(a) as a single lump sum that is at least the amount of the member’s withdrawal benefit in the fund; or
(b) if the fund receives any combination of contributions, transfers and rollovers after cashing the benefits:
(i) in a way that ensures that an amount that is at least the amount of the member’s withdrawal benefit in the fund is cashed; and
(ii) without requiring an additional application from the member.
Note: A payment made under this regulation is a ‘departing Australia superannuation payment’ within the meaning of subsection 995‑1(1) of the 1997 Tax Act.
6.20C Cashing of benefits in a regulated superannuation fund—payment to Commissioner of Taxation
If the trustee of a regulated superannuation fund is required to pay an amount to the Commissioner of Taxation under the Superannuation (Unclaimed Money and Lost Members) Act 1999, or chooses to pay an amount to the Commissioner of Taxation under Part 3D of that Act, for a person’s superannuation interest in the fund, the amount must be cashed in favour of the Commissioner of Taxation as a lump sum.
Note: An amount required to be paid under the Superannuation (Unclaimed Money and Lost Members) Act 1999 must be paid by the time required under that Act.
6.21 Compulsory cashing of benefits in regulated superannuation funds
(1) Subject to subregulation (3), a member’s benefits in a regulated superannuation fund must be cashed as soon as practicable after the member dies.
(2) The form in which benefits may be cashed under this regulation is any one or more of the following forms:
(a) in respect of each person to whom benefits are cashed:
(i) a single lump sum; or
(ii) an interim lump sum (not exceeding the amount of the benefits ascertained at the date of the event mentioned in subregulation (1)) and a final lump sum (not exceeding the balance of the benefits as finally ascertained in relation to the event);
(aa) a series of payments, each of which is a payment of a superannuation lump sum mentioned in paragraph 301‑275(1)(b) of the 1997 Tax Act;
(b) subject to subregulations (2A) and (2B):
(i) 1 or more pensions, each of which is a superannuation income stream that is in the retirement phase;
(ii) the purchase of 1 or more annuities, each of which is a superannuation income stream that is in the retirement phase.
(2A) If a member dies on or after 1 July 2007, subparagraphs (2)(b)(i) and (ii) apply to an entitled recipient only if, at the time of the member’s death, the entitled recipient:
(A) is financially dependent on the member and less than 25 years of age; or
(B) is a person with disability to whom subregulation (2C) applies.
(2B) If benefits in relation to a deceased member are being paid to a child of the deceased member in the form of a pension or an annuity in accordance with subregulation (2A), the benefits must be cashed as a lump sum on the earlier of:
(a) the day on which the annuity or pension is commuted, or the term of the annuity or pension expires (unless the benefit is rolled over to commence a new annuity or pension); and
(b) the day on which the child attains age 25;
unless the child is a person with disability to whom subregulation (2C) applies on the day that would otherwise be applicable under paragraph (a) or (b) of this subregulation.
(2C) This subregulation applies to a person with disability that:
(a) is attributable to an intellectual, psychiatric, sensory or physical impairment or a combination of such impairments; and
(b) is permanent or likely to be permanent; and
(c) results in:
(i) a substantially reduced capacity of the person for communication, learning or mobility; and
(ii) the need for ongoing support services.
(3) For the purposes of subregulation (1), it is sufficient if, instead of being cashed, the benefits are rolled over as soon as practicable for immediate cashing.
(4) In this regulation:
service includes a service consisting of the supplying of goods, whether or not accompanied by the provision of other services.
6.22 Limitation on cashing of benefits in regulated superannuation funds in favour of persons other than members or their legal personal representatives
(1) Subject to subregulation (6) and regulations 6.22B, 7A.13, 7A.17 and 7A.18, a member’s benefits in a regulated superannuation fund must not be cashed in favour of a person other than the member or the member’s legal personal representative:
(a) unless:
(i) the member has died; and
(ii) the conditions of subregulation (2) or (3) are satisfied; or
(b) unless the conditions of subregulation (4) or (5) are satisfied.
(2) The conditions of this subregulation are satisfied if the benefits are cashed in favour of either or both of the following:
(a) the member’s legal personal representative;
(b) one or more of the member’s dependants.
(3) The conditions of this subregulation are satisfied if:
(a) the trustee has not, after making reasonable enquiries, found either a legal personal representative, or a dependant, of the member; and
(b) the person in whose favour benefits are cashed is an individual.
(4) The conditions of this subregulation are satisfied if:
(a) the superannuation provider has been issued a release authority in respect of the member under section 131‑15 or 135‑40 in Schedule 1 to the Taxation Administration Act 1953; and
(b) the benefits are cashed in favour of the Commissioner of Taxation in accordance with the authority.
(5) The conditions of this subregulation are satisfied if the member’s benefits are cashed in favour of the Commissioner of Taxation to pay an amount to the Commissioner of Taxation under the Superannuation (Unclaimed Money and Lost Members) Act 1999.
