Commonwealth Consolidated Regulations

SUPERANNUATION CONTRIBUTIONS TAX (ASSESSMENT AND COLLECTION) REGULATIONS 1997 - REG 2N

(1)

A member of a defined benefits superannuation scheme is a non-accruing member of the scheme for a period if the member meets the requirements of subregulation (2) or (3).

(2)

A member of a defined benefits superannuation scheme meets the requirements of this subregulation for a period if, for the whole of the period:

(a)

the member's membership in the scheme consists only in the member receiving pension payments under the scheme; 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 first pension payment was made on or after the date of effect of the first actuarial certificate prepared for the scheme, and the pension payments increase at rates that are consistent with the assumptions used in the preparation of the actuarial certificate for the last financial year in which employer-provided benefits accrued to the member under the scheme;

(iv)

the first pension payment was made before the date of effect of the first actuarial certificate prepared for the scheme, and the pension payments increase at rates that are consistent with the rates prescribed under the rules of the scheme that applied when employer-provided benefits accrued to the member under the scheme.

(3)

A member of a defined benefits superannuation scheme meets the requirements of this subregulation for a period if, for the whole of the period:

(a)

the member has a benefit entitlement in the scheme but no employer-provided benefits have accrued to the member; and

(b)

the rules of the scheme 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 scheme 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 member's salary increases; or

(v)

is to increase at a rate reflecting the earning rate of the assets of the scheme or the part of the scheme 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 eligible actuary considers will not result in an increase that is more than the greatest of the increases mentioned in subparagraphs (i) to (vi); and

(c)

an eligible actuary considers that the benefit does not result in any increase in the value of employer-provided benefits accruing to the member.

(4)

For the purposes of determining whether a member of a defined benefits superannuation scheme is a non-accruing member of the scheme for a period, any employer contributions paid to the scheme for the period to meet partially, or wholly, unfunded benefit liabilities of the scheme are not to be treated as employer contributions for the benefit of the member for the period.