Schedule 1A—Payment limits for annuities and pensions with a commencement day before 1 January 2006
(subregulations 1.05(4) and 1.06(4))
1. Subject to clauses 3, 4 and 5, the maximum limits mentioned in paragraph 1.05(4)(f) or 1.06(4)(e) are determined under the formula:
Start formula start fraction AB over PVF end fraction end formula
where:
AB means the amount of the annuity account balance, or pension account balance, as the case requires:
(a) on 1 July in the financial year in which the payments are made; or
(b) if that year is the year in which the annuity payments, or pension payments, commence—on the commencement day; and
PVF means the maximum pension valuation factor set out in Column 3 in the Table in this Schedule in relation to the item in the Table that represents the age of the beneficiary on:
(a) 1 July in the financial year in which the payments are made; or
(b) if that is the year in which the annuity payments, or pension payments, commence—the commencement day.
2. Subject to clauses 3, 3A, 3B and 4, the minimum limits mentioned in paragraph 1.05(4)(f) or 1.06(4)(e) are determined under the formula:
Start formula start fraction AB over PVF end fraction end formula
where:
AB means the amount of the annuity account balance, or pension account balance, as the case requires:
(a) on 1 July in the financial year in which the payments are made; or
(b) if that year is the year in which the annuity payments, or pension payments, commence—on the commencement day; and
PVF means the minimum pension valuation factor set out in Column 4 in the Table to this Schedule in relation to the item in the Table that represents the age of the beneficiary on:
(a) 1 July in the financial year in which the payments are made; or
(b) if that is the year in which the annuity payments, or pension payments, commence—the commencement day.
3. For a calculation of the maximum or minimum limit in the year in which the commencement day of the pension or annuity occurs if that day is a day other than 1 July, the appropriate value set out in Column 3 or Column 4 must be applied proportionally to the number of days in the financial year that include and follow the commencement day.
3A. For the financial years commencing on 1 July 2008, 1 July 2009, 1 July 2010, 1 July 2019, 1 July 2020, 1 July 2021 and 1 July 2022, the minimum limit is half of the amount determined under the formula in clause 2.
3B. For the financial years commencing on 1 July 2011 and 1 July 2012, the minimum limit is 75% of the amount determined under the formula in clause 2.
4. An amount determined under the formula in clause 1 or clause 2, is rounded to the nearest 10 whole dollars.
5. In a year in which a PVF of 1 is used in calculating the maximum limit under clause 1, payment of the full account balance may be made at any time during the year.
Table
Column 1<br>Item
Column 2<br>Age of Beneficiary
Column 3<br>Maximum Pension Valuation Factor
Column 4<br>Minimum Pension Valuation Factor
1
20 or less
10
28.6
2
21
10
28.5
3
22
10
28.3
4
23
10
28.1
5
24
10
28.0
6
25
10
27.8
7
26
10
27.6
8
27
10
27.5
9
28
10
27.3
10
29
10
27.1
11
30
10
26.9
12
31
10
26.7
13
32
10
26.5
14
33
10
26.3
15
34
10
26.0
16
35
10
25.8
17
36
10
25.6
18
37
10
25.3
19
38
10
25.1
20
39
10
24.8
21
40
10
24.6
22
41
10
24.3
23
42
10
24.0
24
43
10
23.7
25
44
10
23.4
26
45
10
23.1
27
46
10
22.8
28
47
10
22.5
29
48
10
22.2
30
49
10
21.9
31
50
9.9
21.5
32
51
9.9
21.2
33
52
9.8
20.9
34
53
9.7
20.5
35
54
9.7
20.1
36
55
9.6
19.8
37
56
9.5
19.4
38
57
9.4
19.0
39
58
9.3
18.6
40
59
9.1
18.2
41
60
9.0
17.8
42
61
8.9
17.4
43
62
8.7
17.0
44
63
8.5
16.6
45
64
8.3
16.2
46
65
8.1
15.7
47
66
7.9
15.3
48
67
7.6
14.9
49
68
7.3
14.4
50
69
7.0
14.0
51
70
6.6
13.5
52
71
6.2
13.1
53
72
5.8
12.6
54
73
5.4
12.2
55
74
4.8
11.7
56
75
4.3
11.3
57
76
3.7
10.8
58
77
3.0
10.4
59
78
2.2
10.0
60
79
1.4
9.5
61
80
1
9.1
62
81
1
8.7
63
82
1
8.3
64
83
1
7.9
65
84
1
7.5
66
85
1
7.1
67
86
1
6.8
68
87
1
6.4
69
88
1
6.1
70
89
1
5.8
71
90
1
5.5
72
91
1
5.3
73
92
1
5.0
74
93
1
4.8
75
94
1
4.6
76
95
1
4.4
77
96
1
4.2
78
97
1
4.0
79
98
1
3.8
80
99
1
3.7
81
100 or more
1
3.5
Example:
Iva Fortune, who turns 60 on 5 September 1994, invests $100,000 in an allocated pension fund on 1 October 1994. The date of the first payment to Ms Fortune is 1 January 1995.
