Income Tax Assessment Regulations 1997

These Regulations are the Income Tax Assessment Regulations 1997.

Part 2—Liability rules of general application

Division 26—Some amounts you cannot deduct, or cannot deduct in full

26‑85.01 Borrowing costs on loans to pay life insurance premiums—term insurance policy

The risk component of a premium received in respect of:

(a) a term insurance policy; or

(b) a rider or supplementary benefit attached to another policy where the sum insured is payable on death within a specified term;

is the whole of the premium.

Division 30—Valuation of particular gifts of property

30‑212.01 Valuation of gifts

For section 30‑212 of the Act, this Division sets out:

(a) the procedure for seeking a valuation of a gift mentioned in that section; and

(b) the fees that may be payable for the valuation; and

Note: Subsection 30‑212(1) of the Act applies to a person who makes a gift that is covered by a provision of Division 30 of Part 2‑5 of the Act that refers to the value of property as determined by the Commissioner.

The effect of subsection 30‑212(1) is that the person must seek the valuation from the Commissioner.

Under subsection 30‑212(2), the Commissioner may charge the person the amount worked out in accordance with the regulations for making the valuation.

30‑212.02 Application for valuation

An application for a valuation under subsection 30‑212(1) of the Act must:

(a) be in the approved form; and

(b) be lodged with the Commissioner; and

Note: Section 995‑1 of the Act provides that approved form has the meaning given by section 388‑50 in Schedule 1 to the Taxation Administration Act 1953. That section provides that an application under a taxation law is in the approved form if, and only if:

(a) it is in the form approved in writing by the Commissioner for that kind of application; and

(b) it contains a declaration signed by a person or persons as the form requires; and

(c) it contains the information that the form requires, and any further information, statement or document as the Commissioner requires, whether in the form or otherwise.

30‑212.05 Certificates of authenticity

(1) An application for a valuation of property other than real property must include a certificate of the authenticity of the property.

(2) If the Commissioner is not satisfied that a certificate of authenticity is adequate, the Commissioner may:

(a) make arrangements to obtain 1 or more certificates of authenticity; and

(b) charge the applicant a fee that is not greater than the cost of obtaining the certificate.

30‑212.06 Estimates of fees

(1) An applicant for a valuation may ask the Commissioner for an estimate of the likely fee for the valuation.

(2) If the Commissioner is asked for an estimate:

(a) the Commissioner must comply with the request as soon as practicable; but

(b) the Commissioner is not bound by the estimate.

30‑212.07 Advance payment of fees

(1) The Commissioner may require an applicant for a valuation to give the Commissioner an advance payment of the fee that may be payable for the valuation.

(2) If the Commissioner requires an advance payment, the Commissioner must give the applicant a written statement:

(a) requiring the payment; and

(b) stating the amount of the payment; and

(3) The Commissioner:

(a) may require an advance payment only within 14 days after receiving an application; and

(b) may require more than 1 advance payment during that period from the same applicant.

(4) The applicant must give the Commissioner the advance payment within 14 days after receiving the statement requiring the payment.

30‑212.08 Commissioner not required to consider certain applications

(1) If the Commissioner decides to obtain a certificate of authenticity under regulation 30‑212.05, the Commissioner is not required to consider the application to which the certificate relates until the Commissioner receives the certificate.

(2) If the Commissioner is preparing an estimate of a fee under regulation 30‑212.06, the Commissioner is not required to consider the application to which the estimate relates until the Commissioner has given the estimate to the applicant.

(3) If the Commissioner has required the advance payment of a fee under regulation 30‑212.07, the Commissioner is not required to consider the application to which the payment relates until the fee is paid.

30‑212.09 Applications treated as having no effect

(1) If an application for a valuation does not comply with regulation 30‑212.02:

(a) the Commissioner must treat the application as having no effect; and

(b) the Commissioner must give the applicant a written statement that the application is being treated that way.

(2) If an application for a valuation does not include all of the application fee:

(a) the Commissioner must treat the application as having no effect; and

(b) the Commissioner must give the applicant a written statement that the application is being treated that way.

(3) If the Commissioner has required the advance payment of a fee under regulation 30‑212.07, and the fee is not paid within the time mentioned in subregulation 30‑212.07(4):

(a) the Commissioner must treat the application to which the payment relates as having no effect after that time; and

(b) the Commissioner must give the applicant a written statement that the application is being treated that way.

Note: Subregulation 30‑212.10(2) is relevant to an application that is treated as having no effect under subregulation (3).

30‑212.10 Fees for carrying out valuations

(1) The fee for carrying out a valuation is the actual cost of the valuation, including all costs of the Commissioner in obtaining the valuation.

(2) If the Commissioner starts a valuation but the application for the valuation is withdrawn or treated as having no effect under subregulation 30‑212.09(3), a fee representing the cost of the incomplete valuation is payable.

30‑212.11 Crediting and repaying valuation fees

(1) The application fee paid under regulation 30‑212.02 is to be credited against the fee for the valuation.

(2) An advance payment of a fee paid under regulation 30‑212.07 is to be credited against the fee for the valuation.

(3) The fee payable for the valuation is a debt due to the Commonwealth and recoverable in a court of competent jurisdiction.

(4) However, if the total of advance payments of fees is more than the fee payable for the valuation, the Commissioner must pay the difference to the applicant as soon as practicable.

30‑212.12 Valuation certificates

(1) If the Commissioner completes a valuation, the Commissioner must give a valuation certificate to the applicant for the valuation.

(2) The Commissioner must approve, in writing, 1 or more forms of a certificate.

(3) The certificate must include the following information:

(a) the date on which the valuation was completed;

(b) a description of any real property (including a lot and plan number, title reference and the location of the property);

(d) the period for which the valuation is in force;

(e) a statement of the valuation.

(4) The certificate may include other information.

(5) The Commissioner must not give a valuation certificate to the applicant until:

(a) the valuation has been completed; and

(b) the Commissioner has received the full amount of the fees payable for the valuation.

Division 31—Conservation covenants

31‑15.01 Valuation of land

For section 31‑15 of the Act, this Division sets out:

(a) the procedure for seeking a valuation of the change in the market value of the land mentioned in that section; and

(b) the fees that may be payable for the valuation; and

Note: Section 31‑15 of the Act applies to a person who enters into a conservation covenant over land owned by the person, if the conditions mentioned in subsection 31‑5(2) of the Act are met. Subsection 31‑15(1) provides that the person must seek a valuation of the change in the market value of the land from the Commissioner. Subsection 31‑15(2) provides that the Commissioner may charge the person the amount worked out in accordance with the regulations for making the valuation.

31‑15.02 Application for valuation

An application for a valuation under subsection 31‑15(1) of the Act must:

(a) be in the approved form; and

(b) be lodged with the Commissioner; and

(d) include the application fee required by the approved form, which must not be more $1 000.

(a) it is in the form approved in writing by the Commissioner for that kind of application; and

(b) it contains a declaration signed by a person or persons as the form requires; and

(c) it contains the information that the form requires, and any further information, statement or document as the Commissioner requires, whether in the form or otherwise.

31‑15.03 Estimates of fees—request by applicant

(1) An applicant may ask the Commissioner for an estimate of the likely fee for the valuation.

(2) If the Commissioner is asked for an estimate:

(a) the Commissioner must give the estimate as soon as practicable; and

(b) the Commissioner is not bound by the estimate.

31‑15.04 Advance payment of fees

(1) The Commissioner may, within 14 days after receiving an application, give to the applicant a written statement:

(a) requiring the applicant to give to the Commissioner an advance payment of the fee that may be payable for the valuation; and

(b) stating the amount of the payment; and

(2) The Commissioner may ask for more than 1 advance payment during the period mentioned in subregulation (1) from the same applicant.

(3) The applicant must give to the Commissioner the advance payment within 14 days after receiving the statement asking for the payment.

31‑15.05 Commissioner not required to consider certain applications

(1) If the Commissioner is preparing an estimate of a fee under regulation 31‑15.03, the Commissioner is not required to consider the application to which the estimate relates until the Commissioner has given the estimate to the applicant.

(2) If the Commissioner has required the advance payment of a fee under regulation 31‑15.04, the Commissioner is not required to consider the application to which the payment relates until the fee is paid.

31‑15.06 Applications treated as having no effect

(1) If an application for a valuation does not comply with regulation 31‑15.02, the Commissioner must:

(a) treat the application as having no effect; and

(b) give to the applicant a written statement that the application is being treated that way.

(2) If an application for a valuation does not include all of the application fee, the Commissioner must:

(a) treat the application as having no effect; and

(b) give to the applicant a written statement that the application is being treated that way.

(3) If the Commissioner has required the advance payment of a fee under regulation 31‑15.04, and the fee is not paid within the time mentioned in subregulation 31‑15.04(3), the Commissioner must:

(a) treat the application to which the payment relates as having no effect after that time; and

(b) give to the applicant a written statement that the application is being treated that way.

Note: Subregulation 31‑15.07(2) is relevant to an application that is treated as having no effect under subregulation (3).

31‑15.07 Fees for carrying out valuations

(1) The fee for carrying out a valuation is the actual cost of the valuation, including all costs of the Commissioner in obtaining the valuation.

(2) If the Commissioner starts a valuation but the application for the valuation is withdrawn or treated as having no effect under subregulation 31‑15.06(3), a fee representing the cost of the incomplete valuation is payable.

31‑15.08 Crediting and repaying valuation fees

(1) The application fee paid under regulation 31‑15.02 is to be credited against the fee for the valuation.

(2) An advance payment of a fee paid under regulation 31‑15.04 is to be credited against the fee for the valuation.

(3) The fee payable for the valuation is a debt due to the Commonwealth and recoverable in a court of competent jurisdiction.

(4) However, if the total of advance payments of fees is more than the fee payable for the valuation, the Commissioner must pay the difference to the applicant as soon as practicable.

31‑15.09 Valuation certificates

(1) If the Commissioner completes a valuation, the Commissioner must give a valuation certificate to the applicant for the valuation.

(2) The Commissioner must approve, in writing, 1 or more forms of a certificate.

(3) The certificate must include the following information:

(a) the date on which the valuation was completed;

(b) a description of the land (including a lot and plan number, title reference and the location of the land);

(d) a statement of the market value of the land immediately after the conservation covenant was entered into;

(e) a statement of the difference between the market value mentioned in paragraph (c) and the market value mentioned in paragraph (d);

(f) a statement of the extent to which the difference mentioned in paragraph (e) is attributable to the conservation covenant being entered into.

(4) The certificate may include other information.

(5) The Commissioner must not give a valuation certificate to the applicant until:

(a) the valuation has been completed; and

(b) the Commissioner has received the full amount of the fees payable for the valuation.

Division 50—Exempt entities

50‑50.01 Prescribed institutions located outside Australia

For the purposes of paragraph 50‑50(1)(c) of the Act, each institution mentioned in an item in the following table is a prescribed institution on and after the date mentioned in the item:

Item	Name of institution	Date of effect
1	Catholic Bishops’ Conference of the Pacific (Fiji)	1 July 1997
2	Catholic Diocese of Rarotonga (Cook Islands)	1 July 1997
3	Catholic Diocese of Bougainville (Papua New Guinea)	1 July 1997
4	Catholic Diocese of Port Vila (Vanuatu)	1 July 1997
5	Catholic Diocese of Suva (Fiji)	1 July 1997
6	Catholic Diocese of Noumea (New Caledonia)	1 July 1997
7	Catholic Diocese of Tonga	1 July 1997
8	Catholic Diocese of Auki (Solomon Islands)	1 July 1997
9	Catholic Archdiocese of Rabaul (Papua New Guinea)	18 August 2003
10	Diocese of Honiara Registered Trustees (Incorporated)	10 June 2005

50‑50.02 Prescribed institutions pursuing objectives principally outside Australia

For the purposes of paragraph 50‑50(1)(d) of the Act, each institution mentioned in an item in the following table, and each institution that is a member of that institution, is a prescribed institution for the period:

(a) starting on the date specified in column 2 for the item; and

(b) ending on the date specified (if any) in column 3 for the item.

Prescribed institutions pursuing objectives principally outside Australia
Item	Column 1	Column 2	Column 3
	Name of institution	Starting date	Ending date
1	Alkitab Inc	1 July 1997
2	Asia‑Pacific Christadelphian Bible Mission Incorporated	1 July 1997
3	Australian Advisory Council of the Christian Leaders’ Training College of Papua New Guinea	1 July 1997
4	Australian Evangelical Alliance Incorporated (Missions Interlink)	1 July 1997
5	Steer Incorporated	1 July 1997
6	The Trustees of the Marist Missions of the Pacific	1 July 1997
7	Zebedee Investments Limited	1 July 1997
8	Millennium Relief and Development Services Incorporated	3 September 2001
9	The MITRE Corporation	1 July 2016	30 June 2022

50‑50.03 Prescribed sporting society, association or club

For the purposes of paragraph 50‑70(1)(c) of the Act, International Cricket Council Development (International) Limited is prescribed for the period that starts on 1 July 2013 and ends on 30 June 2018.

Division 51—Exempt amounts

51‑5.01 Defence allowances (Act s 51‑5)

(1) For items 1.1 and 1.2 of section 51‑5 of the Act, an allowance:

(a) specified in an item of the table; and

(b) paid on or after 31 May 2005 under the provision of the Determination specified in the item;

is prescribed.

Item	Allowance	Provision of the Determination
1	separation allowance	Division 1 of Part 1 of Chapter 6
2	disturbance allowance	Division 2 of Part 1 of Chapter 6
3	rent allowance paid to a member without dependants or a member with dependants (separated) within the meaning of the Determination	Part 6 of Chapter 7
4	reimbursement of education costs for a child while the member is a resident in Australia	Part 4 of Chapter 8
5	reimbursement in place of a child’s scholarship	Division 3 of Part 4 of Chapter 8
6	transfer allowance	Division 3 of Part 3 of Chapter 14
7	reimbursement of education costs for a child educated at the location of a member’s long‑term posting overseas	Part 6 of Chapter 15
8	reimbursement of education costs for a child educated in Australia while the member is on a long‑term posting overseas	Part 6 of Chapter 15
9	deployment allowance	Division 1 of Part 9 of Chapter 17

(2) In this regulation:

Determination means Defence Determination 2005/15, Conditions of Service, made under the Defence Act 1903, as in force on 31 May 2005.

Note: Defence Determination 2005/15 is a disallowable non‑legislative instrument under former section 46B of the Acts Interpretation Act 1901. Item 179 of Schedule 1 to the Acts and Instruments (Framework Reform) Act 2015 allows the instrument to be registered as a legislative instrument on the Federal Register of Legislation.

51‑42.01 Bonuses for early completion of an apprenticeship

(1) In this regulation:

expected completion date means the date on which an apprentice for a trade, occupation or kind of work would ordinarily be expected to complete an apprenticeship for that trade, occupation or kind of work.

full‑time apprentice means an apprentice whose ordinary hours of employment in a trade, occupation or kind of work, incorporating both work and training components, are at least equal to those hours which are regarded as full‑time for an apprentice in that trade, occupation or kind of work.

part‑time apprentice means an apprentice whose ordinary hours of employment in a trade, occupation or kind of work, incorporating both work and training components, are less than those hours worked by a full‑time apprentice in that industry, trade, occupation or kind of work.

(2) For section 51‑42 of the Act, the early completion bonus program administered by the Government of the State of Queensland is specified.

Note: Information about the early completion bonus program can be found at the following website http://www.trainandemploy.qld.gov.au.

(3) For paragraph 51‑42(2)(a) of the Act, version 3 of the eligible skill shortage occupation list dated 17 March 2008, which is administered by the Government of the State of Queensland and set out at http://www.trainandemploy.qld.gov.au, is specified.

(4) For paragraph 51‑42(2)(b) of the Act, the following timeframe is specified:

(a) for a full‑time apprentice—at least 6 months before the expected completion date;

(b) for a part‑time apprentice—at least 12 months before the expected completion date.

Division 61—Generally applicable tax offsets

Subdivision 61‑G—Private health insurance offset complementary to Part 2‑2 of the Private Health Insurance Act 2007

61‑220.01 Definitions for Subdivision 61‑G

In this Subdivision:

complying health insurance policy has the meaning given by the Private Health Insurance Act 2007.

PHIIB (short for Private Health Insurance Incentive Beneficiary) has the meaning given by the Private Health Insurance Act 2007.

private health insurer has the meaning given by the Private Health Insurance Act 2007.

61‑220.02 Private health insurer to provide annual statement to PHIIB

(1) A private health insurer for a complying health insurance policy must provide to each PHIIB insured under the policy during a financial year, before 15 July of the following financial year, a statement in the approved form about the policy.

Note: For approved form, see section 995‑1 of the Act.

(2) The statement may include information in relation to the following:

(a) the complying health insurance policy held by the PHIIB and payments made under the policy;

(b) the premium, or amounts in respect of the premium, paid during the financial year in relation to the policy;

Division 70—Trading stock

70‑55.01 Cost of natural increase of live stock—paragraph 70‑55(1)(b) of Act

For paragraph 70‑55(1)(b) of the Act, the cost prescribed for each animal in a class of live stock set out in column 1 of the following table is the amount applicable to that class in column 2 of the table.

Column 1 Class of live stock	Column 2 Cost $
cattle	20.00
deer	20.00
emus	8.00
goats	4.00
horses	20.00
pigs	12.00
poultry	0.35
sheep	4.00

Division 83A—Employee share schemes

83A‑5.01 Object of Division 83A

For Division 83A of the Act, this Division preserves rules under the former Division 13A of Part III of the Income Tax Assessment Act 1936 about valuing unlisted rights to acquire shares under an employee share scheme.

83A‑315.01 Determining the value of a right

(1) For subsection 83A‑315 of the Act, the amount, in relation to an unlisted right that must be exercised within 15 years after the day when the beneficial interest in the right was acquired is, at the choice of the individual:

(a) the market value of the right; or

(b) the amount determined by the application of regulations 83A‑315.02 to 83A‑315.09.

(2) However, if the ESS deferred taxing point for an ESS interest is:

(a) the day when the individual disposes of the interest (other than by exercising the right); or

(b) if the individual exercises the right—the day when the individual disposes of the beneficial interest in the share;

the amount is the market value of the right or share.

83A‑315.02 Valuing unlisted rights

(1) If a right is not quoted on an approved stock exchange on a particular day, the value of the right is the greater of:

(a) the market value, on the day, of the share that may be acquired by exercising the right, less the lowest amount that must be paid to exercise the right to acquire the beneficial interest in the share; and

(b) subject to regulation 83A‑315.03, the value determined in accordance with regulations 83A‑315.05 to 83A‑315.09.

(2) In determining the value of a right, anything that would prevent or restrict conversion of the right to money is to be disregarded.

83A‑315.03 Exercise price of right nil or can not be determined

If the lowest amount that must be paid to exercise a right to acquire a beneficial interest in a share is nil or can not be determined, the value of the right on a particular day is the same as the market value of the share on that day.

83A‑315.04 Value of beneficial interests

To avoid doubt, if an individual acquires the beneficial interest in a share or right, the value that is applicable for the purposes of this Division is the value of the share or right, not the value of the interest in the share or right.

83A‑315.05 Outline of remainder of Division

The remainder of this Division sets out the method of calculating, for the purposes of paragraph 83A‑315.02(1)(b) the value, on a particular day, of a right to acquire the beneficial interest in a share.

83A‑315.06 Step 1—calculate the calculation percentage

Apply the following formula. The result is the calculation percentage.

83A‑315.07 Step 2—how to use calculation percentage

(1) If the calculation percentage is less than 50%, the value of the right is nil.

(2) If the calculation percentage is equal to, or greater than, 50% but less than 110%, go to the instructions for using Table 1 in regulation 83A‑315.08 that are set out below that Table.

(3) If the calculation percentage is equal to, or greater than, 110%, go to the instructions for using Table 2 in regulation 83A‑315.09 that are set out below that Table.

83A‑315.08 Table 1 and instructions

(1) The following table sets out the Table 1 percentages for calculation percentages of 50% or more and less than 110%.

