Occupational Superannuation Standards Regulations (Amendment) (Cth)
I, THE GOVERNOR-GENERAL of the Commonwealth of
Australia, acting with the advice of the Federal Executive Council, make the
following Regulations under the
Dated 19 June 1991.
BILL HAYDEN
Governor-General
By His Excellency’s Command,
R. McMULLAN
Parliamentary Secretary to the Treasurer
for and on behalf of the
Treasurer
____________
1.1 Regulation 9 commences on 1 July 1991.
2.1 The Occupational Superannuation Standards Regulations are amended as set out in these Regulations.
3.1 Paragraph 4 (1) (ab):
Omit the paragraph, substitute:
“(ab) the Auditors-General of the Commonwealth, the States and the Territories;”.
4.1 Subregulation 4a (1) (definition of “accrued retirement benefit component”, definition of “Pension Days”):
Omit the definition of “Pension Days”, substitute:
“
(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
in any other case—0;”.
4.2 Subregulation 4a (1) (definition of “gainful employment”, paragraph (a)):
Omit “year”, substitute “year multiplied by 52”.
4.3 Subregulation 4a (1) (definition of “net business income”):
Omit “Division 16c of Part III”, substitute “section 82aac or 82aat, or Division 16c of Part III,”.
4.4 Subregulation 4a (1) (definition of “net business losses”):
Omit “Division 16c of Part III”, substitute “section 82aac or 82aat, or Division 16c of Part III,”.
4.5 Subregulation 4a (1) (definition of “pension RBL”, paragraph (a)):
Omit the paragraph, substitute:
“(a) the amount calculated by multiplying the person’s HAS by the person’s pension reasonable benefit multiple; or”.
4.6 Subregulation 4a (1):
After the definition of “pre-July 1983 component” insert:
“
4.7 Subregulation 4a (1) (definition of “salary”):
Add at the end:
“or (i) a payment to which section 26ac or 26ad of the Tax Act applies;”.
4.8 Subregulation 4a (1) (definition of “standard indexation rate”):
Omit the definition, substitute:
“
4.9 Paragraph 4a (2) (a):
Omit the paragraph, substitute:
“(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”.
5.1 Paragraph 4b (1) (b):
Omit “2 full”, substitute “2 full consecutive”.
5.2 After sub-subparagraph 4b (2) (c) (i) (e):
“or (f) an ETP paid on or after 1 January 1992 to which subsection 27a (12b) or (12e) of the Tax Act applies; or
(g) an ETP paid on or after 1 January 1992 that the Commissioner determines to be in excess of reasonable benefit limits;”.
5.3 Subregulation 4b (3):
Omit “The HAS”, substitute “Subject to subregulation (3a), the HAS”.
5.4 Subparagraph 4b (3) (b) (ii):
Omit the subparagraph, insert:
“(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;”.
5.5 Paragraphs 4b (3) (d) and (e):
Omit the paragraphs, substitute:
“(d) if paragraph (2) (d) applies and the benefit was paid before 1 January 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 January 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 January 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 January 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.”.
5.6 After subregulation (3) insert:
“(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.”.
5.7 Subregulation 4b (5):
Omit “subregulation (2)” (second occurring), substitute “subregulation (3)”.
6.1 Before subregulation 4d (1) insert:
“(1a) In
this regulation,
6.2 Subregulation 4d (1):
Omit “subregulation (2),”, substitute “subregulations (2) and (3),”.
6.3 Subregulation 4d (1) (formula):
Omit “
6.4 Subregulation 4d (1) (definition of “Annual Value”):
Omit the definition, substitute:
“
6.5 After subregulation 4d (2) insert:
“(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:
x
where:
In subregulation (3),
7.1 After regulation 4d insert in Division 1 of Part 1A:
“4da. (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.
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.”.
8.1 After subregulation 4g (1) insert:
“(1a) For the purposes of subsection 15g (1) of the Act, the tax file number of the payer is prescribed information.”.
9.1 Omit “$2,500”, substitute “$5,000”.
10.1 Subregulation 4j (1):
After “28 days” insert “or such longer period as the Commissioner reasonably allows”.
10.2 Add at the end:
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.”.
11.1 Paragraph 4k (5) (a):
Omit “application for revision is received before 1 May 1991”, substitute “applicant has applied to the Commissioner before 1 May 1991 for revision of the determination”.
11.2 Paragraph 4k (5) (b):
Omit “application for revision is received on or after 1 May 1991”, substitute “applicant has applied to the Commissioner on or after 1 May 1991 for revision of the determination”.
12.1 Subregulation 4l (1):
Add at the end:
“and (c) in the case of a benefit paid on or after 1 January 1992 that is referred to in subregulation (3)—the value of the RBL amount of any ETP, pension or annuity of that kind”.
13.1 Paragraph 4m (a):
After “HAS” insert “and paragraph 4w (1) (ba) does not apply”.
13.2 Paragraph 4m (e):
Omit the paragraph, substitute:
“(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;”.
13.3 Paragraph 4m (j):
Omit the paragraph, substitute:
“(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;”.
13.4 Paragraph 4m (m):
Omit the paragraph, substitute:
“(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.”.
