Edited version of private advice

Authorisation Number: 1052247906549

Date of advice: 22 November 2024

Ruling

Subject: Proportions of a PSS pension

Question 1

Will the relevant proportions of the superannuation interests supporting your Public Sector Superannuation Scheme (PSS) pension be X.XXXX (tax-free component), X.XXXX (taxable component taxed in the fund), and X.XXXX (taxable component untaxed in the fund), in accordance with section 307-125 of the Income Tax Assessment Act 1997 (ITAA 1997) and regulation 307-200.03 of the Income Tax Assessment (1997 Act) Regulations 2021 (ITAR (1997 Act) 2021?

Answer 1

No.

This ruling applies for the following periods:

Year ended 30 June XXXX

Year ended 30 June XXXX

Year ended 30 June XXXX

Year ended 30 June XXXX

Year ended 30 June XXXX

The scheme commenced on:

XX/XX/XXXX

Relevant facts and circumstances

You are a member of the PSS.

On XX/XX/XXXX, you sent an 'Age Retirement - Benefit Application' form and additional instructions to Commonwealth Superannuation Corporation (CSC).

In addition to advising CSC of your date of exit, you elected to take your final benefit accrual as part pension and part lump sum.

The lump sum, which was fixed at $XX,XXX, was to be rolled over to an account held by you in a different superannuation fund.

You provided the following additional instructions to CSC:

•                     you wished to commence a PSS pension (with effect from XX/XX/XXXX - the first business day after your date of exit);

•                     you wished for the PSS pension to comprise tax-free component (TFC), taxable component taxed in the fund (TC-TE) and taxable component untaxed in the fund (TC-UTE); and

•                     you wished for the lump sum rollover amount to comprise TFC and TC-TE only.

On XX/XX/XXXX, CSC wrote to you, advising that your 'Age Retirement - Benefit Application' form had been processed.

At that time, CSC provided an Exit Statement, advising that your final benefit accrual at XX/XX/XXXX was $X,XXX,XXX.XX. CSC advised that this amount comprised the following components:

•                     TFC: $XXX,XXX.XX;

•                     TC-TE: $XXX,XXX.XX;

•                     TC-UTE: $XXX,XXX.XX; and

•                     Total: $X,XXX,XXX.XX.

CSC advised that your lump sum superannuation entitlement was $XX,XXX,XX, comprising your scheme equity plus an additional interest payment of $XXX.XX, reflecting the additional time from the date of exit.

CSC advised that your lump sum superannuation entitlement was made up of the following components:

•                     TFC: $XX,XXX.XX;

•                     TC-TE: $XX,XXX.XX;

•                     TC-UTE: $X.XX; and

•                     Total: $XX,XXX.XX

On the same date, this amount was rolled over to another superannuation fund.

Your total balance on XX/XX/XXXX was $X,XXX,XXX.XX. This comprised the balance at the date of exit, plus the additional interest amount of $XXX.XX. This interest was added to the TC-TE component, resulting in a slight change in the component amounts, as follows:

•         TFC: $XXX,XXX.XX;

•         TC-TE: $XXX,XXX.XX;

•         TC-UTE: $XXX,XXX.XX; and

•         Total: $X,XXX,XXX.XX.

CSC advised you that your gross annual PSS pension would be $XXX,XXX.XX per annum, and that it would be paid in fortnightly payments of $X,XXX.XX.

CSC advised that the first pension payment would be made on XX/XX/XXXX, with an adjusted amount of $XX,XXX.XX.

You have stated that you believe the components of your pension payments should reflect the proportion of the components of your final benefit accrual in the PSS at the time immediately after your exit (XX/XX/XXXX).

Relevant legislative provisions

Income Tax Assessment Act 1997 Section 307-5

Income Tax Assessment Act 1997 Section 307-65

Income Tax Assessment Act 1997 subsection 307-65(1)

Income Tax Assessment Act 1997 Section 307-70

Income Tax Assessment Act 1997 Section 307-120

Income Tax Assessment Act 1997 Section 307-125

Income Tax Assessment Act 1997 Section 307-200

Income Tax Assessment Act 1997 subsection 995-1(1)

Income Tax Assessment Regulations 1997 subregulation 307-200.03

Income Tax Assessment (1997 Act) Regulations 2021 Regulation 307-70.01

Income Tax Assessment (1997 Act) Regulations 2021 Regulation 307-70.02

Income Tax Assessment (1997 Act) Regulations 2021 subregulation 307-70.02(ba)

