consist of a whole number of years; and
(b) for a pension that has a commencement day on or after 20 September 2004:
(i) the pension is paid at least annually to the primary beneficiary or to a reversionary beneficiary throughout a period equal to the primary beneficiary’s life expectancy on the commencement day, rounded up to the next whole number if the primary beneficiary’s life expectancy does not consist of a whole number of years; or
(ii) the pension is paid at least annually to the primary beneficiary or to a reversionary beneficiary throughout a period equal to the primary beneficiary’s life expectancy mentioned in subparagraph (i) calculated, at the option of the primary beneficiary, as if the primary beneficiary were up to 5 years younger on the commencement day; or
(iia) if the pension has a commencement day on or after 1 January 2006—the pension is paid at least annually to the primary beneficiary or reversionary beneficiary throughout a period that is not less than the period available under subparagraph 1.06(7)(b)(i), and not more than the greater of the following periods:
(A) the maximum period available under subparagraph 1.06(7)(b)(ii);
(B) the period of years equal to the number that is the difference between the age attained by the primary beneficiary at his or her most recent birthday before the commencement day, and 100; or
(iii) if:
(A) the pension is a pension that reverts to a surviving spouse on the death of the primary beneficiary; and
(B) the life expectancy of the primary beneficiary’s spouse is greater than the life expectancy of the primary beneficiary; and
(C) the primary beneficiary has not chosen to make an arrangement mentioned in subparagraph (i), (ii) or (iia) for the pension;
the pension is paid at least annually to the primary beneficiary or to a reversionary beneficiary throughout a period equal to:
(D) the life expectancy of the spouse on the commencement day; or
(E) the life expectancy of the spouse calculated, at the option of the primary beneficiary, as if the spouse were up to 5 years younger on the commencement day; or
(F) if the pension has a commencement day on or after 1 January 2006—a period that is not less than the period available under sub‑subparagraph 1.06(7)(b)(iii)(D), and not more than the greater of the following periods:
(I) the maximum period available under sub‑subparagraph 1.06(7)(b)(iii)(E);
(II) the period of years equal to the number that is the difference between the age attained by the spouse at his or her most recent birthday before the commencement day, and 100;
at the option of the primary beneficiary, and rounded up to the next whole number if the life expectancy of the spouse, or the period, does not consist of a whole number of years; and
(c) the total amount of the payment, or payments, to be made in the first year after the commencement day (not taking commuted amounts into account) is fixed and that payment, or the first of those payments, relates to the period commencing on the day the primary beneficiary became entitled to the pension; and
(d) the total amount of the payments to be made in a year other than the first year after the commencement day (not taking commuted amounts into account) does not fall below the total amount of the payments made in the immediately preceding year (the previous total), and does not exceed the previous total:
(i) if CPIc is less than or equal to 4%—by more than 5% of the previous total; or
(ii) if CPIc is more than 4%—by more than CPIc + 1%;
where:
CPIc is the change (if any), expressed as a percentage, determined by comparing the quarterly CPI first published by the Australian Statistician for the second‑last quarter before the day on which the first of those payments is to be made and the quarterly CPI first published by the Australian Statistician for the same quarter in the immediately preceding year;
and
(e) the total amount of the payments to be made in a year in accordance with paragraph (c) or (d) may be varied only:
(i) to allow commutation to pay a superannuation contributions surcharge; or
(ii) to allow an amount to be paid under a payment split and reasonable fees in respect of the payment split to be charged; or
(iii) to allow commutation in order to comply with section 136‑80 in Schedule 1 to the Taxation Administration Act 1953; and
(f) the pension does not have a residual capital value; and
(g) the pension cannot be commuted except in any of the following circumstances:
(i) the pension is not funded from the commutation of:
(A) an annuity that meets the standards of subregulation 1.05(2), (3), (9) or (10); or
(B) a pension that meets the standards of this subregulation or subregulation (2), (3) or (8); or
(C) a pension that meets the standards of subregulation 1.07(3A) of the RSA Regulations;
and the commutation is made within 6 months after the commencement day of the pension;
(ii) subject to subparagraph (iv), by payment, on the death of the primary beneficiary, to the benefit of a reversionary beneficiary or, if there is no reversionary beneficiary, to the estate of the primary beneficiary;
(iii) subject to subparagraph (iv), by payment, on the death of a reversionary beneficiary, to the benefit of another reversionary beneficiary, or, if there is no other reversionary beneficiary, to the estate of the reversionary beneficiary;
(iv) for subparagraphs (ii) and (iii), if the primary beneficiary has opted, under subparagraph (b)(iii), for a period worked out in relation to the life expectancy or age of the primary beneficiary’s spouse—the pension cannot be commuted until the death of both the primary beneficiary and the spouse;
(v) the superannuation lump sum resulting from the commutation is transferred directly to the purchase of another benefit that is:
(A) an annuity provided under a contract that meets the standards of subregulation (2), (3), (9) or (10); or
(B) a pension that is provided under rules that meet the standards of subregulation 1.06(2), (3) or (8) or this subregulation; or
(C) a pension that is provided under terms and conditions that meet the standards of subregulation 1.07(3A) of the RSA Regulations;
(vi) to pay a superannuation contributions surcharge;
(vii) to give effect to an entitlement of a non‑member spouse under a payment split;
(viii) for the purpose of paying an amount under Division 131 or 135 in Schedule 1 to the Taxation Administration Act 1953, or section 292‑80C of the Income Tax (Transitional Provisions) Act 1997, to give effect to a release authority in respect of the primary beneficiary;
(ix) the pension was commenced in contravention of Part 6 and the commutation would result in an obligation to pay an amount to the Commissioner of Taxation under subsection 20F(1) of the Superannuation (Unclaimed Money and Lost Members) Act 1999;
(x) in order to comply with section 136‑80 in Schedule 1 to the Taxation Administration Act 1953; and
(h) if the pension reverts, it does not have a reversionary component greater than 100% of the benefit that was payable before the reversion; and
(i) if the pension is commuted, the commuted amount cannot exceed the benefit that was payable immediately before the commutation; and
(j) the pension cannot be transferred to a person except:
(i) on the death of the primary beneficiary, to a reversionary beneficiary or, if there is no reversionary beneficiary, to the estate of the primary beneficiary; or
(ii) on the death of a reversionary beneficiary, to another reversionary beneficiary or, if there is no other reversionary beneficiary, to the estate of the reversionary beneficiary; and
(k) the capital value of the pension, and the income from it, cannot be used as security for a borrowing.
(8) Rules that provide a benefit (the market linked pension) meet the standards of this subregulation if the rules ensure that:
(a) the market linked pension:
(i) is paid at least annually to the primary beneficiary or to a reversionary beneficiary throughout a period equal to the primary beneficiary’s life expectancy on the commencement day of the pension, rounded up to the next whole number if the primary beneficiary’s life expectancy does not consist of a whole number of years; or
(ii) is paid at least annually to the primary beneficiary or to a reversionary beneficiary throughout a period equal to the primary beneficiary’s life expectancy mentioned in subparagraph (i) calculated, at the option of the primary beneficiary, as if the primary beneficiary were up to 5 years younger on the commencement day; or
(iia) if the pension has a commencement day on or after 1 January 2006—the pension is paid at least annually to the primary beneficiary or reversionary beneficiary throughout a period that is not less than the period available under subparagraph 1.06(8)(a)(i), and not more than the greater of the following periods:
(A) the maximum period available under subparagraph 1.06(8)(a)(ii);
(B) the period of years equal to the number that is the difference between the age attained by the primary beneficiary at his or her most recent birthday before the commencement day, and 100; or
(iii) if:
(A) the pension is a pension that reverts to a surviving spouse on the death of the primary beneficiary; and
(B) the life expectancy of the primary beneficiary’s spouse is greater than the life expectancy of the primary beneficiary; and
(C) the primary beneficiary has not chosen to make an arrangement mentioned in subparagraph (i), (ii) or (iia) for the pension;
the pension is paid at least annually to the primary beneficiary or to a reversionary beneficiary throughout a period equal to:
(D) the life expectancy of the spouse on the commencement day; or
(E) the life expectancy of the spouse calculated, at the option of the primary beneficiary, as if the spouse were up to 5 years younger on the commencement day; or
(F) if the pension has a commencement day on or after 1 January 2006—a period that is not less than the period available under sub‑subparagraph 1.06(8)(a)(iii)(D), and not more than the greater of the following periods:
(I) the maximum period available under sub‑subparagraph 1.06(8)(a)(iii)(E);
(II) the period of years equal to the number that is the difference between the age attained by the spouse at his or her most recent birthday before the commencement day, and 100;
at the option of the primary beneficiary, and rounded up to the next whole number if the life expectancy of the spouse, or the period, does not consist of a whole number of years; and
(b) the total amount of the payments to be made in a year (excluding payments by way of commutation but including payments made under a payment split) is determined in accordance with Schedule 6; and
(c) the market linked pension does not have a residual capital value; and
(d) the market linked pension cannot be commuted except in any of the following circumstances:
(i) the pension is not funded from the commutation of:
(A) an annuity that is provided under a contract that meets the standards of subregulation 1.05(2), (3), (9) or (10); or
(B) another pension that is provided under rules that meet the standards of subregulation (2), (3) or (7) or this subregulation; or
(C) another pension that is provided under terms and conditions that meet the standards of subregulation 1.07(3A) of the RSA Regulations;
and the commutation is made within 6 months after the commencement day of the pension;
(ii) subject to subparagraph (iii), on the death of the primary beneficiary or reversionary beneficiary, by payment of:
(A) a lump sum or a new pension to one or more dependants of either the primary beneficiary or reversionary beneficiary; or
(B) a lump sum to the legal personal representative of either the primary beneficiary or reversionary beneficiary; or
(C) if, after making reasonable enquiries, the provider of the pension is unable to find a person mentioned in sub‑subparagraph (A) or (B)—a lump sum to another individual;
(iii) for subparagraph (ii), if the primary beneficiary has opted, under subparagraph (a)(iii), for a period worked out in relation to the life expectancy or age of the primary beneficiary’s spouse—the market linked pension cannot be commuted until the death of both the primary beneficiary and the spouse;
(iv) the superannuation lump sum resulting from the commutation is transferred directly to the purchase of another benefit that is:
(A) an annuity provided under a contract that meets the standards of subregulation 1.05(2), (3), (9) or (10); or
(B) a pension that is provided under rules that meet the standards of this subregulation, or subregulation 1.06(2), (3) or (7); or
(C) a pension that is provided under terms and conditions that meet the standards of subregulation 1.07(3A) of the RSA Regulations;
(v) to pay a superannuation contributions surcharge;
(vi) to give effect to an entitlement of a non‑member spouse under a payment split;
(vii) for the purpose of paying an amount under Division 131 or 135 in Schedule 1 to the Taxation Administration Act 1953, or section 292‑80C of the Income Tax (Transitional Provisions) Act 1997, to give effect to a release authority in respect of the primary beneficiary;
(viii) the pension was commenced in contravention of Part 6 and the commutation would result in an obligation to pay an amount to the Commissioner of Taxation under subsection 20F(1) of the Superannuation (Unclaimed Money and Lost Members) Act 1999;
(ix) in order to comply with section 136‑80 in Schedule 1 to the Taxation Administration Act 1953; and
(e) if the market linked pension reverts—it does not have a reversionary component greater than 100% of the account balance immediately before the reversion; and
(f) if the market linked pension is commuted—the commutation amount cannot exceed the account balance immediately before the commutation; and
(g) the market linked pension can be transferred only:
(i) on the death of the primary beneficiary:
(A) to 1 of the dependants of the primary beneficiary; or
(B) to the legal personal representative of the primary beneficiary; or
(ii) on the death of the reversionary beneficiary:
(A) to 1 of the dependants of the reversionary beneficiary; or
(B) to the legal personal representative of the reversionary beneficiary; and
(h) the capital value of the market linked pension, and the income from it, cannot be used as security for a borrowing.
(9) Rules mentioned in subregulation (8) are not prevented from meeting the standards of that subregulation by reason only that the rules provide that, if the commencement day of the pension is on or after 1 June in a financial year, no payment is required to be made for that financial year.
(9A) Rules for the provision of a benefit (the pension) meet the standards of this subregulation if the rules ensure that payment of the pension is made at least annually, and also ensure that:
(a) for a pension in relation to which there is an account balance attributable to the beneficiary—the total of payments in any year (excluding payments by way of commutation but including payments under a payment split) is at least the amount calculated under clause 1 of Schedule 7; and
(b) for a pension that is not described in paragraph (a):
(i) both of the following apply:
(A) the rules do not provide for a residual capital value, commutation value or withdrawal benefit greater than 100% of the purchase price of the pension;
(B) the total of payments in any year (excluding payments by way of commutation but including payments under a payment split) is at least the amount calculated under clause 2 of Schedule 7; or
(ii) each of the following applies:
(A) the pension is payable throughout the life of the beneficiary (primary or reversionary), or for a fixed term of years that is no greater than the difference between the primary beneficiary’s age on the commencement day and age 100;
(B) there is no arrangement for an amount (or a percentage of the purchase price) prescribed by the rules to be returned to the recipient when the pension ends;
(C) the total of payments from the pension in the first year (excluding payments by way of commutation but including payments under a payment split) is at least the amount calculated under clause 2 of Schedule 7;
(D) the total of payments from the pension in a subsequent year cannot vary from the total of payments in the previous year unless the variation is as a result of an indexation arrangement or the transfer of the pension to another person;
(E) if the pension is commuted, the commutation amount cannot exceed the benefit that was payable immediately before the commutation; or
(iii) the standards of subregulation (2) are met; or
(iv) for rules in existence at the date of registration of the Superannuation Industry (Supervision) Amendment Regulations 2007 (No. 3), the standards of subregulation (2) would be met, except for the circumstances in which those rules allow for either or both of the following:
(A) the pension to be commuted;
(B) the variation or cessation of pension payments in respect of a child of the deceased; and
(c) the pension is transferable to another person only on the death of the beneficiary (primary or reversionary, as the case may be); and
(d) the capital value of the pension and the income from it cannot be used as a security for a borrowing.
(9B) Rules for the provision of a benefit do not meet the standards of any of subregulations (2) to (9A) if, in relation to the death of the beneficiary on or after 1 July 2007, the pension is transferred or paid to a person who would not be eligible to be paid a benefit in the form of a pension under paragraph 6.21(2)(b) or subregulation 6.21(2A) or (2B).
(9C) If a pension is paid from a successor fund in accordance with rules to which subparagraph (9A)(b)(iv) applied in the original fund, the pension meets the standards of subregulation (9A).
(10) Despite section 7 of the Income Tax Assessment (1936 Act) Regulation 2015, for a pension that has a commencement day on or after 20 September 2004 and on or before 31 December 2004, one of the following life tables are to be used in ascertaining the life expectancy of a person under this regulation:
(a) the most recently published Australian Life Tables;
(b) the 1995‑97 Australian Life Tables.