14.1 Subregulation 4n (1):
Omit “subsection 15m (1)”, substitute “subsection 15n (1)”.
15.1 Subregulation 4p (1):
Omit “previously”.
15.2 Subregulation 4p (1):
Omit all words following paragraph 4p (1) (n), substitute:
“(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;
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.”.
15.3 Subregulation 4p (2):
After “received by the person” insert “, not including an amount that has been determined under paragraph 4w (1) (a) or (b) to exceed the reasonable benefit limits”.
15.4 Subregulation 4p (3):
Omit “Where:”, substitute “If, before 1 January 1992:”.
15.5 Paragraphs 4p (3) (a) and (b):
After “superannuation pension” insert “that has commenced to be paid”.
15.6 After subregulation 4p (3) insert:
“(3a) If, on or after 1 January 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:
(a) in a case in which the amount rolled-over is rolled-over within 12 months of the commencement of the payment of a superannuation pension to the person—the amount rolled-over, other than undeducted contributions and concessional components; or
(b) in any other case—the amount worked out using the formula:
eq
where:
‘ROA’ is the amount rolled-over, other than undeducted contributions and concessional components;
‘QIN 1 ’ is theindex number for the quarter 2 quarters before the quarter when the roll-over of the residual capital value of the superannuation pension referred to in paragraph (3a) (a) or the roll-over of the commutation referred to in paragraph (3a) (b) occurred;
‘QIN 2 ’ is theindex number for the quarter when the commencement day of the superannuation pension occurs.”.
15.7 Subregulation 4p (4):
Omit “Where:”, substitute “If, in respect of a benefit payable before 1 January 1992:”.
15.8 After subregulation 4p (4) insert:
“(4a) If a person:
(a) rolls-over an amount that represents the whole or a part of the residual capital value of an annuity paid on or after 1 January 1992; or
(b) commutes the whole or a part of an annuity paid on or after 1 January 1992 and rolls-over the whole or a part of the resulting ETP;
the amount taken into account under paragraph (2) (c) is to be reduced by so much of the adjustment amount specified in subregulation (4b) as does not exceed the amount referred to in paragraph (2) (c).
“(4b) The adjustment amount referred to in subregulation (4a) is:
(a) in a case in which the amount rolled-over is rolled-over within 12 months of the commencement of the payment of an annuity to the person—the amount rolled-over, other than undeducted contributions and concessional components; or
(b) in any other case—the amount worked out using the formula:
eq
where:
‘ROA’ is the amount rolled-over, other than undeducted contributions and concessional components;
‘QIN 1 ’ is theindex number for the quarter 2 quarters before the quarter when the roll-over of the residual capital value of the annuity referred to in paragraph (4a) (a) or the roll-over of the commutation referred to in paragraph (4a) (b) occurred;
‘QIN 2 ’ is theindex number for the quarter when the commencement day of the annuity occurs.”.
15.9 Subparagraph 4p (5) (a) (i):
After “ETP—”, insert “the benefit”.
15.10 Paragraph 4p (6) (c):
Omit “4za (c) or (d)”, substitute “4za (1) (c) or (d)”.
15.11 Paragraph 4p (6) (d):
Omit the paragraph, substitute:
the sum of:
(i) the amount of an ETP to which subregulation (2) applies, other than any part that consists of undeducted contributions, concessional components, non-qualifying components or excessive components; and
(ii) the amount of the capital value of a superannuation pension to which subregulation (2) applies, other than any part that has been determined under paragraph 4w (1) (a) or (b) to exceed the reasonable benefit limits; and
(iii) the amount of an ETP (other than any part that consists of undeducted contributions or concessional components) that was rolled-over to purchase an annuity to which subregulation (2) applies, other than any part that has been determined under paragraph 4w (1) (a) or (b) to be in excess of the reasonable benefit limits;
is less than the amount applicable to the person under paragraph 4za (1) (c) or (d);”.
15.12 Subregulation 4p (6):
Omit “subparagraph (d) (ii)”, substitute “paragraph (d)”.
16.1 Paragraph 4u (a):
Omit “employer:”, substitute “employer—the sum of:”.
16.2 Add at the end:
In this regulation:
(a) in relation to a body corporate, a director or other officer, however described, of that body; and
a person engaged under a contract for services.”.
17.1 Subregulation 4w (1):
After paragraph 4w (1) (b) insert:
if the sum of:
(i) the amounts to be taken into account under regulation 4p in relation to the person; and
(ii) the RBL amount of the ETP, pension or annuity;
is less than, or equal to:
(iii) in a case to which regulation 4x or 4z applies—the reasonable benefit limits referred to in:
(a) subparagraph (a) (ii) or (b) (ii) of the definition of ‘lump sum RBL’ in subregulation 4a (1); or
(b) paragraph (b) of the definition of ‘pension RBL’ in subregulation 4a (1);
whichever is applicable; or
(iv) in a case to which regulation 4za or 4zb applies—the reasonable benefit limits applicable in accordance with that regulation;
the Commissioner is to determine that the whole of the ETP, pension or annuity is within the reasonable benefit limits; or”.
17.2 Paragraph 4w (1) (c):
Omit “those limits”, substitute “the reasonable benefit limits”.
