Commonwealth Consolidated Regulations Commonwealth Consolidated Regulations(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:
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:
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 Item | Column 2 Age of Beneficiary | Column 3 Maximum Pension Valuation Factor | Column 4 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:
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:
