Document ID: chunk:federal_register_of_legislation:F2025C00069:reg:3:p7
Version: federal_register_of_legislation:F2025C00069
Segment Type: reg
Provision Reference: reg 3 (pt 7/52)
Character Range: 87480–90071

of a benefit (in this subregulation called the annuity):
 (a) that does not meet the standards of subregulation (2); and
 (b) that fixes the size of the payments of benefit in a year, allowing for variation only as specified in the contract or to allow payments to be made under a payment split; and
 (c) under which the commencement day is on or after 1 July 1994;
meets the standards of this subregulation if the contract at least ensures that:
 (d) the standards in paragraphs (2)(g), (h) and (i) are met; and
 (e) except in relation to payments, by way of commutation, for superannuation contributions surcharge, variation in payments from year to year does not exceed, in any year, the average rate of increase of the CPI in the preceding 3 years; and
 (f) payments in accordance with paragraph (b) are made at least annually; and
 (g) the amount paid as the purchase price is wholly converted into annuity income.
 (7) A contract for the provision of a benefit (in this subregulation called the annuity) that:
 (a) does not meet the standards of subregulation (2); and
 (b) provides for payments whose size in a year is fixed, allowing for variation only as specified in the contract; and
 (c) provides for additional payments (in this subregulation called bonus payments);
 (d) the commencement day of which is on or after 1 July 1994;
meets the standards of this subregulation if it at least ensures that:
 (e) in respect of the fixed‑size payments—the standards in subregulation (6) are met; and
 (f) the fixed‑size payments amount to at least 50% of:
 (i) if the provider provides annuities of the kind specified in subregulation (6)—the amount that would be payable if the annuity were wholly of that kind; or
 (ii) if the provider does not provide annuities of the kind specified in subregulation (6)—the fixed‑size payments are at least equal in amount to 50% of the interest payable on Commonwealth bonds that have the same value as the purchase price of the annuity and that most closely correspond in term to the term of the annuity; and
 (g) the amounts of the bonus payments (if any) are reasonably proportional to the investment income from which the payments purport to be derived; and
 (h) the amount of a bonus payment (if any) is notified in writing by the provider each year and is paid to the beneficiary in the year next following (except when deferral of the payment would not result, in any future year, in the rate of increase in size of the total payments for the year exceeding the average rate of increase of the CPI in the preceding 3 years).
 (8) A contract