Superannuation Industry (Supervision) Amendment Regulations 2005 (No. 7) (Cth)
Superannuation Industry (Supervision) Amendment Regulations 2005 (No. 7)1
Select Legislative Instrument 2005 No. 333
I, PHILIP MICHAEL JEFFERY, Governor-General of the Commonwealth of Australia, acting with the advice of the Federal Executive Council, make the following Regulations under the Superannuation Industry (Supervision) Act 1993.
Dated 15 December 2005
P. M. JEFFERY
Governor-General
By His Excellency’s Command
MAL BROUGH
Minister for Revenue and Assistant Treasurer
Contents
1Name of Regulations 2
2Commencement 2
3Amendment of Superannuation Industry (Supervision) Regulations 1994 2
Schedule 1Amendment commencing on the day after registration 3
Schedule 2Amendments commencing on 1 January 2006 5
-
Name of Regulations
These Regulations are the Superannuation Industry (Supervision) Amendment Regulations 2005 (No. 7).
-
Commencement
These Regulations commence as follows:
(a)on the day after they are registered — regulations 1 to 3 and Schedule 1;
(b)on 1 January 2006 — Schedule 2.
-
Amendment of Superannuation Industry (Supervision) Regulations 1994
Schedules 1 and 2 amend the Superannuation Industry (Supervision) Regulations 1994.
Schedule 1 Amendment commencing on the day after registration
(regulation 3)
[1] Subregulations 6.15A (2) to (5)
substitute
(2)An investment earning in relation to a benefit of any kind is an unrestricted non-preserved benefit on a day if:
(a)the benefit was cashed, before that day, in the form of a non-commutable life pension; and
(b)for a benefit that was commenced under the condition of release mentioned in item 109A or 208 of Schedule 1, the pensioner has satisfied a condition of release in respect of which the cashing restriction for preserved benefits and restricted non-preserved benefits is ‘Nil’; and
(c)the pension commenced to be paid before that day.
(3)An investment earning in relation to a benefit of any kind is an unrestricted non-preserved benefit on a day if:
(a)the benefit was cashed, before that day, in the form of a non-commutable life annuity; and
(b)for a benefit that was commenced under the condition of release mentioned in item 109A or 208 of Schedule 1, the annuitant has satisfied a condition of release in respect of which the cashing restriction for preserved benefits and restricted non-preserved benefits is ‘Nil’; and
(c)the annuity commenced to be paid before that day.
(4)An investment earning in relation to a benefit is an unrestricted non-preserved benefit on a day if:
(a)the benefit is an unrestricted non-preserved benefit; and
(b)the benefit was cashed, before that day, in the form of a pension; and
(c)for a benefit that was commenced under the condition of release mentioned in item 109A or 208 of Schedule 1, the pensioner has satisfied a condition of release in respect of which the cashing restriction for preserved benefits and restricted non-preserved benefits is ‘Nil’; and
(d)the pension commenced to be paid before that day.
(5)An investment earning in relation to a benefit is an unrestricted non-preserved benefit on a day if:
(a)the benefit is an unrestricted non-preserved benefit; and
(b)the benefit was cashed, before that day, in the form of an annuity; and
(c)for a benefit that was commenced under the condition of release mentioned in item 109A or 208 of Schedule 1, the annuitant has satisfied a condition of release in respect of which the cashing restriction for preserved benefits and restricted non-preserved benefits is ‘Nil’; and
(d)the annuity commenced to be paid before that day.
Schedule 2 Amendments commencing on 1 January 2006
(regulation 3)
[1] Paragraph 1.05 (4) (f)
substitute
(f)for an annuity that has a commencement day on or after 22 December 1992 and before 1 January 2006 — the payments in a year (excluding payments by way of commutation but including payments made under a payment split) are not larger or smaller in total than, respectively, the maximum and minimum limits calculated in accordance with Schedule 1A; and
[2] After paragraph 1.05 (4) (f), before the note
insert
(g)for an annuity that has a commencement day on or after 1 January 2006 — the payments in a year (excluding payments by way of commutation but including payments made under a payment split) are not larger or smaller in total than the following:
(i)for payments made during the period starting on 1 January 2006 and ending on 30 June 2006 — the respective maximum and minimum limits for the year calculated in accordance with 1 of the following Schedules:
(A)Schedule 1A;
(B)Schedule 1AAB;
(ii)for payments made on or after 1 July 2006 — the respective maximum and minimum limits for the year calculated in accordance with Schedule 1AAB.