(11) In this regulation:
indexation arrangement, in relation to a pension, means an arrangement specified in the rules for the provision of the pension that:
(a) results in the total amount of pension payments in each year:
(i) increasing by the same percentage factor; or
(ii) being adjusted in line with movements in the Consumer Price Index; or
(iii) being adjusted in line with movements in an index of average weekly earnings published by the Australian Statistician; or
(iv) being adjusted in accordance with subparagraph (ii) or (iii) but with an increase capped at a maximum level; and
(b) ensures that, unless APRA otherwise approves, an adjustment is made at least annually to the amount of the pension payments.
1.06A Standards for certain innovative superannuation income streams
(1) This regulation applies to either of the following (the governing conditions):
(a) a contract for the provision of a benefit supported by a superannuation interest (within the meaning of the 1997 Tax Act);
(b) the rules for the provision of a benefit supported by a superannuation interest (within the meaning of that Act).
(2) The governing conditions meet the standards of this subregulation if:
(a) they neither meet the standards in subregulation 1.05(11A) nor the standards in subregulation 1.06(9A) (as applicable); and
(b) they comply with subregulation (3) of this regulation; and
(c) either:
(i) they ensure that payment of the benefit is made at least annually; or
(ii) the benefit is a deferred superannuation income stream.
Note: Paragraph (a) can be complied with for some of the standards referred to in that paragraph if the governing conditions state that they do not meet those standards (see subregulation (5)).
(3) The governing conditions comply with this subregulation if they ensure that:
(a) no payment of the benefit is made before the primary beneficiary satisfies a condition of release mentioned in item 101, 102, 102A, 103 or 106 of Schedule 1; and
(b) after payments of the benefit start, the benefit is payable throughout the life of the beneficiary (primary or reversionary); and
(c) the amount of benefit payments is determined using a method that ensures that those payments are not unreasonably deferred after they start, having regard to the following:
(i) to the extent that the payments depend on the returns on investment of the assets supporting the benefit—when the payments are made and when the returns are derived;
(ii) to the extent that the payments depend on the ages, life expectancies or other factors relevant to the mortality of other individuals who are beneficiaries of that kind of benefit—the age, life expectancy or other factors relevant to the mortality of each of those other individuals;
(iii) to the extent that the payments do not depend on the returns mentioned in subparagraph (i) or the ages, life expectancies or other factors relevant to mortality mentioned in subparagraph (ii)—the relative sizes of the annual totals of the payments from year to year;
(iv) any other relevant factors; and
(d) if the benefit is commuted on or after the retirement phase start day for the benefit—the commutation amount does not exceed the amount worked out for the benefit under regulation 1.06B; and
(e) if the benefit is commuted before the retirement phase start day for the benefit—the commutation happens only in accordance with the rules set out in regulations 6.16, 6.18, 6.19 and 6.22A, if those rules applied in relation to the benefit as if:
(i) the benefit were in a regulated superannuation fund; and
(ii) the beneficiary were a member of the fund; and
(iii) the provider of the benefit were a trustee of the fund; and
(f) the benefit is transferable to another person only on the death of the beneficiary (primary or reversionary, as applicable); and
(g) the capital value of the benefit and the income from it cannot be used as a security for a borrowing.
(4) However, the governing conditions do not meet the standards of subregulation (2) if, in relation to the death of the beneficiary, the benefit is transferred or paid to a person who would not be eligible under paragraph 6.21(2)(b), or under subregulation 6.21(2A) or (2B), to be paid a benefit.
(5) The governing conditions may state that they do not meet the standards in subparagraph 1.05(11A)(b)(i) or (ii), or in subparagraph 1.06(9A)(b)(i) or (ii), as applicable. For the purposes of this Part, such a statement has effect according to its terms from the day it is made, and continues to have effect whether or not the statement is later changed or removed.
1.06B Maximum commutation amount for certain innovative superannuation income streams
(1) For the purposes of paragraph 1.06A(3)(d), the amount for a commutation of a benefit (the income stream) is:
(a) if the income stream is commuted during the 14 day period starting on the retirement phase start day for the income stream—the access amount for the income stream at the time of the commutation; or
(b) if the income stream is commuted on the death of the beneficiary within the first half of the life expectancy period for the income stream and paragraph (a) does not apply—the access amount for the income stream at the time of the death; or
(c) otherwise:
(i) the amount worked out for the income stream under subregulation (2); or
(ii) if the amount worked out for the income stream under subregulation (2) is less than or equal to zero—nil.
(2) For the purposes of paragraph (1)(c), the amount for the income stream is worked out using the following formula:
where:
previously commuted amount means the sum of any amounts commuted from the income stream before the time of the commutation.
remaining life expectancy means the number of days remaining in the life expectancy period for the income stream after subtracting the number of days in the period:
(a) starting on the retirement phase start day for the income stream; and
(b) ending on the day of the commutation.
1.07 Periods when beneficiary may not receive benefits
A benefit is not taken not to meet the standards in regulation 1.05 or 1.06 by reason only that payments of benefit to the beneficiary have been properly suspended during a period when the beneficiary is the holder of a paid public office.
1.07A Commutation of allocated annuities and pensions
(1) This regulation applies in relation to the following:
(a) a contract mentioned in paragraph 1.05(1A)(e) for a benefit (in this regulation called the annuity);
(b) a contract mentioned in paragraph 1.05(1A)(g) for a benefit that is an annuity under sub‑subparagraph 1.05(1A)(g)(i)(A) (in this regulation called the annuity);
(c) rules of a superannuation fund mentioned in paragraph 1.06(1A)(c) for a benefit (in this regulation called the pension).
(2) The contract or rules, meet the standards of this regulation if the contract or rules ensure that the annuity or pension cannot be commuted, in whole or in part, unless:
(a) the commutation results from the death of an annuitant or pensioner or a reversionary annuitant or reversionary pensioner; or
(b) the sole purpose of the commutation is:
(i) to pay a superannuation contributions surcharge; or
(ii) to give effect to an entitlement of a non‑member spouse under a payment split; or
(iii) to meet the rights of a client to return a financial product under Division 5 of Part 7.9 of the Corporations Act 2001; or
(ba) for a commutation in part—the account balance of the annuity or pension, immediately after the commutation in part, would be equal to or would exceed the minimum limit under Schedule 1A or Schedule 1AAB, whichever is applicable to the annuity or pension under subregulation 1.05(4) or 1.06(4) as the case may be, as reduced by the amount of payments (excluding amounts paid by way of commutation) to the annuitant or pensioner already made in the financial year in which the commutation in part would occur; or
(c) the annuity or pension has paid, in the financial year in which the commutation is to take place, at least the minimum amount under subregulation (3).
(3) For paragraph (2)(c), the minimum amount is calculated using the formula:
where:
Days in payment period means the number of days in the period that:
(a) begins on:
(i) if the annuity or pension commenced in the financial year in which the commutation is to take place—the commencement day; or
(ii) otherwise—1 July in that financial year; and
(b) ends on the day on which the commutation is to take place.
Days in financial year means the number of days in the financial year in which the commutation is to take place (365 or 366).
Minimum annual amount for the financial year means:
(a) for an annuity mentioned in paragraph (1)(b)—the minimum limit worked out in accordance with clause 2 of Schedule 1A or 1AAB as the case may be, as if the annuity account balance was the amount of the annuity account that is allocated by the annuity provider to make payments whose size is not fixed, in accordance with subparagraph 1.05(8)(c)(ii); and
(b) otherwise—the minimum limit worked out in accordance with clause 2 of Schedule 1A or 1AAB as the case may be;
rounded to the nearest 10 whole dollars.
1.07B Commutation of other annuities and pensions
(1) This regulation applies in relation to the following:
(a) a contract mentioned in paragraph 1.05(1)(e), (1A)(f) or (1B)(c) for a benefit (the annuity);
(b) a contract mentioned in paragraph 1.05(1A)(g) for a benefit that is an annuity under sub‑subparagraph 1.05(1A)(g)(i)(B) (the annuity);
(c) rules of a superannuation fund mentioned in paragraph 1.06(1)(c), (1A)(d) or (1B)(c) for a benefit (the pension).
(2) For this regulation, other than for subregulation (5), the payment year for an annuity or pension means the period of 12 months that begins on the day after:
(a) the commencement day; or
(b) the anniversary of the commencement day.
(3) The contract or rules, meet the standards of this regulation if the contract or rules ensure that the annuity or pension cannot be commuted, in whole or in part, unless:
(a) the commutation results from the death of an annuitant or pensioner or a reversionary annuitant or reversionary pensioner; or
(b) the sole purpose of the commutation is:
(i) to pay a superannuation contributions surcharge; or
(ii) to give effect to an entitlement of a non‑member spouse under a payment split; or
(iii) to meet the rights of a client to return a financial product under Division 5 of Part 7.9 of the Corporations Act 2001; or
(iv) to comply with section 136‑80 in Schedule 1 to the Taxation Administration Act 1953; or
(c) the annuity or pension has paid, in the payment year in which the commutation is to take place, at least the minimum amount under subregulation (4).
(4) For paragraph (3)(c), the minimum amount is calculated using the formula:
where:
Days in payment period means:
(a) the number of days in the period that:
(i) begins on:
(A) the day after the anniversary of the commencement day that occurs before the day on which the commutation is to take place; or
(B) if the annuity or pension commenced on the day before the start of the payment year in which the commutation is to take place—the day after the commencement day; and
(ii) ends on the day on which the commutation is to take place; or
(b) if subregulation (5) applies—1 day.
Days in payment year means the number of days in the payment year in which the commutation is to take place (365 or 366).
Minimum annual amount means:
(a) for an annuity mentioned in paragraph (1)(b)—the minimum amount that the annuity would pay as fixed‑size payments in the payment year if the annuity were not commuted; and
(b) otherwise—the minimum amount that the annuity or pension would pay in the payment year if the annuity or pension were not commuted.
(5) If the commencement day for an annuity or a pension is the day on which the commutation of the annuity or pension is to take place:
(a) the payment year is taken to commence on the commencement day and end on the day before the anniversary of the commencement day; and
(b) there is taken to be 1 day in the payment period.
(6) If, to calculate the minimum annual amount, it is necessary to use a future unknown value of the CPI, that value is taken to be equal to the CPI for the last known quarter.
1.07C Commutation of market linked income stream
(1) This regulation applies in relation to the following:
(a) a contract mentioned in paragraph 1.05(1A)(h) or (1B)(d) for a market linked annuity;
(b) rules of a superannuation fund mentioned in paragraph 1.06(1A)(e) or (1B)(d) for a market linked pension.
(2) The contract or rules meet the standards of this regulation if the contract or rules ensure that the annuity or pension cannot be commuted, in whole or in part, unless:
(a) the commutation results from the death of an annuitant or pensioner or a reversionary annuitant or reversionary pensioner; or
(b) the sole purpose of the commutation is:
(i) to pay a superannuation contributions surcharge; or
(ii) to give effect to an entitlement of a non‑member spouse under a payment split; or
(iii) to meet the rights of a client to return a financial product under Division 5 of Part 7.9 of the Corporations Act 2001; or
(iv) to comply with section 136‑80 in Schedule 1 to the Taxation Administration Act 1953; or
(ba) for a commutation in part—the account balance of the annuity or pension, immediately after the commutation in part, would be equal to or would exceed the total payment amount calculated in accordance with Schedule 6, as reduced by the amount of payments (excluding amounts paid by way of commutation) to the annuitant or pensioner already made in the financial year in which the commutation in part would occur; or
(c) the annuity or pension has paid, in the financial year in which the commutation is to take place, at least the minimum amount under subregulation (3).
(3) For paragraph (2)(c), the minimum amount is calculated using the formula:
where:
annual amount for the financial year means the amount worked out in accordance with Schedule 6 for the annuity or pension, rounded to the nearest 10 whole dollars.
days in payment period means the number of days in the period that:
(a) starts on:
(i) if the annuity or pension commenced in the financial year in which the commutation is to take place—the commencement day; or
(ii) in any other case—1 July in that financial year; and
(b) ends at the end of the day on which the commutation is to take place.
days in financial year means the number of days in the financial year in which the commutation is to take place.
1.07D Commutation of superannuation income stream
(1) For paragraphs 1.05(1)(d) and 1.06(1)(b), a benefit meets the standards of this regulation if, under the applicable contract or rules, the annuity or pension cannot be commuted, in whole or in part, except in the following circumstances:
(a) the commutation results from the death of the annuitant or pensioner or a reversionary annuitant or reversionary pensioner; or
(b) the sole purpose of the commutation is:
(i) to pay a superannuation contributions surcharge; or
(ii) to give effect to an entitlement of a non‑member spouse under a payment split; or
(iii) to meet the rights of a client to return a financial product under Division 5 of Part 7.9 of the Corporations Act 2001; or
(c) for a commutation in part—the account balance of the annuity or pension, immediately after the commutation, is equal to or greater than the minimum payment amount calculated in accordance with Schedule 7, as reduced by the amount of payments (excluding amounts paid by way of commutation) to the annuitant or pensioner already made in the financial year in which the commutation occurs; or
(d) the annuity or pension has paid, in the financial year in which the commutation takes place, at least the minimum amount prescribed by subregulation (2).
(2) For paragraph (1)(d), the minimum amount is the amount calculated using the formula:
where:
days in financial year means the number of days in the financial year (365 or 366) in which the commutation takes place.
days in payment period means the number of days in the period that:
(a) begins on:
(i) if the annuity or pension commenced in the financial year in which the commutation is to take place—the commencement day; or
(ii) otherwise—1 July in that financial year; and
(b) ends on the day on which the commutation is to take place.
minimum annual amount means the minimum amount payable under the annuity or pension, in the financial year, calculated in accordance with Schedule 7.
Division 1A.2—Operating standards
1.08 Restriction on factors for converting pensions
(1) For the purposes of subsection 31(1) of the Act, it is a standard applicable to the operation of a regulated superannuation fund that the fund must not use a factor, for converting a prescribed pension to a lump sum, that is greater than the pension valuation factor that would apply under Schedule 1B if the commencement day of the pension were the day on which it was commuted.
(2) Subregulation (1) does not apply to the use of a factor that:
(a) the Regulator has approved in writing; or
(b) is for conversion in relation to a commutation to pay a superannuation contributions surcharge; or
(c) is for conversion in relation to a commutation to give effect to an entitlement of a non‑member spouse under a payment split; or
(d) is for conversion in relation to a commutation in order to comply with section 136‑80 in Schedule 1 to the Taxation Administration Act 1953.
