Commonwealth Numbered Regulations

1997 No. 116 RETIREMENT SAVINGS ACCOUNTS REGULATIONS - REG 4.01

4.01. (1) Subject to subregulation (2), expressions used in this Part that are
defined for the purposes of Part 3 have the same meanings respectively as in
that Part.

(2) In this Part and in Schedule 2, unless the contrary intention appears:

"condition of release" means a condition of release specified in Column 2 of
Schedule 2, and an RSA holder is taken to have satisfied a condition of
release if the event specified in that condition has occurred in relation to
the RSA holder;

"indexed", in relation to a benefit, means indexed in accordance with section
159SG of the Tax Act modified so that subsection (1) reads as follows:

"(1) The benefit as indexed for each year of income is:

   (a)  in relation to the year of income in which occurs the day on which a
        benefit was required to have been calculated or was received by the
        RSA provider - the amount of the benefit that was calculated or
        received; or

   (b)  in relation to a later year of income - the amount calculated by
        multiplying the benefit for the immediately preceding year of income
        by the indexation factor worked out in accordance with subsection (2)
        for the later year of income.";

"lump sum", in this Part but not in Schedule 2, includes an asset;

"non-commutable income stream" means a benefit that:

   (a)  cannot be commuted; and

   (b)  is paid at least monthly; and

   (c)  does not have a residual capital value; and

   (d)  is such that the total amount paid each month is fixed or varies only:

        (i)    for the purpose of complying with the Act and these
               Regulations; and

        (ii)   during any period of 12 months by a rate not exceeding either:

                (A)  5% per annum; or

                (B)  the rate of increase in the last Consumer Price Index
                     (All Capital Cities) for a quarter to be published by the
                     Australian Statistician before the end of that period of
                     12 months compared with the Consumer Price Index (All
                     Capital Cities) published for the same quarter in the
                     preceding year;

"OSS Laws" means:

   (a)  the Occupational Superannuation Standards Act 1987 as in force
        immediately before the commencement of section 5 of the Occupational 
        Superannuation Standards Amendment Act 1993 ; and

   (b)  the Occupational Superannuation Standards Regulations;

"permanent departure from Australia", in relation to an RSA holder, means a
departure by the RSA holder from Australia where the RSA provider is
reasonably satisfied that it is for the purpose of permanent residence outside
Australia;

"permanent incapacity", in relation to an RSA holder who has ceased to be
gainfully employed, means ill-health (whether physical or mental), where the
RSA provider is reasonably satisfied that the RSA holder is unlikely, because
of the ill-health, ever again to engage in gainful employment for which the
RSA holder is reasonably qualified by education, training or experience;

"restricted non-preserved contributions" means undeducted contributions
(within the meaning of subregulation (3)) of an RSA holder other than
contributions that were preserved in satisfaction of requirements of the Tax
Act, the OSS Laws or the Superannuation Industry (Supervision) (Transitional
Provisions) Regulations leading to income tax concessions;

"retirement" has the meaning given by subregulation (4);

"RSA changeover day", in relation to an RSA holder, means:

   (a)  if, under regulation 4.03, the RSA provider has fixed a day in the
        1998 calendar year as the changeover day in relation to that RSA
        holder - the day fixed under that regulation; or

   (b)  in any other case - 1 July 1998;

"severe financial hardship" has the meaning given by subregulation (5);

"SIS changeover day", in relation to a member of a regulated superannuation
fund (within the meaning of the SIS Regulations) has
the same meaning as the term "changeover day" has in Part 6 of those
Regulations;

"temporary incapacity", in relation to an RSA holder who has ceased to be
gainfully employed (including an RSA holder who has ceased temporarily to
receive any gain or reward under a continuing arrangement for the RSA holder
to be gainfully employed), means ill- health (whether physical or mental) that
caused the RSA holder to cease to be gainfully employed but does not
constitute permanent incapacity.

(3) For the purposes of the definition of "restricted non-preserved
contributions" in subregulation (2), amounts to the credit of an RSA holder
are undeducted contributions if:

   (a)  in relation to amounts which formed the whole or part of an
        eligible termination payment - those amounts are undeducted
        contributions within the meaning given by subsections 27A (1) and (7)
        of the Tax Act for the purposes of Subdivision AA of Division 2 of
        Part III of that Act; or

   (b)  in relation to any other amounts - those amounts comprise:

        (i)    RSA holder contributions made in order to obtain superannuation
               benefits (within the meaning of the Tax Act); and

        (ii)   in respect of which no deduction is allowable or has been
               allowed to the RSA holder under the Tax Act.

(4) For the purposes of Schedule 2, the retirement of a person is taken to
occur:

   (a)  in the case of a person who has attained age 55 - if:

        (i)    an arrangement under which RSA holder was gainfully employed
               has come to an end; and

        (ii)   the RSA provider is reasonably satisfied that the RSA holder
               intends never to again become gainfully employed, either on a
               full- time or a part-time basis; or

   (b)  in the case of a person who has attained age 60 - an arrangement under
        which the RSA holder was gainfully employed has come to an end on or
        after the RSA holder attained that age.

(5) For the purposes of Schedule 2, a person is taken to be in severe
financial hardship if the Commissioner has made a determination in writing
that the person is in severe financial hardship.

(6) A reference in this Part to "preserved benefits", "restricted
non-preserved benefits", "restricted non-preserved contributions",

"unrestricted non-preserved benefits" and "post-65 employer-financed benefits"
includes benefits, or contributions (as the case may be), rolled over, or
transferred, from a superannuation entity.