Table 1—Table 1 percentages
Calculation percentage 50% to 92.5%
Exercise period (months)	Calculation percentage (%)
Exercise period (months)	50 to 60	60 to 70	70 to 75	75 to 80	80 to 85	85 to 90	90 to 92.5
168 to 180	0.5%	1.3%	2.6%	3.5%	4.6%	5.8%	7.1%
156 to 168	0.4%	1.2%	2.5%	3.4%	4.4%	5.7%	7.1%
144 to 156	0.4%	1.0%	2.3%	3.2%	4.3%	5.5%	7.0%
132 to 144	0.3%	0.9%	2.2%	3.0%	4.1%	5.4%	6.8%
120 to 132	0.2%	0.8%	2.0%	2.8%	3.9%	5.2%	6.6%
108 to 120	0.2%	0.7%	1.8%	2.6%	3.7%	4.9%	6.4%
96 to 108	0.1%	0.6%	1.6%	2.4%	3.4%	4.6%	6.1%
84 to 96	0.1%	0.4%	1.3%	2.1%	3.0%	4.3%	5.8%
72 to 84	0.1%	0.3%	1.1%	1.7%	2.7%	3.9%	5.4%
60 to 72	0.0%	0.2%	0.8%	1.4%	2.2%	3.4%	4.9%
48 to 60	0.0%	0.1%	0.5%	1.0%	1.7%	2.8%	4.2%
36 to 48	0.0%	0.0%	0.3%	0.6%	1.2%	2.1%	3.4%
24 to 36	0.0%	0.0%	0.1%	0.3%	0.6%	1.3%	2.4%
18 to 24	0.0%	0.0%	0.0%	0.1%	0.3%	0.9%	1.8%
12 to 18	0.0%	0.0%	0.0%	0.0%	0.1%	0.4%	1.1%
9 to 12	0.0%	0.0%	0.0%	0.0%	0.1%	0.2%	0.8%
6 to 9	0.0%	0.0%	0.0%	0.0%	0.0%	0.1%	0.4%
3 to 6	0.0%	0.0%	0.0%	0.0%	0.0%	0.0%	0.1%
0 to 3	0.0%	0.0%	0.0%	0.0%	0.0%	0.0%	0.0%

Calculation percentage 92.5% to less than 110%
Exercise period (months)	Calculation percentage (%)
Exercise period (months)	92.5 to 95	95 to 97.5	97.5 to 100	100 to 102.5	102.5 to 105	105 to 107.5	107.5 to less than 110
168 to 180	7.9%	8.6%	9.4%	10.3%	11.2%	12.2%	13.3%
156 to 168	7.8%	8.6%	9.4%	10.3%	11.2%	12.2%	13.3%
144 to 156	7.7%	8.5%	9.4%	10.3%	11.2%	12.2%	13.3%
132 to 144	7.6%	8.4%	9.3%	10.2%	11.2%	12.2%	13.3%
120 to 132	7.5%	8.3%	9.2%	10.2%	11.2%	12.2%	13.3%
108 to 120	7.2%	8.1%	9.1%	10.0%	11.1%	12.1%	13.3%
96 to 108	7.0%	7.9%	8.8%	9.8%	10.9%	12.0%	13.2%
84 to 96	6.6%	7.6%	8.5%	9.6%	10.7%	11.8%	13.0%
72 to 84	6.2%	7.2%	8.2%	9.2%	10.4%	11.6%	12.8%
60 to 72	5.7%	6.7%	7.7%	8.8%	9.9%	11.2%	12.5%
48 to 60	5.1%	6.0%	7.0%	8.2%	9.4%	10.7%	12.1%
36 to 48	4.2%	5.2%	6.2%	7.4%	8.6%	10.0%	11.4%
24 to 36	3.2%	4.1%	5.1%	6.3%	7.6%	9.0%	10.5%
18 to 24	2.5%	3.4%	4.4%	5.5%	6.8%	8.3%	9.9%
12 to 18	1.7%	2.5%	3.4%	4.6%	6.0%	7.5%	9.2%
9 to 12	1.3%	2.0%	2.9%	4.0%	5.4%	7.0%	8.8%
6 to 9	0.8%	1.4%	2.2%	3.3%	4.7%	6.4%	8.3%
3 to 6	0.3%	0.6%	1.3%	2.4%	3.8%	5.7%	7.8%
0 to 3	0.0%	0.1%	0.5%	1.4%	3.0%	5.1%	7.5%

(2) From Table 1, select the percentage (the Table 1 percentage) that corresponds to:

(a) the period, in months, from the particular day until the last day on which the right may be exercised (the exercise period); and

(b) the calculation percentage;

and then multiply the amount, or lowest amount, that must be paid to exercise the right by the Table 1 percentage. The result is the value of the right.

Note: The following assumptions were used to work out the Table 1 percentages:

(a) a risk‑free interest rate of 4%;

(b) a dividend yield of 4%;

(3) If, in relation to a particular right:

(a) the exercise period; or

(b) the calculation percentage;

is the top of one range in Table 1 and is also the bottom of another range in the table, it is taken to be in the lower range and not in the higher range.

83A‑315.09 Table 2 and instructions

(1) The following table sets out the base percentages for calculation percentages of 110% or more.

Table 2—Base percentages
Exercise period (months)	Column 1	Column 2
168 to 180	13.3%	0.5%
156 to 168	13.3%	0.5%
144 to 156	13.3%	0.5%
132 to 144	13.3%	0.6%
120 to 132	13.3%	0.6%
108 to 120	13.3%	0.6%
96 to 108	13.2%	0.6%
84 to 96	13.0%	0.6%
72 to 84	12.8%	0.7%
60 to 72	12.5%	0.7%
48 to 60	12.1%	0.7%
36 to 48	11.4%	0.8%
24 to 36	10.5%	0.8%
18 to 24	9.9%	0.8%
12 to 18	9.2%	0.9%
9 to 12	8.8%	0.9%
6 to 9	8.3%	0.9%
3 to 6	7.8%	0.9%
0 to 3	7.5%	1.0%

(2) From column 1 of Table 2, select the percentage that corresponds to the period, in months, from the particular day until the last day on which the right may be exercised (the exercise period). This percentage is called the base percentage.

Note: The following assumptions were used to work out the base percentages:

(a) a risk‑free interest rate of 4%;

(b) a dividend yield of 4%;

(3) From column 2 of Table 2, select the percentage that corresponds to the exercise period. This percentage is called the additional percentage.

(4) Work out the result of the following formula. Disregard any fraction. The result is called the excess.

(5) The value of the right is the amount worked out using the following formula:

(6) If the exercise period is the top of one range in Table 2 and is also the bottom of another range in the table, it is taken to be in the lower range and not in the higher range.

Part 2A—Specialist liability rules

Division 230—Taxation of financial arrangements

230‑355.01 Recording requirements

For paragraph 230‑355(3)(b) of the Act, the record mentioned in paragraph 230‑355(1)(c) of the Act must be made or in place by the later of:

(a) the time, or soon after the time, the hedging financial arrangement is created, acquired or applied; and

(b) 30 June 2011.

Division 290—Contributions to superannuation funds

Subdivision 290‑C—Deducting personal contributions

290‑155.01 Complying superannuation fund condition—prescribed superannuation funds

A superannuation fund is prescribed for the purposes of subparagraph 290‑155(1)(a)(iii) of the Act if:

(a) the fund has one or more members that have a superannuation interest in the fund that is a defined benefit interest; and

(b) the trustee of the fund elects to have this regulation apply to the fund; and

(i) is made before the start of the income year of the fund in which the contribution is made; and

(ii) is not revoked before the start of that year; and

(iii) is made by notifying the Commissioner in the approved form.

290‑155.05 Complying superannuation fund condition—prescribed contributions and superannuation funds

For the purposes of paragraph 290‑155(1)(b) of the Act, a contribution to a superannuation fund is a prescribed kind of contribution to a prescribed kind of fund if:

(a) the contribution is made to a defined benefit interest in the fund; and

(b) the trustee of the fund elects to have this regulation apply to the fund; and

(i) is made before the start of the income year of the fund in which the contribution is made; and

(ii) is not revoked before the start of that year; and

(iii) is made by notifying the Commissioner in the approved form.

290‑170.01 Notice of intent to deduct contributions—contributions‑splitting applications

For subparagraph 290‑170(2)(d)(i) of the Act, each of the following is a contributions‑splitting application:

(a) an application under regulation 6.44 of the SIS Regulations;

(b) an application under regulation 4.41 of the RSA Regulations;

(c) an application to deal with an amount in a way that would result in the amount becoming a contributions‑splitting superannuation benefit in accordance with the SIS Regulations or the RSA Regulations.

Division 291—Excess concessional contributions

Subdivision 291‑B—Excess concessional contributions

291‑25.01 Concessional contributions for a financial year

(1) For subsection 291‑25(3) of the Act, this regulation sets out conditions for the purpose of allocating an amount in a complying superannuation plan.

(2) Subject to subregulation (3), an amount that is:

(a) allocated under Division 7.2 of the SIS Regulations; and

(b) an assessable contribution under Subdivision 295‑C of the Act;

is to be treated as having been allocated by the superannuation provider in a way that is covered by subsection 291‑25(3) of the Act.

(3) Each of the following amounts is to be treated as not having been allocated by the superannuation provider in a way that is covered by subsection 291‑25(3) of the Act, even if subregulation (2) would also apply to the amount:

(a) an amount mentioned in item 2 of the table in subsection 295‑190(1) of the Act;

(b) an amount mentioned in subsection 295‑200(2) of the Act.

(4) An amount that is allocated from a reserve, other than an amount that is covered by subregulation (2), is to be treated as having been allocated by the superannuation provider in a way that is covered by subsection 291‑25(3) of the Act:

(a) unless:

(i) the amount is allocated, in a fair and reasonable manner:

(A) to an account for every member of the complying superannuation plan; or

(B) if the member is a member of a class of members of the complying superannuation plan, and the amount in the reserve relates only to that class of members—to an account for every member of the class; and

(ii) the amount that is allocated for the financial year is less than 5% of the value of the member’s interest in the complying superannuation plan at the time of allocation; or

(b) unless:

(i) the amount is allocated from a reserve used solely for the purpose of enabling the fund to discharge all or part of its liabilities (contingent or not), as soon as they become due, in respect of superannuation income stream benefits that are payable by the fund at that time; and

(ii) any of the following applies:

(A) the amount has been allocated to satisfy a pension liability of the plan paid during the financial year;

(B) on the commutation of the income stream, except as a result of the death of the primary beneficiary, the amount is allocated to the recipient of the income stream, to commence another income stream, as soon as practicable;

(I) is allocated to a death benefits dependant to discharge liabilities in respect of a superannuation income stream benefit that is payable by the plan as a result of the death; or

(II) if sub‑sub‑subparagraph (I) does not apply—is paid as a superannuation lump sum and as a superannuation death benefit;

as soon as practicable.

(5) Paragraph (4)(a) does not apply to an amount that:

(a) is required to be allocated under subregulation (2); or

(b) would be assessable income of the plan if it were made as a contribution.

(6) If the amount has been allocated from a reserve in lieu of a contribution to the fund (less any allowance for tax) which would have been assessable income of the fund, the amount that is allocated is to be multiplied by 1.176.

Example: An employer has an obligation to make a $1 000 contribution. Instead of the employer making a contribution to the fund, the trustee allocates $850 to the member’s account (which is an amount equivalent to the amount that would be credited to the account after tax was paid).

For subregulation (6), the amount of $850 is to be multiplied by 1.176 to work out the amount that is taken to be allocated.

Division 292—Excess non‑concessional contributions

Subdivision 292‑C—Excess non‑concessional contributions tax

292‑90.01 Non‑concessional contributions for a financial year

(1) For paragraph 292‑90(4)(a) of the Act, this regulation sets out conditions for the purpose of allocating an amount in a complying superannuation plan.

Note: The effect of paragraph 292‑90(4)(a) of the Act is that an amount is covered under that subsection if it is an amount in a complying superannuation plan that is allocated by the superannuation provider in relation to the plan for the year in accordance with conditions specified in the Regulations.

(2) Subject to subregulation (3), an amount that:

(a) is allocated under Division 7.2 of the SIS Regulations; and

(b) is not assessable contributions under Subdivision 295‑C of the Act;

is to be treated as having been allocated by the superannuation provider in a way that is covered by paragraph 292‑90(4)(a) of the Act.

(3) Each of the following amounts is to be treated as not having been allocated by the superannuation provider in a way that is covered by paragraph 292‑90(4)(a) of the Act, even if subregulation (2) would also apply to the amount:

(a) a Government co‑contribution made under the Superannuation (Government Co‑contribution for Low Income Earners) Act 2003;

(b) a contribution covered under section 292‑95 of the Act;

(c) a contribution covered under section 292‑100 of the Act, to the extent that it does not exceed the CGT cap amount when it is made;

(d) a contribution made to a constitutionally protected fund (other than a contribution included in the contributions segment of the member’s superannuation interest in the fund);

(e) contributions not included in the assessable income of the superannuation provider in relation to the superannuation plan because of a choice made under section 295‑180 of the Act;

(f) a contribution that is a roll‑over superannuation benefit;

(g) the tax free component of a directed termination payment (within the meaning of section 82‑10F of the Income Tax (Transitional Provisions) Act 1997) made in the financial year on behalf of the member.

Subdivision 292‑D—Modifications for defined benefit interests

292‑170.01 Definitions

In this Subdivision:

employer‑sponsor has the meaning given by subsection 16(1) of the SIS Act.

RSE licensee has the same meaning as in the SIS Act.

sub‑fund, in relation to a defined benefit member of a superannuation fund, means an arrangement in the fund which satisfies the following conditions:

(a) there are separately identifiable assets and separately identifiable beneficiaries;

(b) the interest of each beneficiary is determined by reference only to the conditions governing that arrangement;

(d) the employer‑sponsor deals with each of the defined benefit members at arm’s length.

superannuation fund includes a reference to a sub‑fund relating to a defined benefit member or defined benefit members of the fund.

292‑170.02 Notional taxed contributions—contributions for funds with 5 or more defined benefit members

(1) For subsection 292‑170(1) of the Act, this regulation explains the meaning of notional taxed contributions for a financial year in respect of the defined benefit interest of a member of a superannuation fund:

(a) that has 5 or more defined benefit members; or

(b) to which subregulation (3), (4), (5) or (6) applies.

(2) The notional taxed contributions are the contributions that are determined by the trustee to be notional taxed contributions, using the method set out in Schedule 1A.

(3) If a superannuation fund has 5 or more defined benefit members on 1 July 2007, subregulation (2) is taken to continue to apply in relation to the fund even if the number of defined benefit members of the fund becomes less than 5 at any time on or after 1 July 2007.

(4) If:

(a) a superannuation fund had 5 or more defined benefit members at any time before 1 July 2007; and

(b) the fund had fewer than 5 defined benefit members on 1 July 2007; and

(d) the trustee of the fund is an RSE licensee; and

(e) the employer‑sponsor deals with each of the defined benefit members at arm’s length;

subregulation (2) is taken to apply in relation to the fund.

(5) If:

(a) a superannuation fund (fund 1) satisfies the conditions in subregulation (3) or (4); and

(b) the defined benefit members of the fund are transferred to another fund (fund 2) on or after 1 July 2007 (whether directly or through a series of transfers between superannuation funds); and

(d) the employer‑sponsor deals with each of the defined benefit members of fund 2 at arm’s length;

subregulation (2) is taken to apply in relation to fund 2.

(6) If:

(a) a superannuation fund has no defined benefit members on 30 June 2007; and

(b) a person becomes a defined benefit member of the fund after that date;

subregulation (2) is taken not to apply in relation to the fund unless the number of defined benefit members (including the person) is at least 50 and the employer‑sponsor of the fund deals with each of the defined benefit members at arm’s length.

292‑170.03 Notional taxed contributions—contributions for funds where regulation 292‑170.02 does not apply

(2) If the trustee receives a contribution in a month, the trustee must allocate the contribution to a member of the fund:

(a) within 28 days after the end of the month; or

(b) if it is not reasonably practicable to comply with paragraph (a)—within a longer period that is reasonable in the circumstances.

(3) For subregulation (2), the trustee must allocate the contribution having regard to the present and prospective liabilities of the fund to its members.

(4) The notional taxed contributions are the amounts of assessable contributions under Subdivision 295‑C of the Act which have been allocated to the member in the financial year.

(5) An amount that is allocated from a reserve is to be treated as having been allocated by the superannuation provider in a way that is covered by subsection 291‑25(3) of the Act unless:

(a) the amount is allocated from a reserve used solely for the purpose of enabling the fund to discharge all or part of its liabilities (contingent or not), as soon as they become due, in respect of superannuation income stream benefits that are payable by the fund at that time; and

(b) any of the following applies:

(i) the amount has been allocated to satisfy a pension liability of the plan paid during the financial year;

(ii) on the commutation of the income stream, except as a result of the death of the primary beneficiary, the amount is allocated to the recipient of the income stream, to commence another income stream, as soon as practicable;

(iii) on the commutation of the income stream as a result of the death of the primary beneficiary, the amount:

(A) is allocated to a death benefits dependant to discharge liabilities in respect of a superannuation income stream benefit that is payable by the plan as a result of the death; or

(B) if sub‑subparagraph (A) does not apply—is paid as a superannuation lump sum and as a superannuation death benefit;

as soon as practicable.

For subregulation (6), the amount of $850 is to be multiplied by 1.176 to work out the amount that is taken to be allocated.

292‑170.04 Notional taxed contributions—nil amount

(1) For subsection 292‑170(4) of the Act, this regulation sets out circumstances in which the amount of the notional taxed contributions for a financial year in respect of the defined benefit interest of a member of a superannuation fund is nil.

(2) A circumstance is that:

(a) the defined benefit interest is held in a public sector superannuation scheme; and

(b) none of the interest is sourced to any extent from:

(i) contributions made into a superannuation fund; or

(ii) earnings on such contributions;

unless the interest is an element taxed in the fund that is attributable to 1 or more roll‑over superannuation benefits.

(3) A circumstance is that, for the whole of the financial year:

(a) subregulation 292‑170.02(2) applied, or was taken to have applied, in relation to the superannuation fund; and

(b) the member was a non‑accruing member of the fund for the financial year (see subregulations (4) to (6)).

(4) The member was a non‑accruing member of the fund for the financial year if the member had no membership of the fund during the financial year other than membership as:

(a) an on‑hold member; or

(b) a pensioned member.

Note: A person could be an on‑hold member of a fund for part of a financial year, and a pensioned member of the fund for another part of the financial year.

(5) The member was an on‑hold member of the fund if:

(a) the member had a benefit entitlement in the fund, but no employer‑provided benefits accrued to the member; and

(b) the rules of the fund provided that the benefit:

(i) was not to increase in nominal terms; or

(ii) was to increase at a rate reflecting general price increases (for example, in accordance with the Consumer Price Index); or

(iii) was to increase at a rate reflecting the general level of salary growth or salary growth for relevant fund membership (for example, in accordance with average weekly earnings, or average weekly ordinary time earnings, published by the Australian Statistician); or

(iv) was to increase at the rate (if any) at which the salary on which the member’s benefit was based increased; or

(v) was to increase at a rate reflecting the earning rate of the assets of the fund or the part of the fund to which the member belonged; or

(vi) in the case of a deferred benefit—was to increase at a rate reflecting any reduction in the expected period in which pension payments were to be made and any deferral of the date when payments would start; or

(vii) was to increase at a regular rate, or a rate worked out using a formula, that an actuary considered would not result in an increase that was more than the greatest of the increases mentioned in subparagraphs (i) to (vi).

(5A) The member was a pensioned member of the fund if:

(a) the member’s membership of the fund consisted only of the member receiving pension payments from the superannuation fund; and

(b) any of the following applied:

(i) the pension payments were always the same amount;

(ii) the pension payments were paid from an account that related only to the member, and no employer contributions were paid to the account for the benefit of the member;

(iii) the pension payments increased at rates that were consistent with the rates prescribed under the rules of the fund that applied when the pension commenced to be paid.

(6) For the purposes of determining whether a defined benefit member is a non‑accruing member of the fund for a period, any employer contributions paid to the fund for the period to meet partially, or wholly, unfunded benefit liabilities of the fund are not to be treated as employer contributions for the benefit of the member for the period.

292‑170.05 Notional taxed contributions—other conditions (paragraph 292‑170(6)(d) of the Act)

(1) For paragraph 292‑170(6)(d) of the Act, this regulation:

(a) applies in relation to a superannuation fund in relation to which subregulation 292‑170.02(2) applies, or is taken to apply; and

(b) sets out the conditions that are to be satisfied in relation to establishing whether notional taxed contributions for a financial year in respect of a defined benefit interest are equal to the concessional contributions cap for the financial year.

Note: Subsection 292‑170(6) of the Act explains when a member’s notional taxed contributions for the financial year in respect of a defined benefit interest are equal to the concessional contributions cap for the financial year. This includes satisfying conditions specified in the Regulations.

(2) A condition is that between 5 September 2006 and the time at which the new entrant rate for the defined benefit member is worked out using Schedule 1A:

(a) the rules of the superannuation fund have not changed to improve the member’s benefit; and

(b) either:

(i) the member has not moved to a new benefit category; or

(ii) if the member has moved to a new benefit category, the new benefit category does not provide the member with an improved level of benefit.

(3) A condition is that the new entrant rate for the defined benefit member, as worked out using Schedule 1A:

(a) has not increased since it was first worked out using Schedule 1A; or

(b) has increased since it was first worked out using Schedule 1A only as a result of a change to the rules of the superannuation fund that increases a benefit as a result of a change that is made to satisfy the requirements of the Superannuation Guarantee (Administration) Act 1992.

