Occupational Superannuation Standards Regulations 1987 (Cth)

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Occupational Superannuation Standards Regulations 1987

Statutory Rules No. 322, 1987 as amended

made under the

Superannuation Entities (Taxation) Act 1987

Compilation start date: 1 July 2013

Includes amendments up to:SLI No. 152, 2013

 

About this compilation

This compilation

This is a compilation of the Occupational Superannuation Standards Regulations 1987 as in force on 1 July 2013. It includes any commenced amendment affecting the legislation to that date.

This compilation was prepared on 18 September 2013.

The notes at the end of this compilation (the endnotes) include information about amending laws and the amendment history of each amended provision.

Uncommenced amendments

The effect of uncommenced amendments is not reflected in the text of the compiled law but the text of the amendments is included in the endnotes.

Application, saving and transitional provisions for provisions and amendments

If the operation of a provision or amendment is affected by an application, saving or transitional provision that is not included in this compilation, details are included in the endnotes.

Modifications

If a provision of the compiled law is affected by a modification that is in force, details are included in the endnotes.

Provisions ceasing to have effect

If a provision of the compiled law has expired or otherwise ceased to have effect in accordance with a provision of the law, details are included in the endnotes.

      

Contents

Part IPreliminary  1Citation

 These Regulations are the Occupational Superannuation Standards Regulations 1987.

2Commencement
  • (1)

    Regulations 3, 7, 8, 9, 11, 12, 13, 15, 16 and 21 shall be taken to have come into operation on 1 July 1986.

  • (2)

    Regulation 10 shall be taken to have come into operation on 22 December 1986.

  • (3)

    Regulations 6 and 14 shall be taken to have come into operation on 1 July 1987.

3Interpretation
  • (1)

    In these Regulations, unless the contrary intention appears:

actuarymeans a Fellow or an Accredited Member of The Institute of Actuaries of Australia.

benefitmeans a superannuation pension or an annuity, or an amount payable under a superannuation pension or an annuity, and includes an ETP.

business incomemeans the income of a business run by a person either alone or in partnership.

commencement day, in relation to a superannuation pension or an annuity, means the first day of the period to which the first payment of the pension or annuity relates.

Commonwealth industrial authoritymeans any board, court, tribunal, body or person having authority under a Commonwealth Act to exercise any power of conciliation or arbitration in relation to industrial disputes.

CPImeans the consumer price index (all capital cities) published by the Australian Statistician.

defined benefit superannuation fundmeans a superannuation fund whose governing rules provide that:

  • (a)

    in all cases—one or more members of the fund are entitled, on retirement, to be paid a benefit defined, wholly or in part, by reference to either or both of the following:

    • (i)

      the amount of the member’s annual salary:

      • (A)

        at the date of the member’s retirement; or

      • (B)

        at a date before retirement; or

      • (C)

        averaged over a period of employment before retirement;

    • (ii)

      a specified amount; and

  • (b)

    if the fund is not a public sector fund—some or all of the contributions to the fund (out of which, together with earnings on those contributions, benefits are to be paid) are not paid into a fund, or accumulated in a fund, in respect of any individual member but are paid into and accumulated in a fund in the form of an aggregate amount.

eligible bank means:

  • (a)

    a savings bank or trading bank as defined by subsection 5(1) of the Banking Act 1959; or

  • (b)

    a public authority constituted by a law of a State or Territory, being a public authority that carries on banking business.

eligible financial corporationmeans a registered corporation within the meaning of the Financial Corporations Act 1974, being a corporation that is:

  • (a)

    a corporation to which that Act applies by reason of paragraph 8(1)(a) or (b) of that Act; and

  • (b)

    a financial corporation within the meaning of paragraph 51(xx) of the Constitution.

eligible schemehas the meaning given by section 159TE of the Tax Act.

employerincludes a person who engages another person to perform work under a subcontract.

employer representative, in relation to a board or committee of trustees of a superannuation fund, the board of a body corporate acting as the sole trustee of a superannuation fund or a management board, management committee or other management body that exercises actual control over the policies of a superannuation fund, means a member of that board, committee or body nominated by the employer or employers of the members of the fund or by an organisation nominated by that employer or those employers as representing the interests of that employer or those employers.

ETPmeans an eligible termination payment.

fully funded fundmeans a defined benefit superannuation fund that is funded in advance in accordance with actuarial advice at a level that is intended to be reasonably adequate to provide for present and prospective liabilities in respect of benefits relating to the fund.

issue, in relation to a prospectus, has the meaning given to it by section 9 of the Corporations Law.

large fundhas the meaning given by subregulation 13(2).

life assurance company means:

  • (a)

    a company registered under section 19 of the Life Insurance Act 1945; or

  • (b)

    a public authority constituted by a law of a State or Territory, being a public authority that carries on life insurance business within the meaning of subsection 4(1) of that Act.

life policyhas the same meaning as in the Life Insurance Act 1945.

member‑financed benefits means:

  • (a)

    where the amount of benefits that are vested in a member of a superannuation fund on withdrawal from the fund is calculated on the basis of contributions to the fund or such contributions and income derived from those contributions—the sum of:

    • (i)

      the contributions made by the member to the fund; and

    • (ii)

      the net earnings of the fund allotted to the member in accordance with the governing rules in respect of the earnings attributable to those contributions;

 less an amount equal to any administrative or other costs that are deducted from those contributions in accordance with the governing rules but:

  • (iii)

    are not otherwise deducted from those contributions; and

  • (iv)

    are not otherwise deducted from fund income for the purpose of determining the net earnings of the fund; and

  • (v)

    are not otherwise charged to the account of the member;

  • (b)

    where the amount of benefits that are vested in a member of a superannuation fund on withdrawal from the fund is calculated on the basis of the benefits purchased under an endowment or whole of life policy—the amount of the benefits purchased by contributions made by the member to that policy, whether payment of the benefits pursuant to the policy is to be made on death, retirement, disablement or the occurrence of some other event; and

  • (c)

    where the amount of benefits that are vested in a member of a superannuation fund on withdrawal from the fund is defined in terms that include the member’s salary at the date of withdrawal from the fund or at a date prior to such withdrawal or averaged over a period of employment prior to such withdrawal—benefits calculated in accordance with subregulation (5), together with the net earnings of the fund that are allotted to the member, in accordance with the terms of the governing rules, on the basis of such of those last‑mentioned benefits as have been preserved in the fund.

member representative, in relation to a board or committee of trustees of a superannuation fund, the board of a body corporate acting as the sole trustee of a superannuation fund or a management board, management committee or other management body that exercises actual control over the policies of a superannuation fund, means a member of that board, committee or body nominated by the members of the fund or by a trade union or other organisation representing the interests of those members.

minimum requisite benefit, in relation to a member of a superannuation fund, means the minimum benefit required to be vested in the member by the superannuation fund conditions.

potential entitlementhas the meaning given by subregulation 9(1C).

prescribed agreement or awardmeans an agreement or award (including a consent award) that is certified or made by a Commonwealth industrial authority or a State industrial authority on or after 1 July 1986.

private sector fundmeans a superannuation fund other than a public sector fund.

public sector fundmeans a superannuation fund established:

  • (a)

    by a law of the Commonwealth or of a State or Territory; or

  • (b)

    under the authority of:

    • (i)

      the Commonwealth or the government of a State or Territory; or

    • (ii)

      a municipal corporation, another local governing body or a public authority constituted by or under a law of the Commonwealth or of a State or Territory.

recognised memberhas the meaning given by section 159TE of the Tax Act.

registered auditormeans a person registered as an auditor, or deemed to be registered as an auditor, under the Companies Act 1981or a law of a State or Territory relating to companies.

registered medical practitionermeans a person who is registered as a medical practitioner under a law of a State or Territory providing for the registration of medical practitioners.

registered organisation means:

  • (a)

    an association registered under a law of a State or Territory as a trade union; and

  • (b)

    a society registered under a law of a State or Territory providing for the registration of friendly or benefit societies; and

  • (c)

    an association of employees that is registered as an organisation under the Conciliation and Arbitration Act 1904.

related entity, in relation to a fund, means a corporation that is, under subsection 7(5) of the Companies Act 1981, deemed to be related to the trustee or to any of the trustees, as the case may be, of the fund for the purposes of that Act.

rules, in relation to a superannuation fund, means a trust instrument, other document or legislation, or any combination of those things, governing the establishment and operation of the fund.

shortfall componentmeans a shortfall component within the meaning of section 64 of the Guarantee Act.

State industrial authority means:

  • (a)

    any board or court of conciliation or arbitration, or tribunal, body or person, having authority under any State law to exercise any power of conciliation or arbitration in relation to industrial disputes within the limits of the State; or

  • (b)

    any special board constituted under any State law relating to factories.

superannuation fund conditions, in relation to a superannuation fund, means the superannuation fund conditions within the meaning of section 5 of the Act that are applicable to the fund.

the Actmeans the Occupational Superannuation Standards Act 1987.

the Guarantee Actmeans the Superannuation Guarantee (Administration) Act 1992.

  • (2)

    For the purposes of these Regulations, a reference to contributions to a superannuation fund made by a member of the fund shall be read as including a reference to:

    • (a)

      an amount transferred to that fund by another superannuation fund or by an approved deposit fund in respect of the member, being a benefit from the other fund that had, prior to that transfer, become vested in the member; and

    • (b)

      contributions made by the member to the fund that are remitted to the fund by the member’s employer or some other person on behalf of that member other than contributions made by a member’s employer to a superannuation fund on the employer’s own behalf.

  • (3)

    For the purposes of these Regulations, a reference to the net earnings of a superannuation fund is read as a reference to fund earnings after allowing for, at the discretion of the trustees in accordance with the governing rules:

    • (a)

      the sum of all costs deducted or charged as mentioned in subparagraphs (a)(iii), (iv) and (v) of the definition of member‑financed benefits in subregulation (1); and

    • (b)

      any averaging of fund earnings (calculated after deducting the amount of any costs referred to in paragraph (a)) to reduce the effect of actual or possible periodic fluctuations in those earnings; and

    • (c)

      any losses incurred by the fund that have not otherwise been deducted.

  • (4)

    For the purposes of these Regulations, unless the contrary intention appears, a reference to contributions to a superannuation fund made by an employer of a member of the fund is taken to include a reference to:

    • (a)

      the amount of a shortfall component in respect of the member that is contributed to that fund; and

    • (b)

      any other contributions to the fund made by or on behalf of a person, other than the member, in respect of the member.

  • (5)

    Benefits shall be calculated as follows for the purposes of paragraph (c) of the definition of member‑financed benefits in subregulation (1):

    • (a)

      where, throughout the period during which the member has contributed to the fund, contributions have been made by the member at the same rate—an amount calculated in accordance with the formula:

where:

Ris the rate, expressed as a percentage of the member’s salary, at which contributions are, or have been, made to the fund by the member;

Nis the number of months that the member has contributed to the fund at that rate; and

Sis the amount of the member’s salary at the date of withdrawal from the fund or at a date prior to such withdrawal or averaged over a period of employment prior to such withdrawal, as the case requires; and

  • (b)

    where, in respect of 2 or more periods within the period during which the member has contributed to the fund, the contributions have been made by the member at different rates—the sum of the amounts calculated by applying the formula specified in paragraph (a) in respect of each of such first‑mentioned periods as if, for the purpose of ascertaining the relevant rate and number of months, that period were the whole of the period during which the member has contributed to the fund.

  • (6)

    For the purposes of these Regulations:

    • (a)

      a person is gainfully employed if the person is employed for earnings including business income, bonuses, commissions, fees, gratuities, salary or wages;

    • (b)

      a person is employed part time if the person is gainfully employed for 10 hours or more weekly but less than 30 hours weekly;

    • (c)

      a person is employed full time if the person is gainfully employed for 30 hours or more weekly.