17.3 Subregulation 4w (2):
Omit “Subject to subregulation (3), where:”, substitute “If:”.
17.4 Paragraph 4w (2) (b):
Omit the paragraph, substitute:
“(b) the benefit is not a benefit referred to in paragraph 4p (1) (g), (h) or (o) or subparagraph 4p (1) (q) (i);”.
17.5 Subregulation 4w (3):
Omit the subregulation.
18.1 Subregulation 4x (1):
Omit “A benefit”, substitute “Subject to subregulations (2) and (3), a benefit”.
18.2 Subparagraph 4x (1) (a) (iv):
Omit the subparagraph, substitute:
“(iv) the sum of the qualifying portions of all benefits previously paid or payable to the person and the amount referred to in subparagraph (i); or”.
18.3 Subparagraph 4x (1) (b) (i):
Omit the subparagraph, substitute:
“(i) the amount that is:
(a) the capital value of the superannuation pension; or
(b) the amount of the ETP rolled-over to purchase the annuity (other than any part that consists of undeducted contributions or concessional components);
as the case requires; and”.
18.4 Subparagraph 4x (1) (b) (iii):
Omit the subparagraph, substitute:
“(iii) the sum of the qualifying portions of all benefits previously paid or payable to the person and the amount referred to in subparagraph (i); or”.
18.5 Subparagraph 4x (1) (c) (i):
Omit the subparagraph, substitute:
“(i) the amount that is:
(a) the capital value of the superannuation pension; or
(b) the amount of the ETP rolled-over to purchase the annuity (other than any part that consists of undeducted contributions or concessional components);
as the case requires; and”.
18.6 Subparagraph 4x (1) (c) (iv):
Omit the subparagraph, substitute:
“(iv) the sum of the qualifying portions of all benefits previously paid or payable to the person and the amount referred to in subparagraph (i); or”.
18.7 Subregulation 4x (2):
Omit the subregulation, substitute:
If, before the attainment by a person referred to in subregulation (1) of the age of 55 years:
the person had previously received an ETP; or
(b) the commencement day of a superannuation pension or annuity payable to the person that does not meet the pension or annuity standards occurred;
the reference in that subregulation to 50% of the sum of the qualifying portions of all benefits previously paid or payable to the person and the amount referred to in subparagraph (1) (a) (i), (b) (i) or (c) (i), as the case may be, is a reference to:
(c) 50% of the total of the sum of the qualifying portions of all benefits previously paid or payable to the person (other than undeducted contributions, concessional components or non-qualifying components) and the amount referred to in subparagraph (1) (a) (i), (b) (i) or (c) (i), as the case may be; or
the person’s lump sum RBL;
whichever is the lesser.
“(3) If:
(a) any of the paragraphs of subregulation (1) applies to a person; and
(b) the total of:
(i) the value of a superannuation pension or annuity that has commenced to be paid (in this subregulation called
‘the value of the current benefit’ ), or the ETP paid, to that person; and(ii) the sum of the qualifying portions of all benefits previously paid or payable to the person;
is greater than the person’s pension RBL;
the amount to be assessed against the lump sum RBL is the amount of the value of the current benefit or ETP less the amount by which that total exceeds the person’s pension RBL.”.
19.1 Paragraph 4y (1) (b):
After “value of the pension” insert “(other than any part that has been determined under paragraph 4w (1) (a) or (b) to exceed the reasonable benefit limits)”.
19.2 Paragraph 4y (1) (c):
Omit the paragraph, substitute:
“(c) in the case of an annuity—the amount worked out using the formula:
eq
where:
‘ROA’ is the amount of the ETP rolled-over to purchase the annuity;
‘UCC’ is any part of that amount that consists of undeducted contributions or concessional components;
‘EP’ is any part of that amount that has been determined under paragraph 4w (1) (a) or (b) to exceed the reasonable benefit limits;
‘QIN 1 ’ is the index number for the quarter 2 quarters before the quarter in which the current benefit was paid or in which the commencement day of the current benefit occurs;
‘QIN 2 ’ is the index number for the quarter in which the commencement day of the annuity occurs.”.
19.3 Add at the end:
For the purposes of this regulation, a benefit that is referred to in subregulation 4p (1) does not have a qualifying portion.”.
20.1 Sub-subparagraph 4za (1) (c) (ii) (B):
Omit “or”, substitute “and”.
20.2 After subparagraph 4za (1) (c) (ii), insert:
“(iii) the amount of earnings on the amount referred to in subparagraph (ii); or”.
21.1 Omit “Where:”, substitute “If, in respect of a benefit paid before 1 January 1992:”.
21.2 Add at the end:
If, in respect of a benefit payable on or after 1 January 1992:
(a) the Commissioner is to make a determination under regulation 4w in relation to a superannuation pension that:
(i) has commenced to be paid to a person; and
(ii) is in accordance with regulation 4zc; and
(b) the pension is payable by a superannuation fund of which the person was a member on 15 August 1989;
the person’s reasonable benefit limits are the greater of the person’s lump sum RBL or pension RBL (whichever of those is applied under regulation 4x or 4z) and the capital value of the pension under the governing rules of the fund as at 15 August 1989.”.
