Document ID: chunk:federal_register_of_legislation:F2025C00069:reg:3:p31
Version: federal_register_of_legislation:F2025C00069
Segment Type: reg
Provision Reference: reg 3 (pt 31/52)
Character Range: 146492–149167

a member of the fund; and
 (iii) the provider of the benefit were a trustee of the fund; and
 (f) the benefit is transferable to another person only on the death of the beneficiary (primary or reversionary, as applicable); and
 (g) the capital value of the benefit and the income from it cannot be used as a security for a borrowing.
 (4) However, the governing conditions do not meet the standards of subregulation (2) if, in relation to the death of the beneficiary, the benefit is transferred or paid to a person who would not be eligible under paragraph 6.21(2)(b), or under subregulation 6.21(2A) or (2B), to be paid a benefit.
 (5) The governing conditions may state that they do not meet the standards in subparagraph 1.05(11A)(b)(i) or (ii), or in subparagraph 1.06(9A)(b)(i) or (ii), as applicable. For the purposes of this Part, such a statement has effect according to its terms from the day it is made, and continues to have effect whether or not the statement is later changed or removed.

1.06B  Maximum commutation amount for certain innovative superannuation income streams
 (1) For the purposes of paragraph 1.06A(3)(d), the amount for a commutation of a benefit (the income stream) is:
 (a) if the income stream is commuted during the 14 day period starting on the retirement phase start day for the income stream—the access amount for the income stream at the time of the commutation; or
 (b) if the income stream is commuted on the death of the beneficiary within the first half of the life expectancy period for the income stream and paragraph (a) does not apply—the access amount for the income stream at the time of the death; or
 (c) otherwise:
 (i) the amount worked out for the income stream under subregulation (2); or
 (ii) if the amount worked out for the income stream under subregulation (2) is less than or equal to zero—nil.
 (2) For the purposes of paragraph (1)(c), the amount for the income stream is worked out using the following formula:
where:
previously commuted amount means the sum of any amounts commuted from the income stream before the time of the commutation.
remaining life expectancy means the number of days remaining in the life expectancy period for the income stream after subtracting the number of days in the period:
 (a) starting on the retirement phase start day for the income stream; and
 (b) ending on the day of the commutation.

1.06C  Limited period 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