(1) For the purposes of implementing the Arrangement, Part 6 of these Regulations, as affected by subregulations (2) to (8):
(a) applies in relation to a New Zealand - sourced amount that is rolled over or transferred between complying superannuation funds; and
(b) applies in relation to an amount to be paid from a complying superannuation fund to a KiwiSaver scheme to the extent necessary to allow the amount to be paid.
Note: In order to implement the Arrangement, it is appropriate to treat a New Zealand - sourced amount as an amount that is subject to Australia's payment standards, apart from any differences required by the Arrangement.
No payments to self managed superannuation funds
(2) The application of Part 6 in relation to a New Zealand - sourced amount that is rolled over or transferred between complying superannuation funds is modified to the extent necessary to prohibit the rollover or transfer of a New Zealand - sourced amount from a complying superannuation fund to a self managed superannuation fund.
No obligation to receive amount
(3) The application of Part 6 in relation to a New Zealand - sourced amount that is rolled over or transferred between complying superannuation funds is modified to the extent necessary to ensure that it does not require the trustee of a complying superannuation fund, in any circumstances, to receive the amount.
Note: In accordance with the Arrangement, arrangements to enhance trans - Tasman portability will be voluntary for providers as to whether they will accept transferred retirement savings.
Separate identification of New Zealand - sourced amount
(4) The application of Part 6 in relation to a New Zealand - sourced amount that is rolled over or transferred between complying superannuation funds is modified to the extent necessary to ensure that the trustee of a complying superannuation fund is, at all times, required to administer a member's interest in the complying superannuation fund in a way that allows any New Zealand - sourced amount in the fund to be identified separately.
(5) The application of Part 6 in relation to an amount to be paid from a complying superannuation fund to a KiwiSaver scheme is modified to the extent necessary to ensure that the amount is to be paid if the condition of release mentioned in item 113A of Schedule 1 is satisfied, and is to be paid:
(a) as a single lump sum that is at least the amount of the member's withdrawal benefit in the fund; or
(b) if the fund receives any combination of contributions, transfers and rollovers after cashing the benefits:
(i) in a way that ensures that an amount that is at least the amount of the member's withdrawal benefit in the fund is cashed; and
(ii) without requiring an additional application from the member.
Division 6.7 (spouse contributions - splitting amounts)
(6) Division 6.7 does not apply to a New Zealand - sourced amount.
Reduction of amount of benefits
(7) The application of Part 6 is modified to the extent necessary to ensure that, if the trustee of a complying superannuation fund is required to reduce a member's benefits in the complying superannuation fund by a particular amount, the trustee must:
(a) first charge the amount to the member's benefits that are not New Zealand - sourced amounts; and
(b) if the full amount cannot be charged under paragraph (a)--then charge the remainder to the member's benefits that are New Zealand - sourced amounts to the extent possible.
Note: In accordance with the Arrangement, the intention is that any decrements to retirement savings balances would first be applied to host country retirement savings before being applied to retirement savings transferred from the source country.
Preserved benefits
(8) The application of Part 6 is modified to the extent necessary to ensure that a New Zealand - sourced amount in a complying superannuation fund is treated as preserved benefits in the same way as other amounts in the fund would be treated as preserved benefits.