Assume a fund earning rate of 7%.
1994/95: The maximum and minimum payments for 1994/95 are based on:
(a) the account balance on the day of purchase; and
(b) the beneficiary’s age of 60 on the day of purchase:
Start formula start fraction $100,000 over 9.0 end fraction times start fraction 273 over 365 end fraction equals $8,310.50 (maximum limit, rounded to $8,310) end formula
Start formula start fraction $100,000 over 17.8 end fraction times start fraction 273 over 365 end fraction equals $4,201.93 (minimum limit, rounded to $4,200) end formula
Assume that total payments to Ms Fortune at 30 June 1995 are $6,000.
1995/96: The maximum and minimum payments for the year 1995/96 are based on:
(a) the account balance on 1 July 1995 which is $99,145 (residue $94,000 + interest of $5,145); and
(b) the beneficiary’s age of 60 on 1 July 1995:
Start formula start fraction $99145 over 9.0 end fraction equals $11,016.11 (maximum limit, rounded to $11,020) end formula
Start formula start fraction $99145 over 17.8 end fraction equals $5,569.94 (minimum limit, rounded to $5,570) end formula
Schedule 1AAB—Payment limits for annuities and pensions with a commencement day on and after 1 January 2006
(subregulations 1.05(4) and 1.06(4))
1. Subject to clauses 3, 4 and 5, the maximum limits mentioned in paragraph 1.05(4)(f) or 1.06(4)(e) are determined under the formula:
Start formula start fraction AB over PVF end fraction end formula
where:
AB means the amount of the annuity account balance, or pension account balance, as the case requires:
(a) on 1 July in the financial year in which the payments are made; or
(b) if that year is the year in which the annuity payments, or pension payments, commence—on the commencement day.
PVF means the maximum pension valuation factor set out in Column 3 of the Table in this Schedule in relation to the item in the Table that represents the age of the beneficiary on:
(a) 1 July in the financial year in which the payments are made; or
(b) if that is the year in which the annuity payments, or pension payments, commence—the commencement day.
2. Subject to clauses 3, 3A, 3B and 4, the minimum limits mentioned in paragraph 1.05(4)(f) or 1.06(4)(e) are determined under the formula:
Start formula start fraction AB over PVF end fraction end formula
where:
AB means the amount of the annuity account balance, or pension account balance, as the case requires:
(a) on 1 July in the financial year in which the payments are made; or
(b) if that year is the year in which the annuity payments, or pension payments, commence—on the commencement day.
PVF means the minimum pension valuation factor set out in Column 4 of the Table in this Schedule in relation to the item in the Table that represents the age of the beneficiary on:
(a) 1 July in the financial year in which the payments are made; or
(b) if that is the year in which the annuity payments, or pension payments, commence—the commencement day.