Income Tax Assessment (1997 Act) Regulations 2021 Regulation 307-200.03

Superannuation Act 1990

Superannuation Industry (Supervision) Act 1993 subsection 10(1)

Superannuation Industry (Supervision) Act 1993 Section 19

Superannuation Industry (Supervision) Regulations 1994 subregulation 1.03(1)

Tax Laws Amendment (Simplified Superannuation) Act 2007

Income Tax Assessment Amendment Regulations 2007 (No. 6) (Select Legislative Instrument 2007 No. 202)

Reasons for decision

Detailed reasoning

The components in the PSS are comprised of the following:

•                     TFC: consists of member contributions paid to the scheme since 1 July 1983 and may include a pre-July 1983 taxed component if they started with an eligible employer before 1 July 1983.

•                     TC-TE: consists of the member's post-June 1990 productivity, which has been taxed at 15%, and the net earnings on the contributions.

•                     TC-UTE: consists of the employer component and any pre-July 1990 productivity and net earnings.

A member's final benefit accrual is determined at the time they cease membership.[1] CSC initially determines this amount as a lump sum.[2] A member can then elect to convert all or some of the lump sum to a pension.

A superannuation fund means:[3]

(a)          a fund that:

(i)            is an indefinitely continuing fund; and

(ii)           is a provident, benefit, superannuation or retirement fund; or

(b)          a public sector superannuation scheme.

A public sector superannuation scheme is a scheme for the payment of superannuation, retirement or death benefits, where that scheme is established by or under a law of the Commonwealth or of a State or Territory.[4]

Superannuation benefits

'Superannuation benefit' has the meaning given by section 307-5 of the ITAA 1997 and includes 'a superannuation fund payment, which is a payment to you from a superannuation fund because you are a member.'

A superannuation lump sum is a superannuation benefit that is not a superannuation income stream benefit.[5]

Subsection 307-70(1) of the ITAA 1997 defines a superannuation income stream benefit as a superannuation benefit specified in the regulations, that is paid from a superannuation income stream. The regulations state that, for the purposes of subsection 307-70(1) of the ITAA 1997, all superannuation benefits are specified.[6]

Subsection 307-70(1) of the ITAA 1997 states a superannuation income stream has the meaning given by the regulations. Regulation 307-70.02 of the ITAR (1997 Act) 2021 states:

For the purposes of subsection 307-70(2) of the Act, a superannuation income stream is:

...

(ba) an income stream in respect of which these conditions are satisfied:

(i)            the income stream is a defined benefit pension within the meaning of regulation 1.03 of the SIS Regulations; and

(ii)           the income stream commenced on or after 20 September 2007; and

(iii)          the income stream is provided by a defined benefit fund (within the meaning of regulation 1.03 of the SIS Regulations), or an exempt public sector superannuation scheme (within the meaning of the SIS Act); and

(iv)          if the income stream is provided by a defined benefit fund (within the meaning of regulation 1.03 of the SIS Regulations) that is not a public sector superannuation scheme - the fund or scheme has more than 6 members, or had more than 6 members at any time on or before the day the income stream commenced; and

(v)           the income stream is not invalidity pay within the meaning of the Defence Force Retirement and Death Benefits Act 1973; and

(vi)          the income stream is not an invalidity pension under the superannuation scheme established under the Military Superannuation and Benefits Act 1991;

...

Subject to some exceptions (which do not apply here), regulation 1.03 of the Superannuation Industry (Supervision) Regulations 1994 (SISR) states that a defined benefit pension means a pension mentioned in subsection 10(1) of the Superannuation Industry (Supervision) Act 1993 (SISA).

Subsection 10(1) of the SISA states that a 'pension, except in the expression old-age pension, includes a benefit provided by a fund, if the benefit is taken, under the regulations, to be a pension for the purposes of this Act.'

Regulation 1.06 of the SISR outlines the meaning of pension for the purposes of section 10 of the SISA. Subregulation 1.06(1) states:

A benefit is taken to be a pension for the purposes of the Act if:

(a)           it is provided under rules of a superannuation fund that:

(i)            meet the standards of subregulation (9A) or 1.06A(2); and

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

...

(c)           in the case of rules to which paragraph (9A)(b) applies and that meet the standards of subregulation (9A) - the rules also meet the standards of regulation 1.07B.

Subregulation 1.06A(2) of the SISR applies to certain innovative income streams and is not relevant here.

The relevant parts of subregulation 1.06(9A) of the SISR are:

•                     the rules for the provision of the benefit meet the standards for this subregulation if they ensure that the pension is paid (at least) annually; and

•                     ensure that the standards of subregulation 1.06(2) are met.

Subregulation 1.06(2) of the SISR states that the rules meet the standards of this subregulation if they ensure that:

•                     the pension is paid at least annually throughout the life of the primary beneficiary;

•                     the size of the payment is fixed, allowing for variation only as specified in the governing rules, to allow commutation to pay a superannuation contributions surcharge or to allow an amount to be paid under a payment split;

•                     unless the regulator approves, the sum payable as a benefit each year is:

(i)            if CPI c is not less than CPI p - not less than SP p; or

(ii)           if CPI c is less than CPI p - not less than:

•                     >the pension does not have a residual capital value; and

•                     the pension cannot be commuted except in certain circumstances, which includes to pay a superannuation contributions surcharge.

Regulation 1.03 of the SISR states that a defined benefit fund means:

(a)           a public sector superannuation scheme that:

(i)            is a regulated superannuation fund; and

(ii)            has at least 1 defined benefit member.

A regulated superannuation fund is defined in section 19 of the SISA. The requirements of a regulated superannuation fund are:

•                     the superannuation fund must have a trustee;

•                     the trustee of the fund must be a constitutional corporation pursuant to the requirement contained in the governing rules or the governing rules must provide that the sole or primary purpose of the fund is the provision of old-age pensions; and

•                     prior to 1 January 2021, the trustee must have given APRA, or such other body or person required in the regulations, a written notice, in the approved form and signed by the trustee, electing that the SISA apply in relation to the fund.[7]

A defined benefit member is defined in regulation 1.03 of the SISR as:

a member who is entitled, on retirement or termination of employment, to be paid a benefit defined wholly or in part by reference to:

(a)           the member' s salary on retirement, termination of employment or an earlier date; or

(b)           the member' s salary averaged over a period before retirement; or

(c)           both (a) and (b); or

(d)           a specified amount.

Components of a superannuation benefit

Subdivision 307-C of the ITAA 1997 outlines the components of a superannuation benefit.

Subsection 307-120(1) of the ITAA 1997 states that you need to work out the following components of a superannuation benefit:

(a)           the tax free component;

(b)           the taxable component.

Subsection 307-120(2) of the ITAA 1997 lists the relevant sections for working out the components based on the type of benefit.

Paragraph 307-120(2)(a) of the ITAA 1997 states that, if the benefit is not mentioned in paragraph (b), (c), (d), (e) or (f) of that subsection, section 307-125 of the ITAA 1997 (the 'proportioning rule') applies.

Subsection 307-125(1) of the ITAA 1997 states that the object of the section is to ensure that the TFC and taxable component (TC) of a benefit are calculated by:

(a)           first, determining the proportions of the *value of the *superannuation interest that those components represent; and

(b)           next, applying those proportions to the benefit.

Subsection 307-125(2) of the ITAA 1997 states that:

The *superannuation benefit is taken to be paid in a way such that each of those components of the benefit bears the same proportion to the amount of the benefit that the corresponding component of the *superannuation interest bears to the *value of the superannuation interest.

Subsection 307-125(3) of the ITAA 1997 states that, for the purposes of subsection 307-125(2) of the ITAA 1997, you must determine the value of the superannuation interest and the amount of each of those components of that interest at whichever of the following times is applicable:

(a)           If the superannuation benefit is a superannuation income stream benefit - when the relevant superannuation income stream commenced;

(b)           If the superannuation benefit is a superannuation lump sum - just before the benefit is paid.

Subsection 307-125(4) of the ITAA 1997 provides that subsection 307-125(2) of the ITAA 1997 does not apply to a superannuation benefit if any of the following apply:

(a)           the regulations specify an alternative method for determining those components of the benefit;

(b)           a determination made under subsection (5) specifies an alternative method for determining those components of the benefit;

(c)           the Commissioner consents in writing to the use of another method for determining those components of the benefit.

There are no regulations for determining how to allocate the components of public sector superannuation schemes, nor any legislative instrument for the calculation of components for public sector superannuation schemes.