(6) This regulation does not apply if, under a law of the Commonwealth, a State or a Territory mentioned in the table, a court makes a forfeiture order (however called) forfeiting part or all of the member’s benefits in the fund to the Commonwealth, a State or a Territory.
5.1 Criminal Property Confiscation Act 2000 Section 30, to the extent that it applies to confiscation under section 6 in satisfaction of a person’s liability under section 20Section 30, to the extent that it applies to confiscation under section 7
6.22A Priority in cashing benefits in certain cases—regulated superannuation funds
(1) This regulation applies to a trustee of a regulated superannuation fund if:
(a) a member of the fund has satisfied a condition of release; and
(b) there is a cashing restriction (other than a ‘nil’ restriction) in respect of that condition.
(2) In cashing benefits in accordance with the restriction, the trustee must give priority to benefits in the following order:
(a) first—to unrestricted non‑preserved benefits;
(b) second—to restricted non‑preserved benefits;
(c) third—to preserved benefits.
6.22B When benefits in regulated superannuation funds may be cashed in favour of persons except members
A member’s benefits in a regulated superannuation fund may be cashed in favour of a person other than the member if:
(a) the cashing is expressly permitted by the Regulator in a written approval for the purposes of subparagraph 62(1)(b)(v) of the Act; and
(b) the benefits are cashed only to the extent of that approval.
Subdivision 6.3.2—Approved deposit funds
6.23 Voluntary cashing of preserved benefits in approved deposit funds
(1) Subject to regulation 6.27, a member’s preserved benefits in an approved deposit fund may be cashed on or after the satisfaction by the member of a condition of release.
Note: For conditions of release for temporary residents, see regulation 6.01B.
(2) The amount of preserved benefits that may be cashed in accordance with subregulation (1) must not exceed the amount of:
(a) the preserved benefits of the member that had accrued at the time when the member satisfied the condition of release; and
(b) before 1 July 1999—any investment earnings accruing on those benefits from the time when the member satisfied the condition of release.
(3) Subject to subregulation (4), the form in which preserved benefits may be cashed under this regulation is:
(a) the form (if any) specified in the cashing restriction for preserved benefits set out in Schedule 1 in relation to the relevant condition of release; or
(b) if that cashing restriction is ‘Nil’—a lump sum or 2 or more lump sums.
(4) A lump sum mentioned in paragraph (3)(b) must be payable not later than the time for the payment of a lump sum mentioned in subregulation 6.25(2).
6.24 Voluntary cashing of unrestricted non‑preserved benefits in approved deposit funds
(1) Subject to regulation 6.27, a member’s unrestricted non‑preserved benefits in an approved deposit fund may be cashed at any time.
(2) The amount of unrestricted non‑preserved benefits that may be cashed in accordance with subregulation (1) is the whole or part of the member’s unrestricted non‑preserved benefits in the fund.
(3) Subject to subregulation (4), the form in which unrestricted non‑preserved benefits may be cashed under this regulation is a lump sum or 2 or more lump sums.
(4) A lump sum mentioned in subregulation (3) must be payable not later than the time for the payment of a lump sum mentioned in subregulation 6.25(2).
6.24A Compulsory cashing of benefits in approved deposit funds—temporary residents
(1) This regulation applies to a member’s benefits in an approved deposit fund if:
(a) the member:
(i) was a temporary resident; and
(ii) is not an Australian citizen, New Zealand citizen or permanent resident; and
(iii) has left Australia; and
(b) the member’s visa has ceased to be in effect.
(1A) The member’s benefits must be cashed if:
(a) the trustee of the fund receives a request from the member that the benefits be cashed; and
(b) subregulation (2) or (3) is complied with.
(2) If the member’s withdrawal benefit in the fund is less than $5 000, the trustee of the fund must receive:
(a) a copy, or other evidence, of a visa showing that the member was a temporary resident but the member’s temporary visa has ceased to be in effect; and
(b) a copy of the member’s passport showing that the member has left Australia.
(3) The trustee of the fund must be satisfied, based on a written statement from the Immigration Department, that:
(a) the member was a temporary resident but the member’s temporary visa has ceased to be in effect; and
(b) the member has left Australia.
(3A) For subregulation (3), the statement may be in electronic form.
(4) The benefits must be cashed in the period mentioned in subregulation (5):
(a) as a single lump sum that is at least the amount of the member’s withdrawal benefit in the fund; or
(b) if the fund receives any combination of transfers and rollovers after cashing the benefits:
(i) in a way that ensures that an amount that is at least the amount of the member’s withdrawal benefit in the fund is cashed; and
(ii) without requiring an additional application from the member.
(5) For subregulation (4), the period is:
(a) if the trustee of the fund receives a request from the member not later than 31 October 2002—3 months after the request is lodged; and
(b) in any other case—28 days after the request is lodged.
Note: A payment made under this regulation is a departing Australia superannuation payment within the meaning of section 301‑170 of the 1997 Tax Act.
