Document ID: chunk:federal_register_of_legislation:F2025C00069:reg:3:p19
Version: federal_register_of_legislation:F2025C00069
Segment Type: reg
Provision Reference: reg 3 (pt 19/52)
Character Range: 116892–119658

made within 6 months after the commencement day of the pension;
 (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 pension:
 (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) rules that meet the standards of this subregulation or subregulation (3), (7) or (8); or
 (B) a contract that meets the standards of subregulation 1.05(2), (3), (9) or (10); or
 (C) terms and conditions that meet the standards of subregulation 1.07(3A) of the RSA Regulations;
 (iiia) subregulations 1.06C(1) and (2) apply to the commutation;
 (iv) to pay a superannuation contributions surcharge;
 (v) to give effect to an entitlement of a non‑member spouse under a payment split;
 (vi) for the purpose of paying an amount under Division 131 or 135 in Schedule 1 to the Taxation Administration Act 1953, or section 292‑80C of the Income Tax (Transitional Provisions) Act 1997, to give effect to a release authority in respect of the primary beneficiary;
 (vii) the pension was commenced in contravention of Part 6 and the commutation would result in an obligation to pay an amount to the Commissioner of Taxation under subsection 20F(1) of the Superannuation (Unclaimed Money and Lost Members) Act 1999; and
 (f) if the pension reverts or is commuted, it does not have a reversionary component greater than 100% of the benefit that was payable before the reversion or the commutation; and
 (g) the pension is not able to be transferred to a person other than a reversionary beneficiary on the death of the primary beneficiary or of another reversionary beneficiary; and
 (h) the capital value of the pension and the income from it, cannot be used as security for a borrowing.
 (3) For the purpose of determining whether rules meet the standards in subregulation (2), it is immaterial that:
 (a) if the primary beneficiary dies within the period used for subparagraph (2)(e)(ii), a surviving reversionary beneficiary may obtain a payment equal to the total payments that the primary beneficiary would have received, if the primary beneficiary had not died, from the day of the death until the end of the period; and
 (b) if the primary beneficiary dies within the period used for subparagraph (2)(e)(ii) and there is no surviving reversionary beneficiary, an amount, not exceeding the difference between the sum of the amounts paid to the primary beneficiary