22.1 Subparagraph 4zc (b) (i):
Omit the subparagraph, substitute:
“(i) after the commencement day, the benefit is to be payable throughout the life of the beneficiary (in this regulation called
‘primary beneficiary’ ) and, if there is a reversionary beneficiary, throughout the life of the reversionary beneficiary; and”.
22.2 Subparagraph 4zc (c) (ii):
Omit “equal to”, substitute “not exceeding”.
22.3 Subparagraph 4zc (e):
Omit the paragraph, substitute:
“(e) the benefit does not have a reversionary component greater than 100% of the pension or annuity that was payable before:
(i) the reversion; or
(ii) any commutation of the pension or annuity;”.
23.1 Subparagraph 17 (1) (e) (i):
Add at the end “and”.
23.2 Subparagraphs 17 (1) (f) (i) and (iii):
Add at the end “and”.
23.3 Subparagraph 17 (1) (f) (iv):
Omit “clause 2”, substitute “paragraph 2 (a)”.
23.4 Paragraph 17 (1) (h):
Omit “is”, substitute “are”.
24.1 Omit “A superannuation”, substitute “For the purposes of subsection 7 (1) of the Act, a superannuation”.
25.1 Subregulation 18b (1):
Omit “subsection 7 (2)”, substitute “subsection 7 (1)”.
25.2 Subregulations 18b (3) and (4):
Omit the subregulations, substitute:
A superannuation fund must not accept a contribution towards a superannuation pension or an ETP for a person, unless:
the person:
(i) has not turned 65; or
(ii) if the governing rules of the fund as at 30 June 1990 provide that the person must retire for the purposes of the fund not later than 12 months after the person turns 65—has not reached the age at which he or she must retire for those purposes; or
(b) the contribution is made by the employer in relation to the member in accordance with a prescribed agreement or award.
Subject to subregulation (4a), subregulation (6) has effect in relation to a person who was at least:
(a) 60 years old on 1 July 1990; and
(b) 65 years old at the time referred to in that subregulation;
as if references in that subregulation to the age of 65 years were references to the age of 70 years.
“(4a) If, in accordance with guidelines issued by the Commissioner that were current as at:
(a) 25 May 1988; or
(b) the day when the fund was constituted (if the fund was constituted after 25 May 1988 and before 1 July 1990);
the acceptance of contributions in relation to persons on the basis of a retirement age of less than 65 years was permitted, subregulation (6) has effect until 30 June 1995 in relation to the person as if references in that subregulation to the age of 65 years were references to the lower age so permitted.”.
25.3 Subparagraph 18b (5) (a) (i):
Omit the subparagraph, substitute:
“(i) the amount worked out by multiplying the person’s HAS by the person’s pension reasonable benefit multiple using an eligible service period ending:
(a) in a case to which subregulation (4a) applies—at the end of the day on when the person turns the lower age referred to in that paragraph; or
(b) in any other case—at the end of the day when the person turns 65; or”.
25.4 Subparagraph 18b (5) (a) (iii):
Omit the subparagraph, substitute:
“(iii) the amount worked out by multiplying 90% of the person’s salary as last advised to the trustees of the fund by an employer of the person of whom the person is not an associate by the number that would be the person’s pension reasonable benefit multiple, if it were worked out using:
(a) in a case to which subregulation (4a) applies—an eligible service period ending at the end of the day when the person turns the lower age referred to in that subregulation; or
(b) in any other case—an eligible service period ending at the end of the day when the person turns 65;
and as if the person’s HAS were 90% of that salary; and”.
25.5 Subparagraph 18b (5) (b) (i):
Omit the subparagraph, substitute:
“(i) the amount worked out by multiplying the person’s HAS by the person’s lump sum reasonable benefit multiple using an eligible service period ending:
(a) in a case to which subregulation (4a) applies—at the end of the day when the person turns the lower age referred to in that subregulation; or
(b) in any other case—at the end of the day when the person turns 65; or”.
25.6 Subparagraph 18b (5) (b) (iii):
Omit the subparagraph, substitute:
“(iii) the amount worked out by multiplying 90% of the person’s salary as last advised by an employer of the person of whom the person is not an associate, by the number that would be the person’s lump sum reasonable benefit multiple if it were worked out using:
(a) in a case to which subregulation (4a) applies—an eligible service period ending at the end of the day when the person turns the lower age referred to in that subregulation; or
(b) in any other case—an eligible service period ending at the end of the day on when the person turns 65;
and as if the person’s HAS were 90% of that salary.”.
25.7 Subregulation 18b (6):
Omit “a person’s maximum funding limit”, substitute “the maximum funding limit of a person, other than a person referred to in subregulation (6a)”.
25.8 Subregulation 18b (6) (definition of “AGE”, paragraph (b)):
Omit “and”, substitute:
“or (c) if subregulation (4a) applies to the person:
(i) 5 less than the lower age in years referred to in that subregulation; or
(ii) the person’s age in days at that time or on the day when the person joined the fund, whichever is the later, divided by 365;
whichever is the lower; and”.
25.9 After subregulation 18b (6), insert:
“(6a) For the purposes of this regulation, the maximum funding limit of a person who has commenced to receive a superannuation pension from a superannuation fund is 0.”.