(3) In this regulation, prescribed pension:
(a) means a pension (including a benefit that is taken, under these regulations, to be a pension for the purposes of the Act), other than a benefit that is taken, under subregulation 1.06(1), to be a pension by reason only that it is provided under rules of a superannuation fund that meet the standards of subregulation 1.06(2); but
(b) does not include any of the following:
(i) an account‑based pension;
(ii) an allocated pension;
(iii) a market linked pension.
Part 2—Information for certain parties
Division 2.1—Introductory
2.01 Interpretation
(1) In this Part:
amount includes a nil amount.
contact person, in relation to a superannuation entity, means a named individual, or a person holding a designated office or position, who is available to receive and deal with inquiries or complaints by members or unit‑holders (as the case may be).
(2) In this Part, where the context allows, a reference to a member is taken to mean:
(a) in relation to a superannuation entity—a person who:
(i) is a member of the entity; or
(ii) receives a pension from the entity; or
(iii) has deferred his or her entitlement to receive a benefit from the entity; and
(b) in relation to an approved deposit fund—a depositor in the fund; and
(c) in relation to a PST—a unit‑holder.
(3) In a Division of this Part, a reference to a fund is a reference to a fund of the kind to which the Division applies.
(4) This Division applies in relation to an RSE licensee of a superannuation entity in a corresponding way to the way this Division applies in relation to a trustee (or to the trustees) of a superannuation entity.
2.02 Scope and application of this Part
(1) The following Divisions of this Part deal with the duty of trustees to give information to members or other persons on specified occasions. Each of the Divisions has an application provision:
(a) stating the types of entity to which the Division applies; and
(b) referring to any particular provisions of the Division, or a Subdivision of the Division, that limit or restrict the application of the Division or Subdivision.
(2) The requirements to give information are expressed in 2 forms: general requirements (which set out broad principles), and specific requirements (which set out particular provisions, and may apply in all cases or only in particular circumstances). The specific requirements are not to be taken as limiting, by implication, the scope of the general requirements.
(3) This Division governs the other Divisions of this Part.
2.03 Duties and requirements arising under this Part
(1) A requirement to give information under a Division of this Part must be met within the time specified in the Division as the time for compliance.
Requirements concerning information
(2) Information given in accordance with this Part must:
(a) be in writing; and
(b) be worded and presented in a clear and effective manner.
(3) Information given in accordance with this Part may be given, where appropriate, in diagrammatical form.
Where information may mislead (if incomplete, outdated, etc)
(4) If the trustee of a superannuation entity has reason to think that information that the trustee is required to give under a Division of this Part will, or may, be materially misleading, the trustee must give with the information a statement containing further information to rectify any misleading, or potentially misleading, effect.
Example: If a change in a fund’s investment policy means that information about past earnings rates is not a reliable guide to future earnings, an appropriate explanation (including the change of policy and its likely effect on future earnings rates) must be given.
2.04 Reasonable efforts are sufficient
(1) For Division 2.2, 2.4 or 2.5, the trustee of a superannuation entity is taken to have satisfied a duty or requirement to give information to a person if the trustee has taken reasonable steps to give the information to the person but has been unable to do so.
Information that is unknown and not reasonably obtainable
(2) Where information is unknown to the trustee, the trustee need not give the information under this Part if the trustee cannot obtain the information by making reasonable inquiries.
2.05 Charges for information requested
(1) Subject to this regulation, the obligation of the trustee of a superannuation entity under these Regulations to give information on request by a person arises only if the person pays the amount specified by the trustee as the charge for giving the information.
(2) The amount of the charge must not exceed the reasonable cost to the superannuation entity of giving the information (including all reasonably related costs—for example, costs of searching for, obtaining and collating the information).
(3) A policy committee is not liable to any charge for information given to it.
Division 2.2—Information in connection with annual members’ meetings
2.08 Interpretation
In this Division:
associated entity has the same meaning as in the Corporations Act 2001.
contract includes a deed.
key management personnel has the same meaning as in the Corporations Act 2001.
2.09 Application
(1) This Division applies to a registrable superannuation entity.
(2) Despite subregulation (1), this Division does not apply to the following:
(a) a superannuation fund with fewer than 7 members;
(b) an excluded approved deposit fund;
(c) a pooled superannuation trust;
(d) an eligible rollover fund.
2.10 Information to be included with notice
(1) For the purposes of paragraph 29P(3)(b) of the Act, the following information must be included with the notice of an annual members’ meeting for a year of income of the entity that is given to a member of the entity:
(a) a short‑form summary containing the information set out in subregulation (2), which must:
(i) fit on a single page and be the only information on that page; and
(ii) be the first page of the pages of information referred to in this regulation;
(b) a copy of both of the following:
(i) a summary of each significant event or material change notice (if any) given under section 1017B of the Corporations Act 2001 by a trustee of the entity to a member of the entity during the 2 year period finishing at the end of the year of income;
(ii) the details of remuneration that, at the time the notice is given, are required under subregulation 7.9.07ZC(3) or (5) of the Corporations Regulations 2001 to be made publicly available on the entity’s website or are required under section 300C of the Corporations Act 2001 to be included in the director’s report for the entity;
(c) if a determination made under paragraph 52(9)(a) of the Act in relation to the entity is publicly available at the time the notice is given, or must be made publicly available before the meeting is held—a copy of the determination;
(d) a copy of each of the following:
(i) the most recent periodic statement (if any) given to the member under section 1017D of the Corporations Act 2001;
(ii) the most recent fund information provided under regulation 7.9.32 of the Corporations Regulations 2001 to holders of interests in the entity;
(e) for each contract (if any) under which one or more payments were made, by or on behalf of the entity during the year of income, where a purpose of each payment was promoting the entity, promoting a particular view on behalf of the entity or sponsorship on behalf of the entity:
(i) the sum of all such payments that have been or are to be made under the contract during any year of income;
(ii) the name of each entity to whom such payments have been or are to be made under the contract during any year of income and, for each such entity, the sum of all such payments that have been or are to be made to the entity under the contract during any year of income;
(iii) the term of the contract;
(f) if any gifts (within the meaning of Part XX of the Commonwealth Electoral Act 1918) were made, by or on behalf of the entity during the year of income, to another entity who, at the time of receiving the gift:
(i) was a political entity (within the meaning of that Act); or
(ii) was, or was required by that Part of that Act to be, a political campaigner (within the meaning of that Part); or
(iii) was, or was required by that Part of that Act to be, an associated entity (within the meaning of that Part);
an itemised list showing each such gift and the name of the entity to whom each gift was made;
(g) if any payments were made, by or on behalf of the entity during the year of income, to another entity who, at the time of receiving the payment, was an organisation (within the meaning of the Fair Work (Registered Organisations) Act 2009)—an itemised list showing each such payment and the name of the entity to whom each payment was made;
(h) if any payments were made, by the entity (the main entity) during the year of income, to any of the following:
(i) a connected entity of the RSE licensee of the main entity;
(ii) an associated entity of another entity (the third party) if the third party is a connected entity of the RSE licensee of the main entity;
(iii) an entity over whom the RSE licensee of the main entity has significant influence;
(iv) an entity who has significant influence over the RSE licensee of the main entity;
(v) an entity whose key management personnel include the RSE licensee, or an executive officer of the RSE licensee, of the main entity;
(vi) an associated entity of another entity (the third party), if the RSE licensee, or an executive officer of the RSE licensee, of the main entity is a member of the key management personnel of the third party;
an itemised list showing each such payment and the name of the entity to whom each payment was made.
Note: The determination mentioned in paragraph (c) is to be made publicly available on the entity’s website within 28 days after the determination is made (see paragraphs 52(9)(b) and (c) of the Act).
(2) The short‑form summary referred to in paragraph (1)(a) must set out the following:
(a) the sum of the remuneration referred to in subparagraph (1)(b)(ii), which is to be described as the aggregate remuneration expenditure relating to the entity for the year of income;
(b) the sum of the payments referred to in paragraph (1)(e) that were made during the year of income (under all contracts referred to in that paragraph), which is to be described as the aggregate promotion, marketing or sponsorship expenditure relating to the entity for the year of income;
(c) the sum of the payments referred to in paragraph (1)(f), which is to be described as the aggregate political donations relating to the entity for the year of income;
(d) the sum of the payments referred to in paragraph (1)(g), which is to be described as the aggregate industrial body payments relating to the entity for the year of income;
(e) the sum of the payments referred to in paragraph (1)(h), which is to be described as the aggregate related party payments relating to the entity for the year of income.
(3) Despite subsection (1), if any information (the extra information) referred to in paragraph (1)(b) to (h) required to be given to a member of the entity:
(a) is accessible by the member (including by being publicly available) at the time the notice of the annual members’ meeting is given; or
(b) must be made so accessible before the meeting is held;
it is sufficient for the purposes of that paragraph if the information included with the notice includes details of how to access that extra information.
Note: The short‑form summary referred to in paragraph (1)(a) must still be included.
2.11 How notice is to be given
(1) The requirements in this regulation are prescribed under paragraph 29P(3)(c) of the Act in relation to each annual members’ meeting for a year of income of a registrable superannuation entity.
Notice to be made publicly available on website
(2) The RSE licensee of the entity must:
(a) make the notice of the meeting publicly available on the entity’s website; and
(b) ensure that the notice is readily accessible from the website.
Notice, and information included with notice, also to be given in other ways
(3) If the RSE licensee is required to give a person notice of the meeting, then the RSE licensee must give the person the notice, and any information required to be included with the notice, in the following way:
(a) if the RSE licensee is required under paragraph 1017DA(1)(a) of the Corporations Act 2001 to give the person information in relation to a fund reporting period that ends during the year of income, and the RSE licensee can satisfy that requirement by giving the person that information in a particular way or in any one of several ways—in that way or in one of those ways;
(b) otherwise—in writing.
Note: Regulation 7.9.75A of the Corporations Regulations 2001 sets out the ways in which the RSE licensee is required under subsection 1017DA(1) of the Corporations Act 2001 to give information.
(4) For the purposes of subregulation (3):
(a) fund reporting period has the same meaning as in Part 7.9 of the Corporations Regulations 2001; and
(b) a fund reporting period that ends at the same time that the year of income ends is a period that ends during that year.
Division 2.4—Information to be given for each reporting period
Subdivision 2.4.1—Preliminary
2.18 Application
(1) This Division applies to:
(a) a regulated superannuation fund; and
(b) an approved deposit fund.
(2) This Division does not apply to a self managed superannuation fund.
(3) For the purposes of subsections 31(1) and 32(1) of the Act, a requirement of this Division is a standard applicable to the operation of a fund to which this Division applies.
Subdivision 2.4.3—Derivatives charge ratio
2.29 Specific requirements in particular cases
(1) For this Subdivision, the derivatives charge ratio of a fund is:
expressed as a percentage, where:
X is the market value of the assets of the fund (other than cash) that are subject to a charge in relation to a derivatives contract (as defined in subregulation 13.15A(2)).
Y is the market value of all the assets of the fund.
(2) If paragraph 7.9.37(1)(i) of the Corporations Regulations 2001 applies, the trustee must give the information mentioned in that paragraph to APRA as soon as practicable, and in any event within 6 months, after the end of the reporting period to which the information relates.
Division 2.5—Information on request
2.30 Application
(1) This Division applies to a superannuation entity.
(2) For subsections 31(1), 32(1) and 33(1) of the Act, a requirement of this Division is a standard applicable to the operation of a superannuation entity.
2.31 Documents may be made available for inspection
It is sufficient compliance with a requirement under this Division to give information, or to give a copy of a document, to a person if:
(a) a document containing the information; or
(b) a copy of the document;
as the case requires, is made available for inspection by the person:
(c) at a suitable place (having adequate facilities for the person to inspect and photocopy the document); and
(d) during normal business hours;
or as otherwise agreed between the trustee of a superannuation entity who is required to give the information to the person, and the person.
2.32 Time for compliance
The trustee of a superannuation entity must comply with a request to give information, or a copy of a document, as soon as practicable, and in any event the trustee must make reasonable efforts to comply with the request within 1 month after receiving the request.
2.33 Specific requirements
(1) In this regulation:
concerned person has the same meaning as in section 1017C of the Corporations Act 2001.
(2) The trustee of a superannuation entity (other than a self managed superannuation fund) must give to a person (other than a concerned person), on request in writing by the person, a copy of any of the following documents (to the extent the trustee has access to the documents) specified in the request:
(a) the most recent fund information provided under regulation 7.9.32 of the Corporations Regulations 2001 to holders of interests in the entity;
(b) the reports (if any) the entity is required to provide to members under subsection 314AA(1) of the Corporations Act 2001 at the time of the request.
Division 2.5A—Information about superannuation interest subject to payment split
2.36B Application
(1) This Division applies to:
(a) a regulated superannuation fund; and
(b) an approved deposit fund.
(2) For subsections 31(1) and 32(1) of the Act, a requirement of this Division is a standard applicable to the operation of the fund.
2.36C Information to be provided by trustee when interest becomes subject to payment split
(1) If an interest in a fund becomes subject to a payment split, the trustee of the fund must give to the non‑member spouse in relation to the interest a written notice stating the following information:
(a) the contact details for the fund;
(b) if the interest is not a percentage‑only interest and the payment split is a base amount split:
(i) the base amount allocated to the non‑member spouse under the relevant superannuation agreement, flag lifting agreement or splitting order; and
(ii) the method by which the base amount will be adjusted on an ongoing basis; and
(iii) whether the governing rules of the fund would allow the non‑member spouse to become a member of the fund, and information about the options available to the non‑member spouse in relation to the interest under Part 7A;
(c) if the interest is not a percentage‑only interest and the payment split is a percentage payment split:
(i) the percentage that is to apply to all splittable payments in respect of the interest; and
(ii) whether the governing rules of the fund would allow the non‑member spouse to become a member of the fund, and information about the options available to the non‑member spouse in relation to the interest under Part 7A;
(d) if the interest is a percentage‑only interest:
(i) the percentage specified in the relevant superannuation agreement, flag lifting agreement or splitting order; and
(ii) if the payment split is under a superannuation agreement or flag lifting agreement, whether the percentage is to apply for the purposes of subparagraph 90XJ(1)(b)(i) or 90YN(b)(i) (as the case may be) of the Family Law Act 1975; and
(iii) if the payment split is under a splitting order, whether the order is made under paragraph 90XT(1)(c) or 90YY(1)(c) (as the case may be) of the Family Law Act 1975;
(e) the circumstances in which the entitlement of the non‑member spouse will become payable;
(g) if the governing rules of the fund would allow the non‑member spouse to become a member of the fund, information that the non‑member spouse would reasonably need to understand the management and financial condition of the fund and of any relevant sub‑plan (for example, the fund’s product disclosure statement);
(h) details of the AFCA scheme;
(i) details (in summary form) of the fund’s internal dispute resolution procedures;
(j) details of any fee payable by the non‑member spouse in respect of the payment split, and arrangements for the payment of any such fee.