(4) A condition is that the method of calculating superannuation salary:

(a) has not been changed, in a way that would increase the salary, since 5 September 2006; or

(b) has changed since 5 September 2006 only as a result of a change to the rules of the superannuation fund that increases a benefit as a result of a change that is made to satisfy the requirements of the Superannuation Guarantee (Administration) Act 1992.

(5) If the rate of superannuation salary has increased, since 5 September 2006, by:

(a) more than 50% in 1 year; or

(b) more than 75% over 3 years;

a condition is that the employer‑sponsor advises the trustee that the increase in the rate is on an arm’s length basis.

(6) A condition is that the trustee or employer‑sponsor of the superannuation fund has not exercised a discretion to pay a benefit that is greater than the benefit that was assumed for the purpose of calculating the new entrant rate since 5 September 2006.

(7) For subregulation (5), a trustee must notify the Commissioner, in writing, of an increase in the rate of superannuation salary that exceeds the rate specified in paragraph (5)(a) or (b) as soon as practicable after the increase occurs.

(8) If:

(a) a condition mentioned in paragraph (2)(b) or subregulation (3) is not satisfied; and

(b) the condition was not satisfied only because:

(i) the defined benefit member moved to a new benefit category; and

(ii) the move was caused by the necessary application of the rules of the superannuation fund that were, or of legislation that was, in force on 5 September 2006; and

(iii) the member had no control over the application of the rules or legislation;

the failure to satisfy the condition is to be disregarded in determining if the conditions of this regulation have been satisfied.

292‑170.06 Notional taxed contributions—other conditions (subparagraph 292‑170(7)(e)(ii) of the Act)

(1) For subparagraph 292‑170(7)(e)(ii) of the Act, this regulation:

(a) applies in relation to a superannuation fund in relation to which subregulation 292‑170.02(2) applies, or is taken to apply; and

Note: Subsection 292‑170(7) of the Act explains when a member’s notional taxed contributions for the financial year in respect of a defined benefit interest that has been transferred to another fund are equal to the concessional contributions cap for the financial year. This includes satisfying conditions specified in the Regulations.

(2) A condition is that between 5 September 2006 and the time at which the new entrant rate for the defined benefit member is worked out using Schedule 1A:

(a) the rules of the superannuation fund have not changed to improve the member’s benefit; and

(b) either:

(i) the member has not moved to a new benefit category; or

(ii) if the member has moved to a new benefit category, the new benefit category does not provide the member with an improved level of benefit.

(3) A condition is that the new entrant rate for the defined benefit member, as worked out using Schedule 1A:

(a) has not increased since it was first worked out using Schedule 1A; or

(4) A condition is that the method of calculating superannuation salary:

(a) has not been changed, in a way that would increase the salary, since 5 September 2006; or

(5) If the rate of superannuation salary has increased, since 5 September 2006, by:

(a) more than 50% in 1 year; or

(b) more than 75% over 3 years;

a condition is that the employer‑sponsor advises the trustee that the increase in the rate is on an arm’s length basis.

(8) If:

(a) a condition mentioned in paragraph (2) b) or subregulation (3) is not satisfied; and

(b) the condition was not satisfied only because:

(i) the defined benefit member moved to a new benefit category; and

(ii) the move was caused by the necessary application of the rules of the superannuation fund that were, or of legislation that was, in force on 5 September 2006; and

(iii) the member had no control over the application of the rules or legislation;

the failure to satisfy the condition is to be disregarded in determining if the conditions of this regulation have been satisfied.

292‑170.07 Notional taxed contributions—other conditions (paragraph 292‑170(8)(d) of the Act)

(1) For paragraph 292‑170(8)(d) of the Act, this regulation:

(a) applies to a superannuation fund if a defined benefit member of the fund is a person to whom subregulation 292‑170.02(2) applies, or is taken to apply; and

(b) sets out the conditions that are to be satisfied in relation to establishing whether the defined benefit member’s notional taxed contributions for a financial year for a defined benefit interest are equal to the concessional contributions cap for the financial year.

Note: Subsection 292‑170(8) of the Act explains when a member’s notional taxed contributions for the financial year, in respect of a defined benefit interest, are equal to the concessional contributions cap for the financial year. This includes satisfying conditions specified in the Regulations.

(2) A condition is that the new entrant rate for the defined benefit member, as worked out using Schedule 1A:

(a) has not increased since 12 May 2009; or

(b) has increased since 12 May 2009 only as a result of a change to the rules of the superannuation fund that increases a benefit as a result of a change made to satisfy the requirements of the Superannuation Guarantee (Administration) Act 1992.

(3) A condition is that the method of calculating superannuation salary:

(a) has not been changed, in a way that would increase the member’s salary, since 12 May 2009; or

(b) has changed since 12 May 2009 only as a result of a change to the rules of the superannuation fund that increases a benefit as a result of a change made to satisfy the requirements of the Superannuation Guarantee (Administration) Act 1992.

(4) If the rate of superannuation salary has increased, since 12 May 2009, by:

(a) more than 50% in 1 year; or

(b) more than 75% over 3 years;

a condition is that the employer‑sponsor advises the trustee that the increase in the rate is on an arm’s length basis.

(5) A condition is that the trustee or employer‑sponsor of the superannuation fund has not exercised a discretion to pay a benefit that is greater than the benefit that was assumed for the purpose of calculating the new entrant rate since 12 May 2009.

(6) For subregulation (4), a trustee must notify the Commissioner, in writing, of an increase in the rate of superannuation salary that exceeds the rate specified in paragraph (4)(a) or (b) as soon as practicable after the increase occurs.

(7) If:

(a) a condition mentioned in subregulation (2) is not satisfied; and

(b) the condition was not satisfied only because:

(i) the defined benefit member moved to a new benefit category; and

(ii) the move was caused by the necessary application of the rules of the superannuation fund that were, or of legislation that was, in force on 5 September 2006; and

(iii) the member had no control over the application of the rules or legislation;

the failure to satisfy the condition is to be disregarded in determining if the conditions of this regulation have been satisfied for the 2009–2010 financial year and subsequent financial years.

292‑170.08 Notional taxed contributions—other conditions (subparagraph 292‑170(9)(e)(ii) of the Act)

(1) For subparagraph 292‑170(9)(e)(ii) of the Act, this regulation:

(a) applies to a superannuation fund if a defined benefit member of the fund is a person to whom subregulation 292‑170.02(2) applies, or is taken to apply; and

(b) sets out the conditions that are to be satisfied in relation to establishing whether notional taxed contributions for a financial year for a defined benefit interest are equal to the concessional contributions cap for the financial year.

Note: Subsection 292‑170(9) of the Act explains when a member’s notional taxed contributions for the financial year, in respect of a defined benefit interest that has been transferred to another fund, are equal to the concessional contributions cap for the financial year. This includes satisfying conditions specified in the Regulations.

(2) A condition is that the new entrant rate for the defined benefit member, as worked out using Schedule 1A:

(a) has not increased since 12 May 2009; or

(3) A condition is that the method of calculating superannuation salary:

(a) has not been changed, in a way that would increase the salary, since 12 May 2009 or

(4) If the rate of superannuation salary has increased, since 12 May 2009, by:

(a) more than 50% in 1 year; or

(b) more than 75% over 3 years;

a condition is that the employer‑sponsor advises the trustee that the increase in the rate is on an arm’s length basis.

(7) If:

(a) a condition mentioned in subregulation (2) is not satisfied; and

(b) the condition was not satisfied only because:

(i) the defined benefit member moved to a new benefit category; and

(ii) the move was caused by the necessary application of the rules of the superannuation fund that were, or of legislation that was, in force on 5 September 2006; and

(iii) the member had no control over the application of the rules or legislation;

the failure to satisfy the condition is to be disregarded in determining if the conditions of this regulation have been satisfied for the 2009–2010 financial year and subsequent financial years.

Division 293—Sustaining the superannuation contribution concession

Subdivision 293‑D—Modifications for defined benefit interests

293‑115.01 Method of determining amount of defined benefit contributions

For subsection 293‑115(1) of the Act, the amount of defined benefit contributions for an individual in the 2012‑2013 financial year in respect of a defined benefit interest is the individual’s notional taxed contributions for the defined benefit interest for that financial year.

Note: The amount of defined benefit contributions in respect of a defined benefit interest in a constitutionally protected fund is nil for the 2012‑2013 financial year.

Subdivision 293‑DA—Further modifications for defined benefit interests

293‑115.05 Preliminary

(1) This Subdivision:

(a) is made for subsection 293‑115(1) of the Act; and

(b) applies in relation to the 2013‑14 financial year and later financial years.

(2) In this Subdivision:

accruing member, of a superannuation fund for a financial year, means a defined benefit member of the fund who is not a non‑accruing member of the fund for the financial year.

non‑accruing member, of a superannuation fund for a financial year, means:

(a) a defined benefit member who is a non‑accruing member of the fund for the financial year within the meaning of subregulations 292‑170.04(4) to (5A) as if a reference in those subregulations to a member included a reference to a member of a constitutionally protected fund; or

(b) a member of the Governor‑General Pension Scheme for the financial year, unless (for a member who is the Governor‑General) the member commenced office in the financial year.

293‑115.10 Defined benefit contributions—non‑accruing members

(1) This regulation applies if you are a non‑accruing member of a superannuation fund for a financial year.

(2) Your defined benefit contributions for the financial year in respect of your defined benefit interest in the fund is nil.

293‑115.15 Defined benefit contributions—accruing members with funded benefit interests

(1) This regulation applies if:

(a) you are an accruing member of a superannuation fund for the financial year; and

(b) your defined benefit interest in the fund for the financial year is a funded benefit interest.

(2) The interest is a funded benefit interest if:

(a) the interest is in a complying superannuation fund that is not a constitutionally protected fund; and

(b) if the interest is in a public sector superannuation scheme:

(i) the fund trustee has certified, for the financial year, that the fund trustee considers that the scheme will only ever pay superannuation benefits from contributions made to the scheme or earnings from the contributions; and

(ii) the fund trustee has not chosen, under section 295‑180 of the Act, to have contributions made by you, or on your behalf, excluded from the assessable income of the scheme for the financial year.

(3) Your defined benefit contributions for the financial year in respect of the interest is your notional taxed contributions for the year in respect of the interest.

Note: For notional taxed contributions, see section 291‑170 of the Act and Subdivision 292‑D of these regulations.

(4) In working out your notional taxed contributions for the purposes of subregulation (3), disregard Subdivision 291‑C of the Income Tax (Transitional Provisions) Act 1997.

293‑115.20 Defined benefit contributions—accruing members with other interests

(1) This regulation applies if:

(a) you are an accruing member of a superannuation fund for the financial year; and

(b) your defined benefit interest in the fund for the financial year is an interest other than a funded benefit interest.

(2) Your defined benefit contributions for the financial year in respect of the interest is the amount worked out using the method in Schedule 1AA.

Subdivision 293‑E—Modifications for constitutionally protected State higher level office holders

293‑145.01 Constitutionally protected State higher level office holders

For paragraph 293‑145(1)(b) of the Act, the following individuals are declared:

(a) a Minister of the government of a State;

(b) a member of the staff of a Minister of the government of a State;

(d) a member of staff of the Governor of a State;

(e) a member of the Parliament of a State;

(f) the Clerk of a house of the Parliament of a State;

(g) the head of a Department of the Public Service of a State or a statutory office holder of equivalent seniority, including a statutory office holder who is the head of an instrumentality or agency of a State;

(h) a judge, justice or magistrate of the court of a State.

Division 294—Transfer balance cap

Subdivision 294‑D—Modifications for certain defined benefit income streams

294‑130.01 Meaning of capped defined benefit income stream

(1) For the purposes of subsection 294‑130(2) of the Act, a superannuation income stream is prescribed if subregulation (2), (3) or (4) applies to the income stream.

(2) This subregulation applies to a superannuation income stream if it is a pension for the purposes of the SIS Act that is provided under rules:

(a) that are in existence at the date of registration of the Superannuation Industry (Supervision) Amendment Regulations 2007 (No. 3); and

(b) that would meet the standards of subregulation 1.06(2) of the SIS Regulations except for the circumstances in which those rules allow for either or both of the following:

(i) the pension to be commuted;

(ii) the variation or cessation of pension payments in respect of a child of the deceased primary or reversionary beneficiary.

(3) This subregulation applies to a superannuation income stream if:

(a) it is a pension for the purposes of the SIS Act that is paid from a successor fund; and

(b) the rules of the original fund satisfied subregulation (2); and

(4) This subregulation applies to a superannuation income stream if it is a pension for the purposes of the SIS Act that is provided:

(a) on the grounds of invalidity under a public sector superannuation scheme; and

(b) under rules that would meet the standards of subregulation 1.06(2) of the SIS Regulations except to the extent that those rules allow for the variation, suspension or cessation of pension payments due to any of the following:

(i) the primary beneficiary’s level of incapacity being reclassified;

(ii) the primary beneficiary’s personal earnings changing;

(iii) the primary beneficiary being employed by a participating employer of the relevant superannuation scheme;

(iv) the primary beneficiary failing to provide information as required by the rules;

(v) the primary beneficiary reaching a particular age.

294‑135.01 Transfer balance credit—determining special value of a superannuation interest

For the purposes of subsection 294‑135(4) of the Act, the special value, at a particular time, of a superannuation interest that supports an income stream that is, or was at any time, a superannuation income stream prescribed by regulation 294‑130.01, is the amount worked out using the formula:

where:

annual entitlement means the amount worked out by:

(a) dividing the amount of the first superannuation income stream benefit you are entitled to receive from the income stream just after that time by the number of whole days to which that benefit relates; and

(b) multiplying the result by 365.

294‑145.01 Transfer balance debits—determining debit value of a superannuation interest

For the purposes of subsection 294‑145(7) of the Act, the debit value, at a particular time, of a superannuation interest that supports an income stream that is, or was at any time, a superannuation income stream prescribed by regulation 294‑130.01, is:

(a) the amount of the transfer balance credit that arose in your transfer balance account in respect of the income stream; less

(b) the amount of any transfer balance debits (apart from debits arising under item 4 of the table in subsection 294‑80(1) of the Act) that have arisen in your transfer balance account in respect of the income stream before that time.

Division 295—Taxation of superannuation entities

Subdivision 295‑D—Contributions excluded

295‑265.01 Application of pre‑1 July 1988 funding credits—limit on choice

(1) For paragraph 295‑265(7)(a) of the Act, this regulation prescribes the manner in which a superannuation provider in relation to a superannuation fund is to work out the amount applicable to the fund, under subsection 295‑265(6) of the Act, for an income year where the superannuation provider chooses, after 9 May 2006, to specify an amount for the purposes of subsection 295‑265(1) of the Act.

Method 1—Funding credit valuation process

(2) Method 1 must be used for an income year, unless:

(a) the conditions mentioned in subregulation (7) for the use of method 2 are met; and

(b) the actuary decides that the use of method 2 is appropriate.

(3) The amount applicable to the fund for an income year is the least of the following amounts:

(a) the amount of pre‑1 July 1988 funding credits unused at the end of the previous income year;

(b) the value of unfunded pre‑1 July 1988 liabilities at the first day of the income year, determined by an actuary in accordance with step 3 of method 1 or method 2;

(c) the pre‑1 July 1988 taxable contributions for the income year, worked out in accordance with step 4 of method 1 or method 2;

(d) for an income year that ended before 9 May 2006—the amount that the superannuation provider could specify under subsection 295‑265(1) of the Act under the legislation that applied to the income year.

(4) The amount identified in accordance with subregulation (3) must then be adjusted for all transfers of funding credits and relevant liabilities into or out of the fund.

(5) The procedure in method 1 for determining an amount applicable to a fund is referred to in this regulation as a funding credit valuation process.

(6) The amounts mentioned in paragraphs (3)(a), (b), (c) and (d), and the amount as adjusted under subregulation (4), must be certified by an actuary.

Method 2—Notionally updated funding credit valuation process

(7) The actuary may use method 2 for an income year if:

(a) the actuary can identify, at the start of the income year, that the value of unfunded pre‑1 July 1988 liabilities exceeds the amount that the superannuation provider wishes to specify for subsection 295‑265(1) of the Act; and

(b) the income year is the first year after, or the second year after, an income year for which method 1 was used to calculate the amount applicable to the fund.

(8) The procedure in method 2 for calculating an amount applicable to a fund is referred to in this regulation as a notionally updated funding credit valuation process.

Method 1 Funding credit valuation process

Step 1
(value liabilities)

1.1 For any income year in which funding credits are claimed, calculate the discounted present value of liabilities as at the first day of that income year that relates to membership completed.

1.2 The basis for the calculations in item 1.1 must be the actuarial valuation basis relevant to the income year in question which the superannuation fund’s actuary would consider appropriate for a valuation under Part 9 of the SIS Regulations.

1.3 In making the calculation in item 1.1 exclude the following liabilities that are not provided from taxable contributions:

(a) liabilities representing benefits financed by undeducted contributions;

(b) liabilities representing benefits or components that are expected to be treated as paid from an untaxed source;

Example: Pensions provided on an emerging cost or pay as you go basis, with corresponding elections being made under subsection 295‑180(1) of the Act.

Example: Fully funded productivity, superannuation guarantee or salary sacrifice account balances.

(d) liabilities representing death and disability benefits for which costs are claimed as deductible under section 295‑465 or 295‑470 of the Act.

1.4 Apportion the discounted present value of the liabilities, between:

(a) the period of superannuation fund membership completed before 1 July 1988; and

(b) the period of superannuation fund membership completed on and after 1 July 1988;

for each superannuation fund member or former member for whom a liability is being valued.

1.5 The apportionment in item 1.4 must be made having regard to the following requirements and principles:

(a) superannuation fund membership must be consistent with the definition used by the fund to determine the benefit being valued;

(b) the actuary of the superannuation fund may use an alternative method for apportioning the discounted present value of liabilities only if the actuary certifies that the method will provide a reasonable approximation of the apportionment;

(c) the actuary will generally use a linear apportionment method, but may use an apportionment method that reflects non‑linear accrual of entitlements, provided the actuary considers that such an approach achieves an outcome that is consistent with the principle that funding credits can only be used against contributions intended to provide for entitlements relating to membership completed before 1 July 1988.

1.6 The actuary must retain documentation of the liability and valuation apportionment calculations for not less than 5 years.

1.7 The discounted present value of liabilities for all members apportioned to pre‑1 July 1988 membership is the value of pre‑1 July 1988 liabilities.

Step 2
(apportion assets)

2.1 Calculate the total amount of superannuation fund assets at their market value at the start of the income year, on the basis on which the superannuation fund’s actuary would consider appropriate for a valuation under Part 9 of the SIS Regulations.

2.2 Allow deductions for realisation costs and charges incurred in the normal course of operation of the superannuation fund.

2.3 Deduct the amount of assets that relate to excluded liabilities mentioned in item 1.3 of step 1 of this method.

2.4 All remaining assets should be treated as available to provide for the value of pre‑1 July 1988 liabilities unless the superannuation provider can provide the actuary with written evidence to support exclusion of both an amount of assets and a corresponding value of liabilities.

2.5 The actuary must retain documentation to support calculations made for the asset apportionment for not less than 5 years.

2.6 The result is the assets available to fund pre‑1 July 1988 liabilities for the income year.

Step 3
(unfunded pre‑1 July 1988 liabilities)

3.1 Deduct the assets available to fund pre‑1 July 1988 liabilities from the value of pre‑1 July 1988 liabilities.

3.2 The result is the value of unfunded pre‑1 July 1988 liabilities.

Step 4
(pre‑1 July 1988 taxable contributions)

4.1 The superannuation provider must notify to the actuary the amount of taxable contributions that are used to fund pre‑1 July 1988 liabilities for the income year.

4.2 The superannuation provider must retain documentation to support calculations of pre‑1 July 1988 taxable contributions for not less than 5 years.

4.3 The result is the pre‑1 July 1988 taxable contributions.

Method 2 Notionally updated funding credit valuation process

Step 1
(notionally update value of liabilities)

1.1 The actuary must notionally adjust the value of pre‑1 July 1988 liabilities from the start of the previous year to the start of the current income year, taking into account any factors likely to affect the value of the pre‑1 July 1988 liabilities.

1.2 In making a calculation under item 1.1 the actuary must have regard to the valuation basis that would be used by the fund if method 1 were being used.

1.3 In making a calculation under item 1.1 the actuary must have regard to actual experience gained from the operation of the fund if the experience is materially different from valuation assumptions used in the calculation of the previous pre‑1 July 1988 liabilities.

1.4 The actuary must retain documentation of the notional updating of the pre‑1 July 1988 liability valuation calculations for not less than 5 years.

1.5 The result is the notionally updated value of pre‑1 July 1988 liabilities for the income year.

Step 2
(notionally update apportionment of assets)

2.1 The actuary must notionally adjust the amount of the assets available to fund pre‑1 July 1988 liabilities, from the start of the previous year to the start of the current income year, taking into account any factors likely to affect the amount of the assets available to fund pre‑1 July 1988 liabilities.

2.2 Add taxable contributions allocated to fund pre‑1 July 1988 taxed liabilities in the previous income year.

2.3 Deduct the employer financed component of pre‑1 July 1988 taxed benefits paid out during the previous income year.

2.4 Add actual investment earnings net of the tax and expenses relating to investment income for the previous income year using a basis that is consistent with the underlying investment earnings achieved and normal practices of the superannuation fund.

2.5 The actuary must retain documentation to support notional updating of the amount of assets available to fund pre‑1 July 1988 liabilities for not less than 5 years.

2.6 The result is the notionally updated amount of assets available to fund pre‑1 July 1988 liabilities.

Step 3
(unfunded pre‑1 July 1988 liabilities)

3.1 Deduct the notionally updated amount of assets available to fund pre‑1 July 1988 liabilities from the notionally updated value of pre‑1 July 1988 liabilities.

3.2 The result is the value of unfunded pre‑1 July 1988 liabilities for the income year.

Step 4

(pre‑1 July 1988 taxable contributions)

4.1 The superannuation provider must notify to the actuary the amount of taxable contributions that are allocated to fund pre‑1 July 1988 liabilities for the income year.

4.2 The superannuation provider must retain documentation to support calculations of pre‑1 July 1988 taxable contributions for not less than 5 years.

4.3 The result is the pre‑1 July 1988 taxable contributions.

(9) If an actuary certifies an amount under subregulation (6) the actuary must, if requested by a superannuation provider, provide sufficient information to enable another actuary to check the certification.

(10) An actuary must, in making a calculation under or applying method 1 or 2:

(a) follow any professional standards prepared by the Institute of Actuaries of Australia; and

(b) have regard to any professional guidance notes prepared by the Institute of Actuaries of Australia;

that relate to the determination of accrued benefits mentioned in method 1 or 2.

(11) A superannuation provider must, if requested to do so, provide sufficient information to support a funding credit claim under subsection 295‑265(1) of the Act, including any relevant information that relates to an income year for which a claim was not made.

(12) In this regulation:

method 1 means the method described in the table, Method 1—Funding credit valuation process.

method 2 means the method described in the table, Method 2—Notionally updated funding credit valuation process.

Note: actuary is defined in section 995‑1 of the Act.

Subdivision 295‑F—Exempt income

295‑385.01 Segregated current pension assets—prescribed superannuation income stream benefits

For section 295‑385 of the Act, the following superannuation income stream benefits are prescribed:

(a) an RP superannuation income stream benefit of a superannuation fund payable from:

(i) an allocated pension within the meaning of the SIS Regulations; or

(ii) a market linked pension within the meaning of the SIS Regulations; or

(iii) an account‑based pension within the meaning of the SIS Regulations;

(b) an amount taken to be the amount of a superannuation income stream benefit under subregulation 995‑1.01(3) or (4), where the superannuation income stream that was payable to the deceased mentioned in that subregulation was a pension mentioned in subparagraph (a)(i), (ii) or (iii) of which the deceased was a retirement phase recipient.

Note: This regulation is also mentioned in regulation 307‑205.02 to identify superannuation income streams to which that regulation does not apply.

Subdivision 295‑G—Deductions

295‑465.01 Deductible portion of premiums

(1) For subsections 295‑465(1B) and (2A) of the Act, the proportion specified in an item in the table in relation to the insurance policy specified in the item may be treated:

(a) as being attributable to the complying superannuation fund’s liability to provide benefits referred to in section 295‑460 of the Act; and

(b) as being the amount the fund could reasonably be expected to pay, in an arm’s length transaction, to obtain an insurance policy to cover it for its current or contingent liabilities to provide benefits referred to in section 295‑460 of the Act.

Item	Insurance policy	Specified proportion %
1	TPD any occupation	100
2	TPD any occupation with one or more of the following inclusions: (a) activities of daily living; (b) cognitive loss; (c) loss of limb; (d) domestic (home) duties	100
3	TPD own occupation	67
4	TPD own occupation with one or more of the following inclusions: (a) activities of daily living; (b) cognitive loss; (c) loss of limb; (d) domestic (home) duties	67
5	TPD own occupation bundled with death (life) cover	80
6	TPD own occupation bundled with death (life) cover with one or more of the following inclusions: (a) activities of daily living; (b) cognitive loss; (c) loss of limb; (d) domestic (home) duties	80

(2) A specified proportion mentioned in the table in subregulation (1) will be deductible only if the conditions to which the insurance policy that relates to the proportion is subject are either more restrictive than or have substantially the same meaning as the conditions described in the definition of the policy in subregulation (5).

(3) If a member is required to meet a criterion to be eligible for a benefit under an insurance policy in addition to the criteria that are essential to the matters identified in the definition of the policy in subregulation (5), the additional criterion may be disregarded.

(4) The use of a specified proportion in the table in subregulation (1) in respect of a particular insurance policy is not affected by the inclusion in the insurance policy of a benefit payable to a member because a terminal medical condition exists in relation to the member.

(5) In this regulation:

activities of daily living means a component of a disability insurance policy that insures against a disability that results in a member’s total and permanent inability to perform at least 2 of the following activities of daily living without the assistance of another person:

(a) bathing and showering;

(b) dressing and undressing;

(d) mobility, to the extent of being able to get in and out of bed or a chair, and move from place to place without using a wheelchair;

(e) the ability to use a toilet.

bundled means a situation in which:

(a) the TPD and death (life) components of the combined insurance premium are not separately identified; and

(b) the amount payable to the insured person in relation to the TPD component does not exceed the amount payable in relation to the insured person in relation to the death (life) component.

cognitive loss means a component of a disability insurance policy that insures against a member suffering a permanent deterioration or loss of cognitive functioning or intellectual capacity that requires the person to be under the continuous care and supervision of another person.

death (life) cover means insurance against the liability to provide a superannuation death benefit within the meaning of the Act.

domestic (home) duties means a component of a disability insurance policy that insures against a disability that results in a member being:

(a) unable to perform the member’s normal domestic duties; and

(b) unable to leave the member’s home unaided; and

(c) incapacitated to such an extent that the member is unlikely to ever engage in normal domestic duties or any gainful employment.

loss of limb means a component of a disability insurance policy that insures against the permanent loss of:

(a) the sight in both the member’s eyes resulting in blindness; or

(b) the use of two or more of the member’s limbs, feet or hands; or

(c) the sight in one of the member’s eyes resulting in blindness in that eye and the use of one of the member’s limbs, feet or hands.

normal domestic duties means the tasks performed by an individual whose sole occupation is to maintain the individual’s family home, including;

(a) unassisted cleaning of the individual’s home; and

(b) cooking of meals for the individual’s family; and

(d) shopping for food for the individual’s family; and

(e) taking care of any dependent children.

TPD any occupation means insurance against the member suffering an illness or injury that is likely to result in the member’s permanent inability to engage in gainful employment for which the member is reasonably qualified by education, training or experience.

TPD own occupation means insurance against the member suffering an illness or injury that is likely to result in the member’s permanent inability to engage in gainful employment in the member’s own occupation, where inability to engage in gainful employment includes the inability to work otherwise than in a substantially reduced capacity to that in which the member worked before suffering the illness or injury.

Part 3—Superannuation benefits paid from complying plans etc

Division 301—Superannuation member benefits paid from complying plans etc

Subdivision 301‑D—Departing Australia superannuation payments

301‑170.01 Departing Australia superannuation payments

For subparagraph (b)(i) of the definition of departing Australia superannuation payment in section 301‑170 of the Act, the following regulations are prescribed:

(a) regulations 6.20A, 6.20B and 6.24A of the SIS Regulations;

(b) regulation 4.23A of the RSA Regulations.

Subdivision 301‑E—Superannuation lump sum member benefits less than $200

301‑225.01 Superannuation lump sum member benefits less than $200 are tax free

(1) For paragraph 301‑225(d) of the Act, this regulation sets out requirements in relation to a superannuation member benefit.

Note: The effect of section 301‑225 of the Act is that a superannuation member benefit is not assessable income and is not exempt income in specified circumstances. One of the circumstances is that the requirements (if any) specified in the Regulations in relation to the benefit are satisfied.

(2) A requirement is that the member’s benefit must be released under:

(a) item 104 or 111 of Part 1 of Schedule 1 to the SIS Regulations; or

(b) item 211 of Part 2 of Schedule 1 to the SIS Regulations; or

Division 302—Superannuation death benefits paid from complying plans etc

Subdivision 302‑D—Definitions relating to dependants

302‑195 Circumstances in which a person died in the line of duty

(1) For subsection 302‑195(3) of the Act, the following subregulations sets out circumstances in which a deceased person mentioned in subsection 302‑195(2) of the Act (a military or police person) died in the line of duty:

(a) in Australia or on overseas service—subregulations (2), (3), (4), (5), (9) or (10);

(b) on overseas service—subregulations (6), (7) and (8).

Note: When this regulation was made, subsection 302‑195(2) of the Act mentioned the following persons:

(a) a member of the Defence Force;

(b) a member of the Australian Federal Police;

(d) a member of a State or Territory police force.

Performance of duties

(2) A circumstance is that the military or police person died while performing the duties of a military or police person.

(3) A circumstance is that:

(a) the military or police person was off duty at the time of his or her death; and

(b) his or her death occurred:

(i) in the course of an attempt to arrest a suspected offender; or

(ii) in the course of an attempt to prevent an offence; or

(iii) in the course of an attempt to rescue a person; or

(iv) while he or she was travelling to a place of work as a result of being recalled to duty.

Injury

(4) A circumstance is that the military or police person:

(a) died within 12 months after sustaining an injury; and

(b) died as a result of sustaining the injury; and

(5) A circumstance is that the military or police person:

(a) was off duty at the time of sustaining an injury; and

(b) sustained the injury:

(i) in the course of an attempt to arrest a suspected offender; or

(ii) in the course of an attempt to prevent an offence; or

(iii) in the course of an attempt to rescue a person; or

(iv) while he or she was travelling to a place of work as a result of being recalled to duty; and

(d) died as a result of sustaining the injury.

Overseas service

(6) A circumstance is that the military or police person:

(a) was a member of the Defence Force; and

(b) died while serving overseas, if the service was:

(i) warlike service mentioned in paragraph 6(1)(a) of the Military Rehabilitation and Compensation Act 2004; or

(ii) non‑warlike service mentioned in paragraph 6(1)(b) of the Military Rehabilitation and Compensation Act 2004.

(7) A circumstance is that the military or police person:

(a) was a member of the Australian Federal Police or a protective service officer within the meaning of the Australian Federal Police Act 1979; and

(b) died while serving overseas, if the service was:

(i) at a place specified in a determination under subsection 40H(1) of the Australian Federal Police Act 1979; and

(ii) on a peace‑keeping or capacity‑building mission.

(8) A circumstance is that the military or police person:

(a) was a member of a State or Territory police force; and

(b) died while serving overseas, if the service was:

(i) undertaken as a special member of the Australian Federal Police under section 40E of the Australian Federal Police Act 1979; and

(ii) on a peace‑keeping or capacity‑building mission.

Consequences of duties

(9) A circumstance is that, as a result of action taken because the person was a military or police person, the military or police person sustained an injury from which he or she died:

(a) immediately; or

(b) within 12 months after sustaining the injury.

Example: The person was killed in retaliation for an action taken in his or her capacity as a military or police person.

Uncertainty about circumstances of death

(10) A circumstance is that:

(a) the military or police person has died; and

(b) it is not certain, after reasonable inquiry, whether the person died in a circumstance described in regulation 302‑195A.

Note: If it is uncertain whether the death falls within regulation 302‑195A, the person will be taken to have died in the line of duty.

Interpretation

(11) For this regulation, the time when a military or police person is off duty includes a time when he or she is:

(a) travelling to or from his or her place of work; or

(b) on a rostered day off work; or

302‑195A Circumstances in which a person is taken not to have died in the line of duty

(1) This regulation sets out circumstances in which a person (a military or police person) mentioned in subsection 302‑195(2) of the Act is taken not to have died in the line of duty.

Note: When this regulation was made, subsection 302‑195(2) of the Act mentioned the following persons:

(a) a member of the Defence Force;

(b) a member of the Australian Federal Police;

(d) a member of a State or Territory police force.

Off duty

(2) A circumstance is that:

(a) the military or police person was off duty at the time of his or her death; and

(b) none of subregulations 302‑195(3), (6), (7), (8) and (9) applies.

(3) A circumstance is that:

(a) the military or police person died as a result of sustaining an injury; and

(b) the military or police person was off duty at the time of sustaining the injury; and

Incidental activity

(4) A circumstance is that:

(a) the military or police person’s death related to an activity that was not directly related to the performance of his or her duties; and

(b) none of subregulations 302‑195(6), (7) and (8) applies.

Example: Undertaking a sporting activity.

Death after retirement

(5) A circumstance is that:

(a) the military or police person died after he or she retired as a military or police person; and

(b) none of subregulations 302‑195(4), (5) and (9) applies.

Suicide

(6) A circumstance is that the military or police person died as a result of committing suicide.

Natural causes or disease

(7) A circumstance is that:

(a) the military or police person died as a result of:

(i) natural causes; or

(ii) an illness or disease; and

(b) none of subregulations 302‑195(6), (7) and (8) applies.

Interpretation

(8) For this regulation, the time when a military or police person is off duty includes a time when he or she is:

(a) travelling to or from his or her place of work; or

(b) on a rostered day off work; or

302‑200.01 What is an interdependency relationship—matters to be taken into account

(1) For paragraph 302‑200(3)(a) of the Act, this regulation sets out matters that are to be taken into account in determining whether 2 persons have an interdependency relationship.

(2) The matters are:

(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; and

(b) the existence of a statutory declaration signed by 1 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.

302‑200.02 What is an interdependency relationship—existence of relationship

(1) For paragraph 302‑200(3)(b) of the Act, this regulation sets out circumstances in which 2 persons have, or do not have, an interdependency relationship under section 302‑200 of the Act.

Interdependency relationship

(2) 2 persons have an interdependency relationship if:

(a) they satisfy the requirements of paragraphs 302‑200(1)(a) to (c) of the Act; and

(b) 1 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) 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 302‑200(1) of the Act; and

Example for paragraph (3)(c): One of the persons is temporarily working overseas or is in gaol.

(4) 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 302‑200(1) of the Act; and

No interdependency relationship

(5) 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.

Division 303—Superannuation benefits paid in special circumstances

303‑10.01 Meaning of terminal medical condition

For section 303‑10 of the Act, a terminal medical condition exists in relation to a person at a particular time if the following circumstances exist:

(a) two registered medical practitioners have certified, jointly or separately, that the person suffers from an illness, or has incurred an injury, that is likely to result in the death of the person within a period (the certification period) that ends not more than 24 months after the date of the certification;

(b) at least one of the registered medical practitioners is a specialist practising in an area related to the illness or injury suffered by the person;

Division 306—Roll‑overs etc

306‑10.01 Roll‑over superannuation benefit

For the purposes of paragraph 306‑10(b) of the Act, each of the following kinds of superannuation benefit is specified:

(a) a superannuation death benefit, unless it is paid to a person covered by subregulation 6.21(2A) of the SIS Regulations or subregulation 4.24(3A) of the RSA Regulations in relation to the deceased member;

(b) a benefit to which section 303‑10 of the Act, or section 303‑10 of the Income Tax (Transitional Provisions) Act 1997, applies.

Division 307—Key concepts relating to superannuation benefits

Subdivision 307‑C—Components of a superannuation benefit

307‑125.01 Components of member benefits accruing before 1 July 1999 paid from the Military Superannuation and Benefits Scheme

(1) For paragraph 307‑125(4)(a) of the Act, a member of the Military Superannuation and Benefits Scheme who is below preservation age may, subject to subregulation (2), determine the amount of the components of his or her member benefits accruing before 1 July 1999 paid from the Military Superannuation and Benefits Scheme in respect of the member.

(2) For subregulation (1), the maximum amount that a member may determine as a component of his or her member benefits accruing before 1 July 1999, whether by a single choice or cumulatively, may not exceed:

(a) for the tax free component of his or her member benefits accruing before 1 July 1999—the amount worked out under section 307‑210 of the Act for the interest; and

(b) for the taxable component of his or her member benefits accruing before 1 July 1999—the amount worked out under section 307‑215 of the Act for the interest.

Example: A member of the Military Superannuation and Benefits Scheme has an amount of his or her member benefits accruing before 1 July 1999 of $1 000. Just before the benefit is paid, the value of the tax free component is $800 and the taxable component is $200. Before reaching preservation age, the member takes a lump sum benefit of $900.

Under subregulation (1), the member is able to determine the amount of the benefit that will be the tax free component and the amount that will be the taxable component of the benefit. However, subregulation (2) prevents the member from treating more than $800 of the superannuation benefit as tax free.

Note: A preserved superannuation benefit paid in respect of a member of the Military Superannuation and Benefits Scheme is paid in accordance with subsection 307‑125(2) of the Act.

(3) This regulation applies to a superannuation benefit paid from the Military Superannuation and Benefits Scheme on or after 1 July 2007.

(4) In this regulation:

Military Superannuation and Benefits Scheme is the scheme that is established by clause 2 of the Military Superannuation and Benefits Trust Deed.

307‑125.02 Components of superannuation benefits after death of recipient of superannuation income stream

(1) For paragraph 307‑125(4)(a) of the Act, subregulation (2) specifies an alternative method for determining the components of a superannuation benefit to which that subregulation applies if:

(a) immediately before the death of a person (the deceased), a superannuation interest (the relevant superannuation interest) was supporting a superannuation income stream (the original superannuation income stream) payable to the deceased; and

(b) the original superannuation income stream did not automatically revert to another person on the deceased’s death; and

(c) no amounts, other than investment earnings, have been added to the relevant superannuation interest on or after the deceased’s death; and

(d) one or both of the following occurs after the deceased’s death:

(i) a superannuation death benefit that is a superannuation lump sum is paid using only an amount from the relevant superannuation interest;

(ii) a superannuation income stream (the new superannuation income stream) is commenced using only an amount applied from the relevant superannuation interest.

(2) The method statement sets out how to work out the tax free component and taxable component of:

(a) a superannuation death benefit mentioned in subparagraph (1)(d)(i); or

(b) a superannuation benefit paid from a superannuation interest that supports the new superannuation income stream mentioned in subparagraph (1)(d)(ii).

Method statement

Step 1. Reduce the amount of the benefit by the extent, if any, to which the benefit is attributable to any of the following:

(b) an amount paid on or after the death of the deceased under a policy of insurance on the life of the deceased;

Step 2. The tax free component of the benefit is the amount that represents the same proportion of the amount resulting from step 1 as the tax free component of the relevant superannuation interest bore to the value of the relevant superannuation interest when the original superannuation income stream commenced.

Step 3. The taxable component of the benefit is the amount of the benefit less the tax free component of the benefit worked out under step 2.

(3) In this regulation:

investment earnings includes:

(a) an amount paid under a policy of insurance on the life of the deceased; or

(b) an amount arising from self‑insurance.

Subdivision 307‑D—Superannuation interests

307‑200.01 Application of Subdivision 307‑D to Subdivisions 291‑C and 293‑D of the Act

This Subdivision does not apply for the purposes of:

(a) calculating an amount of contributions under Subdivision 291‑C of the Act; or

(b) calculating low tax contributions under Subdivision 293‑D of the Act.

307‑200.02 Meaning of superannuation interests

For subsection 307‑200(2) of the Act, every amount, benefit or entitlement that a member holds in a self‑managed superannuation fund is to be treated as 1 superannuation interest in the superannuation fund unless the amount, benefit or entitlement is to be treated as 2 or more superannuation interests in accordance with 1 of the other arrangements in this Subdivision.

307‑200.03 Meaning of superannuation interests—treating a superannuation interest as 2 or more superannuation interests (public sector schemes)

(1) For subsection 307‑200(1) of the Act, this regulation explains how to treat a superannuation interest in a public sector superannuation scheme as 2 or more superannuation interests.

(2) The interest is to be treated as 2 interests if:

(a) the superannuation benefit that is to be paid from the scheme is sourced:

(i) partly from contributions made into the scheme or earnings on those contributions; and

(ii) partly from 1 or more other sources; or

(b) the superannuation benefits that are to be paid from the scheme are sourced:

(i) partly from contributions made into the scheme or earnings on those contributions; and

(ii) partly from 1 or more other sources.

(3) For subregulation (2), the interests are:

(a) an interest that consists of the contributions made into the scheme and the earnings on those contributions; and

(b) an interest that consists of the remainder of the amount sourced from the other source or sources.

(4) For this regulation, an amount specified in a notice given under subsection 307‑285(1) of the Act by the trustee of a scheme is not included as contributions made into the scheme or earnings on those contributions.