  • (7)

    For the purposes of paragraphs (a) and (c) of the definition of member‑financed benefits in subregulation (1), if a member withdraws from a superannuation fund after the end of the latest period in respect of which the net earnings of the fund have been allotted to members in accordance with the governing rules, the benefits must include a reasonable share of the estimated net earnings of the fund for the period:

    • (a)

      that begins at the end of that latest period; and

    • (b)

      that ends when the member withdraws from the fund.

  • (8)

    Payment to the member of a superannuation fund of the share referred to in subregulation (7) discharges the obligation of the trustees of the fund under these Regulations to pay net earnings of the fund to that member in respect of the second‑mentioned period in that subregulation.

  • (9)

    If a member of a superannuation fund:

    • (a)

      joined the fund under an arrangement; or

    • (b)

      otherwise agreed;

that the whole or a part of the contributions of the member to the fund would be invested in a particular portfolio or other division of the fund, a reference in this regulation to that fund is read, in respect of those, or that part of those, contributions as a reference to that portfolio or other division of the fund.

  • (10)

    A reference in this regulation to costs deducted from the contributions of a member of a superannuation fund to whom subregulation (9) applies is a reference to costs in respect of the particular portfolio or other division of the fund referred to in that subregulation.

3AMeaning of pooled superannuation trust
  • (1)

    The definition of pooled superannuation trust in subsection 3(1) of the Act applies to a unit trust that is:

    • (a)

      used only for investing the assets of:

      • (i)

        a superannuation fund; or

      • (ii)

        an approved deposit fund; or

      • (iii)

        a life assurance company (within the meaning of Division 8 of Part III of the Tax Act) that are assets of a tax‑advantaged insurance fund (within the meaning of section 111B of the Tax Act); or

      • (iv)

        a registered organisation (within the meaning of Division 8A of Part III of the Tax Act) solely for the tax‑advantaged business (within the meaning of section 116GC of the Tax Act) of the organisation; or

      • (v)

        an exempt entity within the meaning of subparagraph (a), (c) or (d) of the definition of exempt entity in section 102M of the Tax Act; and

    • (b)

      a resident unit trust within the meaning of section 102H of the Tax Act.

  • (2)

    Subregulation (1) does not prevent the trustees of a pooled superannuation trust from holding the units of another pooled superannuation trust.

3BVesting and payment standards: estimated earnings
  • (1)

    For the purposes of subsection 7(1) of the Act, the standards

    in this regulation are prescribed in relation to the vesting in, and payment to, members or former members of benefits arising directly or indirectly from amounts contributed to superannuation funds.

  • (2)

    In estimating under subregulation 3(7) the net earnings for a period the trustees must have regard to:

    • (a)

      the factors taken into account in the latest calculation of the net earnings of the superannuation fund for the purpose of allotting those net earnings to members; and

    • (b)

      the likely returns on the investments of the fund for the period that:

      • (i)

        begins at the end of the latest period referred to in that subregulation; and

      • (ii)

        ends at the end of the next period in respect of which the net earnings of the fund are to be allotted to members; and

    • (c)

      any other factors likely to influence the net earnings of the fund during the period referred to in paragraph (b).

  • (3)

    An estimate under subregulation 3(7) of the reasonable share of the net earnings for a period:

    • (a)

      applies to a member who withdraws from the fund in the period; and

    • (b)

      remains in force unless the trustees make another estimate in relation to the period, or any part of the period, in accordance with subregulation (2).

3CApplication of superannuation orders

 The standards prescribed by these Regulations apply in relation to a superannuation fund subject to the effect of any superannuation order within the meaning of the Crimes (Superannuation Benefits) Act 1989 that is made in respect of any member of the fund.

3DPrescribed age: definition of superannuation fund – subsection 3(1)

 For the purposes of the definition of superannuation fund in subsection 3(1) of the Act, the age of 65 years is prescribed.

3EMeaning of annuity – subsection 3(1) of the Act
  • (1)

    A benefit provided by a life assurance company or a registered organisation is taken to be an annuity for the purposes of the Act if it is a benefit that:

    • (a)

      arises under a contract that meets the standards of subregulation (2), (4), (6), (7) or (8); and

    • (b)

      in the case of a benefit purchased on or after the commencement of this paragraph—is purchased with the whole or part of a rolled‑over amount within the meaning of section 27A of the Tax Act.

  • (2)

    A contract for the provision of a benefit (in this subregulation called the annuity) meets the standards of this subregulation if it contains provisions that ensure:

    • (a)

      that the annuity is paid at least annually throughout the life of the primary beneficiary in accordance with paragraphs (b) and (c) and, if there is a reversionary beneficiary:

      • (i)

        throughout the reversionary beneficiary’s life; or

      • (ii)

        if he or she is a child of the primary beneficiary or of a former reversionary beneficiary under the annuity—at least until his or her 16th birthday; or

      • (iii)

        if the person referred to in subparagraph (ii) is a full‑time student at age 16—at least until the end of his or her full‑time studies or until his or her 25th birthday (whichever occurs sooner); and

    • (b)

      that the size of the payments of benefit in a year is fixed, allowing for variation only as specified in the contract; and

    • (c)

      that, unless the Commissioner otherwise approves, the sum payable as benefit to the primary beneficiary or to the reversionary beneficiary, as the case may be, increases year by year by at least the lesser of:

      • (i)

        5%; or

      • (ii)

        a rate equal to the rate of increase (if any) determined by comparing the quarterly CPI first published by the Australian Statistician for the second‑last quarter preceding the date on which the payment is to be made with the quarterly CPI first published by the Australian Statistician for that quarter in the preceding year; and

    • (d)

      the amount paid as the purchase price is wholly converted into annuity income; and

    • (e)

      that the annuity does not have a residual capital value; and

    • (f)

      that the annuity cannot be commuted except:

      • (i)

        if the commutation is made within 6 months after the commencement day of the annuity; or

      • (ii)

        if the commutation is made within 10 years after the commencement day of the annuity to the benefit of a reversionary beneficiary on the death of the primary beneficiary; or

      • (iii)

        if section 15S of the Act applies—in accordance with the section; or

      • (iv)

        if the ETP resulting from the commutation is transferred directly to the purchase of another benefit provided under a contract that meets the standards of this subregulation or subregulation (3) or provided under rules that meet the standards of subregulation 3F(2) or (3); and

    • (g)

      that if the annuity reverts or is commuted, it does not have a reversionary component greater than 100% of the benefit that was payable before the reversion or the commutation; and

    • (h)

      that the annuity cannot be transferred to a person other than a reversionary beneficiary on the death of the primary beneficiary or of another reversionary beneficiary; and

    • (i)

      that the capital value of the annuity, and the income from it, cannot be used as security for a borrowing.

  • (3)

    An annuity is not taken not to meet the standards in subregulation (2) for the reason only that, although making provision meeting the standards of that subregulation, it additionally provides that:

    • (a)

      if the primary beneficiary dies within 10 years after the commencement day of the annuity, a surviving reversionary beneficiary may obtain a payment equal to the total payments that the primary beneficiary would have received, if the primary beneficiary had not died, from the day of the death until the end of the period of 10 years; and

    • (b)

      if the primary beneficiary dies within 10 years after the commencement day of the annuity and there is no surviving reversionary beneficiary, an amount, not exceeding the difference between the sum of the amounts paid to the primary beneficiary and the sum of the amounts that would have been so payable in the period of 10 years, is payable to the primary beneficiary’s estate; and

    • (c)

      if the primary beneficiary dies within 10 years after the commencement day of the annuity and there is a surviving reversionary beneficiary who also dies within that period, there is payable to the reversionary beneficiary’s estate an amount determined as described in paragraph (b) as if that paragraph applied to the reversionary beneficiary.

  • (4)

    A contract for the provision of a benefit (in this subregulation called the annuity):

    • (a)

      that does not meet the standards in subregulation (2); and

    • (b)

      that does not fix the size of payments of benefit in a year; and

    • (c)

      under which the commencement day is on or after the commencement of section 76 of the Taxation Laws Amendment (Superannuation) Act 1992;

meets the standards of this subregulation if the contract contains provisions that at least ensure that:

  • (d)

    the standards in paragraphs (2)(h) and (i) are met; and

  • (e)

    payments are made at least annually; and

  • (f)

    the payments in a year, except a payment by way of commutation, are not larger or smaller in total than, respectively, the maximum and minimum limits calculated in accordance with Schedule 1A.

Note: The Taxation Laws Amendment (Superannuation) Act 1992 commenced on 21 December 1992.

  • (5)

    An annuity is not taken not to meet the standards in subregulation (4) for the reason only:

    • (a)

      that:

      • (i)

        the commencement day of the annuity occurs on or after 1 April in a financial year; and

      • (ii)

        the contract does not ensure that payments in that financial year meet the standard in that subregulation for the minimum amount; or

    • (b)

      that the contract does not ensure that the payments in the year in which the annuity is to end meet the standard in that subregulation for the minimum amount.

  • (6)

    A contract for the provision of a benefit (in this subregulation called the annuity):

    • (a)

      that does not meet the standards of subregulation (2); and

    • (b)

      that fixes the size of the payments of benefit in a year, allowing for variation only as specified in the contract; and

    • (c)

      under which the commencement day is on or after 1 July 1994;

meets the standards of this subregulation if the contract contains provisions that at least ensure that:

  • (d)

    the standards in paragraphs (2)(g), (h) and (i) are met; and

  • (e)

    variation in payments from year to year does not exceed, in any year, the average rate of increase of the CPI in the preceding 3 years; and

  • (f)

    payments in accordance with paragraph (b) are made at least annually; and

  • (g)

    the amount paid as the purchase price is wholly converted into annuity income.

  • (7)

    A contract for the provision of a benefit (in this subregulation called the annuity) that:

    • (a)

      does not meet the standards of subregulation (2); and

    • (b)

      provides for payments whose size in a year is fixed, allowing for variation only as specified in the contract; and

    • (c)

      provides for additional payments (in this subregulation called bonus payments);

    • (d)

      the commencement day of which is on or after 1 July 1994;

meets the standards of this subregulation if the contract contains provisions at least ensuring that:

  • (e)

    in respect of the fixed‑size payments—the standards in subregulation (6) are met; and

  • (f)

    the fixed‑size payments amount to at least 50% of:

    • (i)

      if the provider provides annuities of the kind specified in subregulation (6)—the amount that would be payable if the annuity were wholly of that kind; or

    • (ii)

      if the provider does not provide annuities of the kind specified in subregulation (6)—the fixed‑size payments are at least equal in amount to 50% of the interest payable on Commonwealth bonds that have the same value as the purchase price of the annuity and that most closely correspond in term to the term of the annuity; and

  • (g)

    the amounts of the bonus payments (if any) are reasonably proportional to the investment income from which the payments purport to be derived; and

  • (h)

    the amount of a bonus payment (if any) is notified in writing by the provider each year and is paid to the beneficiary in the year next following (except when deferral of the payment would not result, in any future year, in the rate of increase in size of the total payments for the year exceeding the average rate of increase of the CPI in the preceding 3 years).

  • (8)

    A contract for the provision of a benefit (in this subregulation called the annuity):

    • (a)

      that does not meet all the standards in any other provision of this regulation; and

    • (b)

      under which the commencement day is on or after

      the commencement of section 76 of the Taxation Laws Amendment (Superannuation) Act 1992; and

    • (c)

      that provides for:

      • (i)

        payments whose size in a year is fixed, allowing for variation only as specified in the contract; and

      • (ii)

        additional payments whose size is not fixed, derived from the application of part of the purchase price to investments by allocation of the annuity provider;

meets the standards of this subregulation if the contract contains provisions that at least ensure that:

  • (d)

    in respect of fixed‑size payments—if the commencement day is on or after 1 July 1994, the standards in subregulation (6) are met; and

  • (e)

    in respect of payments whose size is not fixed—the standards in subregulation (4) are met.

