(iv) in addition to subparagraph (i), the amount that would, but for this subparagraph, be returned to the entity or person that paid the amount may be reduced to account for reasonable administration costs and transaction costs, incurred by the fund, that:
(A) are reasonably related to the acquisition of the interest and the return of the amount; and
(B) do not exceed the true cost of an arms’ length transaction;
other than costs related to commissions or similar benefits;
(v) if:
(A) the interest is a risk insurance interest, or the part of an interest that is a risk insurance interest; and
(B) the interest has been issued for a specific period, or the premium for the interest has been paid in relation to cover for a specific period; and
(C) a proportion of the specific period has already passed when the decision is made to return the amount to the entity or person that paid the amount;
the amount that would otherwise be returned to the entity or person that paid the amount may be reduced by the sum of:
(D) that part of any amount received in a manner inconsistent with subregulation (1), (1A) or (2) as has been paid by the fund to any person in connection with the risk insurance product and which is not recoverable by the fund from that person; and
(E) the proportion equal to the proportion of the period that has passed of the difference between the amount that would otherwise be returned and the amount referred to in (a).
(5) If a regulated superannuation fund acts under subregulation (4), the fund is taken not to have contravened the Act or these Regulations in relation to the acceptance of the amount or in relation to the return of the amount to the entity or person that paid the amount of the fund.
(6) A regulated superannuation fund may accept contributions in respect of a member if the trustee is reasonably satisfied that the contribution is in respect of a period during which, under an item in the table in subregulation (1) or under subregulation (1A), the fund may accept the contribution in respect of that member, even though the contribution is actually made after that period.
(6A) Despite subregulations (1) and (1A), the regulated superannuation fund may accept, as a contribution, an amount to the extent that the amount does not exceed the member’s CGT cap amount if:
(a) were the amount to be accepted as a contribution, it could be covered under section 292‑100 (certain CGT‑related payments) of the Income Tax Assessment Act 1997 in relation to a CGT event referred to in that section; and
(b) the capital proceeds from the CGT event were or could have been affected by one or more financial benefits received under a look‑through earnout right; and
(c) that subregulation would not have prevented the fund from accepting the amount as a contribution had it been made to the fund in the financial year in which the CGT event happened.
Note: The CGT event is the one referred to in whichever of subsections 292‑100(2), (4), (7) and (8) of that Act that could cause the amount to be covered under that subsection.
(7) In this regulation:
administration costs has the same meaning as in subregulation 5.01(1).
capital proceeds has the same meaning as in the Income Tax Assessment Act 1997.
CGT cap amount has the same meaning as in the Income Tax Assessment Act 1997.
CGT event has the same meaning as in the Income Tax Assessment Act 1997.
downsizer contribution means a contribution covered under section 292‑102 of the 1997 Tax Act.
employer contributions has the same meaning as in subregulation 1.03(1).
financial benefit has the same meaning as in the Income Tax Assessment Act 1997.
look‑through earnout right has the same meaning as in the Income Tax Assessment Act 1997.
mandated employer contributions has the same meaning as in subregulation 5.01(1).
member contributions has the same meaning as in subregulation 5.01(1).
quoted (for superannuation purposes) has the same meaning as in the Income Tax Assessment Act 1997.
tax file number has the meaning given by section 299W of the Act.
transaction costs means any of the following:
(a) brokerage paid because of an investment transaction;
(b) a cost arising from maintenance of a property investment;
(c) stamp duty on an investment transaction.
7.04A Acceptance of contributions—public offer superannuation funds
(1) For paragraph 31(2)(d) of the Act, the standard mentioned in subregulation (2) applies to a regulated superannuation fund that is a public offer superannuation fund.
(2) If:
(a) a person is a member of a standard employer‑sponsored fund; and
(b) the person is employed by another employer (the new employer) who is not a standard employer‑sponsor of the fund;
the fund must not make its acceptance of contributions from the new employer in respect of the member conditional upon the new employer becoming a standard employer‑sponsor of the fund.
7.05 Accrual of benefits—defined benefit funds
(1) Subject to subregulation (5), a defined benefit fund may grant an accrual of benefits in respect of a member of the fund who is under age 65.
(2) Subject to subregulation (5), a defined benefit fund may grant an accrual of benefits in respect of a member of the fund who has reached age 65 but not age 75 only if the accrual is attributable to contributions made in respect of the member that are:
(a) employer contributions; or
(b) member contributions.
(4) Subject to subregulation (5), a defined benefit fund may grant an accrual of benefits in respect of a member who has reached age 75 only if the accrual is attributable to mandated employer contributions.
(5) A defined benefit fund may grant an accrual of benefits in respect of a member if the trustee is reasonably satisfied that the accrual is in respect of a period during which, under subregulation (1), (2) or (4), the fund may grant an accrual of benefits in respect of that member, even though the grant occurs after that period.