307‑200.05 Meaning of superannuation interests—treating a superannuation interest as 2 or more superannuation interests (superannuation income streams)

If a superannuation income stream:

(a) is payable; or

(b) will be payable, and it is a deferred superannuation income stream covered by paragraph (c) of the definition of superannuation income stream in subregulation 995‑1.01(1);

an amount that supports the superannuation income stream is always to be treated as a separate superannuation interest.

307‑205.01 Value of superannuation interest for calculating pre‑July 1983 amount for members in the contributions and investment phase

(1) For paragraph 307‑205(1)(a) of the Act, this regulation specifies methods for determining the value of a superannuation interest at a particular time for the purposes of calculating the pre‑July 1983 amount of the crystallised segment of a tax‑free component under section 307‑225 of the Act.

Note: Calculating the pre‑July 1983 amount of the crystallised segment of the tax‑free component will require the superannuation interest to be valued before 1 July 2007. This calculation will only be performed for a superannuation interest in the accumulation phase, and only for a superannuation interest in which part of the taxable component is comprised of an element taxed in the fund.

Defined benefit interest

(2) For a defined benefit interest, the method is as follows.

Step 1	1 Calculate the value of the retirement benefit that would have been payable if the member: (a) had been eligible to retire immediately before 1 July 2007; and (b) had elected to do so. Note: If a member is no longer in the employment which gave rise to the interest, but the interest is preserved in the scheme, retirement is taken to be the point at which the benefit is payable without penalty to the member.
	2 If the retirement benefit depends upon the member’s age, service or salary, or upon the employer’s consent, the value is to be calculated on the assumption that: (a) the member’s service was his or her actual service immediately before 1 July 2007; and (b) the member’s age was the greater of: (i) the minimum age at which a retirement benefit could be taken without requiring the employer’s consent; and (ii) the member’s actual age immediately before 1 July 2007; and (c) the member’s salary was his or her salary for superannuation purposes immediately before 1 July 2007; and (d) the employer consents to the retirement.
	3 If part or all of the retirement benefit can be paid as a superannuation income stream, then the value of that income stream is determined as the product of: (a) the annual rate of the superannuation income stream that would have been paid had the maximum proportion of the benefit possible been taken as an income stream; and
	(b) the applicable factor set out in clause 1 of Schedule 1B. The total value of the retirement benefit is the sum of the value of the superannuation income stream so determined and any lump sum that would have been payable under the assumptions described above had the member taken the maximum possible proportion of his or her benefit as an income stream.
	4 If the superannuation benefit can only be paid as a lump sum then the value of the retirement benefit is the amount of that lump sum.
Step 2	If a superannuation lump sum benefit, including a roll‑over superannuation benefit, would have been payable had the member resigned, or withdrawn his or her benefit, immediately before 1 July 2007, calculate the amount of that benefit.
Step 3	1 The value of the superannuation interest is the greater of the values worked out using steps 1 and 2. 2 If no value can be determined under step 2, the value of the superannuation interest is the value determined under step 1.

Interest other than defined benefit interest

(3) For a superannuation interest that is not a defined benefit interest, the method is as follows.

Step 1	Assume that the member was eligible to retire immediately before 1 July 2007, and work out the total amount of all the superannuation lump sums that could be payable from the interest at that time.
Step 2	If the total amount worked out under step 1 is less than the total amount actually or notionally allocated to the member (other than because of superannuation contributions surcharge liabilities, insurance costs or other fees, taxes and charges), the value of the interest is the amount actually or notionally allocated to the member.

307‑205.02 Value of superannuation interest

(1) For paragraph 307‑205(1)(a) of the Act, this regulation:

(a) applies to a superannuation income stream or a superannuation annuity, other than:

(i) a superannuation income stream that is a pension mentioned in subparagraph 295‑385.01(a)(i), (ii) or (iii); or

(ii) a superannuation income stream or a superannuation annuity for which the rules providing for the income stream or annuity are based on:

(A) an identifiable lump sum amount; or

(B) the amount available in the member’s account; or

(iii) a superannuation income stream that is supported by a superannuation interest that can be valued under paragraph 307‑205.02B(a); or

(iv) a superannuation income stream that is supported by a superannuation interest that can be valued under regulation 307‑205.02C, 307‑205.02D or 307‑205.02E; and

(b) specifies a method for determining the value of a superannuation interest at a particular time if the interest supports a superannuation income stream to which this regulation applies.

Note: The proportioning rule requires the tax‑free and taxable components of superannuation to be paid out as benefits in the same proportion as they make up of the underlying interest. A value of a superannuation interest is required to ensure that the proportioning rule operates appropriately.

(2) The value of the interest at a particular time is the sum of:

(a) the product of:

(i) the annual amount of the superannuation income stream payable in respect of the superannuation interest at that time; and

(ii) the applicable factor set out in clause 1 of Schedule 1B; and

(b) the product of:

(i) the nominal value of the superannuation lump sum, if any, which is payable in respect of the interest at a time in the future, other than a future lump sum which is a commutation of the income stream included in subparagraph (a)(i); and

(ii) the applicable factor set out in clause 2 of Schedule 1B.

307‑205.02A Superannuation income streams or superannuation annuities based on identifiable amounts—value of an interest

For a superannuation income stream or a superannuation annuity mentioned in subparagraph 307‑205.02(1)(a)(ii) but not in subparagraph 307‑205.02(1)(a)(iv), the value of the superannuation interest that supports the income stream or annuity is:

(a) the identifiable lump sum amount; or

(b) the amount available in the member’s account.

307‑205.02B Public sector superannuation schemes—value of an interest

A superannuation interest in a public sector superannuation scheme is to be valued:

(a) by using the practice for valuing a superannuation interest (other than an interest that supports a superannuation income stream mentioned in subparagraph 307‑205.02(1)(a)(i)) that was used by the scheme immediately before 28 June 2007; or

(b) if there was not a practice for valuing an interest at that time—by using the method in subregulation 307‑205.02(2).

307‑205.02C Deferred superannuation income streams—value of an interest

(1) For the purposes of paragraph 307‑205(1)(a) of the Act, the value at a particular time of an individual’s superannuation interest that supports a deferred superannuation income stream referred to in subregulation (3) is the greater of:

(a) the sum of each amount of consideration paid for the interest for the income stream, and that amount’s associated notional earnings, as worked out under subregulation (2) for the day that includes that time; and

(b) the total amount of the superannuation benefits that would become payable if the individual voluntarily caused the interest to cease at that time.

Note: For paragraph (a), subregulation (2) works out a total amount made up of the amount of consideration and its associated notional earnings.

(2) An amount of consideration paid for the interest for the income stream, and that amount’s associated notional earnings, for a particular day (the valuing day) is worked out by applying the following formula for each adjustment day (from the earliest to the latest):

where:

above threshold rate, for a particular day, means the rate determined for that day under subsection 1082(2) of the Social Security Act 1991.

adjustment day means each of the following:

(a) each 12‑month anniversary of the consideration payment day that happens before the valuing day;

(b) the valuing day.

applicable above threshold rate, for a particular day, means:

(a) if that day is a 12‑month anniversary of the consideration payment day—the above threshold rate for that day; or

(b) if that day is the valuing day—the proportion of the above threshold rate for that day equal to the number of days that the valuing day is in the 12 months starting on the day after:

(i) if the valuing day is at least 12 months after the consideration payment day—the most recent 12‑month anniversary of the consideration payment day; or

(ii) otherwise—the consideration payment day.

compounded amount of consideration just before the adjustment day means:

(a) for the earliest adjustment day—the amount of consideration; or

(b) for each later adjustment day—the result of applying the formula for the most recent earlier adjustment day.

consideration payment day means the day the amount of consideration was paid.

(3) Subregulation (1) applies to a deferred superannuation income stream that:

(a) is covered by paragraph (c) of the definition of superannuation income stream in subregulation 995‑1.01(1); and

(b) is neither a pooled investment pension nor a pooled investment annuity.

307‑205.02D Pooled investment pensions—value of an interest

(1) For the purposes of paragraph 307‑205(1)(a) of the Act, the value at a particular time of an individual’s superannuation interest that supports a pooled investment pension is the value of so much of the collective pool of assets in the fund at that time as is:

(a) attributed to the individual under the rules of the fund; and

(b) specified in an actuary’s certificate.

(2) A pooled investment pension is a superannuation income stream supported by an individual’s superannuation interest if:

(a) the interest is in a superannuation fund; and

(b) the rules for the provision of the income stream ensure that, once payments of the income stream start, the income stream is to continue for the remainder of the individual’s life; and

(c) the rules for the provision of the income stream ensure that the amounts of those payments are determined by having regard to:

(i) the age, life expectancy or other factors relevant to the mortality of each individual who has that kind of superannuation interest in the fund; and

(ii) the pool of assets in the fund held for the collective benefit of those individuals.

307‑205.02E Pooled investment annuities—value of an interest

(1) For the purposes of paragraph 307‑205(1)(a) of the Act, the value at a particular time of an individual’s superannuation interest that supports a pooled investment annuity is the value of so much of the collective pool of assets held by the life insurance company at that time as is:

(a) attributed to the individual under the contract for the provision of the pooled investment annuity; and

(b) specified in an actuary’s certificate.

(2) A pooled investment annuity is a superannuation income stream supported by an individual’s superannuation interest if:

(a) the superannuation income stream is a superannuation annuity provided by a life insurance company; and

(b) the contract for the provision of the income stream ensures that, once payments of the income stream start, the income stream is to continue for the remainder of the individual’s life; and

(c) the contract for the provision of the income stream ensures that the amounts of those payments are determined by having regard to:

(i) the age, life expectancy or other factors relevant to the mortality of each individual who has that kind of superannuation interest with the life insurance company; and

(ii) the pool of assets held by the life insurance company for the collective benefit of those individuals; and

(d) at least 50 entities have superannuation interests (of any kind) with the life insurance company.

Part 3A—Rules for particular industries and occupations

Division 393—Farm management deposits

393‑1 Simplified outline of the farm management deposits scheme

Division 393 of the Act establishes the farm management deposits scheme, which are deposits made with FMD providers in the circumstances described in that Division.

You can deduct a farm management deposit you make if:

(a) you are an individual carrying on a primary production business (including a primary production business you carry on as a partner in a partnership or as a beneficiary of a trust); and

(b) you hold the deposit for at least 12 months; and

The amount of the deposit repaid is included in your assessable income in the income year in which it is repaid. Special rules apply if the deposit is repaid in the event of a severe drought or an applicable natural disaster.

Farm management deposits allow you to carry over income from years of good cash flow and to draw down on that income in years when you need the cash. This enables you to defer the income tax on your taxable primary production income from the income year in which you make the deposit until the income year in which the deposit is repaid.

393‑5 Application form for a farm management deposit: information given by depositor

For paragraph 393‑20(2)(b) of the Act, the following information is to be provided by a depositor to an FMD provider:

(a) the depositor’s name, address, date of birth and telephone number;

(b) the amount of the deposit;

(d) if the depositor is not the owner of the deposit—the owner’s name, address and date of birth.

Note: Subsection 393‑20(2) of the Act requires a depositor to apply to an FMD provider to make a farm management deposit with the FMD provider.

Under paragraph 393‑20(2)(b) of the Act, the application form must require the depositor to provide any information required by regulations.

Under paragraph 393‑20(2)(a) of the Act, the application form must also permit the depositor to state the owner’s tax file number in the form.

393‑10 Application form for a farm management deposit: information given to depositor

For paragraph 393‑20(2)(c) of the Act, the form used to apply to an FMD provider to make a farm management deposit must contain:

(a) either of the statements set out in Part 1 of Schedule 1C; and

(b) the statements set out in Part 2 of Schedule 1C; and

Note: Subsection 393‑20(2) of the Act requires a depositor to apply to an FMD provider to make a farm management deposit with the FMD provider.

Under paragraph 393‑20(2)(c) of the Act, the application form must include any statements, required by regulations, that are to be read by the depositor when completing the form.

393‑15 Repayment of farm management deposit in the event of a natural disaster

For paragraph 393‑40(3A)(b) of the Act, the circumstances that are to be satisfied in relation to a repayment of the whole or a part of a farm management deposit are:

(a) recovery assistance has been provided:

(i) as a Category C measure, as defined in the Natural Disaster Relief and Recovery Determination Version 2.0 determined by the Minister for Justice on 29 October 2015; and

(ii) in the form of a recovery grant for a primary producer, as described in that Determination; and

(b) the recovery assistance was first provided during the 12 month period mentioned in subsection 393‑40(1) of the Act; and

Note: Paragraph 393‑40(3A)(b) of the Act relates to a repayment if natural disaster relief and recovery arrangements made by or on behalf of the Commonwealth apply.

Part 4—International aspects of income tax

Subdivision 775‑B—Realisation of forex gains or losses

775‑145.01 Application of forex events to currency and fungible rights and obligations

(1) For subsection 775‑145(2) of the Act, forex realisation event 1 applies to foreign currency, on a weighted average basis, in the circumstances that an election to use a weighted average basis:

(a) has been made in writing; and

(b) complies with subregulation (4); and

(2) For subsection 775‑145(2) of the Act, both of forex realisation events 1 and 2 apply to a fungible right, or a part of a fungible right, to receive foreign currency, on a weighted average basis, in the circumstances that an election to use a weighted average basis:

(a) has been made in writing; and

(b) complies with subregulation (4); and

(3) For subsection 775‑145(2) of the Act, forex realisation event 4 applies to a fungible obligation, or a part of a fungible obligation, to pay foreign currency, on a weighted average basis, in the circumstances that an election to use a weighted average basis:

(a) has been made in writing; and

(b) complies with subregulation (4); and

(4) An election complies with this subregulation if it includes:

(a) a commencement date of:

(i) the date on which it is made; or

(ii) if the election is made not later than 90 days after the day on which the Income Tax Assessment Amendment Regulations 2005 (No. 2) are registered in accordance with the Legislative Instruments Act 2003—the applicable commencement date mentioned in section 775‑155 of the Act; or

(iii) 1 July 2004; and

(b) a statement that the election is for all of the forex realisation events that are applicable to the fungible thing to which the election relates to apply, on a weighted average basis, to:

(i) all fungible things (other than a fungible thing in relation to which a choice under Subdivision 775‑E of the Act is in effect); or

(ii) 1 or more specified classes of fungible things, other than a fungible thing in relation to which a choice under Subdivision 775‑E of the Act is in effect, in circumstances (explained in the statement) in which the effect of the election would reasonably be expected to be the reduction of the costs of compliance with the income tax law; or

(iii) 1 or more specified fungible things in circumstances (explained in the statement) in which the effect of the election would be consistent with the treatment of those fungible things in the accounting records of the entity making the election, if those records were prepared in accordance with generally accepted accounting principles.

Note: The applicable commencement date is explained in section 775‑155 of the Act.

(5) An election that complies with subregulation (4) takes effect in accordance with subregulation (4).

(6) An entity may withdraw an election only if:

(a) it does not appear on reasonable grounds that the election is being withdrawn for a principal purpose of obtaining a tax benefit; and

Note: A tax benefit may be an incidental consequence of the withdrawal of an election.

(b) either:

(i) if accounting records in relation to the treatment of fungible things to which the election applies are being kept by the entity and prepared in accordance with generally accepted accounting principles—the election is being withdrawn because there has been a change to the entity’s accounting practices; or

(ii) if:

(A) accounting records in relation to the treatment of fungible things to which the election applies by the entity are not being kept by the entity and prepared in accordance with generally accepted accounting principles; and

(B) the election includes the statement mentioned in subparagraph (4)(b)(ii);

there has been a change in the entity’s circumstances that makes the statement mentioned in subparagraph (4)(b)(ii) incorrect.

Note: A weighted average basis, which is mentioned in section 775‑145 of the Act, is used to allow:

the cost of a fungible amount; or
the cost of a part of a fungible amount; or
in the case of a fungible obligation, or a part of a fungible obligation—the proceeds of assuming the obligation or the part of the fungible obligation;

at a particular time to be determined by the weighted average cost of the amounts that were previously added to the fungible amount.

Example demonstrating the use of the weighted average basis to a foreign currency bank account

John deposits amounts of US dollars (US$) into his bank account at times T1, T2, T3 and T7. At times T4, T5 and T6, John either withdraws some of the US dollars or draws on the account’s credit facility.

In this example, a weighted average calculation is made at the time of each transaction, where applicable. An alternative method would be to make 1 calculation for the entire income year (although this alternative method is not appropriate in this example because the account balance changes from credit to debit). Generally, either method is suitable as long as it is used consistently.

The weighted average cost (WAC) of the US$ which John holds from times T1 to T7 is shown in the table.

Time	US$ deposit or withdrawal	Exchange rate US$ : A$	Exchange rate A$ : US$	A$ amount	US$ balance	A$ equivalent balance (WAC)	WAC per US$
T1	1 000	1.3889	0.7200	1 388.89	1 000	1 388.89	1.3889
T2	2 500	1.4286	0.7000	3 571.43	3 500	4 960.32	1.4172
T3	1 750	1.3699	0.7300	2 397.26	5 250	7 357.58	1.4014
T4	‑2 800	1.3333	0.7500	‑3 733.33	2 450	3 433.54	1.4014
T5	‑4 000	1.2821	0.7800	‑5 128.21	‑1 550	‑1 987.18	1.2821
T6	‑1 000	1.3158	0.7600	‑1 315.79	‑2 550	‑3 302.97	1.2953
T7	1 200	1.3699	0.7300	1 643.84	‑1 350	‑1 748.63	1.2953

Note: The WAC per US$ does not change upon a withdrawal while (and to the extent that) the account balance remains in credit. Also, when a deposit is made, the WAC per $US does not change while (and to the extent that) the account remains in debit.

Subdivision 830‑A—Meaning of foreign hybrid

830‑15.01 Foreign hybrid company

For paragraph 830‑15(3)(c) of the Act, it is a requirement for a company in relation to an income year, that the company be a limited liability partnership for the purposes of the Limited Liability Partnerships Act 2000 (UK).

Part 5—Administration

Division 910—Transitional and application arrangements

910‑1.01 Transitional arrangements arising out of the Income Tax Assessment Amendment (Superannuation Measures No. 1) Regulation 2013

(1) The amendments made by items 1 and 3 to 6 of Schedule 1 to the Income Tax Assessment Amendment (Superannuation Measures No. 1) Regulation 2013 apply in relation to the 2012—13 income year and later income years.

(2) The amendment made by item 2 of Schedule 1 to the Income Tax Assessment Amendment (Superannuation Measures No. 1) Regulation 2013 applies to a superannuation benefit to which subregulation 307‑125.02(2) applies that is paid on or after the commencement of that regulation.

910‑1.02 Transitional arrangements arising out of the Tax Laws Amendment (2013 Measures No. 1) Regulation 2013

The amendment of these Regulations made by item 17 of Schedule 1 to the Tax Laws Amendment (2013 Measures No. 1) Regulation 2013 applies on and after 17 February 2001.

910‑1.03 Transitional arrangements arising out of the Tax Laws Amendment (2013 Measures No. 1) Regulation 2013

The amendments of these Regulations made by items 19 and 20 of Schedule 1 to the Tax Laws Amendment (2013 Measures No. 1) Regulation 2013 apply on and after 1 July 2012.

910‑1.04 Transitional arrangements arising out of the Tax and Superannuation Laws Amendment (2014 Measures No. 1) Regulation 2014

The amendment of these Regulations made by item 1 of Schedule 1 to the Tax and Superannuation Laws Amendment (2014 Measures No. 1) Regulation 2014 applies on and after 1 July 2012.

910‑1.05 Transitional arrangements arising out of the Tax and Superannuation Laws Amendment (2014 Measures No. 2) Regulation 2014

The amendment of these Regulations made by item 1 of Schedule 3 to the Tax and Superannuation Laws Amendment (2014 Measures No. 2) Regulation 2014 applies in relation to the 2013‑14 financial year and later financial years.

910‑1.07 Transitional arrangements arising out of the Income Tax Assessment Amendment (Governor‑General Pension Scheme) Regulation 2015

The amendments of these Regulations made by Schedule 1 to the Income Tax Assessment Amendment (Governor‑General Pension Scheme) Regulation 2015 apply in relation to the 2013‑14 financial year and later financial years.

910‑1.08 Transitional arrangements arising out of the Treasury Laws Amendment (2016 Measures No. 1) Regulation 2016

The amendments of these Regulations made by Schedule 1 to the Treasury Laws Amendment (2016 Measures No. 1) Regulation 2016 apply in relation to the 2015‑16 income year and later income years.

910‑1.09 Transitional arrangements arising out of the Treasury Laws Amendment (Fair and Sustainable Superannuation) Regulations 2017

(1) The amendments made by items 2 and 3 of Schedule 1 to the Treasury Laws Amendment (Fair and Sustainable Superannuation) Regulations 2017 apply in relation to the 2017‑18 income year and later income years.

(2) The amendment made by item 4 of Schedule 1 to the Treasury Laws Amendment (Fair and Sustainable Superannuation) Regulations 2017 applies in relation to superannuation benefits paid on or after 1 July 2017.