Note: The Taxation Laws Amendment (Superannuation) Act 1992 commenced on 21 December 1992.

3FMeaning of pension – subsection 3(1) of the Act
  • (1)

    A benefit is taken to be a pension for the purposes of the Act if it is a benefit that is provided under rules of a superannuation fund that meet the standards of subregulation (2), (4) or (6).

  • (2)

    Rules meets the standards of this subregulation if they contain provisions that ensure:

    • (a)

      that the pension is paid at least annually throughout the life of the primary beneficiary in accordance with paragraphs (b) and (c) and, if there is a reversionary beneficiary:

      • (i)

        throughout the reversionary beneficiary’s life; or

      • (ii)

        if he or she is a child of the primary beneficiary or of a former reversionary beneficiary under the pension—at least until his or her 16th birthday; or

      • (iii)

        if the person referred to in subparagraph (ii) is a full‑time student at age 16—at least until the end of his or her full‑time studies or until his or her 25th birthday (whichever occurs sooner); and

    • (b)

      that the size of the payments of benefit in a year is fixed, allowing for variation only as specified in the rules; and

    • (c)

      that, unless the Commissioner otherwise approves, the sum payable as benefit to the primary beneficiary or to the reversionary beneficiary, as the case may be, increases year by year by at least the lesser of:

      • (i)

        5%; or

      • (ii)

        a rate equal to the rate of increase (if any) determined by comparing the quarterly CPI first published by the Australian Statistician for the second‑last quarter preceding the date on which payment is to be made with the quarterly CPI first published by the Australian Statistician for that quarter in the preceding year; and

    • (d)

      that the pension does not have a residual capital value; and

    • (e)

      that the pension cannot be commuted except:

      • (i)

        if the commutation is made within 6 months after the commencement day of the pension; or

      • (ii)

        if the commutation is made within 10 years after the commencement day of the pension to the benefit of a reversionary beneficiary on the death of the primary beneficiary; or

      • (iii)

        if section 15S of the Act applies—in accordance with the section; and

      • (iv)

        if the ETP resulting from the commutation is transferred directly to the purchase of another benefit provided under rules that meet the standards of this subregulation or subregulation (3) or provided under a contract that meets the standards of subregulation 3E(2) or (3); and

    • (f)

      that, if the pension reverts or is commuted, it does not have a reversionary component greater than 100% of the benefit that was payable before the reversion or the commutation; and

    • (g)

      that the pension is not able to be transferred to a person other than a reversionary beneficiary on the death of the primary beneficiary or of another reversionary beneficiary; and

    • (h)

      that the capital value of the pension and the income from it, cannot be used as security for a borrowing.

  • (3)

    Rules are not taken not to meet the standards in subregulation (2) for the reason only that, although making provision meeting the standards of that subregulation, they additionally provide that:

    • (a)

      if the primary beneficiary dies within 10 years after the commencement day of the pension, a surviving reversionary beneficiary may obtain a payment equal to the total payments that the primary beneficiary would have received, if the primary beneficiary had not died, from the day of the death until the end of the period of 10 years; and

    • (b)

      if the primary beneficiary dies within 10 years after the commencement day of the pension and there is no surviving reversionary beneficiary, an amount, not exceeding the difference between the sum of the amounts paid to the primary beneficiary and the sum of the amounts that would have been so payable in the period of 10 years, is payable to the primary beneficiary’s estate; and

    • (c)

      if the primary beneficiary dies within 10 years after the commencement day of the pension and there is a surviving reversionary beneficiary who also dies within that period, there is payable to the reversionary beneficiary’s estate an amount determined as described in paragraph (b) as if that paragraph applied to the reversionary beneficiary.

  • (4)

    Rules:

    • (a)

      that do not meet the standards in subregulation (2); and

    • (b)

      that do not fix the size of payments of benefit in a year; and

meet the standards of this subregulation if they contain provisions that at least ensure that:

  • (c)

    the standards in paragraphs (2)(g) and (h) are met; and

  • (d)

    payments are made at least annually; and

  • (e)

    on and after the commencement of section 76 of the Taxation Laws Amendment (Superannuation) Act 1992the payments in a year, except a payment by way of commutation, are not larger or smaller in total than, respectively, the maximum and minimum limits calculated in accordance with Schedule 1A.

Note: The Taxation Laws Amendment (Superannuation) Act 1992 commenced on 21 December 1992.

  • (5)

    Rules are not taken not to meet the standards in subregulation (4) for the reason only:

    • (a)

      that:

      • (i)

        the commencement day of the pension occurs on or after 1 April in a financial year; and

      • (ii)

        the rules do not provide for the payment of an amount in that financial year that meets the standard for the minimum amount in that subregulation; or

    • (b)

      that the rules do not ensure that the payments in the year in which the pension is to end meet the standard for the minimum amount in that subregulation.

  • (6)

    Rules:

    • (a)

      that do not meet the standards in subregulation (2); and

    • (b)

      that provide that the size of the payments of benefit in a year is fixed, allowing for variation only as specified in the rules; and

    • (c)

      under which the commencement day is on or after 1 July 1994;

meet the standards in this subregulation if they at least ensure that:

  • (d)

    the standards in paragraphs (2)(f), (g) and (h) are met; and

  • (e)

    variation in payments from year to year does not exceed, in any year, the average rate of increase of the CPI in the preceding 3 years; and

  • (f)

    payments in accordance with the contracted size are made at least annually; and

  • (g)

    if, under the rules, the pension can be commuted—the conversion to a lump sum is limited to a sum that is not greater than the sum determined by applying the appropriate pension valuation factor under Schedule 3 to the pension as if the commencement day were the day on which the commutation occurs.

3GPeriods when beneficiary may not receive benefits

 A benefit is not taken not to meet the standards in regulation 3E or 3F by reason only that payments of benefit to the beneficiary have been properly suspended during a period when the beneficiary is the holder of a paid public office.

4Approved auditors
  • (1)

    For the purposes of the definition of approved auditor in subsection 3(1) of the Act, the following classes of persons are specified in relation to a superannuation fund:

    • (a)

      persons who are independent registered auditors;

    • (ab)

      the Auditors‑General of the Commonwealth, the States and the Territories;

    • (b)

      where all assets of the superannuation fund are in the form of life policies or deposits at call with an eligible bank or the superannuation fund has 5 members or less and those members agree not to require a registered auditor—persons who:

      • (i)

        are members of the Institute of Chartered Accountants, the Australian Society of Certified Practising Accountants or the Institute of Public Accountants or are members or fellows of the Association of Taxation and Management Accountants; and

      • (ii)

        are not trustees or members of, or contributors to, the fund, members of a management board, committee or other body exercising actual control over the policies of the fund or partners, employees or officers of such trustees, members or contributors; and

      • (iii)

        do not have actual control over the investments or administration of the fund and are not partners, employees or officers of persons having such control.

  • (2)

    For the purposes of the definition of approved auditor in subsection 3(1) of the Act, the following classes of persons are specified in relation to an approved deposit fund and a pooled superannuation trust:

    • (a)

      independent registered auditors;

    • (b)

      the Auditors‑General of the Commonwealth, the States and the Territories.

  • (3)

    For the purposes of this regulation, a registered auditor is to be taken not to be independent in relation to a superannuation fund, an approved deposit fund or a pooled superannuation trust if the auditor is associated with the fund or trust as:

    • (a)

      a trustee of the fund or trust; or

    • (b)

      a member of the fund or trust; or

    • (c)

      a contributor to the fund; or

    • (d)

      a depositor with the fund; or

    • (e)

      a holder of units in the trust; or

    • (f)

      a member of a management board, committee or other body having control over the policies of the fund or trust; or

    • (g)

      a person having control over the investments or administration of the fund or trust; or

    • (h)

      a partner, employee or officer of a person referred to in paragraph (a), (b), (c), (d), (e), (f) or (g); or

    • (i)

      an employee or officer of the fund or trust, other than as its auditor.

  • (4)

    For the purposes of this regulation, a registered auditor is to be taken not to be independent in relation to a pooled superannuation trust if the auditor is associated with a holder of units in the trust as:

    • (a)

      a trustee of the holder; or

    • (b)

      a member of the holder; or

    • (c)

      a contributor to the holder; or

    • (d)

      a depositor with the holder; or

    • (e)

      a member of a management board, committee or other body having control over the policies of the holder; or

    • (f)

      a person having control over the investment or administrative policies of the holder; or

    • (g)

      a partner, employee or officer of a person referred to in paragraph (a), (b), (c), (d), (e) or (f); or

    • (h)

      an employee or officer of the holder, other than as its auditor;

unless:

  • (j)

    the auditor:

    • (i)

      does not know; and

    • (ii)

      could not reasonably be expected to have known;

 of that association; or

  • (k)

    the holder does not have a material interest in the trust.

Part IAReasonable benefit limitsDivision 1Preliminary4AInterpretation
  • (1)

    In this Part, unless the contrary intention appears:

accrued retirement benefit component, in relation to a disability superannuation pension payable to a person, means the amount worked out using the formula:

where:

Capital Valuemeans the capital value of the pension as at the commencement day of the pension; and

Pension Days means:

  • (a)

    in the case of the pension commencing to be paid before the person turns 65—the number of days in the period from the beginning of the commencement day of the pension to the end of the day when the person turns 65; or

  • (b)

    in any other case—0.

Accrual Daysmeans the number of days in the period commencing on the first day of the eligible service period of the pension and ending on the 65th birthday of the person.

approved early retirement scheme payment, in relation to a person, has the same meaning as in subsection 27E(4) of the Tax Act.

bona fide redundancy payment, in relation to a person, has the same meaning as in subsection 27F(1) of the Tax Act.

deferred annuitymeans an annuity that is not presently payable.

defined benefit superannuation fundhas the meaning it would have under regulation 3 if ‘superannuation fund’ in that regulation had the meaning given by section 15E of the Act.

disability annuitymeans an annuity payable to a person as a result of a permanent disability of the person, being a disability that at least 2 registered medical practitioners have certified is likely to result in the person being unable ever to work in a job for which the person is reasonably qualified by education, training or experience, and disability superannuation pension has a corresponding meaning.

eligible service period, in relation to an ETP, has the same meaning as in subsection 27A(1) of the Tax Act.

eligible service period, in relation to a superannuation pension payable to a person, means:

  • (a)

    except where paragraph (b) applies—the period commencing on:

    • (i)

      the day on which the person joined the superannuation fund; or

    • (ii)

      the first day of the period of employment to which the pension relates, including any qualifying period before the person was able to join the fund and any period during which the person was not a member of the fund;

 whichever is the earlier, and ending on the commencement day of the pension; or

  • (b)

    if:

    • (i)

      the whole or a part of the capital value of the pension is attributable to an ETP the whole or a part of which had been rolled‑over into the fund; and

    • (ii)

      the eligible service period of the ETP commences on an earlier day than the commencement of the period that would be the eligible service period of the pension under paragraph (a);

 the period commencing on that earlier day and ending on the commencement day of the pension.

eligible service period, in relation to an annuity payable to a person, means the sum of the number of days in the eligible service period in relation to the ETP that was rolled‑over to purchase the annuity and the number of days in the period from the time when the annuity was purchased to the commencement day of the annuity.

gainful employment, in relation to a financial year, means paid employment for at least 520 hours in that year for which the person is paid a salary of an amount that is at least 20% of:

  • (a)

    the full‑time adult average weekly ordinary time earnings first published by the Australian Statistician for the March quarter in the preceding financial year multiplied by 52; or

  • (b)

    the person’s HAS;

whichever is the lesser.