6.24B Cashing of benefits in approved deposit funds—payment to Commissioner of Taxation
If the trustee of an approved deposit fund is required to pay an amount to the Commissioner of Taxation under the Superannuation (Unclaimed Money and Lost Members) Act 1999, or chooses to pay an amount to the Commissioner of Taxation under Part 3D of that Act, for a person’s superannuation interest in the fund, the amount must be cashed in favour of the Commissioner of Taxation as a lump sum.
Note: An amount required to be paid under the Superannuation (Unclaimed Money and Lost Members) Act 1999 must be paid by the time required under that Act.
6.25 Compulsory cashing of benefits in approved deposit funds
(1) Subject to subregulation (3), a member’s benefits in an approved deposit fund must be cashed as soon as practicable after the member dies.
(2) The form in which benefits may be cashed under this regulation is, in respect of each person to whom benefits are cashed:
(a) a single lump sum; or
(b) an interim lump sum (not exceeding the amount of the benefits ascertained at the date of an event mentioned in subregulation (1)) and a final lump sum (not exceeding the balance of the benefits as finally ascertained in relation to the event).
(3) Subregulation (1) is satisfied if, instead of being cashed, the benefits are rolled over as soon as practicable for immediate cashing.
6.26 Limitation on cashing of benefits in approved deposit funds in favour of persons other than members or their legal personal representatives
(1) Subject to this regulation and regulations 7A.13, 7A.17 and 7A.18, a member’s benefits in an approved deposit fund must not be cashed in favour of a person other than the member or the member’s legal personal representative unless:
(a) the member has died; and
(b) either:
(i) the benefits are cashed in favour of the member’s legal personal representative; or
(ii) the trustee has not, after making reasonable enquiries, found a legal personal representative of the member; and
(c) either:
(i) the person in whose favour benefits are cashed is a dependant of the member; or
(ii) if, after making reasonable enquiries, the trustee has not found a dependant of the member, the person in whose favour benefits are cashed is an individual.
(2) A member’s benefits in an approved deposit fund may be cashed if:
(a) the superannuation provider has been issued a release authority in respect of the member under section 131‑15 or 135‑40 in Schedule 1 to the Taxation Administration Act 1953; and
(b) the benefits are cashed in favour of the Commissioner of Taxation in accordance with the authority.
(3) A member’s benefits in an approved deposit fund may be cashed if the benefits are cashed in favour of the Commissioner of Taxation to pay an amount to the Commissioner of Taxation under the Superannuation (Unclaimed Money and Lost Members) Act 1999.
6.27 Limitation on cashing benefits in approved deposit funds of less than $500
The trustee of an approved deposit fund must not cash an amount of a member’s benefits in the fund that is less than $500 unless the purpose of cashing the amount is:
(a) to close the member’s account; or
(b) to cash the amount under Division 131 or 135 in Schedule 1 to the Taxation Administration Act 1953, or section 292‑80C of the Income Tax (Transitional Provisions) Act 1997, to give effect to a release authority in respect of the member; or
(c) to pay an amount under the Superannuation (Unclaimed Money and Lost Members) Act 1999.
6.27A Priority in cashing benefits in certain cases—approved deposit funds
(1) This regulation applies to a trustee of an approved deposit fund if:
(a) a member of the fund has satisfied a condition of release; and
(b) there is a cashing restriction (other than a ‘nil’ restriction) in respect of that condition.
(2) In cashing benefits in accordance with the restriction, the trustee must give priority to benefits in the following order:
(a) first—to unrestricted non‑preserved benefits;
(b) second—to preserved benefits.
Division 6.4—General rules for rollover and transfer of benefits in regulated superannuation funds and approved deposit funds
Note: See also Parts 22 and 24 of the Act.
6.27B Definition
In this Division:
consent means:
(a) written consent; or
(b) any other form of consent determined by the Regulator as sufficient in the circumstances.
6.28 Rollover—regulated superannuation funds and approved deposit funds
(1) Except as otherwise provided by the Act, the Corporations Act 2001, the Corporations Regulations 2001 or these regulations, a member’s benefits in a regulated superannuation fund or an approved deposit fund must not be rolled over from the fund unless:
(a) the member has given to the trustee the member’s consent to the rollover; or
(b) the trustee of the fund believes, on reasonable grounds, that:
(i) the trustee of the regulated superannuation fund, the approved deposit fund or the EPSSS; or
(ii) the RSA institution providing the RSA;
into which the benefits are to be rolled over has received, from the member, consent to the rollover.
(2) The fund to which the money is to be rolled over must not be a registrable superannuation entity that:
(a) is a regulated superannuation fund or an approved deposit fund; and
(b) has not been registered under Part 2B of the Act.
6.29 Transfer—funds
(1) Except as otherwise provided by the Act, the Corporations Act 2001, the Corporations Regulations 2001 or these regulations, a member’s benefits in a fund must not be transferred from the fund unless: