Document ID: chunk:federal_register_of_legislation:F2025C00069:reg:3:p4
Version: federal_register_of_legislation:F2025C00069
Segment Type: reg
Provision Reference: reg 3 (pt 4/52)
Character Range: 80093–82788

a reversionary beneficiary:
 (i) throughout the reversionary beneficiary's life; or
 (ii) if he or she is a child of the primary beneficiary or of a former reversionary beneficiary under the annuity—at least until his or her 16th birthday; or
 (iii) if the person referred to in subparagraph (ii) is a full‑time student at age 16—at least until the end of his or her full‑time studies or until his or her 25th birthday (whichever occurs sooner); and
 (b) the size of payments of benefit in a year is fixed, allowing for variation only:
 (i) as specified in the contract; or
 (ii) to allow commutation to pay a superannuation contributions surcharge; or
 (iii) to allow an amount to be paid under a payment split and reasonable fees in respect of the payment split to be charged; and
 (c) unless APRA otherwise approves, the sum payable as benefit in each year to the primary beneficiary or to the reversionary beneficiary, as the case may be, is:
 (i) if CPIc is not less than CPIp—not less than SPp; or
 (ii) if CPIc is less than CPIp—not less than:

  where:
  CPIc means the quarterly CPI first published by the Australian Statistician for the second‑last quarter before the day on which payment is to be made.
  CPIp means the quarterly CPI first published by the Australian Statistician for the same quarter in the immediately preceding year.
  SPp means the sum payable in the immediately preceding year;
  and
 (d) the amount paid as the purchase price is wholly converted into annuity income; and
 (e) the annuity does not have a residual capital value; and
 (f) the annuity cannot be commuted except in any of the following circumstances:
 (i) the annuity is not funded from the commutation of:
 (A) an annuity that meets the standards of this subregulation or subregulation (3), (9) or (10); or
 (B) a pension that meets the standards of subregulation 1.06(2), (3), (7) or (8); or
 (C) a pension that meets the standards of subregulation 1.07(3A) of the RSA Regulations;
  and the commutation is made within 6 months after the commencement day of the annuity;
 (ii) the commutation is made to the benefit of a reversionary beneficiary on the death of the primary beneficiary and within one of the following periods after the commencement day of the annuity:
 (A) if the primary beneficiary's life expectancy on the commencement day, rounded up to the next whole number, is a period less than 20 years—that period;
 (B) in any other case—20 years;
 (iii) the superannuation lump sum resulting from the commutation is transferred directly for the purpose of purchasing another benefit provided under:
 (A) a contract that meets the standards of this subregulation or subregulation (3),