HAS, in relation to a person, means the highest average annual salary of the person over any 3 consecutive financial years (including a financial year in which the person did not earn salary for the whole of the year).

index number, in relation to a quarter, means the amount of the full‑time adult average weekly ordinary time earnings first published by the Australian Statistician for the middle month of that quarter.

invalidity payment, in relation to a person, has the same meaning as in section 27G of the Tax Act.

lump sum RBL, in relation to a person to whom a benefit has been paid or has commenced to be paid, means:

  • (a)

    subject to paragraph (b):

    • (i)

      the amount worked out by multiplying the person’s HAS by the person’s lump sum reasonable benefit multiple; or

    • (ii)

      $175,000;

 whichever is the greater; or

  • (b)

    if the benefit is:

    • (i)

      an ETP that was made to the person on a day (in this paragraph called the start day) before the person reached the age of 55 years; or

    • (ii)

      a superannuation pension or annuity that does not meet the pension and annuity standards where the commencement day of the pension or annuity occurred before the person reached that age;

 the amount worked out using the formula:

where:

RBLmeans the amount applicable under paragraph (a); and

Pmeans the number of whole years in the period starting on the birthday of the person immediately before the start day or the commencement day or, if that day falls on a birthday of the person, on that birthday, and ending on the day on which the person will reach the age of 55 years.

lump sum reasonable benefit multiple, in relation to a person to whom a benefit has been paid or has commenced to be paid, means:

  • (a)

    if the eligible service period in relation to the ETP, pension or annuity commenced on or after 1 July 1990—the number obtained by dividing the sum of:

    • (i)

      7 times $39,970 or, if the person’s HAS is less than $39,970, 7 times the person’s HAS; and

    • (ii)

      5 times the part (if any) of the person’s HAS that exceeds $39,970 but does not exceed $74,220; and

    • (iii)

      3 times the part (if any) of the person’s HAS that exceeds $74,220;

 by the person’s HAS; or

  • (b)

    in any other case—the number worked out using the formula:

where:

OLD SPmeans the number worked out by dividing the number of days in the relevant eligible service period that occurred before 1 July 1990 by the total number of days in the relevant eligible service period; and

OLD RBMmeans the multiple applicable to the benefit under Schedule 2; and

NEW SPmeans the number worked out by dividing the number of days in the relevant eligible service period that occurred on or after 1 July 1990 by the total number of days in the relevant eligible service period; and

NEW RBMmeans the number that would be the person’s lump sum reasonable benefit multiple if the relevant eligible service period had commenced on or after 1 July 1990.

net business income, in relation to a business the gross income of which in respect of a financial year exceeds all deductions for that year with respect to the business that are allowable deductions for the purposes of the Tax Act (other than any deductions allowable under section 82AAC or 82AAT, or Division 16C of Part III, of that Act), means the amount of that excess.

net business losses, in relation to a business where all deductions for the financial year commencing on 1 July 1990 or a later financial year with respect to the business that are allowable deductions for the purposes of the Tax Act (other than any deductions allowable under section 82AAC or 82AAT, or Division 16C of Part III, of that Act) exceed the gross income of the business in respect of that year, means the amount of that excess.

non‑qualifying component, in relation to a payment that is an immediate annuity eligible termination payment for the purposes of subsection 27A(1) of the Tax Act, has the same meaning as in that subsection.

pension and annuity standards means:

  • (a)

    in relation to annuities—the standards of subregulation 3E(2); or

  • (a)

    in relation to pensions—the standards of subregulation 3F(2).

pension RBL, in relation to a person to whom a benefit has been paid or has commenced to be paid, means:

  • (a)

    the amount calculated by multiplying the person’s HAS by the person’s pension reasonable benefit multiple; or

  • (b)

    $281,250;

whichever is the greater.

pension reasonable benefit multiple, in relation to a person to whom a benefit has been paid or has commenced to be paid, means:

  • (a)

    if the eligible service period in relation to the benefit commenced on or after 1 July 1990—the number worked out using the formula:

where:

Mmeans the sum of:

  • (i)

    0.75 times $39,970 or, if the person’s HAS is less than $39,970, 0.75 times the person’s HAS; and

  • (ii)

    0.55 times the part (if any) of the person’s HAS that exceeds $39,970 but does not exceed $74,220; and

  • (iii)

    0.35 times the part (if any) of the person’s HAS that exceeds $74,220; or

  • (b)

    in any other case—the number worked out using the formula:

where:

OLD SPmeans the number worked out by dividing the number of days in the relevant eligible service period that occurred before 1 July 1990 by the total number of days in the relevant eligible service period; and

OLD RBMmeans the multiple applicable to the benefit under Schedule 2; and

NEW SPmeans the number worked out by dividing the number of days in the relevant eligible service period that occurred on or after 1 July 1990 by the total number of days in the relevant eligible service period; and

NEW RBMmeans the number that would be the person’s pension reasonable benefit multiple if the relevant eligible service period commenced on or after 1 July 1990.

post‑June 83 component, in relation to an ETP, has the same meaning as in subsection 27A(1) of the Tax Act as in force on 30 June 1990.

pre‑July 83 component, in relation to an ETP, has the same meaning as in subsection 27A(1) of the Tax Act as in force on 30 June 1990.

quartermeans a period of 3 months ending on 31 March, 30 June, 30 September or 31 December, called the March, June, September or December quarter respectively.

RBL amount, in relation to a benefit paid or commencing to be paid to a person, means the amount of the benefit that is to be counted towards the person’s reasonable benefit limits under regulation 4Q, 4R, 4S, 4T or 4U.

rebatable superannuation pensionhas the same meaning as in subsection 159SJ(1) of the Tax Act.

salarymeans salary, wages, commissions, bonuses, fees, allowances or gratuities paid to a person during a financial year, and includes:

  • (a)

    other earnings (other than earnings on investments); and

  • (b)

    the amount that would be the value of a benefit to which section 57, 57A or 58 of the Fringe Benefits Tax Assessment Act 1986 applies if that benefit were not an exempt benefit; and

  • (c)

    a payment made by a company by way of remuneration to a director of the company; and

  • (d)

    in the case of a person who is an Australian citizen, or a resident of Australia within the meaning of the Tax Act—any amounts paid to the person from a source outside Australia that would fall within this definition if they had been paid from a source in Australia;

but does not include:

  • (e)

    a distribution from a trust estate; or

  • (f)

    allowances to cover expenses incurred on behalf of the person’s employer or business; or

  • (g)

    any ETP; or

  • (h)

    a superannuation pension or an annuity; or

  • (i)

    a payment to which section 26AC or 26AD of the Tax Act applies.

standard indexation rate, in relation to a financial year, means the rate determined under regulation 4DA in respect of that year.

superannuation fundhas the same meaning as in subsection 15E(1) of the Act.

taxed element, in relation to the post‑June 83 component of an ETP, has the same meaning as in subsection 27A(1) of the Tax Act as in force on 30 June 1990.

undeducted purchase price, in relation to a superannuation pension, has the same meaning as in subsection 27A(1) of the Tax Act.

untaxed element, in relation to the post‑June 83 component of an ETP, has the same meaning as in subsection 27A(1) of the Tax Act as in force on 30 June 1990.

  • (2)

    For the purposes of the definition of salary in subregulation (1):

    • (a)

      amounts to which paragraph (d) of that definition applies are to be converted into Australian currency at the rate that is the average of the exchange rates for the currency in which the foreign source amounts were paid at the start, and at the end, of the financial year in which the amounts were paid; and

      • (i)

        at the start, and at the end, of the financial year in which the amounts were paid; or

      • (ii)

        if the amounts were not paid throughout a financial year—at the start, and at the end, of the period over which the amounts were paid; and

    • (b)

      if a person carries on a business (either alone or in partnership with another person):

      • (i)

        the person’s salary is to be increased by the person’s share of the net business income; or

      • (ii)

        the person’s salary is to be decreased by the person’s share of the net business losses; and

    • (c)

      if:

      • (i)

        a person is an associate of the person’s employer; and

      • (ii)

        the person’s salary is greater or lesser than the amount (in this paragraph called the arm’s length salary) that would, in the opinion of the Commissioner, be the person’s salary if the person had not been an associate of the employer;

     the person’s salary for the purposes of this Part is taken to be the arm’s length salary.

  • (3)

    In determining the arm’s length salary under subregulation (2), the Commissioner is to have regard to:

    • (a)

      the nature of the work performed; and

    • (b)

      the hours worked; and

    • (c)

      the salary that would be payable to a person who is not an associate of the employer for performing similar work for similar hours; and

    • (d)

      any other relevant matters.

4BSpecial rules relating to HAS
  • (1)

    For the purposes of the definition of HAS in subregulation 4A(1), where a person has earned salary but not during 3 consecutive financial years, that definition applies to:

    • (a)

      if the person has earned salary for at least 2 full consecutive financial years—the person’s average salary for those 2 years; or

    • (b)

      if the person has earned salary for at least one full financial year but less than 2 full consecutive financial years—the person’s salary for that financial year; or

    • (c)

      in any other case—the person’s final annualised salary.

  • (2)

    Subject to subregulations (4) and (5), where the Commissioner is to calculate a person’s reasonable benefit limits in relation to a benefit paid, or commencing to be paid, to the person at a particular time (in this subregulation called the commencement time), the person’s HAS is to be indexed in accordance with subregulation (3) if any of the following paragraphs applies to the person:

    • (a)

      the person had reached the age of 55 years on or before

      1 July 1990;

    • (b)

      the person had, after reaching the age of 55 years, been engaged in gainful employment during each of at least 3 consecutive financial years;

    • (c)

      the person had not, before reaching the age of 65 years:

      • (i)

        received an ETP, other than:

        • (A)

          an ETP that was paid before 16 February 1990; or

        • (B)

          an ETP that was paid on or after that day and before 1 July 1990 from an employer of whom the person was not an associate; or

        • (C)

          an ETP that consisted wholly of undeducted contributions, concessional components or non‑qualifying components or wholly of a combination of undeducted contributions, concessional components and non‑qualifying components;

        • (D)

          an ETP that is a result of the commutation of a deferred annuity and is paid within 7 days of the person’s 65th birthday; or

        • (E)

          an ETP that is a result of the commutation of a superannuation pension or annuity the commencement day of which is before 16 February 1990; or

        • (F)

          an ETP paid on or after 1 July 1992 to which subsection 27A(12B) or (12E) of the Tax Act applies; or

        • (G)

          an ETP paid on or after 1 July 1992 that the Commissioner determines to be in excess of reasonable benefit limits;

       that the person has not rolled‑over; and

      • (ii)

        commenced to receive a superannuation pension or annuity, other than:

        • (A)

          a superannuation pension or annuity the commencement day of which is before 16 February 1990; or

        • (B)

          a pension or annuity that meets the pension and annuity standards;

    • (d)

      the person has received or become entitled to receive an invalidity payment, a disability superannuation pension or a disability annuity;

    • (e)

      the person has received or become entitled to receive an approved early retirement scheme payment or a bona fide redundancy payment.