(2) The information must be given when the trustee gives the payment split notice to the non‑member spouse.
Note: See regulation 7A.03 for the payment split notice requirements.
2.36D Other information to be provided by trustee
(1) This regulation applies to an interest in a fund to which a transition period (within the meaning of section 1410 of the Corporations Act 2001) applies, if:
(a) the interest is subject to a base amount payment split; and
(b) the interest is not a percentage‑only interest; and
(c) the interest is in the growth phase; and
(d) none of the following has occurred as a result of a payment split:
(i) a new interest was created for the non‑member spouse;
(ii) the transferable benefits of the non‑member spouse were transferred or rolled out of the fund;
(iii) the amount to which the non‑member spouse is entitled under the payment split was paid, as a lump sum, to the non‑member spouse.
(2) The trustee of the fund must give to the member spouse and the non‑member spouse the following information for each reporting period:
(a) the value of the adjusted base amount applicable to the non‑member spouse at the end of the reporting period;
(b) the amount of the adjustment in the reporting period;
(c) the method used to calculate the adjustment, including the rate of return over the reporting period.
(3) The information required under subregulation (2):
(a) must be given as soon as practicable after the end of the relevant reporting period; and
(b) in the case of information that is to be given to the member spouse, must be given with the information required to be given to the member spouse under Subdivision 2.4.2 of the old Regulations.
(4) In this regulation:
reporting period means a reporting period that applies under Subdivision 2.4.2 of the old Regulations.
Note: A non‑member may also be entitled to information under section 1017C of the Corporations Act 2001 and Division 2.5.
2.36E Other information to be given by trustee—adverse effects on benefits
(1) This regulation applies if:
(a) an interest in a fund is subject to a base amount payment split or a percentage payment split; and
(b) the interest is not a percentage‑only interest; and
(c) the interest is in the growth phase; and
(d) none of the following has occurred in respect of a payment split:
(i) a new interest was created for the non‑member spouse;
(ii) the transferable benefits of the non‑member spouse were transferred or rolled out of the fund;
(iii) the amount to which the non‑member spouse is entitled under the payment split was paid, as a lump sum, to the non‑member spouse.
(2) The trustee of the fund must give to the non‑member spouse information about an event if the trustee reasonably believes that:
(a) the event is likely to have a material effect on the interest in the fund; and
(b) the effect may be adverse (whether the adverse effect would occur at the time of the event or a later time).
(2A) If:
(a) the member spouse lodges a notice, or makes a request of a trustee, which would bind the trustee to pay death benefits to a particular beneficiary or beneficiaries; and
(b) a payment made in accordance with the notice or request would not be a splittable payment because of the identity or characteristics of that beneficiary or those beneficiaries;
the trustee must inform the non‑member spouse that the member spouse has lodged the notice or made the request.
(3) The information required under subregulation (2) or (2A) must be given before, or as soon as practicable after, the occurrence of the event.
Part 3—Matters prescribed or specified in relation to public offer entities
3.01 Public offer superannuation fund—member of a prescribed class
For the purposes of sub‑subparagraph 18(1)(a)(ii)(B) of the Act, a prescribed class is a class of persons, each of whom is:
(a) a former standard employer‑sponsored member of the fund concerned who, since ceasing to be a standard employer‑sponsored member of the fund, has remained a member of the fund at all times; or
(b) a spouse, or former spouse, of a standard employer‑sponsored member of the fund concerned in relation to whom the fund has accepted eligible spouse contributions from the standard employer‑sponsored member; or
(c) both:
(i) a spouse, or former spouse, of a person who is a former standard employer‑sponsored member (the other person) of the fund concerned; and
(ii) a person in relation to whom the fund concerned accepted eligible spouse contributions from the other person while the other person was a member of the fund; or
(d) both:
(i) a spouse, or former spouse, of a standard employer‑sponsored member (the other person) of a fund that has the same standard employer‑sponsor as the fund concerned; and
(ii) a person in relation to whom the fund concerned has accepted eligible spouse contributions from the other person; or
(e) both:
(i) a spouse, or former spouse, of a person who is a former standard employer‑sponsored member (the other person) of a fund (the other fund) that, at all times relevant to subparagraph (ii), had the same standard employer‑sponsor as the fund concerned; and
(ii) a person in relation to whom the fund concerned accepted eligible spouse contributions from the other person while the other person was a member of the other fund; or
(f) a non‑member spouse for whom an interest has been created in the fund, if the original interest of the member spouse was an interest in that fund; or
(g) a person in relation to whom the fund concerned has accepted child contributions:
(i) made by a standard employer‑sponsored member; or
(ii) made by a person who is a former standard‑employer sponsored member while the person was a member; or
(h) a person in relation to whom the fund concerned has accepted child contributions:
(i) made by a standard employer‑sponsored member of a fund that has the same standard employer‑sponsor as the fund concerned; or
(ii) made by a person who is a former standard‑employer sponsored member of a fund that has the same standard employer‑sponsor as the fund concerned:
(A) while the person was a member of the fund; and
(B) while the fund had the same standard employer‑sponsor as the fund concerned; or
(i) a spouse or former spouse of a current or former standard employer‑sponsored member for whom an interest has been created in the fund under Division 6.7.
3.04 Section 54 of the Act—prescribed percentages
For the purposes of section 54 of the Act (prerequisites to variation of repayment period), the following percentages are prescribed:
(a) in the case of paragraph (1)(c) of the section—25%; and
(b) in the case of paragraph (1)(d) of the section—at least 75%.
3.04A Removal of trustee of public offer entity—s 60A(2) of the Act
For the purposes of subsection 60A(2) of the Act, the following kinds of removal are specified:
(a) a removal that will have the immediate effect that the fund complies with the basic equal representation rules set out in section 89 of the Act;
(b) a removal that satisfies all of the following conditions:
(i) the questions of whether the trustee should be removed, and who should replace the trustee if the removal is agreed to, have been voted on at a meeting of beneficiaries;
(ii) the beneficiaries who vote (in person or by proxy) on each question mentioned in subparagraph (i) at the meeting referred to in that subparagraph hold interests that are in total at least 25% of the total value of all beneficiaries’ interests in the fund;
(iii) at least 75% by number of the beneficiaries who vote (in person or by proxy) at the meeting on whether to remove the trustee vote in favour of removing the trustee;
(iv) at least 75% by number of the beneficiaries who vote (in person or by proxy) at the meeting on who the new trustee should be vote in favour of a particular person as trustee;
(v) that person will become the trustee immediately after the removal takes effect.
3.05 Policy committees—sections 91, 92 and 93 of the Act
Pre‑1 July 1995—funds with 200 or more members (paragraph 91(3)(b) of the Act)
(1) For the purposes of paragraph 91(3)(b) of the Act, subject to subregulation (4), a public offer superannuation fund to which section 91 of the Act applies is subject to the following rule, namely, that the trustee of the fund must take all reasonable steps to ensure that, if there are at least 200 of its members (a group), each of whom:
(a) is a standard employer‑sponsored member; and
(b) has a standard employer‑sponsor who is the, or is an associate of a, standard employer‑sponsor of each other member of that group;
there is at least 1 policy committee established for that group.
Post‑30 June 1995—funds with more than 6, but fewer than 50, members (paragraph 92(3)(b) of the Act)
(2) For the purposes of paragraph 92(3)(b) of the Act, subject to subregulation (4), a public offer superannuation fund to which section 92 of the Act applies is subject to the following rule, namely, that the trustee of the fund must take all reasonable steps to ensure that if:
(a) there are more than 6 of its members (a group) each of whom:
(i) is a standard employer‑sponsored member; and
(ii) has a standard employer‑sponsor who is the, or is an associate of a, standard employer‑sponsor of each other member of that group; and
(b) a written request is made to the trustee on behalf of at least 5 members of the group to establish a policy committee;
there is at least 1 policy committee established for that group.
Post‑30 June 1995—funds with more than 49 members (paragraph 93(3)(b) of the Act)
(3) For the purposes of paragraph 93(3)(b) of the Act, subject to subregulation (4), a public offer superannuation fund to which section 93 of the Act applies is subject to the following rules, namely:
(a) the trustee of the fund must take all reasonable steps to ensure that, if there are more than 49 of its members (a group), each of whom:
(i) is a standard employer‑sponsored member; and
(ii) has a standard employer‑sponsor who is the, or is an associate of a, standard employer‑sponsor of each other member of that group;
there is at least 1 policy committee established for that group; and
(b) the trustee of the fund must take all reasonable steps to ensure that, if:
(i) there are more than 6 but fewer than 50 of its members (a group), each of whom:
(A) is a standard employer‑sponsored member; and
(B) has a standard employer‑sponsor who is the, or is an associate of a, standard employer‑sponsor of each other member of that group; and
(ii) a written request is made to the trustee on behalf of at least 5 members of that group to establish a policy committee;
there is at least 1 policy committee established for that group.
Rules do not apply to certain funds
(4) If a public offer superannuation fund complies with the basic equal representation rules stated in section 89 of the Act, the fund is not subject to the rules set out in subregulations (1), (2) and (3).
Equal representation of employers and members on policy committees—effect of vacancy
(5) If a vacancy occurs in the membership of a policy committee of a public offer superannuation fund the policy committee is taken to consist of equal numbers of employer representatives and member representatives during the period of the vacancy, in accordance with paragraph 91(3)(c), 92(3)(c) or 93(3)(c) of the Act (whichever is applicable) if:
(a) immediately before the vacancy occurred, the policy committee consisted of equal numbers of employer representatives and member representatives; and
(b) the vacancy is filled within 90 days after it occurred; and
(c) immediately after the vacancy is filled, the policy committee consists of equal numbers of employer representatives and member representatives.
3.06 Policy committees—functions (paragraphs 91(3)(b), 92(3)(b) and 93(3)(b) of the Act)
(1) For the purposes of paragraphs 91(3)(b), 92(3)(b) and 93(3)(b) of the Act, a public offer superannuation fund to which section 91, 92 or 93 of the Act applies is subject to the following rule, namely, that the functions that a policy committee of a fund may undertake include the following:
(a) providing an avenue:
(i) for members of the fund to inquire about the investment strategy and performance of the fund; and
(ii) for the trustee of the fund to obtain the views of members of the fund concerning that strategy and performance;
(b) providing an avenue for members of the fund to inquire about the fund’s operation or performance;
(c) providing an avenue for the trustee of the fund to obtain the views of members of the fund concerning the fund’s operation or performance;
(d) providing an avenue for the trustee of the fund to obtain the views of members of the fund on their information needs;
(e) assisting the trustee of the fund in dealing with complaints or inquiries about the operation or management of the fund.
(2) Subregulation (1) is not to be taken as limiting by implication the functions and responsibilities of the trustee.
3.07 Definition of policy committee in section 10 of the Act—matters specified for purposes of paragraph (a)
Issues relating to the fund that a member of the fund, or the employer‑sponsor of a member of the fund, has raised with the committee as a matter of concern, are specified for the purposes of paragraph (a) of the definition of policy committee in section 10 of the Act.
3.08 Policy committees—duties of trustee
(1) In relation to each policy committee of a public offer superannuation fund, the trustee of the fund must:
(a) ensure, so far as practicable, that the committee meets at least once in any 12‑month period; and
(b) provide facilities that are reasonably necessary to enable the committee to meet and to function effectively.
(2) A meeting may be held wholly or in part by means of a telephone conference connection among the committee members and, if a representative of the trustee is to attend, the representative.
(3) The trustee must arrange for a representative of the trustee to attend each meeting of the committee that the committee requests the trustee to do so.
(4) The trustee may recoup from the fund:
(a) the costs of providing facilities for the committee to meet; and
(b) the costs incurred by the trustee in attending a meeting of the committee; and
(c) the costs incurred by the trustee in providing information to the committee.
Note: The amount of costs recouped is determined in accordance with regulation 5.02
3.09 Dissolution of policy committees
(1) A policy committee of a public offer superannuation fund may dissolve itself, and if it does so the trustee of the fund is taken to have complied with the trustee’s duties under regulation 3.05.
(2) If a policy committee dissolves itself and at least 5 members of the fund, being members in respect of whom the committee functioned, request the trustee of the fund in writing to form a replacement committee, the trustee must take all reasonable steps to do so.
(3) The provisions of regulations 3.06, 3.07 and 3.08, and this regulation, apply to a replacement committee.
3.10 Commission and brokerage
(1) For the purposes of subsection 154(1) of the Act, the requirements set out in this regulation apply in relation to a payment by the trustee of a public offer entity of commission or brokerage (including commission or brokerage in the form of remuneration or other benefits) of a kind mentioned in that subsection.
(2) The trustee of a public offer entity may make a payment of commission or brokerage to a person in consideration of the person:
(a) applying or agreeing to apply for the issue of an interest in the entity; or
(b) procuring or agreeing to procure applications for the issue of an interest in the entity;
if, and only if:
(c) the payment is not prohibited by the entity’s trust deed; and
(d) where an interest is issued, the applicant for the issue of the interest has, before the issue occurred, been notified in writing of the amount or rate of the proposed payment of commission or brokerage.
(3) The trustee of a public offer entity must not make a payment of commission or brokerage to a person (the provider) for the provision of a financial service by the provider in respect of issuing an interest in the entity unless the provider is:
(a) a financial services licensee that is authorised to deal in superannuation products; or
(b) an authorised representative of a financial services licensee that is authorised to deal in superannuation products; or
(c) exempt from the requirement to hold an Australian financial services licence; or
(d) the provider of the financial service on behalf of another person who is exempt.
(4) A reference in subregulation (3) to a solicitor or accountant includes a reference to a firm of solicitors or accountants, or to a partner in such a firm, as the case requires.
(5) The trustee of an entity must keep an account of amounts of commission and brokerage paid by the entity.
3.11 Payment by trustee of a public offer entity of commission or brokerage
(1) This regulation applies in relation to a person who, immediately before this regulation commences, was entitled to a payment of commission or brokerage in the circumstances mentioned in paragraph 3.10(3)(a), (b), (d), (e) or (f) of the SIS Regulations.
(2) Regulation 3.10, as in force immediately before this regulation commences, continues to apply in relation to the person’s entitlement.
(3) Subregulation (2) ceases to apply in relation to the entitlement on the earlier of:
(a) the day on which the person becomes a financial services licensee in relation to the activity to which the payment relates; and
(b) the end of the transition period for the person mentioned in section 1438 of the Corporations Act 2001.
Part 3A—Matters prescribed or specified in relation to licensing of trustees and of groups of individual trustees
Division 3A.1—Classes of RSE licences
3A.01 Public offer entity licences
For paragraph 29B(2)(b) of the Act, the following classes of registrable superannuation entities are specified:
(a) superannuation entities that are superannuation funds with no more than 6 members (other than self managed superannuation funds);
(b) excluded approved deposit funds.