25.10 Subregulation 18b (7):
Omit the subregulation, substitute:
The maximum deductible contributions that may be accepted by a defined benefit superannuation fund in respect of all members of the fund is:
(a) for the period from the beginning of 1 July 1990 to the end of the year of income of the fund when the first calculation day on or after 1 July 1990 occurs—the amount worked out in accordance with the rate determined by an actuary as at the last calculation date before 1 July 1990; and
(b) for a particular year of income in each period of 3 years of income of the fund the first of which commences immediately after the year of income referred to in paragraph (a)—the amount worked out in accordance with subregulation (7a) in respect of the year.
“(7a) The amount referred to in paragraph (7) (a) or (b) is an amount worked out in accordance with the formula:
x
where:
(a) the sum of the salary amounts of all members of the fund as at the beginning of of that year; and
(b) the sum of the salary amounts of each person who became a member of the fund between the beginning and the end of that year, as at the day when the person became a member.”.
25.11 Subregulation 18b (8) (definition of “AMV”, paragraph (c)):
Omit the paragraph, substitute:
“(c) the cost or the surrender value, whichever is the greater, of any other life policies that the fund holds, not being policies that are in the form of units:
(i) to which value is added at rates that:
(a) are determined by the insurers concerned from time to time; and
(b) are used to fix unit prices; or
(ii) the value of which is directly related to the value of assets specified in the respective policies; and”.
25.12 Subregulation 18b (8) (definition of “B”):
Omit the definition, substitute:
“
postponed retirements; and
(b) deferred benefits for former members or dependants of former members; and
(c) pensions payable to existing members, dependants of existing members or dependants of former members;
as at the calculation day; and”.
25.13 Subregulation 18b (8) (definition of “D”):
Omit the definition, substitute:
“
the sum of:
(i) the expected cost to the fund during the year of income, from the beginning of the calculation day, of insurance premiums in respect of death or permanent disability benefits; and
(ii) the amount determined by an actuary as the cost to the fund during that year of meeting the liability referred to in paragraph 279 (2) (b) of the Tax Act (in this definition called
‘self insurance’ );to cover the difference between the sum of the reasonable benefit limits of all members of the fund, as at the calculation day, and AMV in the formula; and
the sum of:
(i) the expected cost to the fund during that year of insurance premiums; and
(ii) the amount determined by an actuary as the cost to the fund during that year of self insurance;
to cover the payment of salary continuance benefits to which component G in the formula does not apply; and”.
25.14 Subregulation 18b (9) (definition of “AMV”, paragraph (c)):
Omit the paragraph, substitute:
“(c) the cost or the surrender value, whichever is the greater, of any other life policies that the fund holds, not being policies that are in the form of units:
(i) to which value is added at rates that:
(a) are determined by the insurers concerned from time to time; and
(b) are used to fix unit prices; or
(ii) the value of which is directly related to the value of assets specified in the respective policies; and”.
25.15 Subregulation 18b (9) (definition of “B”):
Omit the definition, substitute:
“
postponed retirements; and
(b) deferred benefits for former members or dependants of former members; and
(c) pensions payable to existing members, dependants of existing members or dependants of former members;
by the member’s pro rata factor for the current year of income; and”.
25.16 Subregulation 18b (9) (definition of “D”):
Omit the definition, substitute:
“
the sum of:
(i) the expected cost to the fund during the current year of income of insurance premiums in respect of death or permanent disability benefits; and
(ii) the cost to the fund during that year of meeting the liability referred to in paragraph 279 (2) (b) of the Tax Act (in this definition called
‘self insurance’ );to cover the difference between the member’s reasonable benefit limits and the member’s account balance as at the beginning of the year of income; and
the sum of:
(i) the expected cost to the fund during the current year of income of insurance premiums; and
(ii) the cost to the fund during that year of self insurance;
to cover the payment to the member of salary continuance benefits to which component G in the formula does not apply; and”.
25.17 Subregulation 18b (14) (definition of “period to retirement”):
Omit the definition, substitute:
“
5 or the number worked out by dividing by 365:
(i) in a case to which subregulation (4) or (4a) applies—the number of days before the member reaches the age applicable to him or her under that subregulation; or
(ii) in any other case—the number of days before the member turns 65;
whichever is the lower number; or
(b) if the number ascertained in accordance with paragraph (a) is less than 1, 1.”.
25.18 Subregulation 18b (14) (definition of “salary amount”):
Omit the definition, substitute:
“
25.19 Subregulation 18b (14):
Insert the following definitions:
“
is not a superannuation pension; and
(b) is not payable on or after the day when the member turns 65.”.
26.1 Clause 1 (definitions of “account balance” and “converted pension multiple”):
Omit the definitions, substitute:
“
amounts that have not vested in the member; and
if the fund is sponsored by the employer of the member:
(i) any amount paid by the employer in accordance with a prescribed agreement or award; and
(ii) the amount of the net earnings of the fund in respect of an amount referred to in subparagraph (i);
25 May 1988; or
(b) the day when the fund was constituted (if the fund was constituted after 25 May 1988 but before 1 July 1990);
means the number worked out by multiplying the multiple applicable to the pension under the governing rules of the superannuation fund concerned by the pension valuation factor applicable to the pension under Schedule 3 as at the retirement age applicable to the fund;”.