(3) The amendments made by items 8 and 9 of Schedule 2 to the Treasury Laws Amendment (Fair and Sustainable Superannuation) Regulations 2017 apply in relation to 2017‑2018 financial year and later financial years.

(4) The amendments made by Schedule 5 to the Treasury Laws Amendment (Fair and Sustainable Superannuation) Regulations 2017 apply in relation to contributions made in the 2017‑18 income year and later income years.

(5) The amendments made by Schedule 6 to the Treasury Laws Amendment (Fair and Sustainable Superannuation) Regulations 2017 apply to payments from an interest that supports a superannuation income stream made on or after 1 July 2017.

(6) The amendments made by items 1 to 3 of Schedule 7 to the Treasury Laws Amendment (Fair and Sustainable Superannuation) Regulations 2017 apply in relation to a superannuation benefit that is:

(a) paid because of the death of a person that occurred on or after 1 July 2017; or

(b) paid on or after 1 July 2019.

Note: For paragraph (b), it doesn’t matter when the person, in relation to whom the benefit is payable, died.

Part 6—The Dictionary

Division 960—General

Subdivision 960‑C—Foreign currency

960‑50.01 Translation of foreign currency amounts into Australian currency—modification of special translation rules

(1) The table in subsection 960‑50(6) of the Act is modified by adding after item 11 the following items:

11A	an amount (other than an amount of a receipt or a payment) to which none of the above items applies	the amount is to be translated into Australian currency at an exchange rate that is reasonable having regard to the circumstances.
12	an amount to which any of items 1 to 11A (inclusive) applies	as an alternative to the result mentioned in the item, the amount may be translated into Australian currency using any of the rules set out in Schedule 2 to the Income Tax Assessment Regulations 1997.

(2) For subsection 960‑50(8) of the Act, Schedule 2 sets out requirements in relation to the translation of amounts into Australian currency.

(3) For subsection 960‑50(7) of the Act, the table in subsection 960‑50(6) of the Act is modified by omitting item 8 and substituting the following items:

8	an amount that you deduct (other than under section 25‑35 or Division 40)	(a) if the amount is paid at or before the time when it became deductible—the amount is to be translated to Australian currency at the exchange rate applicable at the time of payment; or (b) in any other case—the amount is to be translated to Australian currency at the exchange rate applicable at the time when it became deductible.
8A	an amount that you deduct under section 25‑35	(a) if the debt was included in your assessable income—the amount is to be translated to Australian currency at the exchange rate applicable at the time of translating the income; or
		(b) if the debt was in respect of money that you lent—the amount is to be translated to Australian currency at the exchange rate applicable at the time of translating the money that was lent; or (c) if you bought the debt—the amount is to be translated to Australian currency at the exchange rate applicable at the time of translating the debt that you bought.
8B	the value of an amount to which a contract (a spot foreign exchange contract) for the exchange of amounts in different currencies relates if: (a) the spot foreign exchange contract includes a requirement that consideration be provided within 2 business days after the contract is entered into; and (b) that requirement is satisfied	the value of the amount to which the contract relates is to be translated to Australian currency at the exchange rate applicable at the tax recognition time (within the meaning of Division 775) referred to in the forex realisation event that happens on payment or receipt of that amount, unless the entity’s usual business practice is not to translate the amount at the exchange rate applicable at the tax recognition time for the purpose of recording the transaction in the entity’s accounting records. Note: An entity’s usual business practice may be to translate amounts into Australian currency at a different exchange rate because the entity recognises gains and losses under spot foreign exchange contracts in the entity’s accounting records.
8C	the value of an amount to which a contract (a spot contract) for the exchange of an amount in a foreign currency and a security relates if: (a) the spot contract includes a requirement that consideration be provided within 2 business days after the contract is entered into; and (b) that requirement is satisfied	the value of the amount to which the contract relates is to be translated to Australian currency at the exchange rate applicable at the tax recognition time (within the meaning of Division 775) referred to in the forex realisation event that happens on payment or receipt of that amount, unless the entity’s usual business practice is not to translate the amount at the exchange rate applicable at the tax recognition time for the purpose of recording the transaction in the entity’s accounting records. Note: An entity’s usual business practice may be to translate amounts into Australian currency at a different exchange rate because the entity recognises gains and losses under spot contracts in the entity’s accounting records.

Subdivision 960‑D—Functional currency

960‑80.01 Translation rules—translation into applicable functional currency

For subsection 960‑80(7) of the Act, the requirements set out in Schedule 2 in relation to the translation of amounts into Australian currency have effect in relation to the translation of amounts into the applicable functional currency as if:

(a) each reference in that Schedule to Australian currency were a reference to the applicable functional currency; and

(b) the modifications set out in the following table were made:

Item	Provision	After	Insert
1	Subclause 1.2(2)	year	(or, if the entity is an attributable taxpayer in relation to a CFC (within the meaning of Part X of the Income Tax Assessment Act 1936)—each subsequent day in the CFC’s statutory accounting period (within the meaning of that Part))
2	Paragraph 1.2(3)(a)	activities	(or, if the entity is an attributable taxpayer in relation to a CFC (within the meaning of Part X of the Income Tax Assessment Act 1936), the use of the rate would not be appropriate having regard to the CFC’s business or activities)

960‑80.02 Translation rules for an attributable taxpayer of a CFC—translation into applicable functional currency

(1) For subsection 960‑80(7) of the Act, if:

(a) an entity is an attributable taxpayer in relation to a CFC; and

(b) the CFC has prepared financial accounts in accordance with standards to which subsection 820‑960(1C) or (1D) of the Act relates; and

(c) those financial accounts translate amounts into the applicable functional currency using particular exchange rates; and

(d) the entity wishes to translate an amount into the applicable functional currency, using the exchange rate used to translate a corresponding amount in the financial accounts;

the entity must translate all amounts into the applicable functional currency using the exchange rates that were used in the financial accounts to translate corresponding amounts.

(2) In this regulation:

CFC has the meaning given by Part X of the Income Tax Assessment Act 1936.

960‑80.03 Translation rules—translation from applicable functional currency into Australian currency

(1) For subsection 960‑80(7) of the Act, if, before the day on which the Income Tax Assessment Amendment Regulations 2005(No. 2) are registered, an entity translates an amount that is not the attributable income of a CFC from the applicable functional currency into Australian currency on a day in accordance with an item of the table in subsection 960‑80(1) of the Act, the entity may translate the amount using:

(a) an exchange rate that is an average of all of the exchange rates during the period, not exceeding 12 months, in which the entity carries on the relevant business or other activity; or

(b) the exchange rate applicable on the last day of the entity’s income year.

(2) For subsection 960‑80(7) of the Act, if, before the day on which the Income Tax Assessment Amendment Regulations 2005 (No. 2) are registered, an entity that is an attributable taxpayer in relation to a CFC translates an amount that is the attributable income of a CFC from the applicable functional currency into Australian currency on a day in accordance with an item of the table in subsection 960‑80(1) of the Act, the entity may translate the amount using:

(a) an exchange rate that is an average of all of the exchange rates during the period, not exceeding 12 months, in which the CFC carries on the relevant business or other activity; or

(b) the exchange rate applicable on the last day of the CFC’s statutory accounting period.

(3) For subsection 960‑80(7) of the Act, if, on or after the day on which the Income Tax Assessment Amendment Regulations 2005 (No. 2) are registered, an entity translates an amount that is not the attributable income of a CFC from the applicable functional currency into Australian currency on a day in accordance with an item of the table in subsection 960‑80(1) of the Act, the entity must translate the amount using:

(a) an exchange rate that is an average of all of the exchange rates during the period, not exceeding 12 months, in which the entity carries on the relevant business or other activity; or

(b) if the entity makes an election in writing to use the exchange rate applicable on the last day of the entity’s income year—that exchange rate.

(4) For subsection 960‑80(7) of the Act, if, on or after the day on which the Income Tax Assessment Amendment Regulations 2005 (No. 2) are registered, an entity that is an attributable taxpayer in relation to a CFC translates an amount that is the attributable income of a CFC from the applicable functional currency into Australian currency on a day in accordance with an item of the table in subsection 960‑80(1) of the Act, the entity must translate the amount using:

(a) an exchange rate that is an average of all of the exchange rates during the period, not exceeding 12 months, in which the CFC carries on the relevant business or other activity; or

(b) if the entity makes an election in writing to use the exchange rate applicable on the last day of the CFC’s statutory accounting period—that exchange rate.

(5) An election under paragraph (3)(b) or (4)(b) is irrevocable.

(6) In this regulation:

CFC has the meaning given by Part X of the Income Tax Assessment Act 1936.

registered means registered in accordance with the Legislation Act 2003.

statutory accounting period has the meaning given by Part X of the Income Tax Assessment Act 1936.

Division 974—Debt and equity interests

Subdivision 974‑F—Related concepts

974‑135A Non‑cumulative redeemable preference shares issued by credit union

For paragraph 974‑135(8)(d) of the Act, the obligation in respect of the return of investment on the redemption of a non‑cumulative redeemable preference share issued by a credit union is not an effectively non‑contingent obligation if:

(a) the share is issued on or after 4 March 2003; and

(b) the share satisfies, at the time it is issued, the criteria set out in section 7 of Guidance Note AGN 111.2—Tier 2 Capital, published by APRA in September 2000; and

(i) the share has a minimum term of 5 years;

(ii) dividend payments for the share are to be paid only:

(A) out of operating profits from the current year or the immediately previous year; and

(B) to the extent that payment is permitted by law and by relevant regulatory authorities;

(iii) dividend payments for the share are not cumulative;

(iv) any payments made in relation to the share out of net profits or net assets have preferential rights over payments made in relation to ordinary shares (if any) from the same sources;

(v) if the share is to be redeemed—the redemption cannot be carried out without the approval of the board of the credit union;

(vi) if the share is to be redeemed, but the redemption of the share would place the credit union in breach of a prudential standard made under the Banking Act 1959—the redemption cannot be carried out without the approval of APRA; and

(d) the redemption is carried out on or after 4 March 2003; and

(e) the share is issued only to a member of the credit union; and

(f) a member of the credit union and its connected entities (within the meaning of subsection 995‑1(1) of the Act) can together hold not more than 10% by value of the shares of that kind issued by the credit union.

974‑135B Non‑cumulative redeemable preference shares issued by mutual building society

For paragraph 974‑135(8)(d) of the Act, the obligation in respect of the return of investment on the redemption of a non‑cumulative redeemable preference share issued by a mutual building society is not an effectively non‑contingent obligation if:

(a) the mutual building society is an ADI; and

(b) the share is issued on or after 4 March 2003; and

(c) the share satisfies, at the time it is issued, the criteria set out in section 7 of Guidance Note AGN 111.2—Tier 2 Capital, published by APRA in September 2000; and

(d) the share is issued subject to the following terms and conditions:

(i) the share has a minimum term of 5 years;

(ii) dividend payments for the share are to be paid only:

(A) out of operating profits from the current year or the immediately previous year; and

(B) to the extent that payment is permitted by law and by relevant regulatory authorities;

(iii) dividend payments for the share are not cumulative;

(iv) any payments made in relation to the share out of net profits or net assets have preferential rights over payments made in relation to ordinary shares (if any) from the same sources;

(v) if the share is to be redeemed—the redemption cannot be carried out without the approval of the board of the mutual building society;

(vi) if the share is to be redeemed, but the redemption of the share would place the mutual building society in breach of a prudential standard made under the Banking Act 1959—the redemption cannot be carried out without the approval of APRA; and

(e) the redemption is carried out on or after 4 March 2003; and

(f) the share is issued only to a member of the mutual building society; and

(g) a member of the mutual building society and its connected entities (within the meaning of subsection 995‑1(1) of the Act) can together hold not more than 10% by value of the shares of that kind issued by the mutual building society.

974‑135C Redeemable preference shares

For paragraph 974‑135(8)(a) of the Act, an obligation to redeem or buy back a preference share in relation to a company is not a contingent obligation merely because a requirement exists, under a law, to the effect that:

(a) the redemption or buy back must not prejudice the company’s ability to pay its creditors; or

(b) the redemption or buy back must not cause the company’s remaining assets to become insufficient to pay any of the company’s debts for which provision for payment has not otherwise been made.

974‑135D Term cumulative subordinated note with insolvency or capital adequacy conditions

(1) This regulation applies to an obligation to pay the principal or interest on a relevant term subordinated note at a particular time on or after 1 July 2001.

(2) For paragraphs 974‑135(8)(a) and (b) of the Act, the fact that the obligation is subject to insolvency or capital adequacy conditions does not in itself prevent it from being a non‑contingent obligation.

(3) In this regulation, a term subordinated note is relevant if:

(a) at the time of its issue:

(i) it does not constitute or meet the requirements of a Tier 1 capital instrument; and

(ii) it does not form part of the Tier 1 capital of the issuer of the note, or a connected entity, and the reason for it not doing so is not that the instrument is in excess of the Tier 1 capital required for the purposes of prudential standards that deal with capital adequacy; and

(b) it has a term of not more than 30 years; and

(d) it is subject to a condition that any payment of the principal or interest beyond the date on which it would otherwise be payable must accumulate (with or without compounding); and

(e) it does not give the issuer of the note an unconditional right to decline to provide a financial benefit that is equal in nominal value to the issue price of the note to settle the obligations under the note.

(4) In this regulation, conditions applying to the obligation are insolvency or capital adequacy conditions if they have the effect that the issuer of the note is obliged or able to defer the payment of the principal or interest beyond the date on which it would otherwise be payable if, on that date:

(a) the issuer of the note is insolvent, or would become insolvent if the payment were made; or

(b) if the issuer of the note is an entity that is regulated by the APRA or a comparable foreign regulator—the issuer is in breach of its capital adequacy ratio or would be in breach if the payment were made.

(5) If the obligation is an obligation to pay at a time before 15 April 2010, this regulation applies only to the extent that applying it would not have the result that:

(a) the rights of a person (other than the Commonwealth or an authority of the Commonwealth) immediately before 15 April 2010 would be affected so as to disadvantage the person; or

(b) liabilities would be imposed on a person (other than the Commonwealth or an authority of the Commonwealth), for anything done or omitted to be done before 15 April 2010.

974‑135E Perpetual cumulative subordinated note with profitability, insolvency or negative earnings conditions

(1) This regulation applies to an obligation to pay interest on a relevant perpetual subordinated note at a particular time on or after 1 July 2001.

(2) For paragraphs 974‑135(8)(a) and (b) of the Act, the fact that the obligation is subject to profitability, insolvency or negative earnings conditions does not in itself prevent the obligation from being a non‑contingent obligation.

(3) In this regulation, a relevant perpetual subordinated note is a perpetual subordinated note that:

(a) at the time of its issue:

(i) does not constitute or meet the requirements of a Tier 1 capital instrument; and

(ii) does not form part of the Tier 1 capital of the issuer of the note, or a connected entity, and the reason for it not doing so is not that the instrument is in excess of the Tier 1 capital required for the purposes of prudential standards that deal with capital adequacy; and

(b) would be a debt interest but for the obligation being subject to one or more profitability, insolvency or negative earnings conditions; and

(d) was issued by:

(i) an ADI that is a bank or non‑mutual building society and that is regulated for prudential purposes by APRA; or

(ii) a subsidiary of an ADI mentioned in subparagraph (i), being a subsidiary that is regulated with the ADI for prudential purposes by APRA; or

(iii) an entity that:

(A) has undertaken to comply with prudential standards, issued by APRA, that deal with capital adequacy; and

(B) is regulated for prudential purposes by APRA; or

(iv) a subsidiary of an entity mentioned in subparagraph (iii) that is covered by the undertaking mentioned in that subparagraph; or

(v) an entity that is regulated for prudential purposes:

(A) by a foreign prudential regulator that has a prudential regulatory role comparable to that of APRA; and

(B) under ADI capital adequacy requirements comparable to those of APRA; and

(e) does not give the issuer of the note an unconditional right to decline to provide a financial benefit that is equal in nominal value to the issue price of the note to settle the obligations under the note.

(4) In this regulation, conditions applying to the obligation are profitability, insolvency or negative earnings conditions if they have the effect that the issuer of the note is able, or obliged, to defer the payment of the interest (with or without compounding) beyond the date on which it would otherwise be payable if, on that date:

(a) profitability does not justify the payment; or

(b) the issuer of the note is insolvent, or would become insolvent if the payment were made; or

(c) a dividend has not been declared or paid on a class or classes of share capital of the issuer during a specified period that:

(i) immediately precedes that date; and

(ii) is no more than 24 months; or

(d) the issuer’s retained earnings are negative, or would be negative if the payment were made.

(5) If the obligation is an obligation to pay at a time before the day this regulation commences, this regulation applies only to the extent that applying it would not have the result that:

(a) the rights of a person (other than the Commonwealth or an authority of the Commonwealth) immediately before the day this regulation commences would be affected so as to disadvantage that person; or

(b) liabilities would be imposed on a person (other than the Commonwealth or an authority of the Commonwealth) for anything done or omitted to be done before the day this regulation commences.

Note: The application of this regulation to a perpetual subordinated note does not mean that the note, together with one or more related schemes, cannot give rise to an equity interest.

974‑135F Term cumulative subordinated note with non‑viability condition

(1) This regulation applies to an obligation to pay the principal or interest on a relevant term subordinated note at a particular time on or after the day this regulation commences.

(2) For paragraphs 974‑135(8)(a) and (b) of the Act, the fact that the obligation is subject to a non‑viability condition does not in itself prevent the obligation from being a non‑contingent obligation.

(3) In this regulation, a term subordinated note is relevant if:

(a) it is issued by an entity regulated for prudential purposes by APRA or a subsidiary of an entity that is regulated for prudential purposes by APRA; and

(b) when it is issued:

(i) it does not constitute or meet the requirements of a Tier 1 capital instrument; and

(ii) it does not form part of the Tier 1 capital of the issuer of the note, and the reason for it not doing so is not that the instrument is in excess of the Tier 1 capital required for the purposes of prudential standards that deal with capital adequacy; and

(c) it has a term of no more than 30 years, and it does not include an unconditional right to extend the term of the note beyond a total term of 30 years; and

(d) it is subject to a condition that, unless a non‑viability trigger event occurs, any payment of the principal or interest beyond the date on which it would otherwise be payable must accumulate (with or without compounding); and

Note for paragraph (b)

Whether the note constitutes or meets the requirement of a Tier 1 capital instrument, or forms part of the Tier 1 capital of the issuer, is determined under the prudential standards that apply to the issuer.

(4) In this regulation, a condition applying to the obligation is a non‑viability condition if the condition has the effect that the note must be written off or converted into ordinary shares of the issuer of the note or a parent entity of the issuer if a non‑viability trigger event occurs.

(5) In this regulation, a non‑viability trigger event, in relation to a note, is any of the following:

(a) APRA or a comparable foreign regulator issues a notice, in writing, to the issuer of the note stating that conversion or write‑off of capital instruments issued by the issuer is necessary because, without it, APRA or the foreign regulator considers that the issuer will become non‑viable;

(b) APRA or a comparable foreign regulator determines, in writing given to the issuer of the note, that without an injection of capital, or equivalent support, from the public sector the issuer will become non‑viable;

(c) APRA or a comparable foreign regulator issues a notice, in writing, to a parent entity of the issuer of the note stating that conversion or write‑off of capital instruments is necessary because, without it, APRA or the foreign regulator considers that the parent entity or the issuer will become non‑viable;

(d) APRA or a comparable foreign regulator determines, in writing given to a parent entity of the issuer of the note, that without an injection of capital, or equivalent support, from the public sector the parent entity or the issuer will become non‑viable.

Division 995—Definitions

995‑1.01 Definitions

(1) In these Regulations, unless the contrary intention appears:

accruing member has:

(a) for the purposes of Schedule 1A—the meaning given by clause 1.1 of that Schedule; and

(b) for the purposes of Subdivision 293‑DA and Schedule 1AA—the meaning given by subregulation 293‑115.05(2).

Act means the Income Tax Assessment Act 1997.

defined benefit member:

(a) means a member of a superannuation fund whose entitlements to superannuation benefits (other than benefits payable on death or disability) are defined by reference to 1 or more of the following matters:

(i) the member’s salary, or allowance in the nature of salary, at a particular date or averaged over a period;

(ii) another individual’s salary, or allowance in the nature of salary, at a particular date or averaged over a period;

(iii) a specified amount;

(iv) specified conversion factors; but

(b) does not include a member of a superannuation fund whose entitlements to superannuation are defined solely by reference to 1 or more of the following matters:

(i) the member’s disability superannuation benefits;

(ii) the member’s superannuation death benefits;

(iii) payments of amounts mentioned in paragraph 307‑10(a) of the Act (which relates to temporary disability payments).

funded benefit interest has the meaning given by subregulation 293‑115.15(2).

