Retirement Savings Accounts Regulations (Amendment) (Cth)

Statutory Rules 1998No. 176 1

__________________

Retirement Savings Accounts Regulations2 (Amendment)

I, WILLIAM PATRICK DEANE, Governor-General of the Commonwealth of Australia, acting with the advice of the Federal Executive Council, make the following Regulations under the Retirement Savings Accounts Act 1997.

Dated 30 June 1998.

 WILLIAM DEANE

 Governor-General

By His Excellency’s Command,

C. R. KEMP

Assistant Treasurer

____________

1.   Commencement

1.1   These Regulations commence on 30 June 1998.

2.   Amendment

2.1   The Retirement Savings Accounts Regulations are amended as set out in these Regulations.

3.   Regulation 4.01 (Interpretation)

3.1   Subregulation 4.01 (2) (definitions of indexed, RSA changeover day and restricted non-preserved contributions):

Omit the definitions.

3.2   Subregulation 4.01 (2):

Insert the following definition:

“preservation age means:

• (a)

  for a person born before 1 July 1960—55 years; or

• (b)

  for a person born during the year 1 July 1960 to 30 June 1961—56 years; or

• (c)

  for a person born during the year 1 July 1961 to 30 June 1962—57 years; or

• (d)

  for a person born during the year 1 July 1962 to 30 June 1963—58 years; or

• (e)

  for a person born during the year 1 July 1963 to 30 June 1964—59 years; or

• (f)

  for a person born after 30 June 1964—60 years.”.

3.3   Subregulation 4.01 (3):

Omit “For the purposes of the definition of restricted non-preserved contributions in subregulation (2), amounts”, substitute “Amounts”.

3.4   Paragraph 4.01 (4) (a):

Omit “attained age 55”, substitute “reached a preservation age that is less than 60”.

3.5   Paragraph 4.01 (5) (b):

Omit “is aged 55 years and 39 weeks, or more,”, substitute “has reached the age that is the person’s preservation age plus 39 weeks”.

3.6   Subparagraph 4.01 (5) (b) (i):

Omit “turned 55 years of age”, substitute “reached the person’s preservation age”.

3.7   Subregulation 4.01 (6):

Omit “restricted non-preserved contributions,”.

3.8   Subregulation 4.01 (6):

Omit “or contributions (as the case may be),”.

4.   Regulation 4.02 (Operating standards)

4.1   Omit the regulation.

5.   Regulation 4.03 (RSA changeover day)

5.1   Omit the regulation, substitute:

RSA changeover day

 “4.03. A decision by an RSA provider under these Regulations as in force before 30 June 1998 to fix a day in the 1998 calendar year as an RSA changeover day is taken never to have been made.”.

6.   Regulation 4.04 (Preserved benefits—before 1 July 1999)

6.1   Omit “4.06, 4.07,”.

6.2   Omit “the RSA changeover day”, substitute “1 July 1999”.

7.   Regulation 4.05 (Preserved benefits—on and after 1 July 1999)

7.1   Omit “the RSA changeover day”, substitute “1 July 1999”.

8.   Regulation 4.06 (Preserved benefits—rollover or transfer from regulated superannuation funds during 1997 or 1998)

8.1   Omit the regulation.

9.   Regulation 4.07 (Preserved benefits—rollover or transfer between RSAs during 1998)

9.1   Omit the regulation.

10.   Regulation 4.08 (Effect of rollover or transfer on preserved benefits)

10.1   After “regulation 4.14”, insert “and to Subdivision 4.1.5”.

11.   Regulation 4.09 (Restricted non-preserved benefits—before 1 July 1999)

11.1   Omit “4.11,”.

11.2   Omit “the RSA changeover day”, substitute “1 July 1999”.

12.   Regulation 4.10 (Restricted non-preserved benefits—on and after RSA changeover day)

12.1   Omit the regulation, substitute:

Restricted non-preserved benefits—on and after 1 July 1999

 “4.10.(1) Subject to regulations 4.12 and 4.14 and to Subdivision 4.1.5, the amount of the restricted non-preserved benefits of the holder of an RSA in the RSA at any time on or after 1 July 1999 is the sum of the following amounts:

• (a)

  the RSA holder’s restricted non-preserved benefits on 30 June 1999 worked out under regulation 4.09;

• (b)

  any restricted non-preserved benefits received by the RSA for the RSA holder from another RSA, a regulated superannuation fund or an exempt public sector superannuation scheme on and after 1 July 1999.