26.2 Clause 1 (definition of “maximum fund multiple”):
Omit all the words after paragraph (c), substitute:
“that could have been applicable to the person at any time up to the retirement age of the fund under the governing rules of the fund as at:
25 May 1988; or
(e) the day when the fund was constituted (if the fund was constituted after 25 May 1988 but before 1 July 1990);”.
26.3 Clause 1:
After the definition of “maximum fund multiple” insert:
“
26.4 Clause 1 (definition of “private sector fund”):
Omit the definition, substitute:
“
(a) to which section 23f of the Tax Act would have applied on:
(i) 25 May 1988; or
(ii) the day when the fund was constituted (if the fund was constituted after 25 May 1988 but before 1 July 1990);
if that section had not been repealed; and
(b) that the Commissioner or the Commissioner of Taxation had approved in writing to provide benefits for a person in excess of the reasonable benefit limits that were current as at 25 May 1988;”.
26.5 Clause 1 (definition of “retirement age”):
Omit the definition, substitute:
“
in the case of a defined benefit:
(i) if the governing rules of the superannuation fund as at:
(a) 25 May 1988; or
(b) the day when the fund was constituted (if the fund was constituted after 25 May 1988 but before 1 July 1990);
specified a maximum retirement age—that age; or
(ii) where that defined benefit is based on a period of service:
(a) if the fund is not a lump sum fund—the age of the member at which the highest value is obtained by multiplying the pension multiple applicable to him or her under those rules on the relevant date under subparagraph (i) by the relevant pension valuation factor; or
(b) if the fund is a lump sum fund—the age of the member at which the greatest lump sum multiple is so applicable; or
(c) if the fund is not a lump sum fund but does not provide pension benefits—the age of the member at which the greatest lump sum multiple is so applicable; and
in the case of a benefit that is not a defined benefit:
(i) if the governing rules of the superannuation fund as at:
(a) 25 May 1988; or
(b) the day when the fund was constituted (if the fund was constituted after 25 May 1988 but before 1 July 1990);
specified a maximum retiring age—that age; or
(ii) 65 years;”.
26.6 Clause 1:
Add at the end:
In this Schedule, unless the contrary intention appears, an expression has the same meaning as in subregulation 4a (1).”.
26.7 Subclause 3 (3):
Omit the subclause.
26.8 Paragraph 4 (a):
Omit “or (3)”.
26.9 Paragraph 4 (c)
Omit the paragraph, substitute:
the person’s maximum fund multiple:
(i) as at 30 June 1990; or
(ii) if a higher maximum fund multiple was applicable to the person as at an earlier date—as at the earlier date; or”.
26.10 Clause 6:
Omit “The calculation”, substitute “Subject to subclause (2), the calculation”.
26.11 Clause 6 (definitions of “P”, “Q” and “N”):
Omit the definitions, substitute:
“
(a) in the case of a person who is a member of the fund as a result of having deferred any of his or her benefits in that fund—0; or
(b) in any other case—the total proportion of the person’s salary (expressed as a decimal number) that was:
(i) contributed to the fund during the financial year ending on 30 June 1990 (including any employer contributions); or
(ii) the highest proportion contributed to the fund during any earlier financial year (including any employer contributions);
whichever is the higher, and includes any amount paid by the employer in accordance with a prescribed agreement or award; and
if that person:
(i) was a member of the fund on 1 July 1990; and
(ii) had deferred any of his or her benefits in the fund before 1 July 1990;
by dividing the person’s account balance on 1 July 1990 by an amount obtained by:
(iii) multiplying the person’s salary on the date of deferral by the index number for the June quarter of the financial year that began on 1 July 1989; and
(iv) dividing the product of that multiplication by the index number for the March quarter of the financial year in which the benefits were deferred; or
(b) if the person ceased to be a member of the fund before 1 July 1990—by dividing the person’s account balance on the day when his or her membership ceased by his or her salary on the day when he or she ceased to be a member; or
(c) in any other case—by dividing the person’s account balance on 1 July 1990 by his or her salary on that day; and
beginning:
(i) if the person ceased to be a member of a superannuation fund before 1 July 1990—on the day when that person ceased to be a member of the fund; or
(ii) in any other case—on 30 June 1990; and
(b) ending at the end of the day when the person reaches the age that is his or her retirement age for the purposes of the fund;
counting part of a year as a whole year.”.
26.12 Clause 6:
Add at the end:
If the governing rules of a superannuation fund of which a person is a member require the contributions to the fund in respect of the person to increase after 30 June 1990, the calculation is to be made in relation to that person by:
(a) adding together the amounts worked out, in accordance with subclause (3), in relation to the person separately in respect of each year from 1 July 1990 to the day on which he or she reaches the age that is his or her retirement age, counting part of a year as a whole year: and
(b) adding to the amounts referred to in paragraph (a) the amount specified in subregulation (4).