Governor‑General Pension Scheme means the Governor‑General Pension Scheme constituted by allowances payable under section 4 of the Governor‑General Act 1974.

insolvent, for an issuer, means:

(a) the issuer cannot pay its debts as they fall due; or

(b) the issuer’s liabilities exceed its assets.

non‑accruing member has, for the purposes of Subdivision 293‑DA, the meaning given by subregulation 293‑115.05(2).

on‑hold member, in relation to a defined benefit member of a superannuation fund, has the meaning given by subregulation 292‑170.04(5A).

pensioned member, in relation to a defined benefit member of a superannuation fund, has the meaning given by subregulation 292‑170.04(5).

pooled investment annuity has the meaning given by subregulation 307‑205.02E(2).

pooled investment pension has the meaning given by subregulation 307‑205.02D(2).

RSA Act means the Retirement Savings Accounts Act 1997.

RSA Regulations means the Retirement Savings Accounts Regulations 1997.

SIS Act means the Superannuation Industry (Supervision) Act 1993.

SIS Regulations means the Superannuation Industry (Supervision) Regulations 1994.

superannuation annuity means:

(a) an income stream:

(i) that is issued by a life insurance company or registered organisation; and

(ii) that commenced before 20 September 2007; and

(iii) that is an annuity within the meaning of:

(A) subsection 10(1) of the SIS Act; or

(B) subregulation 1.07(1A) of the RSA Regulations; or

(b) an income stream that:

(i) is issued by a life insurance company or registered organisation; and

(ii) is taken to be an annuity for the purposes of the SIS Act in accordance with subregulation 1.05(1) of the SIS Regulations; or

(c) a deferred superannuation income stream that is taken to be an annuity for the purposes of the SIS Act in accordance with subregulation 1.05(1) of the SIS Regulations because the contract for the provision of the income stream meets the standards of subregulation 1.06A(2) of the SIS Regulations.

superannuation income stream means:

(a) an income stream that is taken to be:

(i) an annuity for the purposes of the SIS Act in accordance with subregulation 1.05(1) of the SIS Regulations; or

(ii) a pension for the purposes of the SIS Act in accordance with subregulation 1.06(1) of the SIS Regulations; or

(iii) a pension for the purposes of the RSA Act in accordance with regulation 1.07 of the RSA Regulations; or

(b) an income stream that:

(i) is an annuity or pension within the meaning of the SIS Act; and

(ii) commenced before 20 September 2007; or

(i) an annuity for the purposes of the SIS Act in accordance with subregulation 1.05(1) of the SIS Regulations because the contract for the provision of the income stream meets the standards of subregulation 1.06A(2) of the SIS Regulations; or

(ii) a pension for the purposes of the SIS Act in accordance with subregulation 1.06(1) of the SIS Regulations because the rules for the provision of the income stream meet the standards of subregulation 1.06A(2) of the SIS Regulations.

superannuation income stream benefit: see subregulations (2) to (5).

superannuation salary means the salary used to determine a person’s entitlement to superannuation benefits.

terminal medical condition has the meaning given by regulation 303–10.01.

(2) In these Regulations:

superannuation income stream benefit:

(a) means a payment from an interest that supports a superannuation income stream; and

(b) for the purposes of sections 295‑385, 295‑390, 295‑395, 320‑246 and 320‑247 of the Act—includes an amount taken to be the amount of a superannuation income stream benefit under subregulation (3) or (4).

(3) For the purposes of sections 295‑385, 295‑390, 295‑395, 320‑246 and 320‑247 of the Act, if:

(a) a superannuation death benefit that is a superannuation lump sum is paid after the death of a person (the deceased) using only an amount from a superannuation interest; and

(b) immediately before the deceased’s death, the superannuation interest was supporting a superannuation income stream payable to the deceased; and

the amount paid as the superannuation lump sum, to the extent it is not attributable to any amount (other than investment earnings) added to the superannuation interest on or after the deceased’s death, is taken to be the amount of a payment from a superannuation income stream of a superannuation income stream benefit that was payable from the day of the deceased’s death until as soon as it was practicable to pay the superannuation lump sum.

(4) For the purposes of sections 295‑385, 295‑390, 295‑395, 320‑246 and 320‑247 of the Act, if:

(a) immediately before the death of a person (the deceased), a superannuation interest was supporting a superannuation income stream payable to the deceased; and

(b) a new superannuation income stream is commenced using an amount applied from the superannuation interest after the death of the deceased;

the amount so applied, to the extent it is not attributable to any amount (other than investments earnings) added to the superannuation interest on or after the deceased’s death, is taken to be the amount of a payment from a superannuation income stream of a superannuation income stream benefit that was payable from the day of the deceased’s death until as soon as it was practicable to commence the new superannuation income stream.

(5) In this regulation:

investment earnings does not include:

(a) an amount paid under a policy of insurance on the life of the deceased; or

(b) an amount arising from self‑insurance.

995‑1.04 Constitutionally protected funds

For the definition of constitutionally protected fund in subsection 995‑1(1) of the Act, a fund:

(a) of the kind to which, in the absence of item 5.3 of section 50‑25 of the Act, Division 295 of the Act would apply; and

(b) established by:

(i) a State Act mentioned in Schedule 4; or

(ii) a specified provision of a State Act mentioned in Schedule 4;

is a constitutionally protected fund.

995‑1.05 Approved stock exchanges

The stock exchanges specified in Schedule 5 are named for the purposes of the definition of approved stock exchange in subsection 995‑1(1) of the Act.

Average age last birthday at commencement in fund of defined benefit members of the fund at 1 July 2007	New entrant age to be assumed
<30	25
30‑34	30
35‑39	35
40‑44	40
45‑49	45
50+	50

Age Band	Exit rate
<40	0.05
40‑44	0.04
45‑49	0.04
50‑54	0.04
55‑59	0.08
60	0.12
61‑64	0.10
65	1.00

Age	qx
35‑49	0.003
50‑54	0.004
55	0.005
56	0.006
57	0.006
58	0.007
59	0.008
60	0.008
61	0.009
62	0.010
63	0.012
64	0.013
65	0.014
66	0.016
67	0.017
68	0.019
69	0.021
70	0.023
71	0.026
72	0.029
73	0.032
74	0.035
75	0.039
76	0.043
77	0.048
78	0.053
79	0.059
80	0.064
81	0.070
82	0.077
83	0.085
84	0.095
85	0.106
86	0.116
87	0.128
88	0.139
89	0.149
90	0.159
91	0.168
92	0.176
93	0.184
94	0.193
95	0.202
96	0.211
97	0.219
98	0.228
99	0.236
100	1.000

New entrant ages
1	<30	25
2	30‑34	30
3	35‑39	35
4	40‑44	40
5	45‑49	45
6	50+	50

Voluntary exit rates
1	<40	0.05
2	40‑44	0.04
3	45‑49	0.04
4	50‑54	0.04
5	55‑59	0.08
6	60	0.12
7	61‑64	0.10
8	65	1.00

Pensioner mortality rates
1	35‑49	0.003
2	50‑54	0.004
3	55	0.005
4	56	0.006
5	57	0.006
6	58	0.007
7	59	0.008
8	60	0.008
9	61	0.009
10	62	0.010
11	63	0.012
12	64	0.013
13	65	0.014
14	66	0.016
15	67	0.017
16	68	0.019
17	69	0.021
18	70	0.023
19	71	0.026
20	72	0.029
21	73	0.032
22	74	0.035
23	75	0.039
24	76	0.043
25	77	0.048
26	78	0.053
27	79	0.059
28	80	0.064
29	81	0.070
30	82	0.077
31	83	0.085
32	84	0.095
33	85	0.106
34	86	0.116
35	87	0.128
36	88	0.139
37	89	0.149
38	90	0.159
39	91	0.168
40	92	0.176
41	93	0.184
42	94	0.193
43	95	0.202
44	96	0.211
45	97	0.219
46	98	0.228
47	99	0.236
48	100	1.000

Age	Factor for indexed lifetime income stream	Factor for non‑indexed lifetime income stream
18	23.238	15.405
19	23.158	15.385
20	23.084	15.366
21	23.016	15.349
22	22.956	15.334
23	22.906	15.322
24	22.862	15.312
25	22.816	15.302
26	22.763	15.289
27	22.694	15.271
28	22.612	15.248
29	22.523	15.223
30	22.422	15.194
31	22.310	15.160
32	22.193	15.124
33	22.076	15.086
34	21.950	15.045
35	21.821	15.002
36	21.691	14.958
37	21.553	14.911
38	21.410	14.861
39	21.266	14.809
40	21.113	14.754
41	20.956	14.695
42	20.790	14.632
43	20.609	14.562
44	20.421	14.487
45	20.229	14.409
46	20.030	14.326
47	19.823	14.239
48	19.610	14.148
49	19.391	14.052
50	19.164	13.950
51	18.931	13.844
52	18.691	13.732
53	18.443	13.615
54	18.189	13.492
55	17.927	13.364
56	17.659	13.230
57	17.383	13.089
58	17.100	12.943
59	16.810	12.790
60	16.513	12.631
61	16.209	12.465
62	15.891	12.287
63	15.558	12.099
64	15.213	11.900
65	14.861	11.693
66	14.506	11.480
67	14.144	11.260
68	13.775	11.032
69	13.396	10.794
70	13.011	10.548
71	12.627	10.297
72	12.230	10.035
73	11.815	9.756
74	11.398	9.471
75	10.983	9.183
76	10.566	8.889
77	10.144	8.587
78	9.723	8.282
79	9.314	7.980
80	8.898	7.669
81	8.486	7.357
82	8.087	7.051
83	7.697	6.748
84	7.323	6.455
85	6.966	6.172
86	6.627	5.901
87	6.311	5.647
88	6.010	5.402
89	5.728	5.171
90	5.465	4.954
91	5.218	4.750
92	4.991	4.561
93	4.773	4.379
94	4.566	4.205
95	4.360	4.031

Number of years	Factor for indexed fixed‑term income stream	Factor for non‑indexed fixed‑term income stream
0	0.000	0.000
1	0.981	0.969
2	1.925	1.879
3	2.834	2.734
4	3.709	3.536
5	4.550	4.289
6	5.360	4.996
7	6.140	5.661
8	6.891	6.284
9	7.613	6.870
10	8.308	7.420
11	8.977	7.936
12	9.621	8.421
13	10.241	8.876
14	10.837	9.303
15	11.411	9.705
16	11.963	10.081
17	12.495	10.435
18	13.007	10.768
19	13.499	11.079
20	13.973	11.372
21	14.430	11.647
22	14.869	11.906
23	15.291	12.148
24	15.698	12.376
25	16.090	12.590
26	16.466	12.790
27	16.829	12.979
28	17.178	13.156
29	17.514	13.322
30	17.837	13.478

Minimum deferral period	Lump sum not indexed	CPI indexed lump sum	Wage indexed lump sum
0	1.000	1.000	1.000
1	0.939	0.963	0.977
2	0.882	0.927	0.954
3	0.829	0.892	0.932
4	0.779	0.859	0.910
5	0.732	0.827	0.889
6	0.689	0.797	0.869
7	0.648	0.768	0.849
8	0.610	0.740	0.830
9	0.575	0.714	0.811
10	0.542	0.688	0.793
11	0.511	0.664	0.776
12	0.483	0.641	0.759
13	0.456	0.619	0.742
14	0.431	0.598	0.727
15	0.409	0.579	0.711
16	0.387	0.560	0.697
17	0.368	0.542	0.683
18	0.350	0.525	0.669
19	0.333	0.509	0.656
20	0.318	0.494	0.644
21	0.304	0.480	0.632
22	0.291	0.467	0.621
23	0.279	0.454	0.610
24	0.269	0.443	0.600
25	0.259	0.432	0.590
26	0.250	0.422	0.582
27	0.243	0.413	0.573
28	0.236	0.404	0.565
29	0.229	0.397	0.558
30	0.224	0.390	0.552

Constitutionally protected superannuation funds
Part 1 New South Wales
101	Judges’ Pensions Act 1953
Part 2 Victoria
201	Attorney‑General and Solicitor‑General Act 1972
202	Coal Mines (Pensions) Act 1958
203	Constitution Act 1975
204	County Court Act 1958
205	Magistrates’ Court Act 1989
210	Ombudsman Act 1973 (subsection 9(2))
211	Public Prosecutions Act 1994
212	Supreme Court Act 1986
Part 3 Queensland
301	Governor’s Pension Act 1977
302	Judges (Pensions and Long Leave) Act 1957
Part 4 Western Australia
402	Judges’ Salaries and Pensions Act 1950
403	Parliamentary Superannuation Act 1970
404	State Superannuation Act 2000
Part 5 South Australia
501	Governors’ Pensions Act 1976
502	Judges’ Pensions Act 1971
503	Parliamentary Superannuation Act 1974
504	Police Superannuation Act 1990
505	Southern State Superannuation Act 2009 (other than section 30(2)(h))
506	Superannuation Act 1988 (other than section 52 and Schedule 3)
Part 6 Tasmania
602	Judges’ Contributory Pensions Act 1968

Endnotes

Endnote 1—About the endnotes

The endnotes provide information about this compilation and the compiled law.

The following endnotes are included in every compilation:

Endnote 1—About the endnotes

Endnote 2—Abbreviation key

Endnote 3—Legislation history

Endnote 4—Amendment history

Abbreviation key—Endnote 2

The abbreviation key sets out abbreviations that may be used in the endnotes.

Legislation history and amendment history—Endnotes 3 and 4

Amending laws are annotated in the legislation history and amendment history.

The legislation history in endnote 3 provides information about each law that has amended (or will amend) the compiled law. The information includes commencement details for amending laws and details of any application, saving or transitional provisions that are not included in this compilation.

The amendment history in endnote 4 provides information about amendments at the provision (generally section or equivalent) level. It also includes information about any provision of the compiled law that has been repealed in accordance with a provision of the law.

Editorial changes

The Legislation Act 2003 authorises First Parliamentary Counsel to make editorial and presentational changes to a compiled law in preparing a compilation of the law for registration. The changes must not change the effect of the law. Editorial changes take effect from the compilation registration date.

If the compilation includes editorial changes, the endnotes include a brief outline of the changes in general terms. Full details of any changes can be obtained from the Office of Parliamentary Counsel.

Misdescribed amendments

A misdescribed amendment is an amendment that does not accurately describe the amendment to be made. If, despite the misdescription, the amendment can be given effect as intended, the amendment is incorporated into the compiled law and the abbreviation “(md)” added to the details of the amendment included in the amendment history.

If a misdescribed amendment cannot be given effect as intended, the abbreviation “(md not incorp)” is added to the details of the amendment included in the amendment history.

Endnote 2—Abbreviation key

ad = added or inserted	o = order(s)
am = amended	Ord = Ordinance
amdt = amendment	orig = original
c = clause(s)	par = paragraph(s)/subparagraph(s)
C[x] = Compilation No. x	/sub‑subparagraph(s)
Ch = Chapter(s)	pres = present
def = definition(s)	prev = previous
Dict = Dictionary	(prev…) = previously
disallowed = disallowed by Parliament	Pt = Part(s)
Div = Division(s)	r = regulation(s)/rule(s)
ed = editorial change	reloc = relocated
exp = expires/expired or ceases/ceased to have	renum = renumbered
effect	rep = repealed
F = Federal Register of Legislation	rs = repealed and substituted
gaz = gazette	s = section(s)/subsection(s)
LA = Legislation Act 2003	Sch = Schedule(s)
LIA = Legislative Instruments Act 2003	Sdiv = Subdivision(s)
(md) = misdescribed amendment can be given	SLI = Select Legislative Instrument
effect	SR = Statutory Rules
(md not incorp) = misdescribed amendment	Sub‑Ch = Sub‑Chapter(s)
cannot be given effect	SubPt = Subpart(s)
mod = modified/modification	underlining = whole or part not
No. = Number(s)	commenced or to be commenced

Endnote 3—Legislation history

Number and year	FRLI registration or gazettal	Commencement	Application, saving and transitional provisions
1997 No. 198	16 July 1997	1 July 1997 (r 2)
1998 No. 85	14 May 1998	14 May 1998 (r 1)	—
1999 No. 12	11 Feb 1999	11 Feb 1999 (r 2)	—
1999 No. 78	19 May 1999	1 July 1997 (r 2)	—
1999 No. 147	30 June 1999	1 July 1999 (r 2)	—
2000 No. 1	7 Feb 2000	7 Feb 2000 (r 2)	—
2000 No. 128	22 June 2000	22 June 2000 (r 2)	—
2001 No. 18	13 Feb 2001	1 July 1997 (r 2)	—
2001 No. 26	23 Feb 2001	23 Feb 2001 (r 2)	—
2001 No. 288	5 Oct 2001	5 Oct 2001 (r 2)	—
2001 No. 321	15 Oct 2001	Sch 2: 15 Dec 2001 (r 2)	—
2002 No. 46	7 Mar 2002	7 Mar 2002 (r 2)	—
2002 No. 65	5 Apr 2002	5 Apr 2002 (r 2)	—
2002 No. 170	3 July 2002	3 July 2002 (r 2)	—
2002 No. 172	5 July 2002	5 July 2002 (r 2)	—
2003 No. 39	27 Mar 2003	Sch 2: 6 July 2002 (r 2(b)) Remainder: 1 July 2001 (r 2(a))	—
2003 No. 40	27 Mar 2003	27 Mar 2003 (r 2)	—
2003 No. 108	4 June 2003	4 June 2003 (r 2)	—
2003 No. 373	23 Dec 2003	23 Dec 2003 (r 2)	—
2004 No. 52	30 Mar 2004	30 Mar 2004 (r 2)	—
2004 No. 278	26 Aug 2004	26 Aug 2004 (r 2)	—
2004 No. 303	7 Sept 2004	7 Sept 2004 (r 2)	r 4
2004 No. 330	25 Nov 2004	25 Nov 2004 (r 2)	—
2005 No. 22	28 Feb 2005 (F2005L00314)	1 Mar 2005 (r 2)	—
2005 No. 75	27 Apr 2005 (F2005L00940)	Sch 2: 28 Apr 2005 (s 2(b)) Remainder: 1 July 2003 (s 2(a))	—
2005 No. 102	26 May 2005 (F2005L01200)	Sch 2: 27 May 2005 (s 2(b)) Remainder: 1 July 2001 (s 2(a))	r 4
2005 No. 207	19 Sept 2005 (F2005L02673)	Sch 1 (item 54): 1 Oct 2005 (r 2)	—
2005 No. 328	19 Dec 2005 (F2005L04023)	20 Dec 2005 (r 2)	—
2006 No. 60	22 Mar 2006 (F2006L00800)	23 Mar 2006 (r 2)	—
2006 No. 61	22 Mar 2006 (F2006L00821)	23 Mar 2006 (r 2)	—
2006 No. 216	14 Aug 2006 (F2006L02613)	Sch 1: 14 Sept 2006 (r 2(a))
2006 No. 306	17 Nov 2006 (F2006L03670)	18 Nov 2006 (r 2)	—
2006 No. 367	14 Dec 2006 (F2006L03995)	10 June 2005 (r 2)	—
2006 No. 368	14 Dec 2006 (F2006L04000)	15 Dec 2006 (r 2)	—
2007 No. 44	23 Mar 2007 (F2007L00581)	24 Mar 2007 (r 2)	—
2007 No. 90	13 Apr 2007 (F2007L00956)	r 1–3 and Sch 1: 14 Apr 2007 (r 2(a)) Remainder: 1 July 2007 (r 2(b), (c))	r 5
2007 No. 103	27 Apr 2007 (F2007L01126)	1 July 2007 (r 2)	r 3
2007 No. 177	26 June 2007 (F2007L01757)	27 June 2007 (r 2)	—
2007 No. 178	26 June 2007 (F2007L01735)	27 June 2007 (r 2(b))	r 4
2007 No. 202	29 June 2007 (F2007L01893)	1 July 2007 (r 2)	—
2007 No. 328	2 Oct 2007 (F2007L03775)	3 Oct 2007 (r 2)	r 4
2007 No. 329	2 Oct 2007 (F2007L03793)	3 Oct 2007 (r 2)	—
2007 No. 330	2 Oct 2007 (F2007L03803)	3 Oct 2007 (r 2)	—
2008 No. 35	25 Mar 2008 (F2008L00923)	26 Mar 2008 (r 2)	—
2008 No. 81	16 May 2008 (F2008L01434)	17 May 2008 (r 2)	—
2008 No. 131	29 June 2008 (F2008L02183)	1 July 2008 (r 2)	—
2008 No. 144	29 June 2008 (F2008L02193)	r 1–3 and Sch 1: 1 July 2007 (s 2(a)) Remainder: 30 June 2008 (s 2(b))	—
2008 No. 145	29 June 2008 (F2008L02266)	24 June 2008 (r 2)	r 4
2009 No. 13	6 Feb 2009 (F2009L00235)	7 Feb 2009 (r 2)	—
2009 No. 54	30 Mar 2009 (F2009L01191)	31 Mar 2009 (r 2)	—
2009 No. 177	10 July 2009 (F2009L02714)	11 July 2009 (r 2)	r 4
2009 No. 247	21 Sept 2009 (F2009L03523)	22 Sept 2009 (r 2)	—
2009 No. 388	16 Dec 2009 (F2009L04411)	r 1–3 and Sch 1: 1 July 2008 (r 2(a)) r 4 and Sch 2: 1 Aug 2009 (r 2(b)) Remainder: 17 Dec 2009 (r 2(c))	—
2010 No. 8	11 Feb 2010 (F2010L00318)	1 July 2009 (r 2)	—
2010 No. 9	11 Feb 2010 (F2010L00303)	12 Feb 2010 (r 2)	—
2010 No. 73	14 Apr 2010 (F2010L00917)	15 Apr 2010 (r 2)	—
2010 No. 74	15 Apr 2010 (F2010L00850)	16 Apr 2010 (r 2)	—
2011 No. 5	14 Feb 2011 (F2011L00251)	15 Feb 2011 (r 2)	—
2011 No. 35	15 Mar 2011 (F2011L00420)	16 Mar 2011 (r 2)	—
2011 No. 57	21 Apr 2011 (F2011L00634)	22 Apr 2011 (r 2)	—
2011 No. 80	3 June 2011 (F2011L00942)	26 Mar 2009 (r 2)	r 4
2011 No. 120	30 June 2011 (F2011L01364)	Sch 2 (item 43): 1 July 2011 (r 2)	—
2011 No. 182	5 Oct 2011 (F2011L02022)	6 Oct 2011 (r 2)	—
2012 No. 47	11 Apr 2012 (F2012L00835)	12 Apr 2012 (s 2)	—
2012 No. 310	11 Dec 2012 (F2012L02398)	12 Dec 2012 (s 2)	—
24, 2013	4 Mar 2013 (F2013L00394)	5 Mar 2013 (s 2)	—
84, 2013	16 May 2013 (F2013L00784)	17 May 2013 (s 2)	—
103, 2013	3 June 2013 (F2013L00894)	4 June 2013 (s 2)	—
127, 2013	17 June 2013 (F2013L01019)	18 June 2013 (s 2)	—
279, 2013	16 Dec 2013 (F2013L02123)	Sch 1 (items 11–22): 17 Dec 2013 (s 2)	—
6, 2014	19 Feb 2014 (F2014L00159)	Sch 1: 20 Feb 2014 (s 2)	—
52, 2014	16 May 2014 (F2014L00549)	Sch 3: 17 May 2014 (s 2)	—
90, 2014	13 June 2014 (F2014L00712)	Sch 2: 14 June 2014 (s 2)	—
17, 2015	2 Mar 2015 (F2015L00240)	3 Mar 2015 (s 2)	—
39, 2015	30 Mar 2015 (F2015L00367)	Sch 2: 31 Mar 2015 (s 2 item 4)	—
63, 2015	1 May 2015 (F2015L00630)	Sch 1: 1 July 2015 (s 2)	—
110, 2015	29 June 2015 (F2015L00968)	Sch 1 (item 1): 1 July 2015 (s 2(1) item 1)	—
156, 2015	9 Sept 2015 (F2015L01416)	Sch 1 (items 2, 3): 10 Sept 2015 (s 2(1) item 1)	SLI No 155, 2015 (s 23)

