Commonwealth Consolidated Regulations Commonwealth Consolidated Regulations(1) This regulation applies in relation to the terms and conditions of an RSA mentioned in paragraph 1.07 (3A) (d) for a market linked pension.
(2) The terms and conditions meet the standards of this regulation if they ensure that the pension cannot be commuted, in whole or in part, unless:
(a) the commutation results from the death of a pensioner or a reversionary pensioner; or
(b) the sole purpose of the commutation is:
(i) to pay a superannuation contributions surcharge; or
(ii) to give effect to an entitlement of a non‑member spouse under a payment split; or
(iii) to meet the rights of a client to return a financial product under Division 5 of Part 7.9 of the Corporations Act 2001 ; or
(ba) for a commutation in part -- the account balance of the pension, immediately after the commutation in part, would be equal to or would exceed the total payment amount calculated in accordance with Schedule 4, as reduced by the amount of payments (excluding amounts rolled over) to the RSA holder already made in the financial year in which the commutation in part would occur; or
(c) the pension has paid, in the financial year in which the commutation is to take place, at least the minimum amount under subregulation (3); or
(d) for the purpose of paying an amount to give effect to a release authority under:
(i) section 292‑ 415 of the Income Tax Assessment Act 1997 ; or
(ii) section 292‑80C of the Income Tax (Transitional Provisions) Act 1997 ;
in respect of the primary beneficiary.
(3) For paragraph (2) (c), the minimum amount is calculated using the formula:
where:
"annual amount" for the financial year means the amount worked out in accordance with Schedule 4 for the pension, rounded to the nearest 10 whole dollars.
days in payment period means the number of days in the period that:
(a) starts on:
(i) if the pension commenced in the financial year in which the commutation is to take place -- the commencement day; or
(ii) in any other case -- 1 July in that financial year; and
(b) ends at the end of the day on which the commutation is to take place.
"days in financial year" means the number of days in the financial year in which the commutation is to take place.
(4) In this regulation:
"rolled over" means paid as a superannuation lump sum within the superannuation system.