 “(2) However, if:

• (a)

  on or after 1 July 1999, a deduction is allowed for the RSA holder under section 82AAT of the Income Tax Assessment Act 1936 for an RSA holder contribution made before 1 July 1999; and

• (b)

  the benefits arising from the contribution were previously allocated to restricted non-preserved benefits;

the benefits are taken to be preserved benefits.”.

13.   Regulation 4.11 (Restricted non-preserved benefits—rollover or transfer from regulated superannuation funds during 1997 or 1998)

13.1   Omit the regulation.

14.   Regulation 4.12 (Restricted non-preserved benefits—rollover or transfer between RSAs during 1998)

14.1   Omit the regulation, substitute:

Effect of rollover or transfer on restricted non-preserved benefits

 “4.12. Subject to regulation 4.14 and to Subdivision 4.1.5, the benefits of the holder of an RSA in the RSA that were restricted non‑preserved benefits in the source from which they were received continue to be restricted non-preserved benefits in that RSA.”.

15.   Regulation 4.13 (Unrestricted non-preserved benefits)

15.1   Paragraph 4.13 (1) (d):

After “earnings”, insert “for the period before 1 July 1999”.

15.2   Add at the end:

 “(3) However, if:

• (a)

  on or after 1 July 1999, a deduction is allowed for the RSA holder under section 82AAT of the Income Tax Assessment Act 1936 for an RSA holder contribution made before 1 July 1999; and

• (b)

  the benefits arising from the contribution were previously allocated to restricted non-preserved benefits that became unrestricted non-preserved benefits under subregulation 4.14 (2);

the benefits are taken to be preserved benefits.”.

16.   Regulation 4.16 (Indexation)

16.1   Omit the regulation.

17.   Regulation 4.18 (Redistribution of benefits by operation of terms and conditions or action of RSA provider)

17.1   Paragraph 4.18 (1) (a):

Omit “regulation 4.04 or 4.05”, substitute “Subdivision 4.1.2”.

17.2   Paragraph 4.18 (1) (b):

Omit “regulation 4.09 or 4.10”, substitute “Subdivision 4.1.3”.

17.3   Paragraph 4.18 (1) (c):

Omit “regulation 4.13”, substitute “Subdivision 4.1.4”.

18.   Regulation 4.21 (Voluntary cashing of preserved benefits)

18.1   Paragraph 4.21 (2) (b):

Omit the paragraph, substitute:

• “(b)

  before 1 July 1999—the amount of any investment earnings accruing on those benefits from the time when the RSA holder satisfied the condition of release.”.

19.   Regulation 4.22 (Voluntary cashing of restricted non‑preserved benefits)

19.1   Paragraph 4.22 (2) (b):

Omit the paragraph, substitute:

• “(b)

  before 1 July 1999—any investment earnings accruing on those benefits from the time when the RSA holder satisfied the condition of release.”.

20.   Regulation 4.24 (Compulsory cashing of benefits)

20.1   After subregulation 4.24 (3), insert:

 “(3A) For subregulations (1) and (2), after the RSA holder turns 65 years:

• (a)

  the RSA provider must make reasonable attempts to keep itself informed about the RSA holder’s ongoing employment status; and

• (b)

  if the RSA provider cannot find out the RSA holder’s ongoing employment status, the RSA holder is taken not to be gainfully employed.”.

NOTES

1. Notified in the Commonwealth of Australia Gazette on 30 June 1998.

2. Statutory Rules 1997 No. 116 as amended by 1997 Nos. 150, 151, 242, 294, 308 and 342; 1998 No. 82.