3A.02 Non‑public offer entity licences
(1) For subsection 29B(3) of the Act, all classes of registrable superannuation entities, other than the following classes, are specified:
(a) public offer entities;
(b) superannuation entities that are superannuation funds with no more than 6 members (other than self managed superannuation funds);
(c) excluded approved deposit funds.
(2) The class of RSE licences provided for under subsection 29B(3) of the Act is called the class of non‑public offer entity licences.
3A.03 Extended public offer entity licences
(1) For subsection 29B(4) of the Act, extended public offer entity licences are a class of RSE licences.
(2) Subject to any condition imposed on an extended public offer entity licence under subsection 29EA(3) of the Act, the licence enables a trustee that holds a licence of that class to be a trustee of any registrable superannuation entity.
3A.03A Acting trustee licences
(1) For subsection 29B(4) of the Act, acting trustee licences are a class of RSE licences.
(2) Subject to any condition imposed on an acting trustee licence under subsection 29EA(3) of the Act, the licence allows:
(a) a trustee that holds an acting trustee licence; or
(b) a trustee who is a member of a group of individual trustees that holds an acting trustee licence;
to be a trustee of a registrable superannuation entity or entities to which the trustee is appointed to act as trustee under section 134 of the Act by APRA.
(3) For subsection 29E(7) of the Act, for the period of the licence, a trustee must not, without APRA approval, carry on a business other than that of performing the functions and duties of a trustee of a registrable superannuation entity or entities to which the appointment relates (the trustee business).
(4) APRA may approve the trustee carrying on a business other than the trustee business if APRA is satisfied that the carrying on of the other business would not prejudice the proper and efficient performance of the trustee’s functions and duties.
Division 3A.3—Applying for RSE licences
3A.05 Definitions
In this Division:
asset, for a registrable superannuation entity, means an item described as an asset in a statement of financial position prepared in respect of the entity.
asset value, for a registrable superannuation entity, means the value worked out by determining the net balance of the registrable superannuation entity based on the statement of financial position prepared in respect of the entity for the last year of income of the entity before the start of the licensing transition period.
extended public offer entity licence means an RSE licence of a class specified in regulation 3A.03.
non‑public offer entity licence means an RSE licence of a class provided for under subsection 29B(3) of the Act.
statement of financial position, for a registrable superannuation entity, means a statement of financial position prepared in respect of an entity, as a reporting document for the purpose of reporting standards referred to in section 13 of the Financial Sector (Collection of Data) Act 2001.
Note: The definitions of licensing transition period and public offer entity licence are contained in subsection 10(1) of the Act.
3A.06 Application fees
For paragraphs 29C(4)(c) and 29F(2)(c) of the Act, the following fees are prescribed:
| Item | Application | Fees ($) |
| Non‑public offer entity licence | Public offer entity licence | Extended public offer entity licence |
| 1 | Application for RSE licence, other than an application mentioned in items 2 to 7. | 5 500 | 20 000 | 20 000 |
| 2 | Application for non‑public offer entity licence by an applicant that is a body corporate if: (a) the body corporate was a trustee of a registrable superannuation entity at the start of the licensing transition period; and | 3 500 | n/a | n/a |
| | (b) APRA is satisfied that the asset value of all registrable superannuation entities for which the body corporate proposes to become the RSE licensee is less than $5 000 000; and | | | |
| | (c) item 5 does not apply. | | | |
| 3 | Application for non‑public offer entity licence by an applicant that is a group of individual trustees if: (a) any member of the group was a trustee of a registrable superannuation entity at the start of the licensing transition period; and | 3 500 | n/a | n/a |
| | (b) APRA is satisfied that the asset value of all registrable superannuation entities for which the group proposes to become the RSE licensee is less than $5 000 000; and | | | |
| | (c) item 5 does not apply. | | | |
| 4 | Application for non‑public offer entity licence if, in the 12 months before the application is made: | 2 750 | n/a | n/a |
| | (a) the applicant applied for a licence of that class, for a public offer entity licence, or for an extended public offer entity licence; and | | | |
| | (b) that application was refused or withdrawn; and | | | |
| | (c) item 5 does not apply. | | | |
| 5 | Application for non‑public offer entity licence by an applicant to whom item 2 or 3 applies if, in the 12 months before the application is made: | 1 750 | n/a | n/a |
| | (a) the applicant applied for a licence of that class, for a public offer entity licence, or for an extended public offer entity licence; and | | | |
| | (b) that application was refused or withdrawn. | | | |
| 6 | Application for public offer entity licence if, in the 12 months before the application is made: | n/a | 10 000 | n/a |
| | (a) the applicant applied for a licence of that class, or for an extended public offer entity licence; and | | | |
| | (b) that application was refused or withdrawn. | | | |
| 7 | Application for extended public offer entity licence if, in the 12 months before the application is made: | n/a | n/a | 10 000 |
| | (a) the applicant applied for a licence of that class, or for a public offer entity licence; and | | | |
| | (b) that application was refused or withdrawn. | | | |
| 8 | Application for variation under paragraph 29F(1)(a): | | | |
| | (a) if the applicant already holds a non‑public offer entity licence, and item 9 does not apply; or | n/a | 14 500 | 14 500 |
| | (b) if the applicant already holds a public offer entity licence; or | 500 | n/a | 500 |
| | (c) if the applicant already holds an extended public offer entity licence. | 500 | 500 | n/a |
| 9 | Application for variation under paragraph 29F(1)(a) if: | n/a | 16 500 | 16 500 |
| | (a) the applicant already holds a non‑public offer entity licence; and | | | |
| | (b) when the applicant applied for that licence, item 2 or 3 applied. | | | |
Part 3B—Superannuation data and payment matters
3B.01 Definitions
In this Part:
prescribed eligible superannuation entity means an entity prescribed for the purposes of regulation 3B.02.
unique superannuation identifier, for an eligible superannuation entity, means either:
(a) the entity’s ABN followed by 3 numerals; or
(b) another kind of unique identifier approved in writing by the Commissioner of Taxation.
3B.02 Prescribed eligible superannuation entity for register
For the purposes of paragraph 34Z(1)(a) of the Act, all eligible superannuation entities are prescribed.
3B.03 Information to be given for register
(1) For subsection 34Z(1) of the Act, the trustee of a prescribed eligible superannuation entity must give to the Commissioner of Taxation (the Commissioner):
(a) at least one unique superannuation identifier for the entity; and
(b) for each unique superannuation identifier:
(i) one set of bank details that is sufficient to enable an electronic payment to be made; and
(ii) either:
(A) one internet protocol address; or
(B) one other kind of digital address approved by the Commissioner for the receipt of electronic communications.
(2) The trustee may give:
(a) the same bank details for more than one unique superannuation identifier; and
(b) the same internet protocol address, or other approved digital address, for more than one unique superannuation identifier.
(3) The trustee must tell the Commissioner the date on which the information is to be operative for the entity.
(4) However, the information must be operative for the entity on or before the date on which the entity first receives a contribution (other than a contribution received from an employer that is not covered by regulation 7.07E or a contribution received from a member), or a rollover or transfer of a member’s withdrawal benefit.
(5) The trustee must give the information mentioned in subregulation (1) to the Commissioner on or before 10 business days before the day on which the entity first receives a contribution, or a rollover or a transfer of a member’s withdrawal benefit.
(8) If the trustee of an entity proposes to change any information given for the entity under this regulation, the trustee must give the changed information to the Commissioner no later than 10 business days before the new information is to be operative for the entity.
Part 4—Management and trusteeship of superannuation entities
Division 4.1—Prescribed matters
4.01A Covenants in governing rules of superannuation entity—trustee’s determination and benchmarks
MySuper products
(1) For the purposes of subparagraph 52(9)(a)(i) of the Act, subregulation (2) specifies a benchmark in relation to a MySuper product.
(2) The benchmark is the requirement in subsection 60D(1) of the Act having been met for the product in relation to the most recently ended financial year.
Choice products
(3) For the purposes of subparagraph 52(9)(a)(ii) of the Act, subregulation (4) specifies a benchmark in relation to a choice product that is a Part 6A product.
(4) The benchmark is the requirement in subsection 60D(1) of the Act having been met for the product in relation to the most recently ended financial year.
4.01 Covenants in governing rules of superannuation entity—prescribed information and documents
For paragraphs 52(2)(j) and 52B(2)(h) of the Act, the information and documents that are available to a concerned person under section 1017C of the Corporations Act 2001 are prescribed.
4.02 Covenants in governing rules of self managed superannuation fund—beneficiary investment choice
(1) This regulation is made for paragraph 52B(4)(b) of the Act.
(2) The circumstances in which a direction, other than a subsequent direction, may be made by a specified beneficiary or class of beneficiaries are the following:
(a) the trustee:
(i) gives the beneficiary or class a choice of 2 or more strategies for investing the interest of the beneficiary or class in the fund; and
(ii) informs the beneficiary or class that the beneficiary or class may choose a strategy or combination of strategies;
(b) the beneficiary or class is fully informed of:
(i) the investment objectives of each strategy; and
(ii) anything else the trustee reasonably believes a person would need to know to understand the effect of, and any risk involved in, each strategy;
(c) the direction specifies:
(i) which strategy or combination of strategies the beneficiary or class has chosen; and
(ii) where applicable, matters related to the choice mentioned in subparagraph (i);
Example: The chosen strategy could be one that allows the beneficiary a choice in exposure to certain classes of asset. The beneficiary may choose 60% in fixed interest loans and 40% in shares. The choice of the level of exposure to the class of assets would be information for subparagraph (ii).
(d) the beneficiary or class is fully informed of the range of directions that can be given and the circumstances in which they can be changed.
(3) A subsequent direction may be given in the following circumstances:
(a) the beneficiary or class is given all the information the trustee believes a person would need to understand the effect of, and any risk involved in, giving the subsequent direction;
(b) the subsequent direction relates to the strategy for investing the beneficiary or class’s interest in the fund.
4.02A Trustee subject to direction—registrable superannuation entity other than regulated superannuation fund with no more than 6 members
(1) This regulation is made for subparagraph 58(2)(d)(ii) of the Act.
(2) If a beneficiary is a standard employer‑sponsored member, the circumstances in which a direction other than a subsequent direction may be given by the beneficiary to take up, dispose of or alter the amount invested in an investment option are:
(a) the trustee:
(i) gives the beneficiary a choice of 2 or more strategies for investing the interest of the beneficiary in the fund; and
(ii) informs the beneficiary that the beneficiary may choose a strategy or combination of strategies;
(b) the beneficiary is fully informed of:
(i) the investment objectives of each strategy; and
(ii) anything else the trustee reasonably believes a person would need to know to understand the effect of, and any risk involved in, each strategy;
(c) the direction specifies:
(i) which strategy or combination of strategies the beneficiary has chosen; and
(ii) where applicable, matters related to the choice mentioned in subparagraph (i).
Example: The chosen strategy could be one that allows the beneficiary a choice in exposure to certain classes of asset. The beneficiary may choose 60% in fixed interest loans and 40% in shares. The choice of the level of exposure to the class of assets would be information for subparagraph (ii).
Note: Information regarding investment strategies is generally set out in a Product Disclosure Statement. However, a shorter Product Disclosure Statement may, in accordance with the modifications of the Corporations Act 2001 set out in Part 5B of Schedule 10A to the Corporations Regulations 2001 provide some of the information by applying, adopting or incorporating a matter in writing; or refer to information that is set out in another document.
(d) the beneficiary is fully informed of the range of directions that can be given and the circumstances in which they can be changed;
(e) the trustee, when presenting a choice of 2 or more investment strategies to the beneficiary, informs the beneficiary which strategy the trustee will adopt if no direction is given.
(3) Disregard the circumstance in paragraph (2)(e) if it is a condition of membership that the beneficiary chooses a strategy or combination of strategies.
(4) If a beneficiary is not a standard employer‑sponsored member, the circumstances in which a direction other than a subsequent direction may be given by the beneficiary to take up, dispose of or alter the amount invested in an investment option are the circumstances in paragraphs (2)(a) to (d).
(5) A subsequent direction may be given in the following circumstances:
(a) the beneficiary is given all the information the trustee believes a person would need to understand the effect of, and any risk involved in, giving the subsequent direction;
(b) the subsequent direction relates to the strategy for investing the beneficiary’s interest in the fund.
4.02AA Operating standard—direction on investment option to trustee of regulated superannuation fund with no more than 6 members
(1) This standard:
(a) is made for subsection 31(1) of the Act; and
(b) applies to a regulated superannuation fund (other than a self managed superannuation fund) with no more than 6 members.
(2) A beneficiary of the fund who is a standard employer‑sponsored member may give a direction other than a subsequent direction to take up, dispose of or alter the amount invested in an investment option only if the circumstances in subregulation (3) apply.
(3) For subregulation (2), the circumstances are the following:
(a) the trustee:
(i) gives the beneficiary a choice of 2 or more strategies for investing the interest of the beneficiary in the fund; and
(ii) informs the beneficiary that the beneficiary may choose a strategy or combination of strategies;
(b) the beneficiary is fully informed of:
(i) the investment objectives of each strategy; and
(ii) anything else the trustee reasonably believes a person would need to know to understand the effect of, and any risk involved in, each strategy;
(c) the direction specifies:
(i) which strategy or combination of strategies the beneficiary has chosen; and
(ii) where applicable, matters related to the choice mentioned in subparagraph (i);
Example: The chosen strategy could be one that allows the beneficiary a choice in exposure to certain classes of asset. The beneficiary may choose 60% in fixed interest loans and 40% in shares. The choice of the level of exposure to the class of assets would be information for subparagraph (ii).
Note: Information regarding investment strategies is generally set out in a Product Disclosure Statement. However, a shorter Product Disclosure Statement may, in accordance with the modifications of the Corporations Act 2001 set out in Part 5B of Schedule 10A to the Corporations Regulations 2001 provide some of the information by applying, adopting or incorporating a matter in writing; or refer to information that is set out in another document.
(d) the beneficiary is fully informed of the range of directions that can be given and the circumstances in which they can be changed;
(e) the trustee, when presenting a choice of 2 or more investment strategies to the beneficiary, informs the beneficiary which strategy the trustee will adopt if no direction is given.
(4) Disregard the circumstance in paragraph (2)(e) if it is a condition of membership that the beneficiary chooses a strategy or combination of strategies.
(5) If a beneficiary is not a standard employer‑sponsored member, the circumstances in which a direction other than a subsequent direction may be given by the beneficiary to take up, dispose of or alter the amount invested in an investment option are the circumstances in paragraphs (3)(a) to (d).
(6) A subsequent direction may be given in the following circumstances:
(a) the beneficiary is given all the information the trustee believes a person would need to understand the effect of, and any risk involved in, giving the subsequent direction;
(b) the subsequent direction relates to the strategy for investing the beneficiary’s interest in the fund.
