(c) for a commutation in part—the account balance of the annuity or pension, immediately after the commutation, is equal to or greater than the minimum payment amount calculated in accordance with Schedule 7, as reduced by the amount of payments (excluding amounts paid by way of commutation) to the annuitant or pensioner already made in the financial year in which the commutation occurs; or
(d) the annuity or pension has paid, in the financial year in which the commutation takes place, at least the minimum amount prescribed by subregulation (2).
(2) For paragraph (1)(d), the minimum amount is the amount calculated using the formula:
Start formula Minimum annual amount times start fraction Days in payment period over Days in financial year end fraction end formula
where:
days in financial year means the number of days in the financial year (365 or 366) in which the commutation takes place.
days in payment period means the number of days in the period that:
(a) begins on:
(i) if the annuity or pension commenced in the financial year in which the commutation is to take place—the commencement day; or
(ii) otherwise—1 July in that financial year; and
(b) ends on the day on which the commutation is to take place.
minimum annual amount means the minimum amount payable under the annuity or pension, in the financial year, calculated in accordance with Schedule 7.
Division 1A.2—Operating standards
1.08 Restriction on factors for converting pensions
(1) For the purposes of subsection 31(1) of the Act, it is a standard applicable to the operation of a regulated superannuation fund that the fund must not use a factor, for converting a prescribed pension to a lump sum, that is greater than the pension valuation factor that would apply under Schedule 1B if the commencement day of the pension were the day on which it was commuted.
(2) Subregulation (1) does not apply to the use of a factor that:
(a) the Regulator has approved in writing; or
(b) is for conversion in relation to a commutation to pay a superannuation contributions surcharge; or
(c) is for conversion in relation to a commutation to give effect to an entitlement of a non‑member spouse under a payment split; or
(d) is for conversion in relation to a commutation in order to comply with section 136‑80 in Schedule 1 to the Taxation Administration Act 1953.
(3) In this regulation, prescribed pension:
(a) means a pension (including a benefit that is taken, under these regulations, to be a pension for the purposes of the Act), other than a benefit that is taken, under subregulation 1.06(1), to be a pension by reason only that it is provided under rules of a superannuation fund that meet the standards of subregulation 1.06(2); but
(b) does not include any of the following:
(i) an account‑based pension;
(ii) an allocated pension;
(iii) a market linked pension.
Part 2—Information for certain parties
Division 2.1—Introductory
2.01 Interpretation
(1) In this Part:
amount includes a nil amount.
contact person, in relation to a superannuation entity, means a named individual, or a person holding a designated office or position, who is available to receive and deal with inquiries or complaints by members or unit‑holders (as the case may be).
(2) In this Part, where the context allows, a reference to a member is taken to mean:
(a) in relation to a superannuation entity—a person who:
(i) is a member of the entity; or
(ii) receives a pension from the entity; or
(iii) has deferred his or her entitlement to receive a benefit from the entity; and
(b) in relation to an approved deposit fund—a depositor in the fund; and
(c) in relation to a PST—a unit‑holder.
(3) In a Division of this Part, a reference to a fund is a reference to a fund of the kind to which the Division applies.
(4) This Division applies in relation to an RSE licensee of a superannuation entity in a corresponding way to the way this Division applies in relation to a trustee (or to the trustees) of a superannuation entity.
2.02 Scope and application of this Part
(1) The following Divisions of this Part deal with the duty of trustees to give information to members or other persons on specified occasions. Each of the Divisions has an application provision:
(a) stating the types of entity to which the Division applies; and
(b) referring to any particular provisions of the Division, or a Subdivision of the Division, that limit or restrict the application of the Division or Subdivision.
(2) The requirements to give information are expressed in 2 forms: general requirements (which set out broad principles), and specific requirements (which set out particular provisions, and may apply in all cases or only in particular circumstances). The specific requirements are not to be taken as limiting, by implication, the scope of the general requirements.
(3) This Division governs the other Divisions of this Part.
2.03 Duties and requirements arising under this Part
(1) A requirement to give information under a Division of this Part must be met within the time specified in the Division as the time for compliance.
Requirements concerning information
(2) Information given in accordance with this Part must:
(a) be in writing; and
(b) be worded and presented in a clear and effective manner.
(3) Information given in accordance with this Part may be given, where appropriate, in diagrammatical form.
Where information may mislead (if incomplete, outdated, etc)
(4) If the trustee of a superannuation entity has reason to think that information that the trustee is required to give under a Division of this Part will, or may, be materially misleading, the trustee must give with the information a statement containing further information to rectify any misleading, or potentially misleading, effect.
Example: If a change in a fund’s investment policy means that information about past earnings rates is not a reliable guide to future earnings, an appropriate explanation (including the change of policy and its likely effect on future earnings rates) must be given.
