Document ID: chunk:federal_register_of_legislation:F2025C00069:reg:3:p35
Version: federal_register_of_legislation:F2025C00069
Segment Type: reg
Provision Reference: reg 3 (pt 35/52)
Character Range: 156188–158860

(b) rules of a superannuation fund mentioned in paragraph 1.06(1A)(e) or (1B)(d) for a market linked 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
 (iv) to comply with section 136‑80 in Schedule 1 to the Taxation Administration Act 1953; 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 total payment amount calculated in accordance with Schedule 6, 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 commutation is to take place, at least the minimum amount under subregulation (3).
 (3) For paragraph (2)(c), the minimum amount is calculated using the formula:

where:
annual amount for the financial year means the amount worked out in accordance with Schedule 6 for the annuity or pension, rounded to the nearest 10 whole dollars.
days in payment period means the number of days in the period that:
 (a) starts on:
 (i) if the annuity or pension commenced in the financial year in which the commutation is to take place—the commencement day; or
 (ii) in any other case—1 July in that financial year; and
 (b) ends at the end of the day on which the commutation is to take place.
days in financial year means the number of days in the financial year in which the commutation is to take place.

1.07D  Commutation of superannuation income stream
 (1) For paragraphs 1.05(1)(d) and 1.06(1)(b), a benefit meets the standards of this regulation if, under the applicable contract or rules, the annuity or pension cannot be commuted, in whole or in part, except in the following circumstances:
 (a) the commutation results from the death of the 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