The proportioning rule was inserted by the Tax Laws Amendment (Simplified Superannuation) Act 2007. The Explanatory Memorandum to the Tax Laws Amendment (Simplified Superannuation) Bill 2007 (the EM) states (at paragraph 2.120) in relation to the proportioning rule, that when part of a superannuation interest is paid out, that benefit will include both TFC and TC 'with the relevant portions of each reflecting the proportions such components make up of the total value of the superannuation interest.'

The EM states that regulations may specify an alternative method for determining the TFC and TC of a superannuation benefit.[8] Additionally, the regulations may specify where superannuation interests may be separated or combined, and the rules that determine how to allocate the TFC, TC-TE and TC-UTE between superannuation interests.[9]

The EM states that these regulations may be required to modify the proportioning rule in circumstances where it is appropriate, allowing existing arrangements that may not strictly comply with the proportioning rule, to continue.[10]

Section 307-200 of the ITAA 1997 provides regulations relating to the meaning of 'superannuation interests'. Subsection 307-200(1) states '[i]n the circumstances specified in the regulations, treat a superannuation interest as two or more superannuation interests in the way specified in the regulations.'

Regulation 307-200.03 of the ITAR (1997 Act) 2021 relates to public sector superannuation schemes, and states that for the purposes of subsection 307-200(1) of the ITAA 1997, a superannuation interest in a public sector superannuation scheme is treated as two superannuation interests, if the superannuation benefits that are to be paid from the scheme are sourced partly from contributions made into the scheme (or earnings on those contributions) and partly from one or more other sources.

The two interests are:

(a)           an interest that consists of the contributions made into the scheme or earnings on those contributions ('contributions' interest); and

(b)           an interest that consists of the remainder of the amount sourced from the other source or sources ('remainder' interest).

The Explanatory Statement to the Income Tax Assessment Amendment Regulations 2007 (No. 2) (Select Legislative Instrument 2007 No. 90) that inserted regulation 307-200.03 of the then Income Tax Assessment Regulations 1997 (ITAR 1997) states that subregulations 307-200.03(2) and (3) of the ITAR 1997 provide that the 'element untaxed in the fund is treated as a separate, second, superannuation interest.'[11]

The Explanatory Statement also states that the regulations 'outline circumstances under which a superannuation interest can be treated as multiple interests, including direction on how particular elements and components are to be allocated across multiple interests'.

The Explanatory Statement to the Income Tax Assessment Amendment Regulations 2007 (No. 6) (Select Legislative Instrument 2007 No. 202) that amended regulation 307-200.03 of the then ITAR 1997,[12] states that regulation 307-200.03 is 'intended to ensure that funded amounts within a public sector scheme are treated separately from unfunded amounts.'

The Explanatory Statement states that the purpose of the regulations being introduced or amended by the Income Tax Assessment Amendment Regulations 2007 (No. 6) was 'to clarify a number of the operating provisions supporting the Simplified Superannuation reforms.'

The relevant governing rules in relation to the PSS are the Superannuation Act 1990 and the Public Sector Superannuation Scheme Trust Deed (PSS Trust Deed). The PSS Trust Deed was most recently amended in September 2022.

Rule 6.2.1 of the PSS Trust Deed states that a member who ceases membership on voluntary retirement after the minimum retirement age (as is the case here), can leave their final benefit accrual in the PSS as a preserved benefit, or they may take the balance as either a lump sum, a pension, or a combination of those options (provided 50 per cent or more is converted to a pension).

Under Rule 6.2.1(aa) of the PSS Trust Deed, a member may choose:

to be paid a lump sum of less than the part of his/her final benefit accrual that is permitted to be paid in cash under the SIS Act; and

(i)            leave the balance of his/her final benefit accrual in the scheme as a preserved benefit; or

(ii)           if the balance is 50% or more of his/her final benefit accrual, convert the balance into a pension;

Under Rule 9.2.2 of the PSS Trust Deed, the annual pension payable on the retirement of a member before age 60[13], is calculated in accordance with the following formula:

>

where:

Pension Accrual is the member's final benefit accrual, or the portion of the final accrual they have chosen to convert to pension. The final benefit accrual is determined at the time of ceasing membership.[14]

Pension Conversion Factor is determined by the Table in Rule 9.2.2 according to the member's age in years and days on their last day of membership. Last day of membership is defined in Rule 1.2.1 as the date on which the person ceases to be a member.

Reduction Factor relates to whether the member wishes to take a reduced pension in favour of a higher Reversionary Pension.

Rule 9.2.1 of the PSS Trust Deed requires the choice in Rule 6.2.1 of the PSS Trust Deed to be made within the period commencing three months before the member's retirement and ending three months after the member's last day of membership, or such further period of time as CSC allows.

The PSS is a superannuation fund as it is a public sector superannuation scheme. The PSS is a public sector superannuation scheme as it is established under the Superannuation Act 1990.

Your final benefit accrual in the PSS is a superannuation interest as it is an interest in a superannuation fund.

In accordance with regulation 307-200.03 of the ITAR (1997 Act) 2021 the final benefit accrual consists of two superannuation interests. This is because the benefit that is to be paid from the PSS is sourced partly from contributions made into the scheme (or earnings on those contributions) and partly from one or more other sources (the employer component). The two superannuation interests are the contributions interest and the remainder interest.

For the PSS, the contributions interest is comprised of the TFC and the TC-TE. The remainder interest is comprised of the TC-UTE, which is the employer component.

Additionally, there are two superannuation benefits: the PSS pension and the lump sum rollover. These are both superannuation benefits, as they are payments that you receive as you were a member of the PSS.

The lump sum rollover is a superannuation lump sum as it is not a superannuation income stream benefit.

The PSS pension is a pension under subsection 10(1) of the SISA as it is a benefit that is taken under the SISR to be a pension for the purposes of the SISA.

The PSS pension satisfies subregulation 1.06(1) of the SISR as it is provided under rules of a superannuation fund that satisfies subregulation 1.06(9A) of the SISR.

Subregulation 1.06(9A) of the SISR is satisfied as the rules ensure that the pension is paid annually and the standards of subregulation 1.06(2) of the SISR are met.

The standards of subregulation 1.06(2) of the SISR are met as:

a.             The rules ensure that the pension is paid throughout your life.

b.             The size of the payment is fixed, allowing for variation only to allow a commutation to pay a superannuation contributions surcharge under Division 1 of Part 15 of the PSS Trust Deed. The reduction in pension is determined in accordance with rule 15.1.6.

c.            

>

The sum payable each year is calculated in accordance with rule 9.6.1 of the PSS Trust Deed:

d.             The formula is only used if the New CPI index number exceeds the old CPI index number.

e.             The pension does not have a residual capital amount.

f.              The pension can only be commuted to pay a superannuation contributions surcharge.

As such, the PSS pension is a pension within the meaning of the SISR and is therefore a pension under subsection 10(1) of the SISA.

The PSS pension is a superannuation income stream within the meaning of subsection 307-70(1) of the ITAA 1997 as it is a superannuation income stream under regulation 307-70.02(ba) of the ITAR (1997 Act) 2021 due to the following:

a.             the income stream is a defined benefit pension within the meaning of regulation 1.03 of the SISR.

b.             The income stream commenced on or after 20 September 2007.

c.             The income stream is provided by a defined benefit fund (within the meaning of regulation 1.03 of the SISR) as the PSS is a public sector superannuation scheme.

d.             Paragraph 307-70.02(ba)(iv) of the ITAR (1997 Act) 2021 is not relevant to the PSS.

e.             The PSS pension is not invalidity pay within the meaning of the Defence Force Retirement and Death Benefits Act 1973 or an invalidity pension under the superannuation scheme established under the Military Superannuation and Benefits Act 1991.

As such, the PSS pension is a superannuation income stream.

The components of those two superannuation benefits are determined by the proportioning role in section 307-125 of the ITAA 1997.

The PSS 'Age Retirement Benefit Application' form states that, when taking the benefit as a part pension and part lump sum, the 'pension entitlement will be funded by your untaxed element in the first instance, unless you instruct otherwise.'

As reflected in CSC's advice to you, and in your instructions to CSC, your PSS pension and lump sum roll-over were not funded by the interests in an equivalent manner.

The first step in determining the relevant proportions of a superannuation benefit is to identify the balance and components of the superannuation interest(s) from which the benefit is paid.

In this case, the contributions interest and the remainder interest are treated as two distinct interests, meaning that the components of one interest are not considered when identifying the components of the other. This is particularly relevant, as only the remainder interest is comprised of the TC-UTE.

The second step is to allocate the superannuation benefit to the two superannuation interests.

This two-step process determines the components of the superannuation benefit, as the superannuation benefit reflects the proportions of the superannuation interest/s from which it is paid.

