Document ID: chunk:federal_register_of_legislation:F2022L00184:clause:1_15:p3
Version: federal_register_of_legislation:F2022L00184
Segment Type: clause
Provision Reference: sch 1 cl 15 (pt 3/4)
Character Range: 17521–20290

(1).
 (6) A distribution made to rectify a contravention of subsection (1) does not count towards compliance with that subsection for a later year in which the rectification occurs.

Accessing a lower minimum distribution rate for a financial year
 (7) Upon application, in the *approved form, the Commissioner may reduce (but not to zero) the minimum annual distribution rate for a fund for a *financial year. The reduction may be subject to any conditions the Commissioner thinks fit.
 (8) The Commissioner may reduce the minimum annual distribution rate only if the Commissioner is satisfied that there are circumstances that warrant the Commissioner reducing the rate, having regard to the matters listed in subsection (10).
 (9) The Commissioner may reduce the minimum annual distribution rate at any time, including after the relevant financial year has ended.
 (10) In determining whether, and by how much to reduce the rate, the Commissioner must have regard to:
 (a) the purpose and object of the fund; and
 (b) the general market conditions in Australia; and
 (c) the past, current and expected levels of returns from the fund's investments; and
 (d) the long‑term impact on the assets of the fund from not reducing the rate for a *financial year; and
 (e) the level of distributions made by the fund in previous financial years; and
 (f) the investment strategy and distribution strategy of the fund; and
 (g) the size of the fund; and
 (h) the compliance history of the fund and the trustee; and
 (i) the fees and expenses of the fund; and
 (j) the terms and other circumstances relating to any gift to the fund under a will; and
 (k) any other matter the Commissioner considers relevant.
Note: Having regard to general market conditions in Australia could include reviewing the Reserve Bank of Australia's target for the cash rate (which is the overnight money market interest rate), the base interest rate, current returns of other ancillary funds (year on year), and the performance of approved stock exchanges. It could also include examining changes in conditions over time.
 (11) A *public ancillary fund that is dissatisfied with a decision of the Commissioner covered by subsection (12) may object against the decision in the manner set out in Part IVC of the Act.
 (12) This subsection covers the following decisions of the Commissioner:
 (a) a decision not to reduce the annual distribution rate under subsection (7) (after receiving an application as described in that subsection);
 (b) a decision not to reduce the annual distribution rate under subsection (7) to the extent requested in an application (as described in that subsection);
 (c) a decision to impose a condition on access to a reduced annual distribution rate under subsection (7).