Commonwealth Numbered Regulations

1994 No. 57 SUPERANNUATION INDUSTRY (SUPERVISION) REGULATIONS - REG 6.01

6.01. (1) Subject to subregulation (2), expressions used in this Part that are
defined for the purposes of Part 5 have the same meanings respectively as in
that Part.

(2) In this Part and in Schedule 1, unless the contrary intention appears:

"changeover day", in relation to a member of a regulated superannuation fund,
means:

   (a)  the day in the 1996 calendar year that the trustee of the fund
        decides, in accordance with subregulations (3) and (4), is the
        changeover day for the purposes of this Part in relation to that
        member; or

   (b)  if, before 1 July 1996, the trustee makes no such decision in relation
        to that member, 1 July 1996;

"commencement day" means:

   (a)  in relation to a regulated superannuation fund, the later of:

        (i)    the first day of the 1994-95 year of income of the fund; or

        (ii)   the day on which the trustee or trustees of the fund make an
               election under section 19 of the Act; and

   (b)  in relation to an approved deposit fund:

        (i)    if the first day of the 1994-95 year of income of the fund is
               on or after 1 July 1994-the first day of that year of income;
               or

        (ii)   if the first day of that year of income is before 1 July
               1994-the earlier of:

                (A)  1 July 1994; or

                (B)  the day on which the fund became an approved deposit
                     fund;

"condition of release" means a condition of release specified in Column 2 of
Schedule 1, and a member of a fund is taken to have satisfied a condition of
release if the event specified in that condition has occurred in relation to
the member;

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

"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
        fund-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.";

"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;

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

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

"restricted non-preserved contributions" means undeducted contributions
(within the meaning of subregulation (6)) of a member 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 (7);

"successor fund", in relation to a transfer of benefits of a member from a
fund (called the 'original fund'), means a fund which satisfies the following
conditions:

   (a)  the fund confers on the member equivalent rights to the rights that
        the member had under the original fund in respect of the benefits;

   (b)  before the transfer, the trustee of the fund has agreed with the
        trustee of the original fund that the fund will confer on the member
        equivalent rights to the rights that the member had under the original
        fund in respect of the benefits;

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

(3) In deciding the changeover day in relation to a member, the trustee of the
fund:

   (a)  is not bound by the governing rules of the fund; and

   (b)  must take reasonable steps to ensure that the changeover day is as
        early as convenient; and

   (c)  must be recorded in writing by the trustee.

(4) Nothing in this Part is to be taken as:

   (a)  requiring a decision as to the changeover day in relation to a member
        to be made in terms specific to that member; or

   (b)  prohibiting such a decision from being made prospectively in relation
        to future members.

(5) For the purposes of Schedule 1, a person is taken to be in financial
hardship if the Commissioner has made a determination in writing that the
person is in financial hardship.

(6) For the purposes of the definition of "restricted non-preserved
contributions" in subregulation (1), amounts to the credit of a member in a
fund 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 subsection 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)    member contributions made after 30 June 1983 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 member under the Tax Act.

(7) For the purposes of Schedule 1, 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 the member was gainfully employed
               has come to an end; and

        (ii)   the trustee is reasonably satisfied that the person 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 member was gainfully employed has come to an end on or after
        the member attained that age.