Document ID: chunk:federal_register_of_legislation:F2025C00069:reg:3:p32
Version: federal_register_of_legislation:F2025C00069
Segment Type: reg
Provision Reference: reg 3 (pt 32/52)
Character Range: 148906–151646

for full commutation of certain income streams
 (1) For the purposes of subparagraphs 1.06(2)(e)(iiia), (7)(g)(va) and (8)(d)(iva), this subregulation applies to a commutation of a benefit if:
 (a) the benefit is commuted during the 5 years beginning on the day this regulation commences; and
 (b) the whole of the benefit is commuted.
 (2) For the purposes of subparagraph 1.06(2)(e)(iiia), this subregulation applies to a commutation of a benefit if the fund providing the benefit:
 (a) is not a defined benefit fund; or
 (b) is a self managed superannuation fund; or
 (c) was, when the benefit commenced to be paid and at all earlier times, a small APRA fund (within the meaning of the Corporations Act 2001).

1.07  Periods when beneficiary may not receive benefits
  A benefit is not taken not to meet the standards in regulation 1.05 or 1.06 by reason only that payments of benefit to the beneficiary have been properly suspended during a period when the beneficiary is the holder of a paid public office.

1.07A  Commutation of allocated annuities and pensions
 (1) This regulation applies in relation to the following:
 (a) a contract mentioned in paragraph 1.05(1A)(e) for a benefit (in this regulation called the annuity);
 (b) a contract mentioned in paragraph 1.05(1A)(g) for a benefit that is an annuity under sub‑subparagraph 1.05(1A)(g)(i)(A) (in this regulation called the annuity);
 (c) rules of a superannuation fund mentioned in paragraph 1.06(1A)(c) for a benefit (in this regulation called the pension).
 (2) The contract or rules, meet the standards of this regulation if the contract or rules ensure that the annuity or pension cannot be commuted, in whole or in part, unless:
 (a) the commutation results from the death of an annuitant or pensioner or a reversionary annuitant or reversionary pensioner; or
 (b) the sole purpose of the commutation is:
 (i) to pay a superannuation contributions surcharge; or
 (ii) to give effect to an entitlement of a non‑member spouse under a payment split; or
 (iii) to meet the rights of a client to return a financial product under Division 5 of Part 7.9 of the Corporations Act 2001; or
 (ba) for a commutation in part—the account balance of the annuity or pension, immediately after the commutation in part, would be equal to or would exceed the minimum limit under Schedule 1A or Schedule 1AAB, whichever is applicable to the annuity or pension under subregulation 1.05(4) or 1.06(4) as the case may be, as reduced by the amount of payments (excluding amounts paid by way of commutation) to the annuitant or pensioner already made in the financial year in which the commutation in part would occur; or
 (c) the annuity or pension has paid, in the financial year in which the