Commonwealth Consolidated Regulations Commonwealth Consolidated Regulations(1) For subsection 292‑ 170 (4) of the Act, this regulation sets out circumstances in which the amount of the notional taxed contributions for a financial year in respect of the defined benefit interest of a member of a superannuation fund is nil.
(2) A circumstance is that:
(a) the defined benefit interest is held in a public sector superannuation scheme; and
(b) none of the interest is sourced to any extent from:
(i) contributions made into a superannuation fund; or
(ii) earnings on such contributions;
unless the interest is an element taxed in the fund that is attributable to 1 or more roll‑over superannuation benefits.
(3) A circumstance is that:
(a) subregulation 292‑170.02 (2) applies, or is taken to apply, in relation to the superannuation fund; and
(b) the member is a non‑accruing member of the fund, in accordance with subregulations (4), (5) and (6), for the whole of the financial year.
(4) For paragraph (3) (b), a defined benefit member of a superannuation fund is a non‑accruing member of the fund for the whole of a financial year if, for the whole of the financial year:
(a) the member's membership of the fund consists only of
the member receiving pension payments from the superannuation fund; and
(b) any of the following applies:
(i) the pension payments are always the same amount;
(ii) the pension payments are paid from an account that relates only to the member, and no employer contributions are paid to the account for the benefit of the member;
(iii) the pension payments increase at rates that
are
consistent with the rates prescribed under the rules of the fund that applied
when the pension commenced to be paid .
(5) For paragraph (3) (b), a defined benefit member of a superannuation fund is a non‑accruing member of the fund for the whole of a financial year if, for the whole of the financial year:
(a) the member has a benefit entitlement in the fund, but no employer‑provided benefits have accrued to the member; and
(b) the rules of the fund provide that the benefit:
(i) is not to increase in nominal terms; or
(ii) is to increase at a rate that reflects general price increases (for example, in accordance with the Consumer Price Index); or
(iii) is to increase at a rate reflecting the general level
of salary growth or salary growth for relevant
fund membership (for example,
in accordance with average weekly earnings, or average weekly ordinary time
earnings, published by the Australian Statistician); or
(iv) is to increase at the rate (if any) at which the salary on which the member's benefit is based increases ; or
(v) is to increase at a rate reflecting the earning rate of the assets of the fund or the part of the fund to which the member belongs; or
(vi) in the case of a deferred benefit -- is to increase at a rate that reflects any reduction in the expected period in which pension payments are to be made and any deferral of the date when payments will start; or
(vii) is to increase at a regular rate, or a rate worked out using a formula, that an actuary considers will not result in an increase that is more than the greatest of the increases mentioned in subparagraphs (i) to (vi).
(6) For the purposes of determining whether a defined benefit member is a non‑accruing member of the fund for a period, any employer contributions paid to the fund for the period to meet partially, or wholly, unfunded benefit liabilities of the fund are not to be treated as employer contributions for the benefit of the member for the period.