3. For a calculation of the maximum or minimum limit in the year in which the commencement day of the pension or annuity occurs if that day is a day other than 1 July, the appropriate value set out in Column 3 or Column 4 of the Table in this Schedule as the case requires, must be applied proportionally to the number of days in the financial year that include and follow the commencement day.
3A. For the financial years commencing on 1 July 2008, 1 July 2009, 1 July 2010, 1 July 2019, 1 July 2020, 1 July 2021 and 1 July 2022, the minimum limit is half of the amount determined under the formula in clause 2.
3B. For the financial years commencing on 1 July 2011 and 1 July 2012, the minimum limit is 75% of the amount determined under the formula in clause 2.
4. An amount determined under the formula in clause 1 or clause 2, is rounded to the nearest 10 whole dollars.
5. In a year in which a PVF of 1 is used in calculating the maximum limit under clause 1, payment of the full account balance may be made at any time during the year.
Table
Column 1<br>Item
Column 2<br>Age of Beneficiary
Column 3<br>Maximum Pension Valuation Factor
Column 4<br>Minimum Pension Valuation Factor
1
20 or less
12.0
29.2
2
21
12.0
29.0
3
22
12.0
28.9
4
23
12.0
28.7
5
24
12.0
28.6
6
25
12.0
28.4
7
26
12.0
28.3
8
27
12.0
28.1
9
28
12.0
27.9
10
29
12.0
27.8
11
30
12.0
27.6
12
31
12.0
27.4
13
32
12.0
27.2
14
33
12.0
27.0
15
34
12.0
26.8
16
35
12.0
26.6
17
36
12.0
26.4
18
37
12.0
26.2
19
38
12.0
26.0
20
39
12.0
25.8
21
40
12.0
25.5
22
41
12.0
25.3
23
42
12.0
25.0
24
43
12.0
24.8
25
44
12.0
24.5
26
45
12.0
24.2
27
46
12.0
24.0
28
47
12.0
23.7
29
48
12.0
23.4
30
49
12.0
23.1
31
50
12.0
22.8
32
51
11.9
22.5
33
52
11.8
22.2
34
53
11.8
21.8
35
54
11.7
21.5
36
55
11.5
21.1
37
56
11.4
20.8
38
57
11.3
20.4
39
58
11.2
20.1
40
59
11.0
19.7
41
60
10.9
19.3
42
61
10.7
18.9
43
62
10.5
18.5
44
63
10.3
18.1
45
64
10.1
17.7
46
65
9.9
17.3
47
66
9.6
16.8
48
67
9.3
16.4
49
68
9.1
16.0
50
69
8.7
15.5
51
70
8.4
15.1
52
71
8.0
14.6
53
72
7.6
14.2
54
73
7.2
13.7
55
74
6.7
13.3
56
75
6.2
12.8
57
76
5.7
12.3
58
77
5.1
11.9
59
78
4.5
11.4
60
79
3.8
10.9
61
80
3.1
10.5
62
81
2.3
10.0
63
82
1.4
9.6
64
83
1
9.1
65
84
1
8.7
66
85
1
8.3
67
86
1
7.9
68
87
1
7.5
69
88
1
7.2
70
89
1
6.9
71
90
1
6.6
72
91
1
6.3
73
92
1
6.0
74
93
1
5.8
75
94
1
5.5
76
95
1
5.3
77
96
1
5.1
78
97
1
4.9
79
98
1
4.7
80
99
1
4.5
81
100 or more
1
4.4
Example:
Clive Long, who turns 65 on 8 February 2006, invests $100,000 in an allocated pension fund on 1 March 2006. The date of the first payment to Mr Long is 1 April 2006.
2005/06: The maximum and minimum payments for 2005/06 are based on:
(a) the account balance on the day of purchase; and
(b) the beneficiary’s age of 65 on the day of purchase:
Start formula start fraction $100,000 over 9.9 end fraction times start fraction 122 over 365 end fraction equals $3,376.23 (maximum limit, rounded to $3,380) end formula