4.03 Trustee of employer‑sponsored fund—prescribed direction by employer‑sponsor or associate of employer sponsor
(1) For the purposes of paragraph 58(2)(e) of the Act, the circumstances in which the governing rules of a superannuation entity (other than a superannuation fund with no more than 6 members) may permit an employer‑sponsor or an associate of an employer‑sponsor to give a direction to the trustee of an employer‑sponsored fund are:
(a) where, after the implementation of the direction:
(i) the fund (if a defined benefit fund) would not become technically insolvent within the meaning of subregulation 9.06(3); or
(ii) the fund (if an accumulation fund) would not become technically insolvent within the meaning of subregulation 9.35(3); and
(b) where the direction would not require the trustee to contravene the Act (other than section 55) or these regulations; and
(c) where the direction qualifies under subregulation (2).
(2) A direction qualifies if:
(a) the contributions of the employer‑sponsor to the fund include contributions that are not mandated employer contributions (within the meaning of Part 5) and the direction relates solely to either or both of the following:
(i) those non‑mandated employer contributions; or
(ii) benefits related to those non‑mandated employer contributions; or
(b) whether or not paragraph (a) applies—the direction relates solely to one or more of the following:
(i) the admission of new members to the fund; or
(ii) the category of members into which a new member or existing member is to be placed; or
(iii) allowing a person to become an employer‑sponsor of the fund; or
(iv) the termination of the fund; or
(v) the appointment of a trustee to an entity that does not have a trustee.
4.04 Governing rules of a superannuation entity—prescribed exercise of discretion by non‑trustee
(1) For the purposes of subparagraph 59(1)(b)(iii) of the Act, the circumstances in which a discretion under the governing rules of a superannuation entity other than a self managed superannuation fund may be exercised by a person other than the trustee are:
(a) where, after the exercise of the discretion:
(i) the fund (if a defined benefit fund) would not become technically insolvent within the meaning of subregulation 9.06(3); or
(ii) the fund (if an accumulation fund) would not become technically insolvent within the meaning of subregulation 9.35(3); and
(b) where the discretion could have been exercised by the trustee without contravening the Act (other than section 55) or these regulations; and
(c) where the discretion qualifies under subregulation (2).
(2) A discretion qualifies if:
(a) the contributions of the employer‑sponsor to the fund include contributions that are not mandated employer contributions (within the meaning of Part 5) and the discretion relates solely to either or both of the following:
(i) those non‑mandated employer contributions; or
(ii) benefits related to those non‑mandated employer contributions; or
(b) whether or not paragraph (a) applies—the discretion relates solely to one or more of the following:
(i) the admission of new members to the fund; or
(ii) the category of members into which a new member or existing member is to be placed; or
(iii) allowing a person to become an employer‑sponsor of the fund; or
(iv) the termination of the fund; or
(v) the appointment of a trustee to an entity that does not have a trustee.
4.05 Governing rules of a superannuation entity—prescribed circumstances of amendment
(1) For the purposes of subparagraph 60(1)(b)(iii) of the Act, the circumstances in which the governing rules of a superannuation entity other than a self managed superannuation fund may be amended are:
(a) where, after the making of the amendment:
(i) the fund (if a defined benefit fund) would not become technically insolvent within the meaning of subregulation 9.06(3); or
(ii) the fund (if an accumulation fund) would not become technically insolvent within the meaning of subregulation 9.35(3); and
(b) where the amendment could have been made by the trustee without contravening the Act (other than section 55) or these regulations; and
(c) where the amendment qualifies under subregulation (2).
(2) An amendment qualifies if:
(a) the contributions of the employer‑sponsor to the fund include contributions that are not mandated employer contributions (within the meaning of Part 5) and the amendment relates solely to either or both of the following:
(i) those non‑mandated employer contributions; or
(ii) benefits related to those non‑mandated employer contributions; or
(b) whether or not paragraph (a) applies—the amendment relates solely to one or more of the following:
(i) the admission of new members to the fund; or
(ii) the category of members into which a new member or existing member is to be placed; or
(iii) allowing a person to become an employer‑sponsor of the fund; or
(iv) the termination of the fund; or
(v) the appointment of a trustee to an entity that does not have a trustee.
4.06 Removal of member representatives—prescribed circumstances
(1) For the purposes of sub‑subparagraph 107(2)(a)(ii)(G) of the Act, the circumstances stated in subregulation (2) are prescribed as circumstances in which member representatives referred to in subparagraph 107(2)(a)(ii) of the Act can be removed other than by the same procedure by which they were appointed.
(2) The circumstances referred to in subregulation (1) are:
(a) if the member representative resigns from the position of trustee, director of the trustee or representative on a policy committee; or
(b) if the member representative’s tenure of that position expires; or
(c) if the member representative ceases to be a member of the fund; or
(d) if the member representative ceases to satisfy a condition that the member representative was required to satisfy to be eligible for appointment.
4.07 Removal of independent trustee or independent member—prescribed circumstances
(1) For the purposes of subparagraph 108(2)(a)(v) of the Act, the circumstances stated in subregulation (2) are prescribed as circumstances in which an additional independent trustee or additional independent director (the office‑holder) referred to in paragraph 108(2)(a) of the Act can be removed other than by the same procedure by which they were appointed.
(2) The circumstances referred to in subregulation (1) are:
(a) if the office‑holder resigns from office; or
(b) if the office‑holder’s tenure of office expires; or
(c) if the office‑holder ceases to be:
(i) in the case of an additional independent trustee—an independent trustee; or
(ii) in the case of an additional independent director—an independent director; or
(d) if the office‑holder ceases to satisfy a condition that the office‑holder was required to satisfy to be eligible for appointment.
Division 4.2—Operating standards
4.07C Definitions
In this Division:
insured benefit, for a member, means a right for the member’s benefits to be increased on the realisation of a risk.
4.07D Operating standard—permitted types of insurance
(1) This regulation is made for subsection 31(1) of the Act.
(2) A trustee of a regulated superannuation fund must not provide an insured benefit in relation to a member of the fund unless the insured event is consistent with a condition of release specified in item 102, 102A, 103 or 109 of Schedule 1.
(3) However, subregulation (2) does not apply to:
(a) the continued provision of benefits to members who joined a fund before 1 July 2014; or
(b) the provision of benefits under an approval granted before 1 July 2014 under subparagraph 62(1)(b)(v) of the Act.
(4) If a trustee is unable to amend the governing rules of a fund, to make the governing rules comply with subregulation (2):
(a) the rules that do not comply with subregulation (2) are taken to have been omitted from the governing rules; and
(b) the rules omitted under paragraph (a) are taken to have been replaced by rules that allow the provision of benefits that are permitted under subregulation (2).
(5) This regulation does not apply until 1 July 2014.
4.07E Operating standard—self‑insurance
(1) This regulation is made for subsection 31(1) of the Act.
Note: See also paragraph 31(2)(eb) of the Act.
(2) If, on 1 July 2013, a regulated superannuation fund does not self‑insure, in relation to a particular risk, a trustee of the fund may, on and after 1 July 2013, provide an insured benefit, in relation to that risk, to members of the fund only if the provision of the benefit is fully supported by an insurance policy provided by an insurer.
(3) Subregulation (2) does not apply, on or before 1 July 2016, to a member who is transferred from a fund that self‑insured, in relation to the member and the risk, into:
(a) a successor fund that, immediately before the transfer, did not self‑insure in relation to the risk; or
(b) under Part 33 of the Act—a fund that, immediately before the transfer, did not self‑insure in relation to the risk.
(4) If, on 1 July 2013, a regulated superannuation fund self‑insures, in relation to a particular risk, a trustee of the fund may, on and after 1 July 2016, provide an insured benefit, in relation to that risk, to members of the fund only if the provision of the benefit is fully supported by an insurance policy provided by an insurer.
(5) If the governing rules of the fund mentioned in subregulation (4) do not allow the trustee to obtain the insurance policy mentioned in that subregulation, the trustee must, before 1 July 2016, amend the rules of the fund to allow the trustee to do so.
(6) If the trustee cannot amend the rules, the rules are taken to be amended to allow the trustee to obtain the insurance policy.
(7) Subregulation (4) does not apply if the Commonwealth Government, or the government of a State or Territory:
(a) provides an insured benefit to members of the fund; or
(b) guarantees the provision of an insured benefit to members of the fund.
(8) Subregulation (4) does not apply, in relation to defined benefit members of the fund, if:
(a) on or before 1 July 2013, APRA has not imposed, under subsection 29EA(1) of the Act, a condition on the licence of the RSE licensee of the fund that prohibits self‑insurance in relation to defined benefit members; and
(b) on 1 July 2013, the fund self‑insures in relation to the members.
(9) Despite subregulation (4), a beneficiary of the fund who is mentioned in column 2 of the table has the entitlement mentioned in column 3 of the table.
| Entitlements of beneficiaries |
| Item | If one of the following applies to the beneficiary immediately before 1 July 2016 ... | the beneficiary is entitled, on and after 1 July 2016, to ... |
| 1 | receives an insured benefit | continue to receive the insured benefit |
| 2 | lodges a claim for an insured benefit | (a) have the claim determined; and (b) receive an insured benefit, if the trustee so determines |
| 3 | is eligible to make a claim for an insured benefit | (a) lodge a claim; and (b) have the claim determined; and (c) receive an insured benefit, if the trustee so determines |
(10) In this regulation:
fund includes a sub‑fund.
4.08 Operating standard—voting rule where equal representation applies
(1) For the purposes of subsection 31(1) of the Act, the standard stated in subregulation (3) is applicable to the operation of standard employer‑sponsored funds that must comply:
(a) under subsection 91(4) or 93(4) of the Act—with the basic equal representation rules; or
(b) under subsection 90(3) of the Act—with either:
(i) the basic equal representation rules; or
(ii) the alternative agreed representation rule set out in subsection 90(4) of the Act; or
(c) under subsection 92(4) of the Act—with either:
(i) the basic equal representation rules; or
(ii) the alternative agreed representation rule set out in subsection 92(5) of the Act.
(2) Despite subregulation (1), the standard stated in subregulation (3) is not applicable:
(a) to the operation of standard employer‑sponsored funds that comply with the alternative agreed representation rule set out in subsection 90(4) or 92(5) of the Act; or
(b) to a decision of a delegate of the individual trustees or of the board of directors of the corporate trustee of the fund if the delegation was approved by at least two‑thirds of the total number of the trustees or directors.
(3) A decision of:
(a) the individual trustees of a fund; or
(b) the board of directors of the corporate trustee of a fund;
must be taken not to have been made, or to be of no effect, if fewer than two‑thirds of the total number of the trustees or directors, as the case requires, voted for it.
4.08A Operating standard—member representation for certain regulated superannuation funds where a declaration under subsection 18(7) of the Act applies
(1) For the purposes of subsection 31(1) of the Act, the standard stated in subregulation (2) applies to the operation of regulated superannuation funds.
(2) A regulated superannuation fund:
(a) that is not a standard employer‑sponsored fund; and
(b) that has more than 6 members; and
(c) in relation to which a declaration under subsection 18(7) of the Act is in force;
must have in place an arrangement in relation to the management and control of the fund that:
(d) has been agreed to by a majority of the members of the fund; and
(e) is approved by APRA in writing.
Note: Subsection 18(7) of the Act allows for funds to be declared not to be public offer funds.
(3) An approval for paragraph (2)(e):
(a) is subject to any conditions specified in the instrument of approval; and
(b) may be revoked by APRA by written notice given to the holder of the approval.
(4) APRA may vary the conditions of an approval for paragraph (2)(e) by written notice given to the holder of the approval.
(5) An approval that:
(a) was granted by the Commissioner or APRA under the regulation 4.08A that, under section 2 of Modification Declaration 10, had effect as if it had been inserted into these regulations; and
(b) was in force immediately before 1 March 2001;
continues in force as if granted by APRA for this regulation after that commencement.
Note: Modification Declaration 10 was gazetted on 19 July 1995 under section 332 of the Act.
(6) When deciding whether or not to approve an arrangement for paragraph (2)(e), APRA must have regard to any written guidelines determined by APRA under this subregulation.
(7) This regulation does not apply to a fund if the fund has an acting trustee appointed under Part 17 of the Act.
4.09 Operating standard—investment strategy
(1) This regulation:
(a) is made for subsection 31(1) of the Act; and
(b) applies to a superannuation entity that is a self managed superannuation fund.
(2) The trustee of the entity must formulate, review regularly and give effect to an investment strategy that has regard to the whole of the circumstances of the entity including, but not limited to, the following:
(a) the risk involved in making, holding and realising, and the likely return from, the entity’s investments, having regard to its objectives and expected cash flow requirements;
(b) the composition of the entity’s investments as a whole, including the extent to which they are diverse or involve exposure of the entity to risks from inadequate diversification;
(c) the liquidity of the entity’s investments, having regard to its expected cash flow requirements;
(d) the ability of the entity to discharge its existing and prospective liabilities;
(e) whether the trustees of the fund should hold a contract of insurance that provides insurance cover for one or more members of the fund.
(3) An investment strategy is taken to be in accordance with subregulation (2) even if it provides for a specified beneficiary or class of beneficiaries to give directions to the trustee where the directions:
(a) relate to the strategy to be followed by the trustee in relation to the investment of a particular asset or assets of the entity; and
(b) are given in the circumstances covered by regulation 4.02.
4.09A Operating standard—money and other assets to be kept separate (self managed superannuation funds)
(1) For subsection 31(1) of the Act, the standard stated in subregulation (2) applies to the operation of regulated superannuation funds.
(2) A trustee of a regulated superannuation fund that is a self managed superannuation fund must keep the money and other assets of the fund separate from any money and assets, respectively:
(a) that are held by the trustee personally; or
(b) that are money or assets, as the case may be, of a standard employer‑sponsor, or an associate of a standard employer‑sponsor, of the fund.
4.10 Operating standard—investment by non‑complying superannuation funds
For the purposes of subsection 31(1) of the Act, it is a standard applicable to the operation of regulated superannuation funds that, if the Regulator gives a notice to the trustee of an entity stating that the entity is not a complying superannuation fund, the trustee must take all reasonable steps to immediately dispose of any units held by the trustee in a PST, unless the Regulator otherwise directs.
4.10A Operating standard—ownership of units in a PST
(1) For paragraph 33(2)(aa) of the Act, the standard stated in subregulation (2) is applicable to a registrable superannuation entity that is a PST.
(2) A trustee of the registrable superannuation entity must not offer ownership of units in the registrable superannuation entity unless the registrable superannuation entity is registered under Part 2B of the Act.
4.11 Operating standard—investment by non‑complying approved deposit funds
For the purposes of subsection 32(1) of the Act, it is a standard applicable to the operation of approved deposit funds that, if APRA gives a notice to the trustee of an entity stating that the entity is not a complying approved deposit fund, the trustee must take all reasonable steps to immediately dispose of any units held by the trustee in a PST, unless APRA otherwise directs.
4.11A Operating standard—acceptance of deposits by an approved deposit fund
(1) For paragraph 32(2)(aa) of the Act, the standard stated in subregulation (2) is applicable to a registrable superannuation entity that is an approved deposit fund.
(2) A trustee of the registrable superannuation entity must not accept deposits unless the registrable superannuation entity is registered under Part 2B of the Act.
4.12 Operating standard—acceptance by regulated superannuation and approved deposit funds of rollovers and transfers
(1) For the purposes of subsections 31(1) and 32(1) of the Act, it is a standard applicable to the operation of regulated superannuation funds and approved deposit funds that the trustee of a fund (the receiving trustee) must not accept the rollover or transfer of a benefit from another regulated superannuation fund or approved deposit fund, or from an EPSSS or RSA, (the transferring entity) if:
(a) the receiving trustee has reasonable grounds to believe that the benefit being rolled over or transferred is being rolled over or transferred on the basis of a belief held by the trustee or RSA provider of the transferring entity (as the case requires) that the receiving trustee has received the member’s or RSA holder’s consent to the rollover or transfer; and
(b) the receiving trustee has not received that consent.
(2) In this regulation:
consent means:
(a) written consent; or
(b) any other form of consent determined by the Regulator as sufficient in the circumstances.
4.13 Operating standard—lending to members of an approved deposit fund
(1) For the purposes of subsection 32(1) of the Act, the standards stated in subregulations (2) and (3) are standards applicable to the operation of approved deposit funds.
(2) The trustee of a fund must not:
(a) lend money of the fund to:
(i) a member of the fund; or
(ii) a relative of a member of the fund; or
(b) give any other financial assistance using the resources of the fund to:
(i) a member of the fund; or
(ii) a relative of a member of the fund.
(3) The trustee of a fund must take all reasonable steps to ensure that the investment manager does not:
(a) lend money of the fund to:
(i) a member of the fund; or
(ii) a relative of a member of the fund; or
(b) give any other financial assistance using the resources of the fund to:
(i) a member of the fund; or
(ii) a relative of a member of the fund.
(4) In this regulation:
member, of a fund, includes the non‑member spouse in relation to a superannuation interest in the fund that is subject to a payment split.
relative has the same meaning as in the Income Tax Assessment Act.
Part 5—Benefit protection standards
Division 5.1—Preliminary
5.01 Interpretation
(1) In this Part, unless the contrary intention appears:
accumulated deposit, in relation to a member of an approved deposit fund as at a particular time, means the total of the following amounts:
(a) amounts deposited in the fund for the member down to that time; and
(b) investment earnings on those amounts down to that time; less:
(c) the costs applicable to those amounts down to that time.
administration costs includes all fees and charges charged against a member’s benefits (whether or not charged against the contributions by or in respect of the member), other than:
(a) in the case of a member who was a member of the fund on 30 June 1995, the exit fee (if any) applicable to the member’s benefits at that date; and
(b) the cost (if any) of providing to the member:
(i) an insured death benefit; or
(ii) an insured permanent or temporary incapacity benefit; and
(c) taxation costs.
Note: Examples of ‘taxation costs’: contributions tax, superannuation contributions surcharge.
cashed means cashed in accordance with Division 6.3.
costs, in relation to a member’s benefits in a regulated superannuation fund or an approved deposit fund as at any time, means the total costs determined under regulation 5.02 in relation to those benefits and charged to those benefits in accordance with that regulation down to that time.
deferred annuity means an annuity that is not payable on purchase, and the terms of which ensure:
(a) that payment of benefits under the annuity:
(i) is not commenced earlier than the time at which Part 6 permits or requires the benefits to be paid from an approved deposit fund; and
(ii) is to commence as soon as practicable after the annuitant:
(A) dies; or
(B) if the annuitant dies before attaining the age of 65—would have attained that age; and
(b) that, except as permitted in relation to approved deposit funds by the Act or these Regulations, the provider of the annuity is not taken to recognise, or in any way encourage or sanction:
(i) an assignment of an interest under the annuity; or
(ii) the giving of a charge over, or in relation to, the annuity.
Government co‑contribution benefits means Government co‑contributions made under the Co‑contribution Act, less:
(a) the costs applicable to them; and
(b) any amounts repaid under section 24 of the Co‑contribution Act.
investment earnings, in relation to a member’s benefits (or a members’ benefits of a particular kind) in a regulated superannuation fund or an approved deposit fund as at any time, means the total of the amounts credited, less the total of the amounts debited, to the member’s account by way of investment return down to that time in respect of those benefits.
investment return, in relation to a member’s benefits (or a member’s benefits of a particular kind) in a regulated superannuation fund or an approved deposit fund over a particular period means:
(a) in the case of an approved deposit fund or an accumulation fund in which the trustee does not maintain reserves—the proportion of the return to the fund on investments over that period that is attributable to those benefits; or
(b) in the case of an approved deposit fund or an accumulation fund in which the trustee maintains reserves—the return determined by the trustee in accordance with regulation 5.03 for that period; or
(c) in the case of a defined benefit fund:
(i) the proportion of the return to the fund on investments over that period that is attributable to those benefits; or
(ii) the return on the benefits over that period that is fair and reasonable to all members of the fund, being a return based either on the actual return earned on the investments of the fund or on a commercially available rate of interest; or
(iii) the return on the benefits that is derived by increasing the benefits in proportion with the increase in the salary of the member over that period.
mandated employer contributions, in relation to a member of a regulated superannuation fund, means contributions by, or on behalf of, an employer that are equal to the sum of:
(a) the contributions made by, or on behalf of, the employer to the fund in relation to the member, that:
(i) reduce the employer’s potential liability for the superannuation guarantee charge imposed by section 5 of the Superannuation Guarantee Charge Act 1992; or
(ii) are payments of shortfall components; and
(b) the contributions (other than contributions of the kind specified in paragraph (a)) made by, or on behalf of, the employer to the fund in relation to the member in or towards satisfaction of the employer’s obligation to make contributions for the member, being an obligation under an agreement certified, or an award made, on or after 1 July 1986 by an industrial authority.
mandated employer‑financed benefits, in relation to a member of a regulated superannuation fund as at a particular time, means benefits equal to the sum of:
(a) the amount of the mandated employer contributions (if any) made to the fund in relation to the member down to that time; and
(b) the amount of the mandated employer‑financed benefits (if any) paid into the fund in relation to the member down to that time; and
(c) the amount of the investment earnings on those contributions and benefits down to that time;
less the costs applicable to the amounts down to that time.
member contributions, in relation to a member of a regulated superannuation fund, means contributions by, or on behalf of, the member to the fund, but does not include employer contributions made in respect of the member.
member‑financed benefits, in relation to a member of a regulated superannuation fund as at a particular time, means benefits equal to the sum of:
(a) the amount of the member contributions (if any) made to the fund in relation to the member down to that time; and
(b) the amount of the member‑financed benefits (if any) paid into the fund in relation to the member down to that time; and
(c) the amount of the investment earnings on those contributions and benefits down to that time;
less the costs applicable to those amounts down to that time.
OSS Laws means:
(a) the Occupational Superannuation Standards Act 1987 as in force immediately before the commencement of section 5 of the Occupational Superannuation Standards Amendment Act 1993; and
(b) the Occupational Superannuation Standards Regulations.
rolled over means paid as a superannuation lump sum (other than by way of being transferred) within the superannuation system.
superannuation provider means:
(a) the trustee of a regulated superannuation fund; or
(b) the trustee of an approved deposit fund; or
(c) an RSA provider.
superannuation system means the system comprising:
(a) regulated superannuation funds; and
(b) approved deposit funds; and
(c) the Commissioner of Taxation in the Commissioner of Taxation’s role as the maker of payments to a superannuation provider under the Superannuation (Unclaimed Money and Lost Members) Act 1999; and
(d) deferred annuities; and
(e) EPSSSs; and
(h) RSAs; and
(i) annuities.
transferred, in relation to a member’s benefits paid out of, or received by, a regulated superannuation fund or approved deposit fund, means paid to, or received from:
(a) another regulated superannuation fund or approved deposit fund; or
(b) an RSA provided by an RSA institution; or
(c) an EPSSS;
otherwise than upon the satisfaction by the member of a condition of release (within the meaning of Part 6) for all those benefits.
(2) For the purposes of this Part, a payment from the Superannuation Holding Accounts Special Account is taken to be a mandated employer contribution.
5.01A Operating standards—determination of costs and investment return
For the purposes of subsections 31(1) and 32(1) of the Act:
(a) the standard set out in subregulations 5.02(1) and (3), 5.02B(2), 5.02C(2) and 5.03(2) is applicable to the operation of regulated superannuation funds and approved deposit funds; and
(b) the standard set out in subregulation 5.03(1) is applicable to the operation of:
(i) accumulation funds; and
(ii) approved deposit funds;
that maintain reserves.
5.01B Trustee may provide greater protection than this Part requires
The trustee of a regulated superannuation fund or approved deposit fund has the power, despite anything in the governing rules of the fund, to protect the benefits of members:
(a) to a greater degree than is required by this Part; or
(b) from an earlier date than is required by this Part;
if the trustee does so in a way that is consistent with this Part.
Note: This regulation was amended with effect from 1 July 2013 as part of changes to the former member protection standards. A trustee might choose to continue to protect the benefits of all members from 1 July 2013 until when the trustee starts to enrol members in the MySuper product.
5.02 Determination of costs
(1) The trustee of a regulated superannuation fund or an approved deposit fund must determine the costs to be charged from time to time against a member’s benefits in the fund.
(2) In determining the costs to be charged against a member’s benefits, the trustee may include:
(a) the direct costs of establishing, operating and terminating the fund; and
(b) any administrative, insurance and taxation costs relating to the establishment, operation and termination of the fund; and
(c) if the member’s benefits are subject to a payment split, the costs incurred in administering the payment split (not including the costs offset by any fees payable under regulation 59 of the Family Law (Superannuation) Regulations 2001 in respect of the payment split).
(3) Subject to regulation 5.01B, in determining the costs to be charged against a member’s benefits, the trustee must ensure that the costs of the fund (including the costs (if any) incurred by the fund as a result of the operation of Division 5.4) are distributed in a fair and reasonable manner as between:
(a) all the members of the fund; and
(b) the various kinds of benefits of each member of the fund.
5.02B Priority in deducting surcharge or instalment
(1) This regulation applies if a trustee has decided to reduce a member’s benefits in connection with payment of a superannuation contributions surcharge or an advance instalment of surcharge.
(2) In reducing the member’s benefits, the trustee must:
(a) if possible—deduct an amount equal to the whole of the amount of the reduction from the preserved benefits; and
(b) if the required deduction cannot be met under paragraph (a)—deduct the balance from the restricted non‑preserved benefits; and
(c) if the required deduction cannot be met under paragraphs (a) and (b)—deduct the balance from the unrestricted non‑preserved benefits.
5.02C Refund of costs
(1) The trustee of a regulated superannuation fund or approved deposit fund may refund, to a member’s benefits in the fund, costs charged against the member’s benefits.
(2) In determining the amount of refund to be credited, the trustee must ensure that the total amount to be refunded is distributed in a fair and reasonable manner to all the members of the fund against whom the costs were charged.
5.03 Investment returns
(1) The trustee of an accumulation fund or an approved deposit fund that maintains reserves must determine the investment return to be credited or debited from time to time to a member’s benefit (or benefits of a particular kind) in the fund, having regard to:
(a) the return to the fund on investments; and
(b) the extent to which the costs of the fund exceed (or fall below) the aggregate of the costs charged to member’s benefits under regulation 5.02; and
(c) the level of the reserves of the entity.
(2) Subject to regulation 5.01B and Division 6.1, the trustee of a regulated superannuation fund or an approved deposit fund must determine the investment return to be credited or debited to a member’s benefits (or benefits of a particular kind) in a way that is fair and reasonable as between:
(a) all the members of the fund; and
(b) the various kinds of benefits of each member of the fund.
Division 5.2—Minimum benefits
5.04 Minimum benefits—regulated superannuation funds
(1) Subject to regulations 5.05, 5.06 and 5.06B, a member’s minimum benefits in a regulated superannuation fund are as set out in this regulation.
(2) If the fund is an accumulation fund, the member’s minimum benefits are all of the member’s benefits in the fund.
(3) If the fund is a defined benefit fund, the member’s minimum benefits are as follows:
(a) if the member belongs to a class of employees in relation to which a relevant benefit certificate applies, the amount of the member’s minimum requisite benefit; or
(b) in any other case:
(i) the member’s member‑financed benefits; and
(ii) the member’s mandated employer‑financed benefits; and
(iii) Government co‑contribution benefits and any investment earnings on them; and
(iv) any amount allocated under regulation 7.11.
5.05 Mandated employer contributions—regulated superannuation funds
(1) Subject to this regulation, contributions to a regulated superannuation fund are taken to be mandated employer contributions.
(2) If:
(a) at least 1 year has elapsed since the fund received the contributions; and
(b) the trustee:
(i) is satisfied that the contributions are not in fact mandated employer contributions; and
(ii) decides not to continue to treat the contributions as mandated employer contributions;
subregulation (1) ceases to apply to the contributions.
(3) If:
(a) less than 1 year has elapsed since the fund received the contributions; and
(b) the trustee is satisfied that the contributions are not in fact mandated employer contributions;
subregulation (1) ceases to apply to the contributions.
(4) The trustee has power to make a decision of the kind mentioned in subparagraph 2(b)(ii) despite anything in the governing rules of the fund.
Example of the application of this regulation: A trustee of a fund may receive a non‑mandated employer contribution from an employer‑sponsor of the fund that the trustee does not know is a non‑mandated employer contribution (i.e. a contribution not made in satisfaction of the employer‑sponsor’s superannuation guarantee or award obligation).
Upon acceptance, the contribution will be taken to be a mandated employer contribution and therefore subject to the minimum benefits standards.
From this point, one of three circumstances may apply:
(a) the trustee may become aware in the first year after the contribution was received that the contribution is a non‑mandated employer contribution, and, if this is the case, the trustee must treat the contribution as a non‑mandated employer contribution; or
(b) the trustee may become aware more than a year after the contribution was received that the contribution is a non‑mandated employer contribution, and, if this is the case, the trustee may continue to treat the contribution as a mandated employer contribution instead of making corrections to reflect the change; or
(c) the trustee may never become aware that the contribution is a non‑mandated employer contribution, and, if this is the case, the contribution will always be taken to be a mandated employer contribution.
5.06 Certain benefits rolled over or transferred to regulated superannuation funds taken to be minimum benefits
(1) Subject to this regulation, the following benefits are taken to be minimum benefits in a regulated superannuation fund:
(a) benefits rolled over or transferred to the regulated superannuation fund;
(b) benefits allotted under Division 6.7 to an interest in the regulated superannuation fund held by, or created for, a receiving spouse.
