Reasonable benefit limits (RBL): effect of changing the terms of a superannuation pension after the date of commencement.

Has a new superannuation pension commenced when a pension that met the standards of subregulation 1.06(6) of the Superannuation Industry (Supervision) Regulations 1994 (SISR) had its terms changed to meet the standards of subregulation 1.06(2) of the SISR?

Yes. A new superannuation pension has commenced when a pension that met the standards of subregulation 1.06(6) of the SISR had its terms changed to meet the standards of subregulation 1.06(2) of the SISR.

A recipient receives a superannuation pension that meets the standards of subregulation 1.06(6) of the SISR. After the pension had commenced the trustee of the superannuation fund offered the recipient the opportunity to waive the right to commute the pension except in accordance with the standards specified in paragraph 1.06(2)(e) of the SISR. The recipient accepted this offer. The superannuation pension that the recipient is currently receiving meets the standards of subregulation 1.06(2) of the SISR.

When a change is made to the terms of a superannuation pension that had commenced to be paid and that did not meet the standards of subregulation 1.06(2) and as a result of that change the pension meets the standards of subregulation 1.06(2) of the SISR, it is the Commissioner's view that the original pension has ceased and a new pension has commenced to be paid.

The cessation of the original pension and the commencement of the new pension from the same superannuation fund is effected by way of an internal roll-over under subsection 27A(1), subsection 27A(12) and section 27D of the Income Tax Assessment Act 1936 (ITAA 1936). The commutation and roll-over of the pension is reportable for RBL purposes under section 140Q of the ITAA 1936. The commencement of the new pension is reportable for RBL purposes under section 140M of the ITAA 1936.