Treasury Laws Amendment (2017 Measures No. 1) Regulations 2017 (F2017L00704)

Schedule 1   Innovative superannuation income streams

Superannuation Industry (Supervision) Regulations 1994

11   Subregulation 1.03(1)

Insert:

access amount , at a particular time (the access time ) for a benefit supported by a superannuation interest (within the meaning of the 1997 Tax Act), means the sum of:

(a) the maximum amount payable if the benefit were commuted on the retirement phase start day for the benefit, as determined by the contract or rules for the provision of the benefit; and

(b) any instalments paid for the benefit after the retirement phase start day for the benefit and before the access time.

deferred superannuation income stream means a benefit supported by a superannuation interest (within the meaning of the 1997 Tax Act) if the contract or rules for the provision of the benefit provides for payments of the benefit:

(a) to start more than 12 months after the superannuation interest is acquired; and

(b) to be made at least annually afterwards.

first half of the life expectancy period , for a benefit supported by a superannuation interest (within the meaning of the 1997 Tax Act), means the number of days in the period:

(a) starting on the retirement phase start day for the benefit; and

(b) ending when the number of days equal to the life expectancy period for the benefit divided by 2, and rounded down to the nearest whole number, have passed.

life expectancy period , for a benefit supported by a superannuation interest (within the meaning of the 1997 Tax Act), means the number of days worked out by:

(a) calculating the number of years in the complete expectation of life of:

(i) if the primary beneficiary of the benefit is alive on the retirement phase start day for the benefit - the primary beneficiary; or

(ii) otherwise - the person (if any) to whom the benefit was transferred because of the primary beneficiary's death, if at the time of that death the person was eligible under paragraph 6.21(2)(b) to be paid a benefit;

on the retirement phase start day for the benefit as worked out using the prescribed Life Tables; and

(b) rounding the result down to the nearest whole number of years; and

(c) converting those years to a number of days, assuming 365 days in a year.

prescribed Life Tables means the Life Tables prescribed by section 7 of the Income Tax Assessment (1936 Act) Regulation 2015, as if references in that section to:

(a) an annuity included a reference to a benefit supported by a superannuation interest (within the meaning of the 1997 Tax Act); and

(b) the year in which the annuity first commences to be payable were a reference to the year that includes the retirement phase start day for the benefit.

retirement phase start day , for a benefit supported by a superannuation interest (within the meaning of the 1997 Tax Act), means:

(a) if the benefit is a deferred superannuation income stream - the later of:

(i) the day the primary beneficiary satisfies a condition of release mentioned in item 101, 102, 102A, 103 or 106 of Schedule 1; and

(ii) the day the superannuation interest is acquired; or

(b) otherwise - the day that payments of the benefit start to be payable.