(2) If:
(a) at least 1 year has elapsed since the fund received the benefits; and
(b) the trustee:
(i) is satisfied that the benefits are not in fact minimum benefits; and
(ii) decides not to continue to treat the benefits as minimum benefits;
subregulation (1) ceases to apply to the benefits.
(3) If:
(a) less than 1 year has elapsed since the fund received the benefits; and
(b) the trustee is satisfied that the benefits are not in fact minimum benefits;
subregulation (1) ceases to apply to the benefits.
(4) If benefits that have been rolled over or transferred to a regulated superannuation fund are taken under this regulation to be minimum benefits, the amount of the minimum benefits as at any time is the sum of:
(a) the benefits rolled over or transferred to the fund; and
(b) the investment earnings on those benefits down to that time;
less the costs applicable to those benefits down to that time.
(5) The trustee has power to make a decision of the kind mentioned in subparagraph (2)(b)(ii) despite anything in the governing rules of the fund.
(6) In this regulation:
benefits means benefits other than benefits rolled over or transferred to a regulated superannuation fund from an RSA.
5.06A Benefits rolled over or transferred from an RSA to regulated superannuation funds taken to be minimum benefits
Benefits rolled over or transferred to a regulated superannuation fund from an RSA are taken to be minimum benefits in the regulated superannuation fund.
5.06B Minimum benefits if new interest created, or benefits rolled over or transferred, under Division 7A.2
(1) This regulation applies if:
(a) an interest (the original interest) in an accumulation fund is subject to a payment split; and
(b) under Division 7A.2:
(i) a new interest is created in the fund for the non‑member spouse; or
(ii) the transferable benefits of the non‑member spouse are rolled over or transferred to another fund, an EPSSS or an RSA.
(2) If subparagraph (1)(b)(i) applies, the trustee may decide that all the benefits held in the original interest, and in the new interest, immediately after the new interest is created are minimum benefits.
(3) If subparagraph (1)(b)(ii) applies, the trustee may decide that all the benefits held in the original interest immediately after the transferable benefits are rolled over or transferred are minimum benefits.
Note: Transferable benefits rolled over or transferred to another regulated superannuation fund would be minimum benefits in accordance with regulation 5.06.
(4) However, the trustee must not make a decision mentioned in subregulation (2) or (3) if the decision would have the effect of reducing the minimum benefits held by the other members of the fund.
(5) If the trustee does not make a decision mentioned in subregulation (2) or (3), the minimum benefits held in the original interest are allocated between the member spouse and the non‑member spouse in proportion to the split of benefits in the original interest.
5.07 Minimum benefits—approved deposit funds
A member’s minimum benefits in an approved deposit fund are the amount of the member’s accumulated deposit in that fund.
Division 5.3—Treatment of minimum benefits
5.08 How minimum benefits are to be treated
(1) For subsections 31(1) and 32(1) of the Act, it is a standard applicable to the operation of regulated superannuation funds and approved deposit funds that the trustee of a fund must ensure that a member’s minimum benefits in the fund are maintained in the fund until the benefits are:
(a) cashed as benefits of the member, other than for the purpose of the member’s temporary incapacity; or
(b) rolled over or transferred as benefits of the member; or
(c) transferred, rolled over or allotted under Division 6.7.
(1A) Subregulation (1) does not apply if, under a law of the Commonwealth, a State or a Territory mentioned in the table, a court makes a forfeiture order (however called) forfeiting part or all of the member’s benefits in the fund to the Commonwealth, a State or a Territory.
| Item | Law | Provision(s) |
| Commonwealth | |
| 1.1 | Proceeds of Crime Act 2002 | Section 47 Section 48 Section 49 Section 92 |
| New South Wales | |
| 2.1 | Confiscation of Proceeds of Crime Act 1989 | Subsection 18(1) |
| 2.2 | Criminal Assets Recovery Act 1990 | Section 22 |
| Victoria |
| 3.1 | Confiscation Act 1997 | Division 1 of Part 3 Section 35 Part 4 Subsection 157(6) |
| Queensland |
| 4.1 | Criminal Proceeds Confiscation Act 2002 | Section 58 Section 58A Section 151 Part 5 of Chapter 3 |
| Western Australia |
| 5.1 | Criminal Property Confiscation Act 2000 | Section 30, to the extent that it applies to confiscation under section 6 in satisfaction of a person’s liability under section 20 Section 30, to the extent that it applies to confiscation under section 7 |
| South Australia |
| 6.1 | Criminal Assets Confiscation Act 2005 | Section 47 |
| Tasmania |
| 7.1 | Crime (Confiscation of Profits) Act 1993 | Section 16 |
| Australian Capital Territory |
| 8.1 | Confiscation of Criminal Assets Act 2003 | Section 54 Section 58 Section 62 Section 67 |
| Northern Territory |
| 9.1 | Criminal Property Forfeiture Act 2002 | Section 75 Section 76 Section 80 Section 96 Section 97 Section 99 |
(2) Subregulation (1) does not apply in relation to an amount of a member’s minimum benefits in an accumulation fund if:
(a) the amount is attributable only to employer contributions (other than mandated employer contributions); and
(b) there is a written agreement between the member of the fund and the member’s employer that:
(i) was entered into before the commencement of this subparagraph; and
(ii) requires the employer to make the employer contributions (other than mandated employer contributions) to the fund for the benefit of the member; and
(iii) specifies that if the member’s employment with the employer ends at or after the end of a period specified in the agreement, the employee is entitled to all of the amount; and
(iv) specifies that if the member’s employment with the employer ends before the end of the specified period, the member is entitled only to a proportion of the amount; and
(c) the member’s employment has ended before the end of the period mentioned in subparagraph (b)(iii).
(3) In addition to subregulation (1), a trustee of an accumulation fund may allow an amount of a member’s minimum benefits in the fund to be cashed as benefits of the member if:
(a) the cashing of the benefits is for the purpose of the member’s temporary incapacity; and
(b) the amount:
(i) is not attributable to the member’s member‑financed benefits; and
(ii) is not attributable to the member’s mandated employer‑financed benefits.
Part 6—Payment standards
Division 6.1—Introductory
Subdivision 6.1.1—General interpretation
6.01 Interpretation
(1) Subject to subregulation (2), expressions used in this Part that are defined for the purposes of Part 5 have the same meanings respectively as in that Part.
(2) In this Part and in Schedule 1, unless the contrary intention appears:
cashing restriction, in relation to a condition of release, means a cashing restriction specified in column 3 of the item in Schedule 1 that mentions the condition of release.
changeover day, in relation to a type B member of a fund, means the changeover day that was fixed for the class of members of the fund in which the member is included.
commencement day means:
(a) in relation to a regulated superannuation fund, the later of:
(i) the first day of the 1994–95 year of income of the fund; or
(ii) the day on which the trustee or trustees of the fund make an election under section 19 of the Act; and
(b) in relation to an approved deposit fund:
(i) if the first day of the 1994–95 year of income of the fund is on or after 1 July 1994—the first day of that year of income; or
(ii) if the first day of that year of income is before 1 July 1994—the earlier of:
(A) 1 July 1994; or
(B) the day on which the fund became an approved deposit fund.
Commonwealth income support payment means:
(a) an income support supplement, service pension or social security pension as defined in subsection 23(1) of the Social Security Act 1991; or
(b) a social security benefit as defined in that subsection, other than:
(i) an austudy payment; or
(ii) a youth allowance paid to a person who is undertaking full‑time study; or
(c) a drought relief payment under the Farm Household Support Act 1992 as in force immediately before the commencement of the Farm Household Support Amendment (Restart and Exceptional Circumstances) Act 1997; or
(d) an exceptional circumstances relief payment under the Farm Household Support Act 1992; or
(e) a payment of salary or wages made under the employment scheme of the Commonwealth that is known as the Community Development Employment Projects Scheme; or
(f) a payment of income support for the purposes of the Farm Family Support Scheme.
compassionate ground, in relation to the release of a member’s preserved benefits, or restricted non‑preserved benefits, in a superannuation entity, means:
(a) a ground listed in subregulation 6.19A(1); or
(b) the ground referred to in subregulation 6.19B(1).
condition of release means a condition of release specified in Column 2 of Schedule 1 and, subject to regulation 6.01B, a member of a fund is taken to have satisfied a condition of release if the event specified in that condition has occurred in relation to the member.
indexed, in relation to a benefit, means indexed in accordance with section 159SG of the Tax Act (as in force before 1 July 2007), modified so that subsection (1) reads as follows:
(1) The benefit as indexed for each year of income is:
(a) in relation to the year of income in which occurs the day on which a benefit was required to have been calculated or was received by the fund—the amount of the benefit that was calculated or received; or
(b) in relation to a later year of income—the amount calculated by multiplying the benefit for the immediately preceding year of income by the indexation factor worked out in accordance with subsection (2) for the later year of income.
lump sum, in this Part but not in Schedule 1, includes an asset.
non‑commutable allocated annuity has the meaning given by regulation 6.01AA.
non‑commutable allocated pension has the meaning given by regulation 6.01AB.
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 superannuation lump sum 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 income stream means a benefit that:
(a) cannot be commuted; and
(b) is paid at least monthly; and
(c) does not have a residual capital value; and
(d) is such that the total amount paid each month is fixed or varies only:
(i) for the purpose of complying with the Act and these regulations; and
(ii) during any period of 12 months by a rate not exceeding either:
(A) 5% per annum; or
(B) the rate of increase in the last Consumer Price Index (All Capital Cities) for a quarter to be published by the Australian Statistician before the end of that period of 12 months compared with the Consumer Price Index (All Capital Cities) published for the same quarter in the preceding year.
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 superannuation lump sum 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’.
permanent resident means a holder of a permanent visa under the Migration Act 1958 that has not ceased to be in effect.
preservation age means:
(a) for a person born before 1 July 1960—55 years; or
(b) for a person born during the year 1 July 1960 to 30 June 1961—56 years; or
(c) for a person born during the year 1 July 1961 to 30 June 1962—57 years; or
(d) for a person born during the year 1 July 1962 to 30 June 1963—58 years; or
(e) for a person born during the year 1 July 1963 to 30 June 1964—59 years; or
(f) for a person born after 30 June 1964—60 years.
restricted non‑preserved contributions means undeducted contributions (within the meaning of subregulation (6)) of a member other than contributions that were preserved in satisfaction of requirements of the Tax Act, the OSS Laws the Superannuation Industry (Supervision) (Transitional Provisions) Regulations, the RSA Regulations or these regulations leading to income tax concessions.
retirement has the meaning given by subregulation (7).
severe financial hardship has the meaning given by subregulation (5).
student visa has the same meaning as in the Migration Act 1958.
temporary incapacity, in relation to a member who has ceased to be gainfully employed (including a member who has ceased temporarily to receive any gain or reward under a continuing arrangement for the member to be gainfully employed), means ill‑health (whether physical or mental) that caused the member to cease to be gainfully employed but does not constitute permanent incapacity.
temporary resident means a holder of a temporary visa under the Migration Act 1958.
terminal medical condition has the meaning given by regulation 6.01A.
transitional period, in relation to a superannuation fund, means the period beginning at the beginning of the fund’s 1994–1995 year of income and ending:
(a) in the case of a public sector superannuation scheme—at the end of the day when the scheme became an exempt public sector superannuation scheme; or
(b) in any other case—at the end of the day when the trustee of the fund lodges an election under section 19 of the Act.
transition to retirement income stream means:
(a) an annuity provided under a contract that:
(i) is a contract to which paragraph 1.05(11A)(a) applies and that meets the standards of subregulation 1.05(11A); and
(ii) allows total payments (excluding payments by way of commutation, but including payments under a payment split) made in a financial year to amount to no more than 10% of the annuity account balance:
(A) on 1 July in the financial year in which the payment is made; or
(B) if that year is the year in which the annuity commences—on the commencement day;
unless 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’; and
(iii) complies with paragraphs (b) and (c) of the definition of non‑commutable allocated annuity in subregulation 6.01AA(1), as if it were such an annuity; or
(b) a pension provided from a superannuation fund, the rules of which:
(i) are rules to which paragraph 1.06(9A)(a) applies and that meet the standards of subregulation 1.06(9A); and
(ii) allow total payments (excluding payments by way of commutation but including payments under a payment split) made in a financial year to amount to no more than 10% of the pension account balance:
(A) on 1 July in the financial year in which the payment is made; or
(B) if that year is the year in which the pension commences—on the commencement day;
unless 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’; and
(iii) comply with paragraph (b) of the definition of non‑commutable allocated pension in subregulation 6.01AB(1), as if it were such a pension.
type A member means a member of a regulated superannuation fund included in a class of members for which no changeover day, fixed under these regulations as in force before 30 June 1998, was reached before 30 June 1998 in relation to that fund.
type B member means a member of a regulated superannuation fund included in a class of members for which a changeover day, fixed under these regulations as in force before 30 June 1998, was reached before 30 June 1998 in relation to that fund.
(5) For the purposes of Schedule 1, a person is taken to be in severe financial hardship if:
(a) the trustee of a superannuation entity is satisfied:
(i) based on written evidence provided by at least one Commonwealth department or agency responsible for administering a class of Commonwealth income support payments, that:
(A) the person has received Commonwealth income support payments for a continuous period of 26 weeks; and
(B) the person was in receipt of payments of that kind on the date of the written evidence; and
(ii) that the person is unable to meet reasonable and immediate family living expenses; or
(b) the person has reached the age that is the person’s preservation age plus 39 weeks and the trustee of a superannuation entity is satisfied:
(i) based on written evidence provided by at least one Commonwealth department or agency responsible for administering a class of Commonwealth income support payments—that the person received Commonwealth income support payments for a cumulative period of 39 weeks after the person reached the person’s preservation age; and
(ii) that the person was not gainfully employed on a full‑time, or part‑time, basis on the date of the application for cashing of his or her preserved benefits, or restricted non‑preserved benefits, in the entity.
(5A) The written evidence provided for by paragraph (5)(a) is of no effect if it is dated more than 21 days before the date of the person’s application to the trustee for cashing of his or her preserved benefits or restricted non‑preserved benefits.
(6) Amounts to the credit of a member (except eligible spouse contributions) in a fund are undeducted contributions if:
(a) the amounts are undeducted contributions within the meaning that was given, before 1 July 2007, by subsection 27A(1) of the Tax Act; or
(b) for any other amounts—the amounts comprise member contributions:
(i) made after 30 June 1983 in order to obtain superannuation benefits (within the meaning of the Tax Act); and
(ii) in respect of which no deduction is allowable or has been allowed to the member under the former section 82AAT of the Tax Act.
(7) For the purposes of Schedule 1, the retirement of a person is taken to occur:
(a) in the case of a person who