Commonwealth Consolidated Regulations

RETIREMENT SAVINGS ACCOUNTS REGULATIONS 1997 - SCHEDULE 1

(subregulation   1.07(2))

1.   Subject to clauses   3, 4 and 4A, the maximum limits mentioned in paragraph   1.07(2)(d) are determined under the formula:

    where:

"AB" means the amount in the RSA:

  (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 pension payments commence--on the commencement day; and

"PVF" means the maximum pension valuation factor set out in Column 3 of Table 1 in this Schedule in relation to the item in the Table that represents the age of the beneficiary (or, subject to clause   5, in the case of the death of the original beneficiary, the age of the reversionary 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 pension payments commence--the commencement day.

2.   Subject to clauses   3, 3A, 3B and 4, the minimum limits mentioned in paragraph   1.07(2)(d) or (e) are determined under the formula:

    where:

"AB" means the amount in the RSA:

  (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 pension payments commence--on the commencement day; and

"PVF" means the minimum pension valuation factor set out in Column 4 of Table 1 in this Schedule in relation to the item in the Table that represents the age of the beneficiary (or, subject to clause   5, in the case of the death of the original beneficiary, the age of the reversionary 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 pension payments commence--the commencement day.

3.   For a calculation of the maximum or minimum limit in the year in which the commencement day of the pension occurs if that day is a day other than 1   July, the appropriate value set out in Column 3 or Column 4 of Table 1 or Table 2, as the case requires, in this Schedule must be applied proportionally to the number of days in the financial year that include and follow the commencement day.

3A.   For the financial years commencing on 1   July 2008, 1   July 2009, 1   July 2010, 1   July 2019 , 1   July 2020 , 1   July 2021 and 1   July 2022, the minimum limit is half of the amount determined under the formula in clause   2.

3B.   For the financial years commencing on 1   July 2011 and 1   July 2012, the minimum limit is 75% of the amount determined under the formula in clause   2.

4.   An amount determined under the formula that is not evenly divisible by 10 is to be rounded to the nearest amount that is so divisible.

4A.   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.

5.   If the reversionary beneficiary mentioned in clause   1 or 2 is a child beneficiary at the time of the first payment, the maximum and minimum pension valuation factors set out in Column 3 and Column 4 of Table 2 in this Schedule must be used.

6.   In the case of a reversionary beneficiary mentioned in clause   1 or 2, the maximum and minimum limits for reversionary benefits must be calculated:

  (a)   on or before the 1   July next after the death of the original beneficiary; or

  (b)   if the death of the original beneficiary occurs in the period from 1   April to 30   June (inclusive) in a year, recalculation may be extended beyond 1   July in that year to the earliest normal RSA recalculation date after the financial year in which the death occurred.

7.   For the purposes of clause   5, a reversionary beneficiary is a child beneficiary until:

  (a)   his or her 16th birthday; or

  (b)   if the person mentioned in paragraph   (a) is a full - time student at age 16--the end of his or her full - time studies or his or her 25th birthday (whichever occurs sooner).

Table 1   Factors for allocated pensions--general

Example

Iva Fortune, who turns 60 on 5   September 1997, invests $100,000 in an RSA on 1   October 1997. The date of the first payment to Ms Fortune is 1   January 1998.

Assume that the interest applied to the RSA is 7%.

1997/98: The maximum and minimum payments for 1997/98 are based on:

(a)   the RSA balance on the day of purchase; and

(b)   the beneficiary's age of 60 on the day of purchase:

(maximum limit, rounded to $8,310)

(minimum limit, rounded to $4,200)

Assume that total payments to Ms Fortune at 30   June 1998 are $6,000.

1998/99: The maximum and minimum payments for the year 1998/99 are based on:

(a)   the RSA balance on 1   July 1998 which is $99,145 (residue $94,000 + interest of $5,145); and

(b)   the beneficiary's age of 60 on 1   July 1998:

(maximum limit, rounded to $11,020)

(minimum limit, rounded to $5,570)

Table 2   Factors for allocated pensions--child beneficiary (reversion)