[3] After subparagraph 1.05 (9) (b) (ii)
insert
(iia)if the annuity has a commencement day on or after 1 January 2006 — the annuity is paid at least annually to the primary beneficiary or reversionary beneficiary throughout a period that is not less than the period available under subparagraph 1.05 (9) (b) (i), and not more than the greater of the following periods:
(A)the maximum period available under subparagraph 1.05 (9) (b) (ii);
(B)the period of years equal to the number that is the difference between the age attained by the primary beneficiary at his or her most recent birthday before the commencement day, and 100; or
[4] Sub‑subparagraph 1.05 (9) (b) (iii) (C)
omit
subparagraph (i) or (ii)
insert
subparagraph (i), (ii) or (iia)
[5] Sub‑subparagraph 1.05 (9) (b) (iii) (E)
omit
day;
insert
day; or
[6] After sub‑subparagraph 1.05 (9) (b) (iii) (E)
insert
(F)if the annuity has a commencement day on or after 1 January 2006 — a period that is not less than the period available under sub‑subparagraph 1.05 (9) (b) (iii) (D), and not more than the greater of the following periods:
(I)the maximum period available under sub-subparagraph 1.05 (9) (b) (iii) (E);
(II)the period of years equal to the number that is the difference between the age attained by the spouse at his or her most recent birthday before the commencement day, and 100;
[7] Subparagraph 1.05 (9) (b) (iii)
omit
if the life expectancy of the spouse does not
insert
if the life expectancy of the spouse, or the period, does not
[8] Subparagraph 1.05 (9) (h) (iv)
after
life expectancy
insert
or age
[9] After subparagraph 1.05 (10) (a) (ii)
insert
(iia)if the annuity has a commencement day on or after 1 January 2006 — the annuity is paid at least annually to the primary beneficiary or reversionary beneficiary throughout a period that is not less than the period available under subparagraph 1.05 (10) (a) (i), and not more than the greater of the following periods:
(A)the maximum period available under subparagraph 1.05 (10) (a) (ii);
(B)the period of years equal to the number that is the difference between the age attained by the primary beneficiary at his or her most recent birthday before the commencement day, and 100; or
[10] Sub‑subparagraph 1.05 (10) (a) (iii) (C)
omit
subparagraph (i) or (ii)
insert
subparagraph (i), (ii) or (iia)
[11] Sub‑subparagraph 1.05 (10) (a) (iii) (E)
omit
day;
insert
day; or
[12] After sub‑subparagraph 1.05 (10) (a) (iii) (E)
insert
(F)if the annuity has a commencement day on or after 1 January 2006 — a period that is not less than the period available under sub‑subparagraph 1.05 (10) (a) (iii) (D), and not more than the greater of the following periods:
(A)the maximum period available under sub-subparagraph 1.05 (10) (a) (iii) (E);
(B)the period of years equal to the number that is the difference between the age attained by the spouse at his or her most recent birthday before the commencement day, and 100;
[13] Subparagraph 1.05 (10) (a) (iii)
omit
if the life expectancy of the spouse does not
insert
if the life expectancy of the spouse, or the period, does not
[14] Subparagraph 1.05 (10) (d) (iii)
after
life expectancy
insert
or age
[15] Paragraph 1.06 (4) (e)
substitute
(e)for a pension that has a commencement day on or after 22 December 1992 and before 1 January 2006 — the payments in a year (excluding payments by way of commutation but including payments made under a payment split) are not larger or smaller in total than, respectively, the maximum and minimum limits calculated in accordance with Schedule 1A; and
[16] After paragraph 1.06 (4) (e), before the note
insert
(f)for a pension that has a commencement day on or after 1 January 2006 — the payments in a year (excluding payments by way of commutation but including payments made under a payment split) are not larger or smaller in total than the following:
(i)for payments made during the period starting on 1 January 2006 and ending on 30 June 2006 — the respective maximum and minimum limits for the year calculated in accordance with 1 of the following Schedules:
(A)Schedule 1A;
(B)Schedule 1AAB;
(ii)for payments made on or after 1 July 2006 — the respective maximum and minimum limits for the year calculated in accordance with Schedule 1AAB.
[17] After subparagraph 1.06 (7) (b) (ii)
insert
(iia)if the pension has a commencement day on or after 1 January 2006 — the pension is paid at least annually to the primary beneficiary or reversionary beneficiary throughout a period that is not less than the period available under subparagraph 1.06 (7) (b) (i), and not more than the greater of the following periods:
(A)the maximum period available under subparagraph 1.06 (7) (b) (ii);
(B)the period of years equal to the number that is the difference between the age attained by the primary beneficiary at his or her most recent birthday before the commencement day, and 100; or
[18] Sub‑subparagraph 1.06 (7) (b) (iii) (C)
omit
subparagraph (i) or (ii)
insert
subparagraph (i), (ii) or (iia)
[19] Sub‑subparagraph 1.06 (7) (b) (iii) (E)
omit
day;
insert
day; or
[20] After sub‑subparagraph 1.06 (7) (b) (iii) (E)
insert
(F)if the pension has a commencement day on or after 1 January 2006 — a period that is not less than the period available under sub‑subparagraph 1.06 (7) (b) (iii) (D), and not more than the greater of the following periods:
(I)the maximum period available under sub-subparagraph 1.06 (7) (b) (iii) (E);
(II)the period of years equal to the number that is the difference between the age attained by the spouse at his or her most recent birthday before the commencement day, and 100;
[21] Subparagraph 1.06 (7) (b) (iii)
omit
if the life expectancy of the spouse does not
insert
if the life expectancy of the spouse, or the period, does not
[22] Subparagraph 1.06 (7) (g) (iv)
after
life expectancy
insert
or age
[23] After subparagraph 1.06 (8) (a) (ii)
insert
(iia)if the pension has a commencement day on or after 1 January 2006 — the pension is paid at least annually to the primary beneficiary or reversionary beneficiary throughout a period that is not less than the period available under subparagraph 1.06 (8) (a) (i), and not more than the greater of the following periods:
(A)the maximum period available under subparagraph 1.06 (8) (a) (ii);
(B)the period of years equal to the number that is the difference between the age attained by the primary beneficiary at his or her most recent birthday before the commencement day, and 100; or
[24] Sub‑subparagraph 1.06 (8) (a) (iii) (C)
omit
subparagraph (i) or (ii)
insert
subparagraph (i), (ii) or (iia)
[25] Sub‑subparagraph 1.06 (8) (a) (iii) (E)
omit
day;
insert
day; or
[26] After sub‑subparagraph 1.06 (8) (a) (iii) (E)
insert
(F)if the pension has a commencement day on or after 1 January 2006 — a period that is not less than the period available under sub‑subparagraph 1.06 (8) (a) (iii) (D), and not more than the greater of the following periods:
(I)the maximum period available under sub-subparagraph 1.06 (8) (a) (iii) (E);
(II)the period of years equal to the number that is the difference between the age attained by the spouse at his or her most recent birthday before the commencement day, and 100;
[27] Subparagraph 1.06 (8) (a) (iii)
omit
if the life expectancy of the spouse does not
insert
if the life expectancy of the spouse, or the period, does not
[28] Subparagraph 1.06 (8) (d) (iii)
after
life expectancy
insert
or age
[29] Paragraph 1.07A (2) (ba)
omit
applicable under Schedule 1A,
insert
under Schedule 1A or Schedule 1AAB, whichever is applicable to the annuity or pension under subregulation 1.05 (4) or 1.06 (4) as the case may be,
[30] Subregulation 1.07A (3), paragraph (a) of definition of Minimum annual amount
omit
Schedule 1A
insert
Schedule 1A or 1AAB as the case may be,
[31] Subregulation 1.07A (3), paragraph (b) of definition of Minimum annual amount
omit
Schedule 1A;
insert
Schedule 1A or 1AAB as the case may be;
[32] Schedule 1A, heading
substitute
Schedule 1A Payment limits for annuities and pensions with a commencement day before 1 January 2006
(subregulations 1.05 (4) and 1.06 (4))
[33] Schedule 1A, clause 1
omit
Subject to clauses 3 and 4,
insert
Subject to clauses 3, 4 and 5,
[34] Schedule 1A, after clause 4
insert
-
In a year in which a PVF of 1 is used in calculating the maximum limit under clause 1, payment of the full account balance may be made at any time during the year.
[35] Schedule 1A, table, items 61 to 81, column 3
omit each occurrence of
0
insert
1
[36] After Schedule 1A
insert
Schedule 1AAB Payment limits for annuities and pensions with a commencement day on and after 1 January 2006
(subregulations 1.05 (4) and 1.06 (4))
-
Subject to clauses 3, 4 and 5, the maximum limits mentioned in paragraph 1.05 (4) (f) or 1.06 (4) (e) are determined under the formula:
where:
AB means the amount of the annuity account balance, or pension account balance, as the case requires:
(a)on 1 July in the financial year in which the payments are made; or
(b)if that year is the year in which the annuity payments, or pension payments, commence — on the commencement day.
PVF means the maximum pension valuation factor set out in Column 3 of the Table in this Schedule in relation to the item in the Table that represents the age of the beneficiary on:
(a)1 July in the financial year in which the payments are made; or
(b)if that is the year in which the annuity payments, or pension payments, commence — the commencement day.
-
Subject to clauses 3 and 4, the minimum limits mentioned in paragraph 1.05 (4) (f) or 1.06 (4) (e) are determined under the formula:
where:
AB means the amount of the annuity account balance, or pension account balance, as the case requires:
(a)on 1 July in the financial year in which the payments are made; or
(b)if that year is the year in which the annuity payments, or pension payments, commence — on the commencement day.
PVF means the minimum pension valuation factor set out in Column 4 of the Table in this Schedule in relation to the item in the Table that represents the age of the beneficiary on:
(a)1 July in the financial year in which the payments are made; or
(b)if that is the year in which the annuity payments, or pension payments, commence — the commencement day.
-
For a calculation of the maximum or minimum limit in the year in which the commencement day of the pension or annuity occurs if that day is a day other than 1 July, the appropriate value set out in Column 3 or Column 4 of the Table in this Schedule as the case requires, must be applied proportionally to the number of days in the financial year that include and follow the commencement day.
-
An amount determined under the formula in clause 1 or clause 2, is rounded to the nearest 10 whole dollars.
-
In a year in which a PVF of 1 is used in calculating the maximum limit under clause 1, payment of the full account balance may be made at any time during the year.
Table
Column 1
Column 2
Column 3
Column 4
Item
Age of Beneficiary
Maximum Pension Valuation Factor
Minimum Pension Valuation Factor
1 20 or less 12.0 29.2 2 21 12.0 29.0 3 22 12.0 28.9 4 23 12.0 28.7 5 24 12.0 28.6 6 25 12.0 28.4 7 26 12.0 28.3 8 27 12.0 28.1 9 28 12.0 27.9 10 29 12.0 27.8 11 30 12.0 27.6 12 31 12.0 27.4 13 32 12.0 27.2 14 33 12.0 27.0 15 34 12.0 26.8 16 35 12.0 26.6 17 36 12.0 26.4 18 37 12.0 26.2 19 38 12.0 26.0 20 39 12.0 25.8 21 40 12.0 25.5 22 41 12.0 25.3 23 42 12.0 25.0 24 43 12.0 24.8 25 44 12.0 24.5 26 45 12.0 24.2 27 46 12.0 24.0 28 47 12.0 23.7 29 48 12.0 23.4 30 49 12.0 23.1 31 50 12.0 22.8 32 51 11.9 22.5 33 52 11.8 22.2 34 53 11.8 21.8 35 54 11.7 21.5 36 55 11.5 21.1 37 56 11.4 20.8 38 57 11.3 20.4 39 58 11.2 20.1 40 59 11.0 19.7 41 60 10.9 19.3 42 61 10.7 18.9 43 62 10.5 18.5 44 63 10.3 18.1 45 64 10.1 17.7 46 65 9.9 17.3 47 66 9.6 16.8 48 67 9.3 16.4 49 68 9.1 16.0 50 69 8.7 15.5 51 70 8.4 15.1 52 71 8.0 14.6 53 72 7.6 14.2 54 73 7.2 13.7 55 74 6.7 13.3 56 75 6.2 12.8 57 76 5.7 12.3 58 77 5.1 11.9 59 78 4.5 11.4 60 79 3.8 10.9 61 80 3.1 10.5 62 81 2.3 10.0 63 82 1.4 9.6 64 83 1 9.1 65 84 1 8.7 66 85 1 8.3 67 86 1 7.9 68 87 1 7.5 69 88 1 7.2 70 89 1 6.9 71 90 1 6.6 72 91 1 6.3 73 92 1 6.0 74 93 1 5.8 75 94 1 5.5 76 95 1 5.3 77 96 1 5.1 78 97 1 4.9 79 98 1 4.7 80 99 1 4.5 81 100 or more 1 4.4
Example
Clive Long, who turns 65 on 8 February 2006, invests $100,000 in an allocated pension fund on 1 March 2006. The date of the first payment to Mr Long is 1 April 2006.
2005/06: The maximum and minimum payments for 2005/06 are based on:
(a) the account balance on the day of purchase; and
(b) the beneficiary’s age of 65 on the day of purchase:
(maximum limit, rounded to $3,380)
(minimum limit, rounded to $1,930)
Assume that total payments to Mr Long at 30 June 2006 are $3,000.
2006/07: The maximum and minimum payments for 2006/07 are based on:
(a)the account balance on 1 July 2006 which is $99,300 (residue $97,000 + earnings of $2,300); and
(b) the beneficiary’s age of 65 on 1 July 2006:
(maximum limit, rounded to $10,030)
(minimum limit, rounded to $5,740)
[37] Schedule 6, paragraph 3 (a)
omit
or the annuity
insert
of the annuity
[38] Schedule 6, after clause 7
insert
-
An amount is taken to have been determined in accordance with clause 1 of this Schedule if the amount is:
(a)not less than the amount determined in accordance with clause 1 of this Schedule, less 10 per cent of that amount; and
(b)not greater than the amount determined in accordance with clause 1 of this Schedule, plus 10 per cent of that amount.
Note
-
All legislative instruments and compilations are registered on the Federal Register of Legislative Instruments kept under the Legislative Instruments Act 2003. See
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