INCOME TAX (TRANSITIONAL PROVISIONS) REGULATIONS 2010

REGULATION 4   Complying funds - transitional arrangements for deductions for insurance premiums  

4(1)    
This provision is made for section 295-466 of the Act.

4(2)    
A disability is a permanent disability if:

(a) it is a disability about which a trustee of a superannuation fund or an insurer requires reasonable medical evidence before a member is eligible for superannuation benefits conditional on the member ' s disability; and

(b) it can be described as one or more of the disabilities described in subregulation (3).

4(3)    
For paragraph (2)(b), each of the following is a disability:

(a) a disability that is likely to result in an inability ever to work in any occupation for which the member is reasonably qualified by education, training or experience;

(b) a disability that is likely to result in an inability ever to work again in the member ' s own occupation;

(c) a disability that results in a substantial reduction in the member ' s capacity to do one or more daily activities without the assistance of another person, an animal or equipment that alleviates the effect of the disability;

(d) in relation to a member who was engaged in home duties - a disability that is likely to result in an inability ever to engage in the majority of those home duties;

(e) a permanent loss of either or both of:

(i) the member ' s sight in one or both eyes resulting in the member being legally blind;

(ii) the use of one or more of the member ' s limbs, feet or hands;

(f) a permanent cognitive impairment that results in the need for the member to be continuously supervised by another person;

(g) a terminal illness from which the member is expected to die within 12 months of obtaining the medical evidence mentioned in paragraph (2)(a).

4(4)    
For paragraphs (3) (a) and (b), an inability ever to work includes a case in which a member is unable to work except in a substantially reduced capacity to that in which the member worked before the member had the disability.

4(5)    
If a description of a disability in an insurance policy has substantially the same meaning as a description of a disability mentioned in subregulation (3):

(a) any additional criterion that a member is required to meet to be eligible for a total and permanent disability benefit under the insurance policy may be disregarded; and

(b) the disability is taken to be described as a permanent disability for this regulation.

Example

An insurance policy provides that for a member with a disability to be eligible for a total and permanent disability benefit:

(a) the member must have been continuously absent from work through illness or injury for the past 6 months; and

(b) the trustee and insurer must form the view that the member has become incapacitated to such an extent as to render the member unlikely to ever again be able to be employed in any gainful employment.

This description of disability would be a permanent disability under this regulation because the additional requirement for 6 months continuous absence from work would be disregarded and the wording used to describe the extent of the disability has substantially the same meaning as the description in paragraph (3)(a).