Superannuation Industry (Supervision) Amendment Regulations 2007 (No. 1) (74 of 2007)

Schedule 3   Amendments commencing on 1 July 2007

[8]   Subregulation 1.05 (1)

substitute

(1) A benefit that is provided by a life insurance company or a registered organisation is taken to be an annuity for the purposes of the Act if:

(a) it arises under a contract that:

(i) meets the standards of subregulation (11A); and

(ii) does not permit the capital supporting the annuity to be added to by way of contribution or rollover after the annuity has commenced; and

(b) for a benefit purchased on or after 3 August 1993 and before 1 July 2007 - it is purchased with the whole or part of a rolled over amount within the meaning given to that term by section 27A of the Tax Act; and

(c) for a benefit purchased on or after 1 July 2007 - it is purchased with the whole or part of:

(i) a roll-over superannuation benefit within the meaning of the 1997 Tax Act; or

(ii) a directed termination payment within the meaning of the Income Tax (Transitional Provisions) Act 1997; and

(d) in the case of a contract to which paragraph (11A) (a) applies - the contract also meets the standards of regulation 1.07D; and

(e) in the case of a contract to which paragraph (11A) (b) applies - the contract also meets the standards of regulation 1.07B.

(1A) A benefit that is provided by a life insurance company or a registered organisation that commenced to be paid before 20 September 2007 is taken to be an annuity for the purposes of the Act if:

(a) it arises under a contract that meets the standards of subregulation (2), (4), (6), (7), (8), (9) or (10); and

(b) for a benefit purchased on or after 3 August 1993 and before 1 July 2007 - it is purchased with the whole or part of a rolled over amount within the meaning given to that term by section 27A of the Tax Act; and

(c) for a benefit purchased on or after 1 July 2007 and before 20 September 2007 - it is purchased with the whole or part of:

(i) a roll-over superannuation benefit within the meaning of the 1997 Tax Act; or

(ii) a directed termination payment within the meaning of the Income Tax (Transitional Provisions) Act 1997; and

(d) for a benefit that arises under a contract that meets the standards of subregulation (9) and is purchased by the primary beneficiary on or after 20 September 1998 - the commencement day under the contract is the day when the benefit was purchased; and

(e) for a benefit that arises under a contract that meets the standards of subregulation (4) - the contract also meets the standards of regulation 1.07A; and

(f) for a benefit that arises under a contract that meets the standards of subregulation (2), (6), (7) or (9) - the contract also meets the standards of regulation 1.07B; and

(g) for a benefit that arises under a contract that meets the standards of subregulation (8):

(i) the benefit can be taken to consist of two benefits:

(A) an annuity that arises from that part of the contract that provides for payments whose size is not fixed; and

(B) an annuity that arises from that part of the contract that provides for payments whose size in a year is fixed; and

(ii) the contract meets the standards of regulation 1.07A in relation to the annuity mentioned in sub-subparagraph (i) (A); and

(iii) the contract meets the standards of regulation 1.07B in relation to the annuity mentioned in sub-subparagraph (i) (B); and

(h) for a benefit that arises under a contract that meets the standards of subregulation (10), and has a commencement day on or after 20 September 2004 - the contract also meets the standards of regulation 1.07C.

(1B) A benefit provided by a life insurance company or registered organisation that commenced to be paid on or after 20 September 2007 is taken to be an annuity for the purposes of the Act if:

(a) the benefit arises under a contract that meets the standards of:

(i) subregulation 1.05 (9) or (10); and

(ii) subregulation 1.05 (11A); and

(b) the benefit was purchased with a rollover superannuation benefit that resulted from the commutation of:

(i) an annuity provided under a contract that meets the standards of subregulation 1.05 (2), (9) or (10); or

(ii) a pension provided under rules that meet the standards of subregulation 1.06 (2), (7) or (8); or

(iii) a pension provided under terms and conditions that meet the standards of subregulation 1.07 (3A) of the RSA Regulations; and

(c) for a benefit that arises under a contract that meet the standards of subregulation (9) - the contract also meets the standards of regulation 1.07B; and

(d) for a benefit that arises under a contract that meet the standards of subregulation (10) - the contract also meets the standards of regulation 1.07C.