2.04 Reasonable efforts are sufficient
(1) For Division 2.2, 2.4 or 2.5, the trustee of a superannuation entity is taken to have satisfied a duty or requirement to give information to a person if the trustee has taken reasonable steps to give the information to the person but has been unable to do so.
Information that is unknown and not reasonably obtainable
(2) Where information is unknown to the trustee, the trustee need not give the information under this Part if the trustee cannot obtain the information by making reasonable inquiries.
2.05 Charges for information requested
(1) Subject to this regulation, the obligation of the trustee of a superannuation entity under these Regulations to give information on request by a person arises only if the person pays the amount specified by the trustee as the charge for giving the information.
(2) The amount of the charge must not exceed the reasonable cost to the superannuation entity of giving the information (including all reasonably related costs—for example, costs of searching for, obtaining and collating the information).
(3) A policy committee is not liable to any charge for information given to it.
Division 2.2—Information in connection with annual members’ meetings
2.08 Interpretation
In this Division:
associated entity has the same meaning as in the Corporations Act 2001.
contract includes a deed.
key management personnel has the same meaning as in the Corporations Act 2001.
2.09 Application
(1) This Division applies to a registrable superannuation entity.
(2) Despite subregulation (1), this Division does not apply to the following:
(a) a superannuation fund with fewer than 7 members;
(b) an excluded approved deposit fund;
(c) a pooled superannuation trust;
(d) an eligible rollover fund.
2.10 Information to be included with notice
(1) For the purposes of paragraph 29P(3)(b) of the Act, the following information must be included with the notice of an annual members’ meeting for a year of income of the entity that is given to a member of the entity:
(a) a short‑form summary containing the information set out in subregulation (2), which must:
(i) fit on a single page and be the only information on that page; and
(ii) be the first page of the pages of information referred to in this regulation;
(b) a copy of both of the following:
(i) a summary of each significant event or material change notice (if any) given under section 1017B of the Corporations Act 2001 by a trustee of the entity to a member of the entity during the 2 year period finishing at the end of the year of income;
(ii) the details of remuneration that, at the time the notice is given, are required under subregulation 7.9.07ZC(3) or (5) of the Corporations Regulations 2001 to be made publicly available on the entity’s website or are required under section 300C of the Corporations Act 2001 to be included in the director’s report for the entity;
(c) if a determination made under paragraph 52(9)(a) of the Act in relation to the entity is publicly available at the time the notice is given, or must be made publicly available before the meeting is held—a copy of the determination;
(d) a copy of each of the following:
(i) the most recent periodic statement (if any) given to the member under section 1017D of the Corporations Act 2001;
(ii) the most recent fund information provided under regulation 7.9.32 of the Corporations Regulations 2001 to holders of interests in the entity;
(e) for each contract (if any) under which one or more payments were made, by or on behalf of the entity during the year of income, where a purpose of each payment was promoting the entity, promoting a particular view on behalf of the entity or sponsorship on behalf of the entity:
(i) the sum of all such payments that have been or are to be made under the contract during any year of income;
(ii) the name of each entity to whom such payments have been or are to be made under the contract during any year of income and, for each such entity, the sum of all such payments that have been or are to be made to the entity under the contract during any year of income;
(iii) the term of the contract;
(f) if any gifts (within the meaning of Part XX of the Commonwealth Electoral Act 1918) were made, by or on behalf of the entity during the year of income, to another entity who, at the time of receiving the gift:
(i) was a political entity (within the meaning of that Act); or
(ii) was, or was required by that Part of that Act to be, a political campaigner (within the meaning of that Part); or
(iii) was, or was required by that Part of that Act to be, an associated entity (within the meaning of that Part);
an itemised list showing each such gift and the name of the entity to whom each gift was made;
(g) if any payments were made, by or on behalf of the entity during the year of income, to another entity who, at the time of receiving the payment, was an organisation (within the meaning of the Fair Work (Registered Organisations) Act 2009)—an itemised list showing each such payment and the name of the entity to whom each payment was made;
(h) if any payments were made, by the entity (the main entity) during the year of income, to any of the following:
(i) a connected entity of the RSE licensee of the main entity;
(ii) an associated entity of another entity (the third party) if the third party is a connected entity of the RSE licensee of the main entity;
(iii) an entity over whom the RSE licensee of the main entity has significant influence;
(iv) an entity who has significant influence over the RSE licensee of the main entity;
(v) an entity whose key management personnel include the RSE licensee, or an executive officer of the RSE licensee, of the main entity;
(vi) an associated entity of another entity (the third party), if the RSE licensee, or an executive officer of the RSE licensee, of the main entity is a member of the key management personnel of the third party;
an itemised list showing each such payment and the name of the entity to whom each payment was made.