Division 7.2—Contributions to be allocated to members
Subdivision 7.2.1—Superannuation data and payment matters
7.07 Superannuation data and payment matters
For subsection 34K(1) of the Act, regulations 7.07A to 7.07H prescribe matters to be complied with.
7.07AA Application
(1) This regulation is made for subitem 20(6) of Part 4 of Schedule 1 to the Superannuation Legislation Amendment (Stronger Super) Act 2012 (the amending Act).
(2) This subdivision applies in relation to a medium to large employer on 1 July 2014 in relation to conduct that occurs on or after 1 July 2014.
(3) This subdivision applies in relation to a small employer on 1 July 2015 in relation to conduct that occurs on or after 1 July 2015.
(4) In this regulation:
medium to large employer has the meaning given by subitem 20(4) of Part 4 of Schedule 1 to the amending Act.
small employer has the meaning given by subitem 20(4) of Part 4 of Schedule 1 to the amending Act.
7.07A Initial registration of employee
(1) This regulation applies to an employer if:
(a) the employer makes a contribution for an employee to a regulated superannuation fund on or after the commencement of Part 3B; and
(b) the employer has not previously made a contribution to the fund for the employee; and
(c) the contribution is not to:
(i) a self managed superannuation fund; or
(ii) a fund chosen by the employee.
(2) The employer must, before or on the same day as the employer makes the first contribution, give the following information to the fund:
(a) the employee’s full name;
(b) the employee’s date of birth;
(c) the employee’s tax file number;
(d) the employee’s sex;
(e) the employee’s residential address.
(3) However, subregulation (2) does not apply if the employer has made reasonable efforts to get the information from the employee but has been unable to do so.
Note: Standards made under subsection 34K(3) of the Act may set out how the information in subregulation (2) is to be given to the fund (for example, electronically), and may set out additional information that must be given.
7.07B Validation of initial registration information
(1) This regulation applies to the trustee of a regulated superannuation fund, other than a self managed superannuation fund, if:
(a) the fund receives the following information for a member from an employer in accordance with regulation 7.07A:
(i) full name;
(ii) tax file number;
(iii) date of birth; and
(b) the information is given to the fund in the way required by any applicable Standards made under subsection 34K(3) of the Act.
(2) The trustee must ask the Commissioner of Taxation, using an electronic interface provided by the Commissioner, for a notice under subsection 299TD(2) of the Act in relation to the member.
(3) However, subregulation (2) does not apply if the Commissioner has previously given the trustee a notice under subsection 299TD(2) of the Act stating that the Commissioner was able to validate the member’s information given by the trustee.
(4) The trustee must make the request not later than 3 business days after receiving the information.
7.07C Trustee may give membership or account number to Commissioner of Taxation
The trustee of a regulated superannuation fund may give the Commissioner of Taxation the membership number, or account number, for a member of the fund.
7.07D Invalid initial registration information
(1) This regulation applies to the trustee of a regulated superannuation fund, other than a self managed superannuation fund, if the Commissioner of Taxation gives the trustee a notice under subsection 299TD(2) of the Act stating that the Commissioner is not able to validate the information given to the Commissioner by the trustee under regulation 7.07B.
(2) The trustee must, not later than 5 business days after receiving the Commissioner’s notice, ask the employer to confirm the following information for the member:
(a) full name;
(b) tax file number;
(c) date of birth;
(d) residential address.
(3) If an employer receives a request from a trustee under subregulation (2), the employer must make all reasonable efforts to give the trustee the complete or correct information for the employee not later than 10 business days after receiving the request.
7.07E Employee details for contribution
(1) This regulation applies to an employer who makes a contribution for an employee to a regulated superannuation fund, unless:
(a) the fund is a self managed superannuation fund; and
(b) the employer is a related party of the fund.
(2) The employer must give the following information to the fund in relation to the contribution:
(a) the employee’s full name;
(b) the employee’s residential address;
(c) the employee’s tax file number;
(d) the employee’s telephone number.
(3) However, the employer is not required to give the information mentioned in subregulation (2) to the fund if:
(a) the employee has not given the information to the employer, and the employer has made reasonable efforts to obtain the information from the employee; or
(b) the fund is a self managed superannuation fund and the employer is a related party of the fund.
(4) The employer must give the information to the fund on the same day as the employer makes the contribution to the fund.
Note: Standards made under subsection 34K(3) of the Act may set out how the information in subregulation (2) is to be given to the fund, additional information that must be given, and how the contribution must be made.
(5) The employer must assign a payment reference number to the contribution and include the payment reference number with the contribution.
7.07EA Employee details may be passed through default fund
(1) An employer may comply with regulation 7.07E by giving to a default fund for the employer information that would otherwise be required by that regulation to be given to any other regulated superannuation fund.