The amount referred to in paragraph
(2) (a) to be worked out in relation to a person in respect of a year (in
this subclause called
x
where:
the number of years in the period that:
(i) began on 1 July 1990; and
(ii) ended at the end of the relevant year; or
whichever is the lower number; and
The amount referred to in paragraph (2) (b) is an amount worked out using the formula:
x
where
26.13 Clause 8:
Omit the clause, substitute:
If a defined benefit superannuation fund could have provided a combination of defined benefits and other benefits to a person under the governing rules of the fund, as at:
25 May 1988; or
(b) the day when the fund was constituted (if the fund was constituted after 25 May 1988 but before 1 July 1990);
the old RBM applicable to a person to whom a benefit is paid, or commences to be paid, by the fund is:
the sum of:
(i) the person’s maximum fund multiple; and
(ii) the multiple that would be calculated under clause 6 or 7; or
(d) the greater of the numbers calculated under clauses 4 and 5;
whichever is the greater.”.
26.14 Clause 9:
Omit the clause, substitute:
“9. (1) If:
either:
(i) an ETP is paid to a person out of a private sector fund or a public sector superannuation fund before the person turns 55; or
(ii) a superannuation pension or annuity that does not meet the pension or annuity standards commences to be paid to a person out of a private sector fund or a public sector superannuation fund and the commencement day of the pension or annuity occurs before the person turns 55; and
(b) the age at which the person may retire under the rules of that fund is less than 55;
the old RBM of the person is the number worked out using the formula:
where:
26.15 Clause 10:
Omit the clause, substitute:
If a fund specifies benefits payable to a member in terms of the member’s final salary or in similar terms, the multiple of salary is, for the purposes of this Schedule, to be converted into a multiple of the person’s HAS using the formula:
where:
27.1 Omit the heading, substitute:
“
PENSION VALUATION FACTORS”.
27.2 Before clause 1 insert:
“1a. In this Schedule, unless the contrary intention appears, an expression has the same meaning as in subregulation 4a (1).”.
27.3 Clause 6:
Omit “the Consumer Price Index”, substitute “a price index”.
27.4 After clause 6, insert:
Subject to clause 8, if the governing rules of a superannuation fund provide for a pension to be indexed at the discretion of the trustees of the fund, the pension valuation factor is to be determined as if the indexation rate were a rate worked out by:
(a) adding together the indexation rates determined by the trustees for pensions of same kind as that pension in respect of each year in the period of 5 years of which the year of income in which the pension commences to be paid is the last year; and
dividing the result by 5.
If a superannuation fund to which clause 7 applies has been in existence, or making pension payments, for less than a continuous period of 5 years, the pension valuation factor is to be the relevant factor specified in the table that relates to the standard indexation rate.”.
27.5 Omit the tables, substitute:
TABLES
Reversion | Age last birthday of recipient on commencement day of pension | ||||||||||||||
20 or less | 21 to 25 | 25 to 30 | 30 to 35 | 35 to 40 | 40 to 45 | 45 to 50 | 50 to 55 | 55 to 60 | 60 to 65 | 65 to 70 | 70 to 75 | 75 to 80 | 81 or more | ||
Below 50% | 33 | 31 | 29 | 27 | 25 | 23 | 21 | 18 | 16 | 14 | 12 | 10 | 9 | 9 | |
50%—75% | 34 | 33 | 31 | 29 | 27 | 25 | 22 | 20 | 18 | 15 | 13 | 11 | 10 | 9 | |
Above 75% | 35 | 34 | 32 | 30 | 28 | 26 | 24 | 21 | 19 | 16 | 14 | 12 | 10 | 0 | |
Reversion | Age last birthday of recipient on commencement day of pension | |||||||||||||
20 or less | 21 to 25 | 25 to 30 | 30 to 35 | 35 to 40 | 40 to 45 | 45 to 50 | 50 to 55 | 55 to 60 | 60 to 65 | 65 to 70 | 70 to 75 | 75 to 80 | 81 or more | |
Below 50% | 26 | 25 | 24 | 23 | 21 | 20 | 18 | 16 | 14 | 13 | 11 | 10 | 9 | 8 |
50%—75% | 27 | 26 | 25 | 24 | 23 | 21 | 19 | 18 | 16 | 14 | 12 | 10 | 9 | 9 |
Above 75% | 28 | 27 | 26 | 25 | 24 | 22 | 20 | 19 | 17 | 15 | 13 | 11 | 10 | 9 |
Reversion | Age last birthday of recipient on commencement day of pension | |||||||||||||
20 or less | 21 to 25 | 25 to 30 | 30 to 35 | 35 to 40 | 40 to 45 | 45 to 50 | 50 to 55 | 55 to 60 | 60 to 65 | 65 to 70 | 70 to 75 | 75 to 80 | 81 or more | |
Below 50% | 22 | 21 | 20 | 19 | 18 | 17 | 16 | 14 | 13 | 12 | 10 | 9 | 8 | 8 |
50%-75% | 22 | 22 | 21 | 20 | 19 | 18 | 17 | 16 | 14 | 13 | 11 | 10 | 9 | 8 |
Above 75% | 23 | 22 | 22 | 21 | 20 | 19 | 18 | 16 | 15 | 13 | 12 | 10 | 9 | 8 |
Reversion | Age last birthday of recipient on commencement day of pension | |||||||||||||
20 or less | 21 to 25 | 25 to 30 | 30 to 35 | 35 to 40 | 40 to 45 | 45 to 50 | 50 to 55 | 55 to 60 | 60 to 65 | 65 to 70 | 70 to 75 | 75 to 80 | 81 or more | |
Below 50% 50%-75% Above 75% | 18 19 19 | 18 18 29 | 17 18 18 | 17 17 18 | 16 17 17 | 15 16 17 | 14 15 16 | 13 14 15 | 12 13 13 | 11 12 12 | 10 10 11 | 9 9 9 | 8 8 8 | 8 8 8 |
Reversion | Age last birthday of recipient on commencement day of pension | |||||||||||||
20 or less | 21 to 25 | 25 to 30 | 30 to 35 | 35 to 40 | 40 to 45 | 45 to 50 | 50 to 55 | 55 to 60 | 60 to 65 | 65 to 70 | 70 to 75 | 75 to 80 | 81 or more | |
Below 50% 50%-75% Above 75% | 16 16 16 | 15 16 16 | 15 15 16 | 15 15 15 | 14 15 15 | 13 14 15 | 13 13 14 | 12 13 13 | 11 12 12 | 10 11 11 | 9 10 10 | 8 9 9 | 8 8 8 | 7 7 7 |
Reversion | Age last birthday of recipient on commencement day of pension | |||||||||||||
20 or less | 21 to 25 | 25 to 30 | 30 to 35 | 35 to 40 | 40 to 45 | 45 to 50 | 50 to 55 | 55 to 60 | 60 to 65 | 65 to 70 | 70 to 75 | 75 to 80 | 81 or more | |
Below 50% 50%-75% Above 75% | 14 14 14 | 14 14 14 | 13 14 14 | 13 13 14 | 13 13 13 | 12 13 13 | 11 12 12 | 11 11 12 | 10 11 11 | 9 10 10 | 8 9 9 | 8 8 8 | 7 7 8 | 7 7 7 |
Reversion | Age last birthday of recipient on commencement day of pension | |||||||||||||
20 or less | 21 to 25 | 25 to 30 | 30 to 35 | 35 to 40 | 40 to 45 | 45 to 50 | 50 to 55 | 55 to 60 | 60 to 65 | 65 to 70 | 70 to 75 | 75 to 80 | 81 or more | |
Below 50% 50%-75% Above 75% | 12 12 12 | 12 12 12 | 12 12 12 | 12 12 12 | 11 12 12 | 11 11 12 | 10 11 11 | 10 10 11 | 9 10 10 | 9 9 9 | 8 8 9 | 7 8 8 | 7 7 7 | 7 7 7 |
Reversion | Age last birthday of recipient on commencement day of pension | |||||||||||||
20 or less | 21 to 25 | 25 to 30 | 30 to 35 | 35 to 40 | 40 to 45 | 45 to 50 | 50 to 55 | 55 to 60 | 60 to 65 | 65 to 70 | 70 to 75 | 75 to 80 | 81 or more | |
Below 50% 50%-75% Above 75% | 11 11 11 | 11 11 11 | 11 11 11 | 11 11 11 | 10 11 11 | 10 10 10 | 10 10 10 | 10 10 10 | 9 9 9 | 8 8 9 | 7 8 8 | 7 7 7 | 7 7 7 | 6 6 6 |
Reversion | Age last birthday of recipient on commencement day of pension | |||||||||||||
20 or less | 21 to 25 | 25 to 30 | 30 to 35 | 35 to 40 | 40 to 45 | 45 to 50 | 50 to 55 | 55 to 60 | 60 to 65 | 65 to 70 | 70 to 75 | 75 to 80 | 81 or more | |
Below 50% 50%-75% Above 75% | 10 10 10 | 10 10 10 | 10 10 10 | 10 10 10 | 9 10 10 | 9 9 10 | 9 9 9 | 8 9 9 | 8 8 9 | 8 8 8 | 7 7 8 | 7 7 7 | 6 6 7 | 6 6 6 |
28.1 Omit the Schedule, substitute:
Regulation 4f
PRESCRIBED INFORMATION UNDER SECTION 15f OF THE ACT
Name of the fund, company or organisation
Postal address of the fund, company or organisation
Tax file number of the fund, company or organisation
Name of the person with an amount in the fund, company or organisation on 15 February 1990
Postal address of the person with an amount in the fund, company or organisation on 15 February 1990
Tax file number of the person with an amount in the fund, company or organisation on 15 February 1990
Date of birth of the person with an amount in the fund, company or organisation on 15 February 1990
Balance in the fund, company or organisation on 15 February 1990 with respect to the person.
29.1 Omit the heading, substitute:
“PRESCRIBED INFORMATION UNDER SUBSECTIONS 15g (1) AND (3) AND 15j (2) OF THE ACT”
29.2 Omit “Tax file number of the payer”.
29.3 Before “
“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.”.
___________________________________________________
1. Notified in
the
2. Statutory Rules 1987 No. 322 as amended by 1988 No. 255; 1989 Nos. 24, 281 and 356; 1990 Nos. 149, 150, 185, 202 and 275; 1991 Nos. 16 and 58.
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