Superannuation Industry (Supervision) Regulations 1994

Subject to subregulation (3), a member’s benefits in a regulated superannuation fund must be cashed as soon as practicable after the member dies.

The form in which benefits may be cashed under this regulation is any one or more of the following forms:

in respect of each person to whom benefits are cashed:

a single lump sum; or

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);

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;

subject to subregulations (2A) and (2B):

1 or more pensions, each of which is a superannuation income stream that is in the retirement phase;

the purchase of 1 or more annuities, each of which is a superannuation income stream that is in the retirement phase.

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:

is a dependant of the member; and

in the case of a child of the member:

is less than 18 years of age; or

being 18 or more years of age:

is financially dependent on the member and less than 25 years of age; or

is a person with disability to whom subregulation (2C) applies.

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:

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

the day on which the child attains age 25;

This subregulation applies to a person with disability that:

is attributable to an intellectual, psychiatric, sensory or physical impairment or a combination of such impairments; and

is permanent or likely to be permanent; and

results in:

a substantially reduced capacity of the person for communication, learning or mobility; and

the need for ongoing support services.

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.

In this regulation: