Superannuation Industry (Supervision) Amendment Regulations 2004 (No. 4) (148 of 2004)
Schedule 3 Amendments commencing on 20 September 2004
 After regulation 1.07B
insert in Division 1A.1
1.07C Commutation of market linked income stream
(1) This regulation applies in relation to the following:
(a) a contract mentioned in paragraph 1.05 (1) (g) for a market linked annuity;
(b) rules of a superannuation fund mentioned in paragraph 1.06 (1) (e) 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
(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:
annual amount * (Days in payment period / Days in financial year)
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.