Commonwealth Consolidated Regulations Commonwealth Consolidated RegulationsStatutory Rules 1994 No. 57 as amended
This compilation was prepared on 25 September 2008
taking into account amendments up to SLI 2008 No. 171
This document has been split into two volumes
Volume 1 contains Parts 1--13, and
Volume 2 contains the Schedules and the Notes
Each volume has its own Table of Contents
Prepared by the Office of Legislative Drafting and Publishing,
Attorney‑General's Department, Canberra
Contents
Part 1 Preliminary
1.01 Name of Regulations [see Note 1] 19
1.02 Commencement [see Note 1] 19
1.03 Interpretation 19
1.03A Lost member 28
1.03AA Defined benefit interest 30
1.03AB Meaning of growth phase 31
1.03B Meaning of protected member 31
1.04 Prescribed matters (Act, s 10) 32
1.04AAAA Interdependency relationships (Act s 10A) 35
1.04AAA Modified meaning of member (Act s 15B) [see Note 2] 37
1.04A Specified body or person (Act s 19) 38
1.04AA Self managed superannuation funds -- persons not taken to be employees (Act s 17A (8)) 38
Part 1A Annuities and pensions
Division 1A.1
1.05 Meaning of annuity (Act, s 10) 40
1.06 Meaning of pension (Act, s 10) 61
1.07 Periods when beneficiary may not receive benefits 79
1.07A Commutation of allocated annuities and pensions 79
1.07B Commutation of other annuities and pensions 81
1.07C Commutation of market linked income stream 83
1.07D Commutation of superannuation income stream 84
Division 1A.2 Operating standards
1.08 Restriction on factors for converting pensions 86
Part 2 Information for certain parties
Division 2.1 Introductory
2.01 Interpretation 87
2.02 Scope and application of this Part 87
2.03 Duties and requirements arising under this Part 88
2.04 Reasonable efforts are sufficient 89
2.05 Charges for information requested 89
Division 2.4 Information to be given for each reporting period
2.17 Interpretation 90
2.18 Application 90
2.29 Specific requirements in particular cases 90
Division 2.5 Information on request
2.30 Application 91
2.31 Documents may be made available for inspection 91
2.32 Time for compliance 92
2.33 Specific requirements 92
Division 2.5A Information about superannuation interest subject to payment split
2.36B Application 93
2.36C Information to be provided by trustee when interest becomes subject to payment split 93
2.36D Other information to be provided by trustee 95
2.36E Other information to be given by trustee -- adverse effects on benefits 96
Part 3 Matters prescribed or specified in relation to public offer entities
3.01 Public offer superannuation fund -- member of a prescribed class 97
3.04 Section 54 of the Act -- prescribed percentages 99
3.04A Removal of trustee of public offer entity -- s 60A (2) of the Act 99
3.05 Policy committees -- sections 91, 92 and 93 of the Act 100
3.06 Policy committees -- functions (paragraphs 91 (3) (b), 92 (3) (b) and 93 (3) (b) of the Act) 102
3.07 Definition of policy committee in section 10 of the Act -- matters specified for purposes of paragraph (a) 103
3.08 Policy committees -- duties of trustee 103
3.09 Dissolution of policy committees 104
3.10 Commission and brokerage 104
3.11 Payment by trustee of a public offer entity of commission or brokerage 105
Part 3A Matters prescribed or specified in relation to licensing of trustees and of groups of individual trustees
Division 3A.1 Classes of RSE licences
3A.01 Public offer entity licences 107
3A.02 Non‑public offer entity licences 107
3A.03 Extended public offer entity licences 107
3A.03A Acting trustee licences 108
Division 3A.2 Grant of RSE licences
3A.04 Capital requirements 108
Division 3A.3 Applying for RSE licences
3A.05 Definitions 110
3A.06 Application fees 111
Division 3A.4 Conditions on RSE licences
3A.07 Conditions on RSE licences of FHSA providers 115
Part 4 Management and trusteeship of superannuation entities
Division 4.1 Prescribed matters
4.01 Covenants in governing rules of a superannuation entity -- prescribed information and documents 116
4.02 Covenants in governing rules of a superannuation entity -- beneficiary investment choice 116
4.03 Trustee of employer‑sponsored fund -- prescribed direction by employer‑sponsor or associate of employer sponsor 118
4.04 Governing rules of a superannuation entity -- prescribed exercise of discretion by non‑trustee 119
4.05 Governing rules of a superannuation entity -- prescribed circumstances of amendment 120
4.06 Removal of member representatives -- prescribed circumstances 121
4.07 Removal of independent trustee or independent member -- prescribed circumstances 122
Division 4.1A Content of risk management strategies and risk management plans
4.07A Risk management strategies 122
4.07B Risk management plans 123
Division 4.2 Operating standards
4.08 Operating standard -- voting rule where equal representation applies 125
4.08A Operating standard -- member representation for certain regulated superannuation funds where a declaration under subsection 18 (7) of the Act applies 126
4.09 Operating standard -- investment strategy 127
4.10 Operating standard -- investment by non‑complying superannuation funds 128
4.10A Operating standard -- ownership of units in a PST [see Note 2] 128
4.11 Operating standard -- investment by non‑complying approved deposit funds 128
4.11A Operating standard -- acceptance of deposits by an approved deposit fund [see Note 2] 128
4.12 Operating standard -- acceptance by regulated superannuation and approved deposit funds of rollovers and transfers 129
4.13 Operating standard -- lending to members of an approved deposit fund 129
4.14 Operating standard -- fitness and propriety of RSE licensee 130
4.15 Operating standard -- adequacy of resources of, or available to, trustees of registrable superannuation entities (RSE licensees) 132
4.16 Operating standard -- outsourcing arrangements of RSE licensees 133
4.17 Outsourcing arrangements for licensing transition period 136
Part 5 Benefit protection standards
Division 5.1 Preliminary
5.01 Interpretation 137
5.01A Operating standards -- determination of costs and investment return 141
5.01B Trustee may provide greater protection than this Part requires 142
5.02 Determination of costs 142
5.02A Meaning of fair and reasonable 143
5.02B Priority in deducting surcharge or instalment 143
5.02C Refund of costs 144
5.03 Investment returns 144
Division 5.2 Minimum benefits
5.04 Minimum benefits -- regulated superannuation funds 144
5.05 Mandated employer contributions -- regulated superannuation funds 145
5.06 Certain benefits rolled over or transferred to regulated superannuation funds taken to be minimum benefits 146
5.06A Benefits rolled over or transferred from an RSA to regulated superannuation funds taken to be minimum benefits 147
5.06B Minimum benefits if new interest created, or benefits rolled over or transferred, under Division 7A.2 148
5.07 Minimum benefits -- approved deposit funds 148
Division 5.3 Treatment of minimum benefits
5.08 How minimum benefits are to be treated 149
Division 5.5 Member‑protection standards
5.12 Interpretation 150
5.13 Operating standards -- member protection 150
5.14 Member‑protection standards not to apply to certain funds 150
5.15 Member‑protection standards not to apply to certain protected members 152
5.15B Member‑protection standards taken not to have applied to certain members 152
5.15C Member‑protection standards not to apply to pensions 153
5.15D Member‑protection standards not to apply to traditional life insurance policies 153
5.16 Application of member‑protection standards to sub‑fund 154
5.17 Member‑protection standards 154
5.18 Costs not to be deferred 156
Division 5.6 Existing personal superannuation members
5.19 Interpretation 157
5.20 Operating standards -- existing personal superannuation members 157
5.21 Trustee may offer election to existing personal superannuation members 157
5.22 What happens if the member waives member protection? 159
5.23 What happens if the member elects to have benefits paid out of the fund? 159
5.24 What happens if the trustee pays benefits paid out of the fund? 160
Part 6 Payment standards
Division 6.1 Introductory
6.01 Interpretation 161
6.01A Meaning of terminal medical condition 171
6.02 Preserved benefits in regulated superannuation funds -- before 1 July 1999 171
6.03 Preserved benefits in regulated superannuation funds -- on and after 1 July 1999 172
6.05 Preserved benefits in approved deposit funds 172
6.06 Effect of rollover or transfer on preserved benefits 173
6.07 Restricted non‑preserved benefits in regulated superannuation funds -- before 1 July 1999 173
6.08 Restricted non‑preserved benefits in regulated superannuation funds -- on and after 1 July 1999 175
6.09 Effect of rollover or transfer on restricted non‑preserved benefits 176
6.10 Unrestricted non‑preserved benefits -- regulated superannuation funds 176
6.11 Unrestricted non‑preserved benefits -- approved deposit funds 177
6.12 Movement of benefits between categories by satisfaction of conditions of release 179
6.13 Effect of rollover or transfer on unrestricted non‑preserved benefits 179
6.14 Indexation 179
6.15 Contributions and benefits taken to be preserved benefits 180
6.15A Certain benefits taken to be unrestricted non‑preserved benefits 180
6.16 Redistribution of member benefits within a fund in certain circumstances by operation of governing rules or action of trustee 182
6.16A When non‑preserved benefits may be reduced 183
Division 6.2 Payment of benefits
6.17 Restriction on payment 184
6.17A Payment of benefit on or after death of member (Act, s 59 (1A)) 185
6.17AA Payments prevented under Family Law Act 1975 187
6.17B Duty to seek information 187
6.17C Payment and commutation of pension in breach of standards 188
Division 6.3 Cashing of benefits
6.18 Voluntary cashing of preserved benefits in regulated superannuation funds 188
6.19 Voluntary cashing of restricted non‑preserved benefits in regulated superannuation funds 189
6.19A Release of benefits on compassionate grounds 190
6.20 Voluntary cashing of unrestricted non‑preserved benefits in regulated superannuation funds 192
6.20A Compulsory cashing of benefits in a regulated superannuation fund that is not an unfunded public sector superannuation scheme -- temporary residents 192
6.20B Voluntary cashing of benefits in a regulated superannuation fund that is an unfunded public sector superannuation scheme -- temporary residents 194
6.21 Compulsory cashing of benefits in regulated superannuation funds 195
6.22 Limitation on cashing of benefits in regulated superannuation funds in favour of persons other than members or their legal personal representatives 196
6.22A Priority in cashing benefits in certain cases -- regulated superannuation funds 197
6.22B When benefits in regulated superannuation funds may be cashed in favour of persons except members 197
6.23 Voluntary cashing of preserved benefits in approved deposit funds 198
6.24 Voluntary cashing of unrestricted non‑preserved benefits in approved deposit funds 198
6.24A Compulsory cashing of benefits in approved deposit funds -- temporary residents 199
6.25 Compulsory cashing of benefits in approved deposit funds 200
6.26 Limitation on cashing of benefits in approved de posit funds in favour of persons other than members or their legal personal representatives 201
6.27 Limitation on cashing benefits in approved deposit funds of less than $500 201
6.27A Priority in cashing benefits in certain cases -- approved deposit funds 202
Division 6.4 General rules for rollover and transfer of benefits in regulated superannuation funds and approved deposit funds
6.27B Definition 202
6.28 Rollover -- regulated superannuation funds and approved deposit funds [see Note 2] 203
6.29 Transfer -- funds [see Note 2] 203
Division 6.5 Compulsory rollover and transfer of superannuation benefits in regulated superannuation funds and approved deposit funds
6.30 Application 204
6.31 Definitions for Division 6.5 204
6.32 Operating standards 205
6.33 Request for rollover or transfer of withdrawal benefit 206
6.34 Rollover or transfer of withdrawal benefit 207
6.35 When a trustee may refuse to roll over or transfer an amount 210
6.36 Suspension or variation of obligation to roll over or transfer amounts by APRA 211
6.37 Suspension or variation of obligation to roll over or transfer amounts by APRA -- application by trustee 211
6.38 Trustee's obligations if APRA suspends or varies obligation to roll over or transfer amounts 212
Division 6.6 Additional standards for eligible rollover funds
6.39 Obligations of trustees 212
Division 6.7 Spouse contributions‑splitting amounts
6.40 Interpretation 213
6.41 Meaning of taxed splittable contribution, untaxed splittable contribution and untaxed splittable employer contribution 214
6.42 Meaning of splittable contribution 216
6.43 Application of Division 6.7 217
6.44 Application to roll over, transfer or allot an amount of contributions 217
6.45 Decision on application 219
6.46 Receiving spouse 220
Part 7 Contribution and benefit accrual standards (regulated superannuation funds)
Division 7.1 General
7.01 Interpretation 221
7.02 Application of Division 7.1 221
7.03 Restriction on accepting contributions or granting benefit accruals 221
7.03A Acceptance of contributions -- registrable superannuation entities [see Note 2] 222
7.04 Acceptance of contributions -- regulated superannuation funds 222
7.04A Acceptance of contributions -- public offer superannuation funds 227
7.05 Accrual of benefits -- defined benefit funds 228
Division 7.2 Contributions to be allocated to members -- accumulation funds
7.06 Application of Division 7.2 229
7.07 Operating standard 229
7.08 Contributions to be allocated to members 229
Division 7.3 Contributions to be allocated to members -- certain other regulated superannuation funds
7.09 Application of Division 7.3 230
7.10 Operating standard 230
7.11 Contributions to be allocated to members 230
Part 7A Superannuation interests subject to payment split
Division 7A.1 General
7A.01 Purpose of Part 7A 231
7A.01A Relevant condition of release 231
7A.02 Operating standards 231
7A.03 Trustee to give payment split notice 232
Division 7A.1A Options for trustee in relation to interests
7A.03A Application of Division 7A.1A 233
7A.03B Trustee may create a new interest 234
7A.03C Request to retain a non‑member spouse interest 236
7A.03D Request to roll over or transfer benefits 236
7A.03E Request for lump sum payment 237
7A.03F Requirements for requests 237
7A.03G Giving effect to a request 238
7A.03H Trustee's options if no request is received 239
7A.03I Confirming that the non‑member spouse has an interest in the fund 241
7A.03J Rolling over or transferring the non‑member spouse's interest 242
7A.03K Paying a lump sum 243
Division 7A.2 Options available for certain superannuation interests
7A.04 Application of Division 7A.2 243
7A.05 Request for new interest 244
7A.06 Request for transfer of benefits 244
7A.07 Request for lump sum payment 245
7A.08 Requirements for requests 245
7A.09 Giving effect to request 246
7A.10 Trustee options if no request received 247
7A.11 Creating a new interest 248
7A.12 Rolling over or transferring transferable benefits 251
7A.13 Paying a lump sum 253
Division 7A.3 Splittable payments -- payment standards for non‑member spouse entitlements
7A.14 Application of Division 7A.3 256
7A.16 Preservation of non‑member spouse entitlements 257
7A.17 Payment of non‑member spouse entitlements from pension 259
7A.18 Cashing of non‑member spouse entitlements 260
Division 7A.4 Superannuation interest split under the Family Law (Superannuation) Regulations 2001
7A.19 Application 262
7A.20 Creating a new interest 263
7A.21 Rolling over or transferring benefits 263
7A.22 Paying an amount 264
Part 8 Financial reporting
8.01 Accounts -- statement of financial position and financial statement 265
8.02 Accounts and statements that must be prepared 266
8.02A Period within which an auditor must be appointed (Act s 35C) 266
8.03 Period within which audit report must be given 267
8.04 Period within which audit report is given to the APRA (Act s 36) 267
Part 9 Financial management of funds
Division 9.1 Introductory
9.01 Interpretation 268
Division 9.2 Financial position of funds
9.02 Application &nbs