SUPERANNUATION INDUSTRY (SUPERVISION) REGULATIONS 1994

PART 7 - CONTRIBUTION AND BENEFIT ACCRUAL STANDARDS (REGULATED SUPERANNUATION FUNDS)  

Division 7.1 - General  

REGULATION 7.04   ACCEPTANCE OF CONTRIBUTIONS - REGULATED SUPERANNUATION FUNDS  

7.04(1)  


A regulated superannuation fund may accept contributions only in accordance with the following table and subregulations (2), (4) and (6).


Item If the member [mldr ] the fund may accept [mldr ]
1 is under 65 contributions that are made in respect of the member
2 is not under 65, but is under 70 contributions that are made in respect of the member that are:
(a) mandated employer contributions; or
(b) if the member has been gainfully employed on at least a part-time basis during the financial year in which the contributions are made:
(i) employer contributions (except mandated employer contributions); or
(ii) member contributions; or
(c) downsizer contributions; or
(d) if the member has not been gainfully employed, either on a full-time or a part-time basis, during the financial year in which the contributions are made, but all of the requirements mentioned in subregulation (1A) are satisfied for the member:
(i) employer contributions (except mandated employer contributions); or
(ii) member contributions
3 is not under 70, but is under 75 contributions that are made in respect of the member that are:
(a) mandated employer contributions; or
(b) if the member has been gainfully employed on at least a part-time basis during the financial year in which the contributions are made - contributions received on or before the day that is 28 days after the end of the month in which the member turns 75 that are:
(i) employer contributions (except mandated employer contributions); or
(ii) member contributions made by the member; or
(c) downsizer contributions; or
(d) if the member has not been gainfully employed, either on a full-time or a part-time basis, during the financial year in which the contributions are made, but all of the requirements mentioned in subregulation (1A) are satisfied for the member - contributions received on or before the day that is 28 days after the end of the month on which the member turns 75 that are:
(i) employer contributions (except mandated employer contributions); or
(ii) member contributions made by the member
4 is not under 75 mandated employer contributions or downsizer contributions

Note:

There is an exception for amounts relating to some CGT small business concessions (see subregulation (6A) ).

7.04(1A)  


For the purposes of paragraph (d) of item 2 or 3 of the table in subregulation (1), the requirements are the following:
  • (a) the member has been gainfully employed on at least a part-time basis during the financial year (the previous financial year ) ending before the financial year in which the contributions are made;
  • (b) the member has a total superannuation balance (within the meaning of section 307-230 of the 1997 Tax Act) of less than $300,000 at the end of the previous financial year;
  • (c) no contributions have been accepted by a regulated superannuation fund in respect of the member, in the previous financial year or any earlier financial year, because of the operation of paragraph (d) of item 2 or 3 of the table in subregulation (1);
  • (d) no contributions have been accepted by an RSA institution in respect of the member, in the previous financial year or any earlier financial year, because of the operation of paragraph (d) of item 2 or 3 of the table in subregulation 5.03(1) of the Retirement Savings Accounts Regulations 1997 .
  • 7.04(2)  


    In addition to subregulation (1), the regulated superannuation fund must not accept any member contributions if the member ' s tax file number has not been quoted (for superannuation purposes) to the trustee of the fund.

    7.04(3)  
    (Repealed by FRLI No F2017L00321)

    7.04(4)  


    If a regulated superannuation fund receives an amount in a manner that is inconsistent with subregulation (1) or (2):


    (a) the fund must return the amount to the entity or person that paid the amount within 30 days of becoming aware that the amount was received in a manner that is inconsistent with subregulation (1) or (2), unless:


    (i) the amount was received in a manner that is inconsistent with subregulation (2); and

    (ii) the member ' s tax file number is quoted (for superannuation purposes) within 30 days of the amount being received by the trustee of the fund; and


    (b) the fund is also authorised to take any of the following action to the extent that the rules of the fund allow:


    (i) if the price at which the interest could have been acquired on the day on which the amount is returned is less than the price on the day on which the interest was acquired, the amount that would otherwise be returned to the entity or person that paid the amount may be reduced by the amount of the difference between the prices;

    (ii) if the price at which the interest could have been acquired on the day of return of the amount is greater than the price on the day on which the interest was acquired, the amount that would otherwise be returned to the entity or person that paid the amount may be increased by the amount of the difference between the prices;

    (iii) if the price at which the interest could be acquired cannot be determined in accordance with the contract or legal relationship on the day on which the amount is returned, the price is to be determined:

    (A) on the basis of the most recent day on which a price was calculated in accordance with the contract or legal relationship; or

    (B) if there is no day of that kind - as soon as practicable after the decision is made to return the amount;

    (iv) in addition to subparagraph (i), the amount that would, but for this subparagraph, be returned to the entity or person that paid the amount may be reduced to account for reasonable administration costs and transaction costs, incurred by the fund, that:

    (A) are reasonably related to the acquisition of the interest and the return of the amount; and

    (B) do not exceed the true cost of an arms ' length transaction;
    other than costs related to commissions or similar benefits;

    (v) if:

    (A) the interest is a risk insurance interest, or the part of an interest that is a risk insurance interest; and

    (B) the interest has been issued for a specific period, or the premium for the interest has been paid in relation to cover for a specific period; and

    (C) a proportion of the specific period has already passed when the decision is made to return the amount to the entity or person that paid the amount;
    the amount that would otherwise be returned to the entity or person that paid the amount may be reduced by the sum of:

    (D) that part of any amount received in a manner inconsistent with subregulation (1) or (2) as has been paid by the fund to any person in connection with the risk insurance product and which is not recoverable by the fund from that person; and

    (E) the proportion equal to the proportion of the period that has passed of the difference between the amount that would otherwise be returned and the amount referred to in (a).

    7.04(5)  


    If a regulated superannuation fund acts under subregulation (4), the fund is taken not to have contravened the Act or these Regulations in relation to the acceptance of the amount or in relation to the return of the amount to the entity or person that paid the amount of the fund.

    7.04(6)  
    A regulated superannuation fund may accept contributions in respect of a member if the trustee is reasonably satisfied that the contribution is in respect of a period during which, under an item in the table in subregulation (1), the fund may accept the contribution in respect of that member, even though the contribution is actually made after that period.

    7.04(6A)  


    Despite subregulation (1), the regulated superannuation fund may accept, as a contribution, an amount to the extent that the amount does not exceed the member ' s CGT cap amount if:


    (a) were the amount to be accepted as a contribution, it could be covered under section 292-100 (certain CGT-related payments) of the Income Tax Assessment Act 1997 in relation to a CGT event referred to in that section; and


    (b) the capital proceeds from the CGT event were or could have been affected by one or more financial benefits received under a look-through earnout right; and


    (c) that subregulation would not have prevented the fund from accepting the amount as a contribution had it been made to the fund in the financial year in which the CGT event happened.

    Note:

    The CGT event is the one referred to in whichever of subsections 292-100(2) , (4) , (7) and (8) of that Act that could cause the amount to be covered under that subsection.

    7.04(7)  


    In this regulation:

    administration costs
    has the same meaning as in subregulation 5.01(1) .

    capital proceeds
    has the same meaning as in the Income Tax Assessment Act 1997 .

    CGT cap amount
    has the same meaning as in the Income Tax Assessment Act 1997 .

    CGT event
    has the same meaning as in the Income Tax Assessment Act 1997 .

    downsizer contribution
    means a contribution covered under section 292-102 of the 1997 Tax Act.

    employer contributions
    has the same meaning as in subregulation 1.03(1) .

    FHSA
    (Repealed by SLI No 91 of 2015)

    financial benefit
    has the same meaning as in the Income Tax Assessment Act 1997 .

    look-through earnout right
    has the same meaning as in the Income Tax Assessment Act 1997 .

    mandated employer contributions
    has the same meaning as in subregulation 5.01(1) .

    member contributions
    has the same meaning as in subregulation 5.01(1) .

    fund-capped contributions
    (Repealed by FRLI No F2017L00321)

    non-concessional contributions cap
    (Repealed by FRLI No F2017L00321)

    quoted (for superannuation purposes)
    has the same meaning as in the Income Tax Assessment Act 1997 .

    superannuation provider
    means:


    (a) the trustee of a complying superannuation fund; or


    (b) the trustee of a constitutionally protected fund, within the meaning of the Income Tax Assessment Act 1997 .

    tax file number
    has the meaning given by section 299W of the Act.

    transaction costs
    means any of the following:


    (a) brokerage paid because of an investment transaction;


    (b) a cost arising from maintenance of a property investment;


    (c) stamp duty on an investment transaction.


     

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