Note: The determination mentioned in paragraph (c) is to be made publicly available on the entity’s website within 28 days after the determination is made (see paragraphs 52(9)(b) and (c) of the Act).
(2) The short‑form summary referred to in paragraph (1)(a) must set out the following:
(a) the sum of the remuneration referred to in subparagraph (1)(b)(ii), which is to be described as the aggregate remuneration expenditure relating to the entity for the year of income;
(b) the sum of the payments referred to in paragraph (1)(e) that were made during the year of income (under all contracts referred to in that paragraph), which is to be described as the aggregate promotion, marketing or sponsorship expenditure relating to the entity for the year of income;
(c) the sum of the payments referred to in paragraph (1)(f), which is to be described as the aggregate political donations relating to the entity for the year of income;
(d) the sum of the payments referred to in paragraph (1)(g), which is to be described as the aggregate industrial body payments relating to the entity for the year of income;
(e) the sum of the payments referred to in paragraph (1)(h), which is to be described as the aggregate related party payments relating to the entity for the year of income.
(3) Despite subsection (1), if any information (the extra information) referred to in paragraph (1)(b) to (h) required to be given to a member of the entity:
(a) is accessible by the member (including by being publicly available) at the time the notice of the annual members’ meeting is given; or
(b) must be made so accessible before the meeting is held;
it is sufficient for the purposes of that paragraph if the information included with the notice includes details of how to access that extra information.
Note: The short‑form summary referred to in paragraph (1)(a) must still be included.
2.11 How notice is to be given
(1) The requirements in this regulation are prescribed under paragraph 29P(3)(c) of the Act in relation to each annual members’ meeting for a year of income of a registrable superannuation entity.
Notice to be made publicly available on website
(2) The RSE licensee of the entity must:
(a) make the notice of the meeting publicly available on the entity’s website; and
(b) ensure that the notice is readily accessible from the website.
Notice, and information included with notice, also to be given in other ways
(3) If the RSE licensee is required to give a person notice of the meeting, then the RSE licensee must give the person the notice, and any information required to be included with the notice, in the following way:
(a) if the RSE licensee is required under paragraph 1017DA(1)(a) of the Corporations Act 2001 to give the person information in relation to a fund reporting period that ends during the year of income, and the RSE licensee can satisfy that requirement by giving the person that information in a particular way or in any one of several ways—in that way or in one of those ways;
(b) otherwise—in writing.
Note: Regulation 7.9.75A of the Corporations Regulations 2001 sets out the ways in which the RSE licensee is required under subsection 1017DA(1) of the Corporations Act 2001 to give information.
(4) For the purposes of subregulation (3):
(a) fund reporting period has the same meaning as in Part 7.9 of the Corporations Regulations 2001; and
(b) a fund reporting period that ends at the same time that the year of income ends is a period that ends during that year.
Division 2.4—Information to be given for each reporting period
Subdivision 2.4.1—Preliminary
2.18 Application
(1) This Division applies to:
(a) a regulated superannuation fund; and
(b) an approved deposit fund.
(2) This Division does not apply to a self managed superannuation fund.
(3) For the purposes of subsections 31(1) and 32(1) of the Act, a requirement of this Division is a standard applicable to the operation of a fund to which this Division applies.
Subdivision 2.4.3—Derivatives charge ratio
2.29 Specific requirements in particular cases
(1) For this Subdivision, the derivatives charge ratio of a fund is:
Start formula start fraction X over Y end fraction end formula
expressed as a percentage, where:
X is the market value of the assets of the fund (other than cash) that are subject to a charge in relation to a derivatives contract (as defined in subregulation 13.15A(2)).
Y is the market value of all the assets of the fund.
(2) If paragraph 7.9.37(1)(i) of the Corporations Regulations 2001 applies, the trustee must give the information mentioned in that paragraph to APRA as soon as practicable, and in any event within 6 months, after the end of the reporting period to which the information relates.
Division 2.5—Information on request
2.30 Application
(1) This Division applies to a superannuation entity.
(2) For subsections 31(1), 32(1) and 33(1) of the Act, a requirement of this Division is a standard applicable to the operation of a superannuation entity.
2.31 Documents may be made available for inspection
It is sufficient compliance with a requirement under this Division to give information, or to give a copy of a document, to a person if:
(a) a document containing the information; or
(b) a copy of the document;
as the case requires, is made available for inspection by the person:
(c) at a suitable place (having adequate facilities for the person to inspect and photocopy the document); and
(d) during normal business hours;
or as otherwise agreed between the trustee of a superannuation entity who is required to give the information to the person, and the person.