(2) If the employer gives information as mentioned in subregulation (1), the employer:
(a) must give the information on the same day that the information would otherwise be required to be given to the other regulated superannuation fund; and
(b) in doing so, must comply with any applicable Standards made under subsection 34K(3) of the Act.
(3) The default fund must pass the information on to the other regulated superannuation fund and, in doing so, comply with any applicable Standards made under subsection 34K(3) of the Act.
(4) In this regulation:
default fund, in relation to an employer, means an RSE licensee:
(a) authorised to offer a MySuper product under section 29T of the Act; and
(b) to which the employer mentioned in subregulation (1) makes contributions for the benefit of any of its employees in compliance with subsection 32C(2) of the Superannuation Guarantee (Administration) Act 1992.
7.07F Information and contributions sent electronically
(1) A regulated superannuation fund must be able to receive the following electronically:
(a) contributions sent to the fund by an employer;
(b) information sent to the fund under regulation 7.07A in relation to a contribution;
(c) information sent to the fund under regulation 7.07E or 7.07EA;
(d) any other information relating to a contribution sent to the fund.
(2) Subregulation (1) does not apply if:
(a) the fund is a self managed superannuation fund and the information or contribution is sent by a related party of the fund; or
(b) the information or contribution is not sent in accordance with any applicable Standards made under subsection 34K(3) of the Act.
Note: Standards made under subsection 34K(3) of the Act may set out additional requirements for how information and contributions are to be received by the fund.
7.07G Incomplete contribution information
(1) This regulation applies to the trustee of a regulated superannuation fund, other than a self managed superannuation fund, if:
(a) the fund receives a contribution from an employer for a member of the fund; and
(b) either or both of the following applies:
(i) the contribution is the first contribution received by the fund for the member from the employer, and the employer, before or with the contribution, did not provide any of the information mentioned in subregulation 7.07A(2);
(ii) the contribution is not accompanied by all of the information mentioned in subregulation 7.07E(2); and
(c) the contribution is not being made to a defined benefit interest.
(2) The trustee must, not later than 5 business days after receiving the contribution, ask the employer to give the trustee the correct and complete information mentioned in subregulation 7.07A(2) or 7.07E(2) for the member.
(3) If an employer receives a request from a trustee under subregulation (2), the employer must make all reasonable efforts to give the trustee the complete or correct information for the member not later than 10 business days after receiving the request.
(4) If the trustee is still unable to allocate the contribution to a member, the trustee must refund the contribution to the employer not later than 20 business days after receiving the contribution.
(5) If a contribution is refunded under subregulation (4), the contribution is taken not to have been made to the fund by the employer.
7.07H Contributions to be allocated to member
(1) This regulation applies to the trustee of a superannuation fund, other than a self managed superannuation fund, if:
(a) all of the following apply:
(i) the fund receives a contribution from an employer for a member;
(ii) the contribution is not required to be allocated in accordance with regulation 7.11;
(iii) the contribution was made in accordance with any applicable Standards made under subsection 34K(3) of the Act;
(iv) the information mentioned in subregulation 7.07E(2) for the employee was given by the employer to the fund;
(v) the information was given in accordance with any applicable Standards made under subsection 34K(3) of the Act; or
(b) both of the following apply:
(i) the fund receives a contribution from the Commissioner of Taxation for a member;
(ii) the Commissioner made the contribution in accordance with any applicable Standards specified under subsection 34K(3) of the Act that would apply if the contribution were being made by an employer.
(2) If the trustee accepts the contribution, and receives it in accordance with any applicable Standards made under subsection 34K(3) of the Act, the trustee must allocate the contribution to the member as soon as practicable, but in any case not later than 3 business days after both the contribution and the information mentioned in subregulation 7.07E(2) have been received by the trustee.
Note: Regulation 7.08 provides an operating standard for the allocation of contributions to which this regulation and subregulation 7.07G(4) do not apply.
Subdivision 7.2.2—Operating standards
7.07J Application
(1) This regulation is made for subitem 20(6) of Part 4 of Schedule 1 to the Superannuation Legislation Amendment (Stronger Super) Act 2012 (the amending Act).
(2) Regulations 7.07 and 7.08, as in force immediately before 1 July 2013, apply in relation to contributions made by a medium to large employer before 1 July 2014.
(3) Regulations 7.07 and 7.08, as in force immediately before 1 July 2013, apply in relation to contributions made by a small employer before 1 July 2015.
(4) In this regulation:
medium to large employer has the meaning given by subitem 20(4) of Part 4 of Schedule 1 to the amending Act.
small employer has the meaning given by subitem 20(4) of Part 4 of Schedule 1 to the amending Act.
7.08 Contributions to be allocated to members
(1) This regulation applies to the trustee of a regulated superannuation fund if:
(a) the trustee receives a contribution in a month; and
(b) regulation 7.07H and subregulation 7.07G(4) do not apply to the trustee in relation to the contribution; and