Superannuation Industry (Supervision) Amendment Regulations 2002 (No. 3) (Cth)

Superannuation Industry (Supervision) Amendment Regulations 2002 (No. 3)1

Statutory Rules 2002 No. 1502

I, PETER JOHN HOLLINGWORTH, Governor-General of the Commonwealth of Australia, acting with the advice of the Federal Executive Council, make the following Regulations under the Superannuation Industry (Supervision) Act 1993.

Dated 26 June 2002

PETER HOLLINGWORTH

Governor-General

By His Excellency’s Command

HELEN COONAN

Minister for Revenue and Assistant Treasurer

1Name of Regulations

 These Regulations are the Superannuation Industry (Supervision) Amendment Regulations 2002 (No. 3).

2Commencement

 These Regulations commence on 1 July 2002.

3Amendment of Superannuation Industry (Supervision) Regulations 1994

Schedule 1 amends the Superannuation Industry (Supervision) Regulations 1994.

Schedule 1Amendments

(regulation 3)

  

[1]Subregulation 1.03 (1), after definition of capital gains tax exempt component

insert

child account means a superannuation product issued as a result of accepting child contributions.

child contributions means contributions made to a regulated superannuation fund under paragraph 7.04 (1) (e).

[2]Paragraph 1.05 (2) (c), definition of SPp

omit

year.

insert

year;

[3]Subparagraph 1.05 (9) (b) (iii), definition of CPIc

omit

year.

insert

year;

[4]Paragraph 1.06 (2) (c), definition of SPp

omit

year.

insert

year;

[5]Subparagraph 1.06 (7) (b) (iii), definition of CPIc

omit

year.

insert

year;

[6]Regulation 3.01

omit

of the Act and paragraph 18A (2) (e)

[7]Subparagraph 3.01 (e) (ii)

omit

fund.

insert

fund; or

[8]After paragraph 3.01 (e)

insert

• (g)

  a person in relation to whom the fund concerned has accepted child contributions:

  • (i)

    made by a standard employer-sponsored member; or

  • (ii)

    made by a person who is a former standard-employer sponsored member while the person was a member; or

• (h)

  a person in relation to whom the fund concerned has accepted child contributions:

  • (i)

    made by a standard employer-sponsored member of a fund that has the same standard employer-sponsor as the fund concerned; or

  • (ii)

    made by a person who is a former standard-employer sponsored member of a fund that has the same standard employer-sponsor as the fund concerned:

    • (A)

      while the person was a member of the fund; and

    • (B)

      while the fund had the same standard employer-sponsor as the fund concerned.

[9]After Part 4

insert

Part 4AChild accounts

Division 4A.1Preliminary

4A.01Operating standards

 For subsection 31 (1) of the Act, a requirement set out in this Part is a standard applicable to the operation of a regulated superannuation fund.

4A.02Definition for Part 4A

 In this Part:

child means an individual who is under age 18.

Division 4A.2Decisions about child accounts

4A.03Decisions about accounts

• (1)

  If a child account is issued in respect of a child, decisions in relation to the account must be made by:

  • (a)

    the legal personal representative of the child; or

  • (b)

    if the child does not have a legal personal representative, a parent of the child or the child’s guardian;

until the child turns 18.

• (2)

  However, a child may make decisions in relation to the account if:

  • (a)

    the child is at least 16 years old; and

  • (b)

    the fund has been notified that the child will be making decisions in relation to the account by:

    • (i)

      the child’s legal personal representative; or

    • (ii)

      if the child does not have a legal personal representative, a parent of the child or the child’s guardian.

Division 4A.3Transitional arrangements

4A.04Application of Division 3

This Division applies to a financial product that is a child account issued during the transition period for the product under section 1438 of the Corporations Act 2001.

Note Section 1438 of theCorporations Act 2001 applies to all financial products issued by a person, other than financial products in a class of products that are first issued by the person after the FSR commencement. Subsection 1438 (3) of the Corporations Act 2001 provides that the new product disclosure provisions do not apply in relation to a financial product to which that section applies during the period mentioned in that subsection (the transition period). The new product disclosure provisions are set out in subsection 1438 (2).

4A.05Definitions for Division 3

 In this Division:

eligible application, in relation to the issue of a child account, has the meaning given by regulation 4A.06.

FSR commencement has the same meaning as in section 1410 of the Corporations Act 2001.

Note TheFSR commencement is the commencement of item 1 of Schedule 1 to the Financial Services Reform Act 2001.

old Regulations means these Regulations as in force immediately before the FSR commencement.

old SIS Act means the Act as in force immediately before the FSR commencement.

4A.06Eligible applications

• (1)

  In this Division, an eligible application, for a child account issued by a public offer superannuation fund, means an application that satisfies the following requirements:

  • (a)

    the application complies with paragraphs 153 (3) (a) and (b) of the old SIS Act;

  • (b)

    when the person making the application received the form mentioned in paragraph 153 (3) (b) of the old SIS Act, the person also received the additional information (if any) and the additional documents (if any) that would, under paragraph 153 (3) (c) of the old SIS Act, have been received by the applicant under that paragraph before the FSR commencement;

  • (c)

    the application includes evidence that:

    • (i)

      the child’s legal personal representative has consented to the opening of the child account; or

    • (ii)

      if the child does not have a legal personal representative, a parent of the child, or the child’s guardian, has consented to the opening of the child account;

  • (d)

    the application includes the name and address of the legal personal representative, parent or guardian;

  • (e)

    the application includes the name, address and date of birth of the child.

• (2)

  In this Division, an eligible application, for a child account issued by a regulated superannuation fund that is not a public offer superannuation fund, means an application that satisfies the following requirements:

  • (a)

    the person making the application has been given the information that would, under regulations 2.15 and 2.16 of the old Regulations, have been given to a person who became a member of a fund of that type before the FSR commencement;

  • (b)

    the application includes evidence that:

    • (i)

      the child’s legal personal representative has consented to the opening of the child account; or

    • (ii)

      if the child does not have a legal personal representative, a parent of the child, or the child’s guardian, has consented to the opening of the child account;

  • (c)

    the application includes the name and address of the legal personal representative, parent or guardian;

  • (d)

    the application includes the name, address and date of birth of the child.

4A.07Issue of child accounts

• (1)

  The trustee of a regulated superannuation fund that is a self managed superannuation fund must not issue a child account to a person unless:

  • (a)

    the person making the application is the child’s legal personal representative, a parent of the child or the child’s guardian; or

  • (b)

    the child account is issued as a result of an eligible application.

• (2)

  The trustee of a regulated superannuation fund (other than a self managed superannuation fund) must not issue a child account to a person unless the child account is issued as a result of an eligible application.

[10]Subparagraphs 6.21 (1) (a) (i) and (b) (i) and (1A) (a) (i) and (b) (i)

omit

70

insert

75

[11]After subregulation 7.01 (1)

insert

• (1A)

  In this Part:

child means an individual who is under age 18.

[12]Paragraph 7.04 (1) (c)

omit

contributions.

insert

contributions; or

[13]After paragraph 7.04 (1) (c)

insert

• (e)

  subject to subregulation (1E), the contributions are made in respect of a child, other than:

  • (i)

    contributions made in respect of the child by, or on behalf of, an employer of the child; and

  • (ii)

    contributions made by a child in respect of himself or herself; or

• (f)

  the contributions are made:

  • (i)

    in respect of a person who is entitled to a first child tax offset under Subdivision 61-I of the Income Tax Assessment Act 1997; and

  • (ii)

    within 1 year after the person was notified by the Commissioner of Taxation that the person is entitled to the first child tax offset.

[14]Subregulation 7.04 (1C)

substitute

• (1C)

  Subject to subregulation (2), a regulated superannuation fund may accept contributions that are made in respect of a member who has reached age 70 but not age 75 only if:

  • (a)

    the contributions are mandated employer contributions; or

  • (b)

    the contributions are made by the member in respect of the member and the member is gainfully employed on a full‑time or part-time basis.

• (1D)

  Subject to subregulation (2), a regulated superannuation fund may accept contributions that are made in respect of a member who has reached age 75 only if the contributions are mandated employer contributions.

• (1E)

  For paragraph (1) (e), a regulated superannuation fund must not accept child contributions made in respect of a child of a total of more than $3 000 in each period of 3 years beginning on the date that the first child contribution is made in respect of the child.

[15]Subregulation 7.04 (2)

omit

subregulation (1), (1B) or (1C),

insert

subregulation (1), (1B), (1C) or (1D),

[16]Paragraph 7.05 (1) (d)

omit

contributions.

insert

contributions; or

[17]After paragraph 7.05 (1) (d)

insert

• (e)

  the accrual is attributable to child contributions; or

• (f)

  both:

  • (i)

    the member is entitled to a first child tax offset under Subdivision 61-I of the Income Tax Assessment Act 1997; and

  • (ii)

    the accrual is granted within 1 year after the person was notified by the Commissioner of Taxation that the person is entitled to the first child tax offset.

[18]Subregulation 7.05 (1C)

substitute

• (1C)

  Subject to subregulation (2), a defined benefit fund may grant an accrual of benefits in respect of a member of the fund who has reached age 70 but not age 75 only if:

  • (a)

    the accrual is attributable to mandated employer contributions; or

  • (b)

    the accrual is attributable to contributions made by the member in respect of the member (other than contributions made by the employer that are not mandated employer contributions) and the member is gainfully employed on a full-time or part-time basis.

• (1D)

  Subject to subregulation (2), a defined benefit fund may grant an accrual of benefits in respect of a member who has reached age 75 only if the accrual is attributable to mandated employer contributions.

[19]Subregulation 7.05 (2)

omit

subregulation (1), (1B) or (1C),

insert

subregulation (1), (1B), (1C) or (1D),

[20]Subparagraph 13.17A (2) (c) (i)

substitute

• (i)

  the related body corporate is an ADI, an approved non-ADI financial institution or a life insurance company; and

[21]Schedule 1AA, Part 3, entry for Western Australia

after

Parliamentary Superannuation Act 1970

insert

State Superannuation Act 2000

Notes

1. These Regulations amend Statutory Rules 1994 No. 57, as amended by 1994 Nos. 189 and 432; 1995 Nos. 47, 64, 142, 158, 159, 240, 293, 384 and 430; 1996 Nos. 44, 57, 122 and 344; 1997 Nos. 69, 117, 152, 153, 221, 243, 293, 309, 343 and 415; 1998 Nos. 76, 83, 108, 175, 177, 193, 240 and 312; 1999 Nos. 14, 31, 115, 239, 317 and 356; 2000 Nos. 119, 151, 185, 280 and 281; 2001 Nos. 37, 352 and 353; 2002 Nos. 21 and 91.

2. Notified in the Commonwealth of Australia Gazette