  • (3)

    Subject to subregulation (3A), the HAS of a person to whom subregulation (2) applies is to be indexed by:

    • (a)

      if paragraph (2)(a) applies—multiplying the person’s HAS by the index number for the quarter 2 quarters before the quarter in which:

      • (i)

        the ETP was paid; or

      • (ii)

        the commencement day of the pension or annuity falls;

     as the case may be, (in this subregulation called the end quarter) and dividing the product by:

    • (iii)

      the index number for the March quarter in the last financial year on which the person’s HAS was based; or

    • (iv)

      if that year is before the financial year in which the person reached the age of 55 years—the index number for the March quarter in the financial year in which the person reached that age; or

    • (b)

      if paragraph (2)(b) applies—multiplying the person’s HAS by the index number for:

      • (i)

        if the person had ceased to be engaged in gainful employment before the financial year in which the benefit was paid or commenced to be paid—the March quarter in the last of the years referred to in that paragraph; or

      • (ii)

        if the person is in gainful employment in the financial year when the benefit was paid or commenced to be paid—the end quarter;

      • (iii)

        the index number for the March quarter in the last financial year on which the person’s HAS was based; or

      • (iv)

        if that year is before the financial year in which the person reached the age of 55 years—the index number for the March quarter in the financial year in which the person reached that age; or

    • (c)

      if paragraph (2)(c) applies—multiplying the person’s HAS by the index number for the end quarter and dividing the product by the index number for the March quarter in the last financial year on which the person’s HAS was based; or

    • (d)

      if paragraph (2)(d) applies and the benefit was paid before 1 July 1992—multiplying the person’s HAS by the index number for the end quarter and dividing the product by the index number for the March quarter in the financial year when the person received, or became entitled to receive, the payment; or

    • (e)

      if paragraph (2)(d) applies and the benefit was paid on or after 1 July 1992—multiplying the person’s HAS on the day when the benefit is paid or became payable by the index number for the end quarter and dividing the product by the index number for the March quarter in the financial year in which the person received, or became entitled to receive, the payment; or

    • (f)

      if paragraph (2)(e) applies and the benefit was paid before 1 July 1992—multiplying the person’s HAS by the index number for the end quarter or the March quarter for the financial year 5 years after the financial year in which the person received, or became entitled to receive, the payment, whichever is the earlier, and dividing the product by the index number for the March quarter in the financial year in which the person received, or became entitled to receive, the payment; or

    • (g)

      if paragraph (2)(e) applies and the benefit was paid on or after 1 July 1992—multiplying the person’s HAS on the day when the benefit is paid, or became payable, by the index number for the end quarter or the March quarter for the financial year 5 years after the financial year in which the person received, or became entitled to receive, the payment (whichever is the earlier) and dividing the product by the index number for the March quarter in the financial year in which the person received, or became entitled to receive, the payment.

  • (3A)

    If:

    • (a)

      any of the paragraphs of subregulation (2) applies to a person; and

    • (b)

      at any time the person’s salary in respect of a year of income decreases by at least 20% in relation to a previous year of income; and

    • (c)

      the RBL referable to the person’s HAS before the decrease is greater than the RBL referable to the person’s HAS after the decrease;

a reference in subregulation (3) to HAS is a reference to the person’s HAS immediately before the decrease.

  • (4)

    Subregulation (3) does not apply to a person in relation to a benefit paid or commencing to be paid if:

    • (a)

      in a case to which paragraph (2)(b) or (c) applies—the benefit was paid within, or the commencement day of the benefit occurred within, 12 months of the end of the last financial year on which the person’s HAS was based; or

    • (b)

      in a case to which paragraph (2)(d) or (e) applies—the benefit was paid within, or the commencement day of the benefit occurred within, 12 months of the person receiving or becoming entitled to receive the payment referred to in that paragraph; or

    • (c)

      that subregulation would result in a reduction of the person’s HAS.

  • (5)

    If more than one of the paragraphs of subregulation (2) applies to a person, the person’s HAS is to be indexed under the applicable paragraph of subregulation (3) that produces the higher or highest amount.

  • (6)

    Where an amount worked out under subregulation (3) is not a multiple of $10, it is to be increased to the nearest multiple of $10.

4CIndexation
  • (1)

    This Part is to have effect, on 1 July 1991 and each subsequent 1 July, as if there were substituted for:

    • (a)

      the amount referred to in subparagraph (a)(ii) of the definition of lump sum RBLin subregulation 4A(1); and

    • (b)

      each amount referred to in paragraph (a) of the definition of lump sum reasonable benefit multiplein subregulation 4A(1); and

    • (c)

      the amount referred to in paragraph (b) of the definition of pension RBLin subregulation 4A(1); and

    • (d)

      each amount referred to in paragraph (a) of the definition of pension reasonable benefit multiplein subregulation 4A(1); and

    • (e)

      the amount referred to in regulation 4H;

or for the amount last substituted for that amount under this regulation (in this regulation called the base amount) a new amount worked out by:

  • (f)

    multiplying the base amount by the index number for the March quarter immediately preceding that 1 July; and

  • (g)

    dividing the product by the index number for the previous March quarter.

  • (2)

    Subject to subregulation (3), if at any time, whether before or after the commencement of these regulations, the Australian Statistician publishes an index number in respect of a quarter in substitution for an index number previously published, that later index number is to be disregarded for the purposes of this Part.

  • (3)

    If at any time the Australian Statistician changes the reference base for the index number, regard is to be had, for the purposes of the operation of this Part after the change took place, only to index numbers published in terms of the new reference base.

  • (4)

    Where an amount to be substituted under this regulation is not a multiple of $10, it is to be increased to the nearest multiple of $10.

4DCapital value of superannuation pensions
  • (1A)

    In this regulation, annual value, in relation to a pension, means the amount that is worked out by multiplying the greatest number of payments of the pension that could be made in respect of the period of 12 months beginning on the commencement day of that pension by the amount of the first regular payment of the pension.

  • (1)

    Subject to subregulations (2) and (3), the capital value of a superannuation pension that has commenced to be paid, including a residual pension payable on partial commutation of another superannuation pension, is the amount worked out using the formula:

where:

AVmeans the annual value of the pension;

PVFmeans the pension valuation factor applicable to the pension under Schedule 3; and

UPPmeans the undeducted purchase price of the pension; and

RCVmeans the present value of the residual capital value, if any, of the pension, calculated in accordance with a method determined in writing by the Commissioner.

  • (2)

    The capital value of:

    • (a)

      a superannuation pension referred to in subparagraph (b)(ii) of the definition of superannuation pensionin subsection 15E(1) of the Act; and

    • (b)

      a superannuation pension that is not payable for life;

is the amount calculated in accordance with a method determined by the Commissioner in writing in relation to the pension.

  • (3)

    The capital value of a superannuation pension that is payable to a person as a result of an arrangement under which that person:

    • (a)

      ceases to be entitled to a superannuation pension that has commenced to be paid to the person from a superannuation fund; and

    • (b)

      becomes entitled to be paid a superannuation pension from another superannuation fund;

is the amount worked out using the formula:

where:

Ymeans the amount by which the annual value of the pension referred to in paragraph (b) exceeds the annual value of the pension referred to in paragraph (a).

Umeans the amount by which the UPP of the pension referred to in paragraph (b) exceeds the UPP of the pension referred to in paragraph (a).

Rmeans the amount by which the RCV of the pension referred to in paragraph (b) exceeds the RCV of the pension referred to in paragraph (a).

  • (4)

    In subregulation (3), PVF, UPP and RCV have the same respective meanings as in subregulation (1).

4DACommissioner may determine standard indexation rate
  • (1)

    Subject to subregulation (2), the Commissioner may, from time to time, determine in writing the standard indexation rate for the purposes of these Regulations.

  • (2)

    A rate determined under subregulation (1) does not apply in relation to the financial year in which it is determined or to an earlier financial year.

Division 2Information and time periods4EExtension of certain time periods

 Where:

  • (a)

    a person is required to provide information within a period prescribed under regulation 4F or 4J; and

  • (b)

    the person applies in writing to the Commissioner, before the end of the period, for an extension of that period;

the Commissioner may, in writing, allow the person additional time in which to provide the information.

4FInformation under section 15F of the Act
  • (1)

    For the purposes of subsection 15F(1) of the Act, the period within which the information to which that provision relates must be provided is the period ending on 30 September 1990.

  • (2)

    The information required for the purposes of subsection 15F(1) of the Act is the information specified in Schedule 4.

4GInformation under section 15G of the Act
  • (1)

    The information required for the purposes of subsections 15G(1) and (3) of the Act is the information specified in Schedule 5.

  • (1A)

    For the purposes of subsection 15G (1) of the Act, the tax file number of the payer is prescribed information.

  • (2)

    For the purposes of subsection 15G(3) and paragraph 15G(13)(a) of the Act, the period within which the information to which those provisions relate must be provided by a payer in respect of the payment to a person of an ETP, or the commencement of payment to a person of a superannuation pension or of an annuity that is presently payable, on a day (in this regulation called the payment day) is:

    • (a)

      if the person had, on or before the 10th day of the month after the month in which the payment day falls, provided his or her tax file number to the payer in a manner approved by the Commissioner—14 days after the end of the month in which the payment day falls; or

    • (b)

      if the person had, on or before the 10th day of the month after the month in which the payment day falls, advised the payer that the person has made an application for a tax file number and that the application is pending—14 days after the end of the month after the month in which the payment day falls; or

    • (c)

      in any other case—14 days after the end of the month in which the payment day falls.

  • (3)

    Notwithstanding subregulation (2), information to which that subregulation relates need not be provided before 14 September 1990.

  • (4)

    Where the period within which information must be provided by a payer under subsection 15G(1) of the Act is extended under subsection 15G(13) of the Act, the period within which related information must be provided for the purposes of subsection 15G(3) of the Act is also extended by the same number of days.

  • (5)

    For the purposes of paragraph 15G(13)(b) of the Act, the period within which the information to which that provision relates must be provided by a person is the period ending on 30 September 1990.

  • (6)

    The information required for the purposes of subsection 15G(7) of the Act is the information specified in Schedule 6.

4HPrescribed amount – subsection 15G(4) of Act

 The amount for the purposes of subsection 15G(4) of the Act is $5,000.

4JInformation under section 15J of the Act
  • (1)

    The period within which the details of the transaction referred to in paragraph 15J(1)(b) of the Act must be provided by a person is 28 days or such longer period as the Commissioner reasonably allows after the transaction takes place.

  • (2)

    The information required for the purposes of subsection 15J(1) of the Act is the information specified in Schedule 7.

  • (3)

    The information required for the purposes of subsection 15J(2) of the Act is the information specified in Schedule 5, other than the information in that Schedule relating to superannuation pensions and annuities.

  • (4)

    The period within which the details of the transaction referred to in paragraph 15J(2)(d) of the Act must be provided by a payer is 14 days after the end of the month in which the transaction takes place.

  • (5)

    A payer is not in breach of subregulation (4) in relation to the provision of details of a transaction that took place at any time before 14 September 1990 if those details were not provided before that date.

4KPeriods for determination of reasonable benefit limits
  • (1)

    For the purposes of subsections 15K(1) and 15L(1) of the Act, the period within which the Commissioner must determine whether a benefit is in excess of the reasonable benefit limits and, if it is, the extent to which it exceeds those limits is:

    • (a)

      if the notice under subsection 15G(1) of the Act is received before 1 May 1991—the period of 12 months after the day on which the notice is received, reduced by the number of days between 1 July 1990 and the day on which the notice is received; or

    • (b)

      in any other case—60 days after receiving the notice.

  • (2)

    For the purposes of subsection 15K(6) of the Act, the period within which the Commissioner must revise a determination is:

    • (a)

      if the notice under subsection 15J(1) of the Act is received before 1 May 1991—the period of 12 months after the day on which the notice is received, reduced by the number of days between 1 July 1990 and the day on which the notice is received; or

    • (b)

      in any other case—60 days after receiving the notice.

  • (3)

    For the purposes of subsection 15K(7) of the Act, the period within which a person may elect to commute a superannuation pension or annuity is 6 months after the commencement day of the pension or annuity.

  • (4)

    For the purposes of subsection 15K(7) of the Act, the period within which the Commissioner must make a revised determination is:

    • (a)

      if notice of the commutation is received before 1 May 1991—the period of 12 months after the day on which the notice is received, reduced by the number of days between 1 July 1990 and the day on which the notice is received; or

    • (b)

      in any other case—60 days after receiving notice of the commutation.

  • (5)

    For the purposes of subsection 15K(8) of the Act, the period within which the Commissioner must revise a determination is:

    • (a)

      if the applicant has applied to the Commissioner before 1 May 1991 for revision of the determination—the period of 12 months after the person has applied to the Commissioner for revision of the determination, reduced by the number of days from the beginning of 1 July 1990 to the end of the day on which the application was made; or

    • (b)

      if the applicant has applied to the Commissioner on or after 1 May 1991 for revision of the determination—the period of 60 days after the person has applied to the Commissioner for revision of the determination.

4LRequest for information by payers
  • (1)

    The information referred to in subsection 15P(1) of the Act is:

    • (a)

      a copy of any determination made by the Commissioner in relation to an ETP previously paid to the person or a superannuation pension or annuity that previously commenced to be paid to the person; and

    • (b)

      the indexed value of the RBL amount of any such ETP, pension or annuity; and

    • (c)

      in the case of a benefit paid on or after 1 July 1992 that is referred to in subregulation (3)—the value of the RBL amount of any ETP, pension or annuity of that kind.

  • (2)

    For the purposes of subregulation (1), the indexed value of the RBL amount of an ETP, superannuation pension or annuity, is the amount worked out by:

    • (a)

      multiplying the RBL amount of that ETP, pension or annuity by the index number for the quarter 2 quarters before the quarter in which the benefit referred to in paragraph 15P(1)(a) or (b) of the Act was paid or the commencement day of the benefit falls; and

    • (b)

      dividing the product by the index number for the quarter in which the benefit about which the information was sought was paid or the commencement day of the benefit falls.

  • (3)

    Subregulation (2) does not apply to a benefit about which the information was sought if the benefit referred to in paragraph 15P(1)(a) or (b) of the Act was paid within, or the commencement day of the benefit occurred within, 12 months of that first‑mentioned benefit being paid or the commencement day of the first‑mentioned benefit occurring.

Division 3Interim determinations4MInterim determinations

 For the purposes of subsection 15L(1) of the Act, an interim determination is to be made in the same manner as a determination under subsection 15K(1) of the Act applying the following rules:

  • (a)

    if the Commissioner does not know a person’s HAS and paragraph 4W(1)(ba) does not apply—the Commissioner is to assume that:

    • (i)

      the person’s lump sum RBL is determined under subparagraph (a)(ii) of the definition of lump sum RBLin subregulation 4A(1) or, if the benefit was paid before, or the commencement day of the benefit occurred before, the person reached the age of 55 years, under that subparagraph as affected by paragraph (b) of that definition; and

    • (ii)

      the person’s pension RBL is determined under paragraph (b) of the definition of pension RBL in subregulation 4A(1);

 or, if a greater RBL is applicable to the person under regulation 4ZA (including any amount of earnings referred to in paragraph 4Z(1)(c) that the Commissioner has been informed about) or 4ZB, that greater RBL;

  • (b)

    if the Commissioner does not know:

    • (i)

      whether a reversion applies to a superannuation pension payable to a person; or

    • (ii)

      the level of a reversion that applies to a pension payable to a person;

 the Commissioner is to assume that a reversion of 85% applies to the pension;

  • (c)

    if the Commissioner does not know the rate (if any) at which a superannuation pension is indexed—the Commissioner is to assume that the pension is indexed in a year at the standard indexation rate;

  • (d)

    if the Commissioner does not know whether a superannuation pension is a rebatable superannuation pension—the Commissioner is to assume that it is;

  • (e)

    if the Commissioner does not know whether an ETP, a superannuation pension or an annuity has been, or is being, paid as a result of the death of another person—the Commissioner is to assume that it has not been, or is not being, so paid;

  • (f)

    if the Commissioner does not know whether a superannuation pension or annuity meets the pension and annuity standards—the Commissioner is to assume that it does not;

  • (g)

    if the Commissioner does not know a person’s old RBM—the Commissioner is to assume that the old RBM is:

    • (i)

      if the person’s benefits are to be assessed against the lump sum RBL—7; or

    • (ii)

      in any other case—11.25;

  • (h)

    if the Commissioner does not know whether an ETP is made as a result of the commutation of, or the residual capital value of, a superannuation pension or annuity that had commenced to be paid—the Commissioner is to assume that it is not;

  • (j)

    if the Commissioner does not know whether a superannuation pension or an annuity payable to a person as a result of the death of another person is payable as a reversion of another superannuation pension or annuity that was already payable to the other person—the Commissioner is to assume that it is not;

  • (k)

    if the Commissioner does not know whether a superannuation pension is payable for life—the Commissioner is to assume that it is;

  • (m)

    if the Commissioner does not know whether an ETP has been paid to the trustee of the estate of a deceased person—the Commissioner is to assume that it has not.

4NAmendment of interim applications
  • (1)

    For the purposes of subsection 15M(1) of the Act, an application for an amendment of an interim determination must be made within 60 days after notice of the determination was given.

  • (1A)

    For the purposes of subsection 15M(1) of the Act, an application for an amendment of an interim determination to which subsection 15Q(3) of the Act applies must be made:

    • (a)

      within 1 year after the end of the financial year in which the payment to which the determination relates was made; or

    • (b)

      within such further period as the Commissioner allows.

  • (2)

    For the purposes of subsections 15N(1) and (4) of the Act, an application for an amendment of an interim determination must be made in accordance with a form approved in writing by the Commissioner.

  • (3)

    For the purposes of subsection 15N(1) of the Act, the circumstances in which a person may apply for an amendment of an interim determination are where the person is able to provide relevant information that was not available to the Commissioner when the Commissioner made the determination under subsection 15L(1) of the Act.

  • (4)

    For the purposes of section 15N of the Act, the period within which the Commissioner may amend an interim determination is 60 days after receiving the application for amendment.

  • (5)

    For the purposes of subsection 15N(4) of the Act, the circumstances in which a person may make an application under that subsection are where:

    • (a)

      the person was prevented, because of circumstances beyond the person’s control, from making an application for amendment of the interim determination within the period specified in subregulation (1); and

    • (b)

      the person is able to provide relevant information that was not available to the Commissioner when the Commissioner made the determination under subsection 15L(1) of the Act.

Division 4Determinations4PAmounts to be taken into account
  • (1)

    In making a determination under section 15K of the Act in relation to a benefit paid or commencing to be paid to a person (in this regulation called the current benefit), the Commissioner is to disregard the following benefits received by the person:

    • (a)

      an ETP made to the person before 16 February 1990;

    • (b)

      an ETP made to the person on or after 16 February 1990 and before 1 July 1990 by an employer of whom the person is not an associate;

    • (c)

      an ETP made to the person as a result of the commutation of, or the residual capital value of, a superannuation pension or annuity the commencement day of which is before 1 July 1990;

    • (d)

      a residual pension or residual annuity payable on partial commutation of another superannuation pension or annuity where the commencement day of the other pension or annuity is before 1 July 1990;

    • (e)

      a residual pension or residual annuity payable on partial commutation of another superannuation pension or annuity where the other pension or annuity did not meet the pension and annuity standards;

    • (f)

      an ETP paid as a result of the commutation of, or the residual capital value of, a superannuation pension or annuity that did not meet the pension and annuity standards;

    • (g)

      a superannuation pension or annuity that:

      • (i)

        is payable to a person as the result of the death of another person; and

      • (ii)

        is a reversion of another pension or annuity that was already payable to the other person;

    • (h)

      an ETP arising from the commutation of a superannuation pension or annuity to which paragraph (g) applies;

    • (j)

      a superannuation pension the commencement day of which is before 16 February 1990;

    • (k)

      an ETP paid to a person in the capacity of a trustee of a trust estate;

    • (m)

      an annuity the commencement day of which is before 16 February 1990;

    • (n)

      a benefit to which regulation 4V applies;

    • (o)

      an ETP that has been made because of the commutation of a superannuation pension or an annuity payable as a result of the death of another person, being an ETP to which subsection 15G(1) of the Act does not apply because of subsection 15G(5) of the Act;

    • (p)

      an ETP paid to a charitable or religious body;

    • (q)

      an ETP, a superannuation pension or an annuity paid to a person who has not turned 18 because of:

      • (i)

        the death of another person; or

      • (ii)

        a disability of another person that 2 medical practitioners have certified is likely to result in that other person being unable ever to be employed in a capacity for which the other person is reasonably qualified by reason of education, experience or training.

  • (2)

    Subject to subregulation (3), in making a determination under section 15K of the Act in relation to the current benefit, the Commissioner is to take into account the RBL amount of each of the following benefits previously received by the person, not including an amount that has been determined under paragraph 4W(1)(a) or (b) to exceed the reasonable benefit limits:

    • (a)

      an ETP made to the person on or after 16 February 1990, other than a payment referred to in paragraph (1)(b);

    • (b)

      the capital value of a superannuation pension the commencement day of which is on or after 16 February 1990;

    • (c)

      the amount of the ETP that was rolled‑over to purchase an annuity the commencement day of which is on or after 16 February 1990.

  • (3)

    If, before 1 July 1992:

    • (a)

      a person rolls‑over an amount that represents the whole or a part of the residual capital value of a superannuation pension that has commenced to be paid; or

    • (b)

      a person commutes the whole or a part of a superannuation pension that has commenced to be paid and rolls‑over the whole or a part of the resulting ETP;

the amount taken into account under paragraph (2)(b) is to be reduced by so much of the amount rolled‑over (other than undeducted contributions and concessional components) as does not exceed the amount referred to in paragraph (2)(b).

  • (3A)

    If, on or after 1 July 1992, a person:

    • (a)

      rolls‑over an amount that represents the whole or a part of the residual capital value of a superannuation pension that has commenced to be paid; or

    • (b)

      commutes the whole or a part of a superannuation pension that has commenced to be paid and rolls‑over the whole or a part of the resulting ETP;

the amount taken into account under paragraph (2)(b) is to be reduced by so much of the adjustment amount specified in subregulation (3B) as does not exceed the amount referred to in paragraph (2)(b).

  • (3B)

    The adjustment amount referred to in subregulation (3A) is:

the date on which the earlier benefit was paid.

the amount of the earlier benefit rolled‑over directly by the payer.

Superannuation pensions

The commencement day of the pension

Commencement of the eligible service period to which the pension relates

The annual value of the pension

Undeducted purchase price

Whether the pension is paid as a result of the permanent disability of the person

Whether the pension has a residual capital value

The amount of any residual capital value

Where the payer is a superannuation fund (the rules of which, at 15 August 1989, allowed the provision of a pension for the person the capital value of which exceeded 11.25 times any amount treated as salary under those rules)—whether the person was a member of that fund as at 15 August 1989

Benefits approved as pensions under paragraph (b)(ii) of the definition of superannuation pensionin subsection 15E(1) of the Act

The information that the Commissioner reasonably requests in writing that a payer should provide, being information:

(a) that concerns an ETP, superannuation pension or annuity; or

(b) that is necessary to enable a determination of the payee’s reasonable benefit limits to be made under subsection 15K(1) of the Act.

Annuities

Commencement day of the annuity

Amount of the ETP rolled‑over to purchase the annuity

Pre‑July 83 component

Untaxed element of the post‑June 83 component

Taxed element of the post‑June 83 component

Concessional Component

Undeducted contributions

Commencement of the eligible service period of the annuity

Whether the annuity was paid as a result of the permanent disability of the recipient

Part 2Payments made after 30 June 1992

ETPs

Whether the ETP is payable as a result of the death of a person

Whether the ETP is payable as a result of the commutation of, or the residual capital value of, a superannuation pension or annuity that had commenced to be paid

Whether the ETP is payable to the trustee of the estate of a deceased person

Superannuation pensions

Whether a reversion applies to the superannuation pension and if it does, the level of the reversion

Whether the superannuation pension is indexed and, if it is, the rate of indexation

Whether the superannuation pension is a rebatable superannuation pension

Whether the superannuation pension is payable as a result of the death of a person

Whether the superannuation pension meets the pension and annuity standards applicable to the pension

Whether the superannuation pension is payable as a reversion of another superannuation pension payable to a deceased person

Whether the superannuation pension is payable for the life of the primary beneficiary of the pension

Annuities

Whether the annuity is payable as a result of the death of a person

Whether the annuity meets the pension and annuity standards applicable to the annuity

Whether the annuity is payable as a reversion of another annuity payable to a deceased person

Schedule 6Prescribed information on benefits paid between 16 February 1990 and 30 June 1990

(subsection 15G(7) of the Act

regulation 4G)

  

Recipient information

Name of the person who received the benefit

Address of the person who received the benefit

Date of birth of the person who received the benefit

If the benefit is payable by an employer, whether the person is an associate of the employer

Fund information

Payer’s name

Address of the payer

Tax file number of the payer

Whether the payer is a superannuation fund, life assurance company, registered organisation, or an employer of the recipient

ETP’s

Date on which the ETP was made

Start date of the eligible service period to which the ETP relates

Amount of the ETP

Pre‑July 83 component

Untaxed element of the post‑June 83 component

Taxed element of the post‑June 83 component

Concessional component

Undeducted contributions

Non‑qualifying component

Where the benefit is a result of the commutation or residual capital value of an earlier benefit:

whether the ETP arising out of the commutation or residual capital value has been rolled‑over directly by the employer

the date on which the earlier benefit was paid

the amount of the earlier benefit rolled‑over directly by the payer

Superannuation pensions

The commencement day of the pension

Commencement of the eligible service period to which the pension relates

The annual value of the pension

Undeducted purchase price

Whether the pension is paid as a result of the permanent disability of the person

Whether the pension has a residual capital value

The amount of any residual capital value

Where the payer is a superannuation fund (the rules of which, at 15 August 1989, allowed the provision of a pension for the person the capital value of which exceeded 11.25 times any amount treated as salary under those rules)—whether the person was a member of that fund as at 15 August 1989

Annuities

Commencement day of the annuity

Amount of the ETP rolled‑over to purchase the annuity

Pre‑July 83 component

Untaxed element of the post‑June 83 component

Taxed element of the post‑June 83 component

Concessional component

Undeducted contributions

Commencement of the eligible service period of the annuity

Whether the annuity was paid as a result of the permanent disability of the recipient

Schedule 7Prescribed information on roll‑overs

(subsection 15J(1) of the Act

subregulation 4J(2))

Recipient information

Name of the person making the roll‑over

Address of the person

Date of birth of the person

Roll‑over information

Date on which the ETP was rolled‑over

Date on which the ETP rolled‑over was first paid

Pre‑July 83 component amount rolled‑over

Taxed element of the post‑June 83 amount rolled‑over

Untaxed element of the post‑June 83 amount rolled‑over

Concessional component rolled‑over

Undeducted contributions rolled‑over

Schedule 8Abridged financial information

(regulation 18H)

Part 1

Statement of the change in net assets of (insert name of Superannuation fund) available to pay benefits in (insert year of income of the fund)

Net market value of assets available to pay benefits at the beginning of the year of income of the fund:

plus:

Total gross income for the year, showing as separate components:

earnings, including changes in the net market value of assets; and

member contributions and employer contributions (unless information on those separate amounts is not required by the governing rules of the fund to be kept, in which case total contributions must be shown); and

any other income

less:

Total outgoings, showing as separate components:

the amount of benefits paid; and

administrative costs; and

taxation liability, including deferred income tax; and

any other outgoings

yielding:

Net market value of assets available to pay benefits at the end of the year of income

Part 2

Statement of net assets of (insert name of Superannuation fund) as at the end of (insert year of income of the fund)

Accumulated funds, represented by the net market value of the assets of the fund available to pay benefits at the end of the year of income of the fund, showing as separate components:

investments, expressed in terms of the amounts representing the value of each class of asset, and

current assets

less:

Total liabilities, showing as separate components:

benefits payable, and

liability for taxation, and

any other liabilities

DIRECTION FOR COMPLETING STATEMENT

An amount inserted in this statement must be expressed to the nearest whole dollar.

Schedule 9Forms

(regulation 18H)

Form 1Information relating to a superannuation fund established on or after 1 July 1992

1. Tax File Number of the superannuation fund:

2. Name of the superannuation fund:

3. Details about a person who may be contacted about the superannuation fund:

Name:

Address:

Telephone No.:

Facsimile No.:

4. The date on which the fund was established:

5. State whether the trustees of the superannuation fund have received, or expect to receive, a contribution:

(a) in respect of a member of the fund for the purposes of the Superannuation Guarantee (Administration) Act 1992 in an amount that does not exceed the minimum amount required by that Act so that superannuation guarantee charge is not payable by the employer making the contribution; or

(b)  as payment of the shortfall component in relation to the member.

Signature of the trustee or of a trustee authorised by the trustees to sign the form: (Insert name of signatory below his or her signature)

Date:

Note: If there is only 1 trustee, references in this form to ‘trustees’ are to be read as references to the trustee.

Form 2Certificate

1. The trustees of the superannuation fund certify that:

  • (a)

    the governing rules of the fund meet the requirements of the Occupational Superannuation Standards Act 1987 and of the Occupational Superannuation Standards Regulations; and

  • (b)

    the fund is operating in accordance with each of the following operational standards applicable to the fund:

 CodeDescription

A

Sole purpose test

B

Trustee conditions

C

Loans to members

D

Investments

E

Vesting of member‑financed benefits

F

Vesting of employer‑financed benefits

G

Preservation

H

Disclosure, reporting and fund records

I

Matters required in governing rules

J

Contributions

K

Payment of benefits

L

Application of forfeited benefits

M

Provision of information or documents

N

Minimum funding standard; and

  • (c)

    they will use their best endeavours to ensure that the fund continues to operate in accordance with those standards.

2. The trustees undertake to notify the Insurance and Superannuation Commissioner immediately in writing if they become aware that the fund has ceased, or will cease, to operate in accordance with any of those standards.

Signature of the trustee or of a trustee authorised by the trustees to sign the form: (Insert name of a signatory below his or her signature)

Date:

Note: If there is only 1 trustee, references in this form to ‘trustees’ are to be read as references to the trustee.

 

Endnotes

Endnote 1About the endnotes

The endnotes provide details of the history of this legislation and its provisions. The following endnotes are included in each compilation:

Endnote 1—About the endnotes

Endnote 2—Abbreviation key

Endnote 3—Legislation history

Endnote 4—Amendment history

Endnote 5—Uncommenced amendments

Endnote 6—Modifications

Endnote 7—Misdescribed amendments

Endnote 8—Miscellaneous

If there is no information under a particular endnote, the word “none” will appear in square brackets after the endnote heading.

Abbreviation key—Endnote 2

The abbreviation key in this endnote 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 the compiled law. The information includes commencement information for amending laws and details of 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 level. It also includes information about any provisions that have expired or otherwise ceased to have effect in accordance with a provision of the compiled law.

Uncommenced amendments—Endnote 5

The effect of uncommenced amendments is not reflected in the text of the compiled law, but the text of the amendments is included in endnote 5.

Modifications—Endnote 6

If the compiled law is affected by a modification that is in force, details of the modification are included in endnote 6.

Misdescribed amendments—Endnote 7

An amendment is a misdescribed amendment if the effect of the amendment cannot be incorporated into the text of the compilation. Any misdescribed amendment is included in endnote 7.

Miscellaneous—Endnote 8

Endnote 8 includes any additional information that may be helpful for a reader of the compilation.

Endnote 2Abbreviation key

ad = added or inserted

pres = present

am = amended

prev = previous

c = clause(s)

(prev) = previously

Ch = Chapter(s)

Pt = Part(s)

def = definition(s)

r = regulation(s)/rule(s)

Dict = Dictionary

Reg = Regulation/Regulations

disallowed = disallowed by Parliament

reloc = relocated

Div = Division(s)

renum = renumbered

exp = expired or ceased to have effect

rep = repealed

hdg = heading(s)

rs = repealed and substituted

LI = Legislative Instrument

s = section(s)

LIA = Legislative Instruments Act 2003

Sch = Schedule(s)

mod = modified/modification

Sdiv = Subdivision(s)

No = Number(s)

SLI = Select Legislative Instrument

o = order(s)

SR = Statutory Rules

Ord = Ordinance

Sub-Ch = Sub-Chapter(s)

orig = original

SubPt = Subpart(s)

par = paragraph(s)/subparagraph(s)

/sub subparagraph(s)

Endnote 3Legislation history 

Number and year

FRLI registration

or Gazettal

Commencement

Application, saving and transitional provisions

1987 No. 322

22 Dec 1987

rr. 3, 7–9, 11–13, 15, 16 and 21: 1 July 1986

r. 10: 22 Dec 1986

rr. 6 and 14: 1 July 1987

Remainder: 22 Dec 1987

1988 No. 255

21 Oct 1988

21 Oct 1988

r. 2 (ad. by 1989 No. 281)

as amended by

1989 No. 281

31 Oct 1989

31 Oct 1989

1989 No. 24

2 Mar 1989

13 Mar 1989

1989 No. 356

7 Dec 1989

r. 4: 1 July 1988

Remainder: 7 Dec 1989

1990 No. 149

25 June 1990

25 June 1990

1990 No. 150

25 June 1990

1 July 1990

1990 No. 185

29 June 1990

rr. 3, 4, 5 (b) and 6‑10: 1 July 1990

r. 5 (a): 2 July 1990

Remainder: 29 June 1990

1990 No. 202

29 June 1990

1 July 1990

1990 No. 275

21 Aug 1990

21 Aug 1990

r. 12

1991 No. 16

5 Feb 1991

1 July 1990

1991 No. 58

28 Mar 1991

28 Mar 1991

1991 No. 148

26 June 1991

r. 9: 1 July 1991

Remainder: 26 June 1991

1991 No. 150

26 June 1991

rr. 5.2: 2 July 1990

rr. 3.1, 3.5, 3.6, 5.1 and 5.3‑5.5: 1 July 1991

Remainder: 26 June 1991

1991 No. 155

28 June 1991

1 July 1991

1991 No. 458

19 Dec 1991

19 Dec 1991

1992 No. 192

30 June 1992

30 June 1992

1992 No. 218

30 June 1992

1 July 1992

1992 No. 223

1 July 1992

1 July 1992 (see r. 1)

1992 No. 224

30 June 1992

1 July 1992

1992 No. 387

30 Nov 1992

1 July 1992

1992 No. 463

24 Dec 1992

24 Dec 1992

1993 No. 14

29 Jan 1993

29 Jan 1993

1993 No. 33

24 Feb 1993

24 Feb 1993

1993 No. 149

29 June 1993

29 June 1993

1993 No. 189

30 June 1993

30 June 1993

1993 No. 213

3 Aug 1993

r. 3.1 and 19: 24 Dec 1992

rr. 9.1, 9.2 and 13–16: 1 July 1992

r. 9.3: 1 July 1991

r. 10: 26 June 1991

r. 12: 30 July 1993 (see r. 1.5 and Gazette 1993, No. S230)

Remainder: 3 Aug 1993

r. 20

1993 No. 323

6 Dec 1993

r. 4: 30 Nov 1993

Remainder: 1 July 1992

152, 2013

28 June 2013 (see F2013L01264)

Sch 1 (items 19, 20):

1 July 2013

Endnote 4Amendment history

Provision affected

How affected

r 1..........................................

rs No 152, 2013

r. 3.........................................

am. 1989 No. 356; 1990 Nos. 150, 185 and 275; 1991 No. 150; 1992 Nos. 223, 224 and 463; 1993 Nos. 213 and 323

r. 3A......................................

ad. 1989 No. 356

r. 3B.......................................

ad. 1990 No. 275

r. 3C.......................................

ad. 1990 No. 275

r. 3D......................................

ad. 1990 No. 275

r. 3E.......................................

ad. 1992 No. 463

am. 1993 No. 213

r. 3F.......................................

ad. 1992 No. 463

am. 1993 No. 213

r. 3G......................................

ad. 1992 No. 463

r. 4.........................................

am. 1989 No. 356; 1990 Nos. 150 and 275; 1991 No. 148; 1992 No. 192; No 152, 2013

Part IA

Part IA ..................................

ad. 1990 No. 202

r. 4A......................................

ad. 1990 No. 202

am. 1991 No. 148; 1992 No. 463

r. 4B.......................................

ad. 1990 No. 202

am. 1991 Nos. 148 and 458

r. 4C.......................................

ad. 1990 No. 202

r. 4D......................................

ad. 1990 No. 202

am. 1991 No. 148

r. 4DA....................................

ad. 1991 No. 148

r. 4E.......................................

ad. 1990 No. 202

r. 4F.......................................

ad. 1990 No. 202

r. 4G......................................

ad. 1990 No. 202

am. 1991 No. 148

r. 4H......................................

ad. 1990 No. 202

am. 1991 No. 148

r. 4I........................................

ad. 1990 No. 202

am. 1991 No. 148

r. 4J........................................

ad. 1990 No. 202

am. 1991 No. 148

r. 4K......................................

ad. 1990 No. 202

am. 1991 Nos. 58 and 143

r. 4L.......................................

ad. 1990 No. 202

am. 1991 Nos. 148 and 458

r. 4M......................................

ad. 1990 No. 202

am. 1991 No. 148

r. 4N......................................

ad. 1990 No. 202

am. 1991 Nos. 148 and 458; 1992 No. 218

r. 4P.......................................

ad. 1990 No. 202

am. 1991 Nos. 148 and 458

r. 4Q......................................

ad. 1990 No. 202

r. 4R.......................................

ad. 1990 No. 202

r. 4S.......................................

ad. 1990 No. 202

r. 4T.......................................

ad. 1990 No. 202

r. 4U......................................

ad. 1990 No. 202

am. 1991 No. 148

r. 4UA....................................

ad. 1992 No. 463

r. 4V......................................

ad. 1990 No. 202

r. 4W......................................

ad. 1990 No. 202

am. 1991 No. 148

r. 4X......................................

ad. 1990 No. 202

am. 1991 No. 148

r. 4Y......................................

ad. 1990 No. 202

am. 1991 No. 148

r. 4Z.......................................

ad. 1990 No. 202

r. 4ZA....................................

ad. 1990 No. 202

am. 1991 No. 148

r. 4ZB....................................

ad. 1990 No. 202

am. 1991 Nos. 148 and 458; 1992 No. 463

r. 4ZC....................................

ad. 1990 No. 202

am. 1991 No. 148

rep. 1992 No. 463

r. 4ZD....................................

ad. 1992 No. 218

Part II

Heading to Part II....................

rs. 1992 No. 224

Division 1

Heading to Div. 1 of ...............

Part II

ad. 1992 No. 224

r. 5AAA.................................

ad. 1993 No. 33

rs. 1993 No. 213

r. 5AAB.................................

ad. 1993 No. 213

r. 5AAC.................................

ad. 1993 No. 213

r. 5AAD.................................

ad. 1993 No. 213

r. 5AA....................................

ad. 1990 No. 185

am. 1992 Nos. 223 and 463

r. 5AB....................................

ad. 1990 No. 185

r. 5AC....................................

ad. 1990 No. 185

am. 1991 No. 150; 1993 No. 213

r. 5.........................................

rs. 1990 No. 275

r. 6.........................................

am. 1990 No. 150

r. 7.........................................

am. 1990 No. 150

r. 8.........................................

am. 1990 No. 150; 1992 No. 223

r. 8A......................................

ad. 1992 No. 223

am. 1993 No. 213

r. 9.........................................

am. 1989 No. 24; 1990 Nos. 150 and 185; 1991 No. 150; 1992 No.192; 1993 No. 213

r. 10.......................................

am. 1990 No. 150

r. 11.......................................

am. 1989 No. 24; 1990 Nos. 185 and 275

r. 12.......................................

am. 1990 No. 185

r. 13.......................................

am. 1990 No. 150; 1991 No. 150

r. 14.......................................

am. 1990 No. 150

r. 15.......................................

am. 1990 No. 150

r. 16.......................................

am. 1990 Nos. 150 and 185

r. 16A.....................................

ad. 1990 No. 185

r. 16B.....................................

ad. 1993 No. 14

r. 17.......................................

am. 1990 Nos. 150, 202 and 275; 1991 No. 148; 1992 No. 224; 1993 No. 149

r. 17A.....................................

ad. 1990 No. 185

r. 18.......................................

rs. 1990 No. 149

r. 18A.....................................

ad. 1990 No. 202

am. 1991 No. 148

r. 18B.....................................

ad. 1990 No. 202

am. 1991 No. 148; 1992 No. 223; 1993 No. 213

r. 18BA..................................

ad. 1993 No. 189

r. 18BB..................................

ad. 1993 No. 189

am. 1993 No. 323

Division 2

Div. 2 of Part II ......................

ad. 1992 No. 224

r. 18C.....................................

ad. 1992 No. 224

r. 18D.....................................

ad. 1992 No. 224

r. 18DA..................................

ad. 1992 No. 387

r. 18E.....................................

ad. 1992 No. 224

am. 1992 No. 387

r. 18F.....................................

ad. 1992 No. 224

r. 18G.....................................

ad. 1992 No. 224

r. 18H.....................................

ad. 1992 No. 224

r. 18I......................................

ad. 1992 No. 224

r. 18J......................................

ad. 1992 No. 224

r. 18K.....................................

ad. 1992 No. 224

r. 18L.....................................

ad. 1992 No. 224

r. 18M....................................

ad. 1992 No. 224

r. 18N.....................................

ad. 1992 No. 224

r. 18O.....................................

ad. 1992 No. 224

r. 18P.....................................

ad. 1992 No. 224

Subdiv. F of Div. 2..................

of Part II

ad. 1992 No. 223

r. 18Q.....................................

ad. 1992 No. 223

am. 1993 No. 213

r. 18QA..................................

ad. 1993 No. 213

r. 18R.....................................

ad. 1992 No. 223

r. 18S.....................................

ad. 1992 No. 223

Division 3

Div. 3 of Part II ......................

ad. 1992 No. 223

r. 18T.....................................

ad. 1992 No. 223

rr. 18U–18X...........................

ad. 1992 No. 223

rep. 1993 No. 213

r. 18Y.....................................

ad. 1992 No. 223

rs. 1993 No. 213

r. 20.......................................

am. 1990 No. 202

r. 21.......................................

am. 1990 Nos. 150 and 275; 1993 No. 213

r. 23.......................................

rs. 1990 No. 149

Part IIIA

Part IIIA ................................

ad. 1989 No. 356

r. 23A.....................................

ad. 1989 No. 356

r. 23B.....................................

ad. 1989 No. 356

r. 23C.....................................

ad. 1989 No. 356

r. 23D.....................................

ad. 1989 No. 356

r. 23E.....................................

ad. 1989 No. 356

r. 23F.....................................

ad. 1989 No. 356

r. 23G.....................................

ad. 1989 No. 356

r. 23H.....................................

ad. 1989 No. 356

r. 23I......................................

ad. 1989 No. 356

r. 23J......................................

ad. 1989 No. 356

r. 23K.....................................

ad. 1989 No. 356

r. 23L.....................................

ad. 1989 No. 356

r. 23M....................................

ad. 1989 No. 356

r. 23N.....................................

ad. 1989 No. 356

r. 23O.....................................

ad. 1989 No. 356

r. 23P.....................................

ad. 1989 No. 356

Part 3B

Part 3B ..................................

ad. 1993 No. 149

r. 23PA...................................

ad. 1993 No. 149

r. 23PB...................................

ad. 1993 No. 149

r. 23PC...................................

ad. 1993 No. 149

r. 23PD...................................

ad. 1993 No. 149

r. 23PE...................................

ad. 1993 No. 149

r. 23PF...................................

ad. 1993 No. 149

r. 23PG...................................

ad. 1993 No. 149

r. 23PH...................................

ad. 1993 No. 149

r. 23PI....................................

ad. 1993 No. 149

r. 23PJ....................................

ad. 1993 No. 149

r. 23PK...................................

ad. 1993 No. 149

r. 23PL...................................

ad. 1993 No. 149

r. 23PM..................................

ad. 1993 No. 149

r. 23PN...................................

ad. 1993 No. 149

r. 23PO...................................

ad. 1993 No. 149

r. 23PP...................................

ad. 1993 No. 149

r. 23PQ...................................

ad. 1993 No. 149

r. 23PR...................................

ad. 1993 No. 149

r. 23PS...................................

ad. 1993 No. 149

r. 23PT...................................

ad. 1993 No. 149

r. 23Q.....................................

ad. 1990 No. 275

r. 24.......................................

rs. 1989 No. 356

am. 1991 No. 16

r. 25.......................................

rs. 1989 No. 356

am. 1990 No. 275

r. 25A.....................................

ad. 1991 No. 155

r. 26.......................................

ad. 1990 No. 275

Schedule

Schedule.................................

am. 1988 No. 255; 1989 No. 356

Form 1...................................

1987 No. 322

rs. 1989 No. 356

Form 2...................................

1987 No. 322

rs. 1988 No. 255

Form 3...................................

1987 No. 322

rs. 1988 No. 255

Form 4...................................

ad. 1989 No. 356

Schedule 1A

Schedule 1A...........................

ad. 1992 No. 463

am. 1993 No. 213

Schedule 2

Schedule 2..............................

ad. 1990 No. 202

am. 1991 No. 148

Schedule 3

Heading to Schedule 3.............

rs. 1991 No. 148

Schedule 3..............................

ad. 1990 No. 202

am. 1991 Nos. 148 and 458

Schedule 4

Schedule 4..............................

ad. 1990 No. 202

rs. 1991 No. 148

Schedule 5

Heading to Schedule 5.............

rs. 1991 No. 148; 1992 No. 218

Schedule 5..............................

ad. 1990 No. 202

am. 1991 No. 148; 1992 No. 218

Schedule 6

Schedule 6..............................

ad. 1990 No. 202

Schedule 7

Schedule 7..............................

ad. 1990 No. 202

Schedule 8

Schedule 8..............................

ad. 1992 No. 224

Schedule 9

Schedule 9..............................

ad. 1992 No. 223

Form 1...................................

ad. 1992 No. 223

Form 2...................................

ad. 1992 No. 223

Endnote 5Uncommenced amendments [none]Endnote 6Modifications

Superannuation Industry (Supervision) (Transitional Provisions) Regulations 1993

Superannuation Industry (Supervision) Regulations 1994

Endnote 7Misdescribed amendments [none]Endnote 8Miscellaneous [none]
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