Commonwealth Consolidated Regulations Commonwealth Consolidated Regulations(1) This regulation applies in relation to the following:
(a) a contract mentioned in paragraph 1.05(1A)(e) for a benefit (in this regulation called the annuity );
(b) a contract mentioned in paragraph 1.05(1A)(g) for a benefit that is an annuity under sub - subparagraph 1.05(1A)(g)(i)(A) (in this regulation called the annuity );
(c) rules of a superannuation fund mentioned in paragraph 1.06(1A)(c) for a benefit (in this regulation called the pension ).
(2) The contract or rules, meet the standards of this regulation if the contract or rules ensure that the annuity or pension cannot be commuted, in whole or in part, unless:
(a) the commutation results from the death of an annuitant or pensioner or a reversionary annuitant or 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 annuity or pension, immediately after the commutation in part, would be equal to or would exceed the minimum limit under Schedule 1A or Schedule 1AAB, whichever is applicable to the annuity or pension under subregulation 1.05(4) or 1.06(4) as the case may be, as reduced by the amount of payments (excluding amounts paid by way of commutation) to the annuitant or pensioner already made in the financial year in which the commutation in part would occur; or
(c) the annuity or pension has paid, in the financial year in which the commutation is to take place, at least the minimum amount under subregulation (3).
(3) For paragraph (2)(c), the minimum amount is calculated using the formula:
where:
"Days in payment period" means the number of days in the period that:
(a) begins on:
(i) if the annuity or pension commenced in the financial year in which the commutation is to take place--the commencement day; or
(ii) otherwise--1 July in that financial year; and
(b) ends on 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 (365 or 366).
"Minimum annual amount" for the financial year means:
(a) for an annuity mentioned in paragraph (1)(b)--the minimum limit worked out in accordance with clause 2 of Schedule 1A or 1AAB as the case may be, as if the annuity account balance was the amount of the annuity account that is allocated by the annuity provider to make payments whose size is not fixed, in accordance with subparagraph 1.05(8)(c)(ii); and
(b) otherwise--the minimum limit worked out in accordance with clause 2 of Schedule 1A or 1AAB as the case may be;
rounded to the nearest 10 whole dollars.