Subsection 307-125(2) of the ITAA 1997 outlines when these calculations are to be undertaken:

a.             for the PSS pension, when the pension commences; and

b.             for the lump sum rollover, just before the rollover is paid.

As at XX/XX/XXXX (the exit date), your final benefit accrual comprised the following dollar amount interests and components:

Table 1: Tax component

Table 2: Contributions interest

Table 3: Remainder interest

Portion of the two interests overall

Contributions interest XX.X%

Remainder interest XX.X%

You elected to take $XX,XXX of your final benefit accrual as a lump sum and the balance ($X,XXX,XXX.XX) as a pension. As noted previously, the PSS pension is funded from the remainder interest ($XXX,XXX.XX) in the first instance. Once that interest is exhausted, the contributions interest funds the balance ($XXX,XXX.XX).

The remainder interest is comprised solely of TC-UTE. Consequently, the $XXX,XXX.XX remainder interest will be TC-UTE. The contributions interest is comprised of TFC and TC-TE.

The split of the contributions interest was XX.X per cent TFC and XX.X per cent TE-TC. Consequently, the contributions interest, which funds the balance of the PSS pension in the amount of $XXX,XXX.XX, will comprise $XXX,XXX.XX and $XXX,XXX.XX.[15]

Table 4: PSS pension commencement

Table 5: Balance remaining

The additional $XXX.XX interest amount cannot then be added to the pension (as it has already commenced). As a result, it is added to the lump sum rollover, as a TC-TE component.

As the remainder interest has been exhausted by the date the lump sum is rolled over, the entire lump sum is funded from the contributions interest.

Table 6: Lump sum rollover

The components of your PSS pension reflect how the benefit was funded from the two superannuation interests (the contributions interest and the remainder interest).

The benefit was funded by the remainder interest in first instance, with the balance funded from the contributions interest. Based on the information you provided, this would result in the PSS pension being comprised of the following components:

a.            tax-free component: XX.X per cent

b.            taxable component - taxed in the fund: XX.X per cent

c.             taxable component - untaxed in the fund: XX.X per cent

[1] Rule 5.1.3 of the Public Sector Superannuation Scheme Trust Deed.

[2] Rule 5.1.3(a) of the Public Sector Superannuation Scheme Trust Deed, paragraph 6.1 of the PSS super book (August 2008).

[3] Subsection 995-1(1) of the ITAA 1997 and subsection 10(1) of the (SISA).

[4] Subsection 10(1) of the SISA.

[5] Subsection 307-65(1) of the ITAA 1997.

[6] Section 307-70.01 of the ITAR (1997 Act) 2021.

[7] Subsection 19(4) was amended by the Financial Sector Reform (Hayne Royal Commission Response) Act 2020. From 1 January 2021, the Commissioner of Taxation, rather than APRA, is responsible for receiving written notices from trustees of their election. Previously, the Commissioner of Taxation was the other body or person required by the regulations.

[8] Paragraph 2.136 of the Explanatory Memorandum to the Tax Laws Amendment (Simplified Superannuation) Bill 2007.

[9] Paragraph 2.137 of the Explanatory Memorandum to the Tax Laws Amendment (Simplified Superannuation) Bill 2007.

[10] Paragraph 2.138 of the Explanatory Memorandum to the Tax Laws Amendment (Simplified Superannuation) Bill 2007.

[11] Subregulations 307-200.03(2) and (3) were inserted into the ITAR 1997. The ITAR 1997 has been superseded by ITAR 2021, with the text of subregulations 307-200.03(2) and (3) remaining unchanged.

[12] By replacing existing subregulations 307-200.03(4) and (5) of the ITAR 1997 with new subregulation 307-200.03(4) of the ITAR 1997. Previously, subregulations 307-200.03(4) and (5) of the ITAR 1997 provided that one superannuation interest within a public sector superannuation scheme were to be treated as more than one interest where different amounts are subject to different benefit payment rules and administrative rules prevent them being treated as a single interest. Subregulation 307-200.03(4) was inserted into the ITAR 1997. The ITAR 1997 has been superseded by ITAR 2021, with the text of subregulation 307-200.03(4) remaining unchanged.

[13] The taxpayer was not yet 60 years of age at the date of exit.

[14] Rule 5.1.3 of Public Sector Superannuation Scheme Trust Deed.

[15] Note: the dollar amounts have been calculated using the unrounded percentages.