Name	Registration	Commencement	Application, saving and transitional provisions
Treasury Laws Amendment (2016 Measures No. 1) Regulation 2016	26 Feb 2016 (F2016L00156)	Sch 1: 27 Feb 2016 (s 2(1) item 1)	—
Acts and Instruments (Framework Reform) (Consequential Amendments) Regulation 2016	29 Feb 2016 (F2016L00170)	Sch 1 (items 22, 23): 5 Mar 2016 (s 2(1) item 1)	—
Tax Laws Amendment (Foreign Resident Capital Gains Withholding Payments) Regulation 2016	9 May 2016 (F2016L00711)	Sch 1 (item 1): 1 July 2016 (s 2(1) item 2)	—
Treasury Laws Amendment (2016 Measures No. 3) Regulation 2016	17 Oct 2016 (F2016L01625)	Sch 2 (items 2, 3): 18 Oct 2016 (s 2(1) item 3)	—
Treasury Laws Amendment (Fair and Sustainable Superannuation) Regulations 2017	27 Mar 2017 (F2017L00321)	Sch 1 (items 2–4), Sch 2, Sch 5, Sch 6, Sch 7 (items 1–3), Sch 9 (item 1) and Sch 10 (item 2): 28 Mar 2017 (s 2(1) items 2, 4, 7)	—
Treasury Laws Amendment (2017 Measures No. 1) Regulations 2017	21 June 2017 (F2017L00704)	Sch 1 (items 1–9) and Sch 2: 1 July 2017 (s 2(1) item 1)	—
Treasury Laws Amendment (2017 Measures No. 2) Regulations 2017	17 Nov 2017 (F2017L01491)	Sch 1: 18 Nov 2017 (s 2(1) item 1)	—

Endnote 4—Amendment history

Provision affected	How affected
Part 1
Part 1 heading.............	ad 2002 No 172
r 1.....................	rs 1999 No 12
r 2.....................	rep LA s 48D
Part 2
Part 2 heading.............	ad 2002 No 172
Division 26
Division 26...............	ad 2007 No 90
r 26‑85.01..........	ad 2007 No 90
Division 28 heading..........	ad 2002 No 172
	rep F2016L00156
Division 28...............	rep F2016L00156
r 28‑25.01..........	ad 1998 No 85
	am 1999 No 12
	rs 2000 No 1
	rep F2016L00156
Division 30
Division 30 heading..........	ad 2002 No 172
r 30‑212.01.........	ad 2000 No 128
	am 2002 No 172
r 30‑212.02.........	ad 2000 No 128
	rs 2002 No 172
	am No 90, 2014; No 39, 2015
r 30‑212.03, 30‑212.04	ad 2000 No 128
	rep 2002 No 172
r 30‑212.05.........	ad 2000 No 128
r 30‑212.06.........	ad 2000 No 128
r 30‑212.07.........	ad 2000 No 128
r 30‑212.08.........	ad 2000 No 128
r 30‑212.09.........	ad 2000 No 128
	am No 90, 2014
r 30‑212.10.........	ad 2000 No 128
	am 2002 No 172
	rs No 90, 2014
r 30‑212.11.........	ad 2000 No 128
	am 2002 No 172
	rs No 90, 2014
r 30‑212.12.........	ad 2000 No 128
Division 31
Division 31...............	ad 2002 No 172
r 31‑15.01..........	ad 2002 No 172
r 31‑15.02..........	ad 2002 No 172
	am No 90, 2014
r 31‑15.03..........	ad 2002 No 172
r 31‑15.04..........	ad 2002 No 172
r 31‑15.05..........	ad 2002 No 172
r 31‑15.06..........	ad 2002 No 172
r 31‑15.07..........	ad 2002 No 172
	rs No 90, 2014
r 31‑15.08..........	ad 2002 No 172
	rs No 90, 2014
r 31‑15.09..........	ad 2002 No 172
Division 50
Division 50 heading..........	ad 2002 No 172
r 50‑50.01..........	ad 1999 No 78
	rs 2001 No 18; 2002 No 170; 2003 No 108
	am 2003 No 373; 2006 No 367; F2017L01491
r 50‑50.02..........	ad 2003 No 108
	rs F2017L01491
r 50‑50.03..........	ad No 127, 2013
	am F2017L01491
r 50‑55.01..........	ad 1999 No 78
	rep 2006 No 216
r 50‑70.01..........	ad 1999 No 78
	rep 2006 No 216
Division 51
Division 51 heading..........	ad 2002 No 172
r 51‑5.01...........	rs 2004 No 278; 2006 No 368
	am F2016L00170
r 51‑42.01..........	ad 2008 No 145
Division 61
Division 61 heading..........	ad 2002 No172 rs 2008 No 131; No 84, 2013
Division 61...............	rs No 84, 2013
Subdivision 61‑G
r 61‑220.01.........	ad 2008 No 131
	am 2011 No 120
	rs No 84, 2013
r 61‑220.02.........	ad No 84, 2013
r 61‑330.01.........	ad 1999 No 147
	am 2001 No 321; 2005 No 207; 2006 No 60
	rep 2008 No 131
Division 70
Division 70...............	ad 2002 No 172
r 70‑55.01..........	am No 156, 2015
Division 83A
Division 83A..............	ad 2010 No 8
r 83A‑5.01..........	ad 2010 No 8
r 83A‑315.01........	ad 2010 No 8
	am No 63, 2015
r 83A‑315.02........	ad 2010 No 8
r 83A‑315.03........	ad 2010 No 8
r 83A‑315.04........	ad 2010 No 8
r 83A‑315.05........	ad 2010 No 8
r 83A‑315.06........	ad 2010 No 8
r 83A‑315.07........	ad 2010 No 8
r 83A‑315.08........	ad 2010 No 8
	am No 63, 2015
r 83A‑315.09........	ad 2010 No 8
	am No 63, 2015
Part 2A
Part 2A heading............	ad 2011 No 80
Division 230
Division 230..............	ad 2011 No 80
r 230‑355.01........	ad 2011 No 80
Division 290
Division 290..............	ad 2007 No 90
Subdivision 290‑C
r 290‑155.01........	ad F2017L00321
r 290‑155.05........	ad F2017L00321
r 290‑170.01........	ad 2007 No 90
Division 291
Division 291 heading (prev Division 292 heading)
Division 292 heading.........	rs and renum F2017L00321
Division 292..............	ad 2007 No 90
Subdivision 291‑B
Subdivision 291‑B heading (prev Subdivision 292‑B heading)
Subdivision 292‑B heading	rs and renum F2017L00321
Subdivision 292‑B....	ad 2007 No 103
r 292‑25.01 heading...	rs and renum F2017L00321
r 292‑25.01.........	ad 2007 No 103
	am. 2007 No. 202; F2017L00321
	renum F2017L00321
r 291‑25.01 (prev r 292-25.01)
Division 292
Division 292 heading.........	ad F2017L00321
Subdivision 292‑C
r 292‑90.01.........	ad 2007 No 90
Subdivision 292‑D
Subdivision 292‑D....	ad 2007 No 103
r 292‑170.01........	ad 2007 No 103
r 292‑170.02........	ad 2007 No 103
r 292‑170.03........	ad 2007 No 103
	am F2017L00321
r292‑170.04.........	ad 2007 No 103
	am No 52, 2014
r 292‑170.05........	ad 2007 No 103
	am 2007 No 330; 2009 No 177
r 292‑170.06........	ad 2007 No 103
	am 2007 No 330; 2009 No 177
r 292‑170.07........	ad 2009 No 177
r 292‑170.08........	ad 2009 No 177
Division 302 (first occurring)	ad 2007 No 328
	rep 2009 No 388
r 302‑195..........	ad 2007 No 328
	rep 2009 No 388
r 302‑195A.........	ad 2007 No 328
	rep 2009 No 388
Division 293
Division 293..............	ad No 279, 2013
Subdivision 293‑D
Subdivision 293‑D....	ad No 6, 2014
r 293‑115.01........	ad No 6, 2014
Subdivision 293‑DA
Subdivision 293‑DA...	ad No 52, 2014
r 293‑115.05........	ad No 52, 2014
	am No 17, 2015
r 293‑115.10........	ad No 52, 2014
r 293‑115.15........	ad No 52, 2014
r 293‑115.20........	ad No 52, 2014
Subdivision 293‑E
r 293‑145.01........	ad No 279, 2013
Division 294
Division 294..............	ad F2017L00704
Subdivision 294‑D
r 294‑130.01........	ad F2017L00704
r 294‑135.01........	ad F2017L00704
r 294‑145.01........	ad F2017L00704
Division 295
Division 295..............	ad 2007 No 90
Subdivision 295‑D
r 295‑265.01........	ad 2007 No 90
Subdivision 295‑F
r 295‑385.01........	ad 2007 No 90
	rs No 103, 2013
	am F2017L00321
Subdivision 295‑G
Subdivision 295‑G....	ad 2011 No 182
r 295‑465.01........	ad 2011 No 182
Part 3
Part 3 heading.............	ad 2007 No 103
Division 301
Division 301..............	ad 2007 No 90
Subdivision 301‑D
r 301‑170.01........	ad 2007 No 90
Subdivision 301‑E
r 301‑225.01........	ad 2007 No 90
	am 2007 No 103
Division 302
Division 302..............	ad 2007 No 90
Subdivision 302‑D
r 302‑195..........	ad 2009 No 388
r 302‑195A.........	ad 2009 No 388
r 302‑200.01........	ad 2007 No 90
r 302‑200.02........	ad 2007 No 90
Division 303
Division 303..............	ad 2008 No 144
r 303‑10.01.........	ad 2008 No 144
	am No 110, 2015
Division 306
Division 306..............	ad 2007 No 90
r 306‑10.01.........	ad 2007 No 90
	rs 2008 No 144; F2017L00321
Division 307
Division 307..............	ad 2007 No 90
Subdivision 307‑C
Subdivision 307‑C....	ad 2007 No 329
r 307‑125.01........	ad 2007 No 329
r 307‑125.02........	ad No 103, 2013
	am F2017L00321
Subdivision 307‑D
r 307‑200.01........	ad 2007 No 90
	rs No 279, 2013
r 307‑200.02........	ad 2007 No 90
	am 2007 No 202
r 307‑200.03........	ad 2007 No 90
	am 2007 No 202
r 307‑200.04........	ad 2007 No 90
	rep 2007 No 202
r 307‑200.05........	ad 2007 No 90
	rs F2017L00704
r 307‑205.01........	ad 2007 No 90
	am F2017L00321
r 307‑205.02........	ad 2007 No 90
	am 2007 No 202; No 103, 2013; F2017L00321; F2017L00704
r 307‑205.02A.......	ad 2007 No 202
	am F2017L00704
r 307‑205.02B.......	ad 2007 No 202
r 307‑205.02C.......	ad F2017L00704
r 307‑205.02D.......	ad F2017L00704
r 307‑205.02E.......	ad F2017L00704
Division 328..............	ad 2003 No 39 rep 2007 No 178
r 328‑375.01........	ad 2003 No 39
	am 2006 No 216
	rep 2007 No 178
Part 3A
Part 3A........................	ad F2016L01625
Division 393
Division 393.....................	ad F2016L01625
r 393‑1..................	ad F2016L01625
r 393‑5..................	ad F2016L01625
r 393‑10..................	ad F2016L01625
r 393‑15..................	ad F2016L01625
Part 4
Part 4...................	ad 2005 No 75
Subdivision 775‑B
r 775‑145.01........	ad 2005 No 75
Subdivision 830‑A
r 830‑15.01.........	ad 2007 No 177
Part 5
Part 5...................	ad No 103, 2013
Division 910
r 910‑1.01..........	ad No 103, 2013
	am No 279, 2013
r 910‑1.02..........	ad No 279, 2013
r 910‑1.03..........	ad No 279, 2013
r 910‑1.04..........	ad No 6, 2014
r 910‑1.05..........	ad No 52, 2014
r 910‑1.07..........	ad No 17, 2015
r 910‑1.08..........	ad F2016L00156
	ed C76
r 910‑1.09..........	ad F2017L00321
Part 6
Part 6 heading.............	ad 2002 No 172
Division 960
Division 960..............	ad 2005 No 75
Subdivision 960‑C
r 960‑50.01.........	ad 2005 No 75
	am 2005 No 75
Subdivision 960‑D
r 960‑80.01.........	ad 2005 No 75
r 960‑80.02.........	ad 2005 No 75
r 960‑80.03.........	ad 2005 No 75
	am F2016L00170
Division 974
Subdivision 974‑F
r 974‑135A.........	ad 2004 No 303
r 974‑135B.........	ad 2004 No 303
r 974‑135C (prev r 974A‑135C)	reloc and renum No 102, 2005
Division 974A.............	ad 2005 No 102
Division 974A heading........	rep 2005 No 102
Subdivision 974A‑F heading	rep 2005 No 102
r 974A‑135C........	ad 2005 No 102
	reloc and renum No 102, 2005
r 974‑135D.........	ad 2010 No 73
	am 2011 No 35; No 310, 2012
r 974‑135E.........	ad 2011 No 35
	am No 310, 2012
r 974‑135F.........	ad 2012 No 310
Division 995
Division 995 heading.........	ad 2002 No 172
r 995‑1.01..........	am No 90, 2007; No 103, 2007; No 144, 2008; No 35, 2011; No 103, 2013; No 52, 2014; No 17, 2015; F2017L00321; am F2017L00704
	ed C76
r 995‑1.02..........	ad 2001 No 288
	am 2002 No 65; 2003 No 108; 2003 No 373; 2004 No 330
	rs 2005 No 328
	rep 2010 No 9
r 995‑1.03..........	ad 2007 No 90
	rep F2017L00321
r 995‑1.04..........	ad 2007 No 90
r 995‑1.05..........	ad 2011 No 5
Schedule 1................	ad 2000 No 1
	rep F2016L00156
Part 2...................	am 2001 No 26; 2002 No 46; 2003 No 40; 2004 No 52; 2005 No 22; 2006 No 61; 2007 No 44; 2008 No 35; 2009 No 54; 2010 No 74; 2011 No 57; 2012 No 47; No 24, 2013; No 39, 2015
	rs No 279, 2013
	am No 156, 2015
	rep F2016L00156
Schedule 1A
Schedule 1A..............	ad 2007 No 103
	am 2007 No 202; 2007 No 330; 2009 No 177; No 52, 2014
Schedule 1AA
Schedule 1AA.............	ad No 52, 2014
Part 1
Part 1...................	ad No 52, 2014
c 1.....................	ad No 52, 2014
c 2.....................	ad No 52, 2014
c 3.....................	ad No 52, 2014
c 4.....................	ad No 52, 2014
Part 2
Part 2...................	ad No 52, 2014
c 5.....................	ad No 52, 2014
c 6.....................	ad No 52, 2014
	am No 17, 2015
c 7.....................	ad No 52, 2014
c 8.....................	ad No 52, 2014
c 9.....................	ad No 52, 2014
Part 3
Part 3...................	ad No 52, 2014
c 10....................	ad No 52, 2014
c 11....................	ad No 52, 2014
c 12....................	ad No 52, 2014
c 13....................	ad No 52, 2014
c 14....................	ad No 52, 2014
c 15....................	ad No 52, 2014
	am No 17, 2015
c 16....................	ad No 52, 2014
	am No 17, 2015
c 17....................	ad No 52, 2014
c 18....................	ad No 52, 2014
c 19....................	ad No 52, 2014
Part 4
Part 4...................	ad No 52, 2014
c 20....................	ad No 52, 2014
Part 5
Part 5...................	ad No 52, 2014
c 21....................	ad No 52, 2014
Part 6
Part 6...................	ad No 52, 2014
c 22....................	ad No 52, 2014
Part 7
Part 7...................	ad No 52, 2014
c 23....................	ad No 52, 2014
Schedule 1B
Schedule 1B...............	ad 2007 No 90
	am 2007 No 202
Schedule 1C
Schedule 1C...............	ad F2016L01625
Part 1
Part 1...................	ad F2016L01625
Part 2
Part 2...................	ad F2016L01625
Part 3
Part 3...................	ad F2016L01625
Schedule 2
Schedule 2................	ad 2005 No 75
Part 1
Part 1...................	ad 2005 No 75
Part 2
Part 2...................	ad 2005 No 75
Schedule 3................	ad 2005 No 328
	am 2006 No 216
	rs 2006 No 306
	am 2008 No 81; 2009 No 13; 2009 No 247
	rep 2010 No 9
Schedule 4
Schedule 4................	ad 2007 No 90
	am 2009 No 338; No 279, 2013
Schedule 5
Schedule 5................	ad 2011 No 5
	am F2016L00711

Constitutionally protected superannuation funds
Item	Legislation
Part 1 New South Wales
101	Judges’ Pensions Act 1953
Part 2 Victoria
201	Attorney‑General and Solicitor‑General Act 1972
202	Coal Mines (Pensions) Act 1958
203	Constitution Act 1975
204	County Court Act 1958
205	Magistrates’ Court Act 1989
210	Ombudsman Act 1973 (subsection 9(2))
211	Public Prosecutions Act 1994
212	Supreme Court Act 1986
Part 3 Queensland
301	Governor’s Pension Act 1977
302	Judges (Pensions and Long Leave) Act 1957
Part 4 Western Australia
402	Judges’ Salaries and Pensions Act 1950
403	Parliamentary Superannuation Act 1970
404	State Superannuation Act 2000
Part 5 South Australia
501	Governors’ Pensions Act 1976
502	Judges’ Pensions Act 1971
503	Parliamentary Superannuation Act 1974
504	Police Superannuation Act 1990
505	Southern State Superannuation Act 2009 (other than section 30(2)(h))
506	Superannuation Act 1988 (other than section 52 and Schedule 3)
Part 6 Tasmania
602	Judges’ Contributory Pensions Act 1968