Superannuation Industry (Supervision) Regulations (Amendment) (Cth)

Statutory Rules 1998No. 175 1

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Superannuation Industry (Supervision) 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 Superannuation Industry (Supervision) Act 1993.

Dated 30 June 1998.

 WILLIAM DEANE

 Governor-General

By His Excellency’s Command,

 

C. R. KEMP

Assistant Treasurer

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1.   Commencement

1.1   These Regulations commence on 30 June 1998.

2.   Amendment

2.1   The Superannuation Industry (Supervision) Regulations are amended as set out in these Regulations.

3.   Regulation 5.03 (Investment returns)

3.1   Subregulation 5.03 (2):

Omit “standards and regulation 5.01B,”, substitute “standards, regulation 5.01B and Division 6.1,”.

4.   Regulation 6.01 (Interpretation)

4.1   Subregulation 6.01 (2) (definition of changeover day):

Omit the definition, substitute:

“changeover day, in relation to a type B member of a fund, means the changeover day that was fixed for the class of members of the fund in which the member is included.”.

4.2   Subregulation 6.01 (2) (definition of RSA changeover day):

Omit the definition.

4.3   Subregulation 6.01 (2):

Insert the following definitions:

“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.

type A member means a member of a regulated superannuation fund included in a class of members for which no changeover day, fixed under these Regulations as in force before 30 June 1998, was reached before 30 June 1998 in relation to that fund.

type B member means a member of a regulated superannuation fund included in a class of members for which a changeover day, fixed under these Regulations as in force before 30 June 1998, was reached before 30 June 1998 in relation to that fund.”.

4.4   Subregulations 6.01 (2A), (2B), (3), (3A), (3B) and (4):

Omit the subregulations.

4.5   Paragraph 6.01 (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”.

4.6   Subparagraph 6.01 (5) (b) (i):

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

4.7   Subregulation 6.01 (6):

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

4.8   Paragraph 6.01 (7) (a):

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

5.   Regulation 6.02 (Preserved benefits in regulated superannuation funds—before the changeover day)

5.1   Omit the regulation, substitute:

Preserved benefits in regulated superannuation funds—before 1 July 1999

Type A members before 1 July 1999; type B members before changeover day

 “6.02.(1) Subject to regulations 6.06 and 6.12 and to Subdivision 6.1.5, the amount of preserved benefits in a regulated superannuation fund:

• (a)

  for a type A member at any time during the period commencing on the commencement day and ending immediately before 1 July 1999; or

• (b)

  for a type B member at any time during the period commencing on the commencement day and ending immediately before the changeover day;

is the amount required to be preserved under the OSS laws as applied in accordance with subregulation (2).

 “(2) For subregulation (1), despite the repeal of sections of the Occupational Superannuation Standards Act 1987 by the Occupational Superannuation Standards Amendment Act 1993, the OSS laws are taken to have continued in force, subject to the modifications set out in Schedule 2, in relation to regulated superannuation funds as if the references in the OSS laws (as so modified) to superannuation funds were references to regulated superannuation funds within the meaning of these Regulations.

Type B members on and after changeover day

 “(3) Subject to regulation 6.12 and to Subdivision 6.1.5,the amount of a type B member’s preserved benefits in a regulated superannuation fund at any time on or after the changeover day and before 1 July 1999 is the amount of the member’s total benefits in the fund less the sum of:

• (a)

  the amount of the member’s restricted non-preserved benefits in the fund as defined by regulation 6.07; and

• (b)

  the amount of the member’s unrestricted non-preserved benefits in the fund as defined by regulation 6.10.”.

6.   Regulation 6.03 (Preserved benefits in regulated superannuation funds—on and after 1 July 1999)

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

7.   Regulation 6.04 (Preserved benefits in regulated superannuation funds—rollover or transfer between funds during 1996, 1997 or 1998)

7.1   Omit the regulation.

8.   Regulation 6.04A (Preserved benefits in RSAs—rollover or transfer to regulated superannuation funds during 1998)

8.1   Omit the regulation.

9.   Regulation 6.06 (Effect of rollover or transfer on preserved benefits)

9.1   After “regulation 6.12”, insert “and to Subdivision 6.1.5”.

10.   Regulation 6.07 (Restricted non-preserved benefits in regulated superannuation funds—before the changeover day)

10.1   Omit the regulation, substitute:

Restricted non-preserved benefits in regulated superannuation funds—before 1 July 1999

Type A members before 1 July 1999; type B members before changeover day

 “6.07.(1) Subject to regulations 6.09 and 6.12 and to Subdivision 6.1.5, the amount of restricted non‑preserved benefits in a regulated superannuation fund:

• (a)

  for a type A member at any time during the period commencing on the commencement day and ending immediately before 1 July 1999; or

• (b)

  for a type B member at any time during the period commencing on the commencement day and ending immediately before the changeover day;

is the amount of the member’s total benefits in the fund, less the sum of:

• (c)

  the amount of the member’s preserved benefits in the fund as defined by regulation 6.02; and

• (d)

  the amount of the member’s unrestricted non-preserved benefits in the fund as defined by regulation 6.10.

Type B members on and after changeover day

 “(2) Subject to regulation 6.12 and to Subdivision 6.1.5, the amount of a type B member’s restricted non-preserved benefits in a regulated superannuation fund at any time on or after the changeover day and before 1 July 1999 is the greatest of the following amounts:

• (a)

  the total of:

  • (i)

    the indexed amount of the member’s restricted non-preserved benefits (as defined by subregulation (1)) in the fund that would be payable to the member on the changeover day if the member resigned from employment on that day; and

  • (ii)

    the indexed amount of the member’s restricted non-preserved benefits received by the fund fromanother regulated superannuation fund, an RSA or an exempt public sector superannuation scheme on or after the changeover day that are subject to indexation in the fund;

• (b)

  the total of:

  • (i)

    the indexed amount of the member’s restricted non-preserved benefits (as defined by subregulation (1)) in the fund on the changeover day that would be payable to the member if the member were retrenched from employment that day; and

  • (ii)

    the indexed amount of the member’s restricted non-preserved benefits received by the fund from another regulated superannuation fund, an RSA or an exempt public sector superannuation scheme on or after the changeover day that are subject to indexation in that other fund, RSA or scheme;

• (c)

  the amount of the member’s restricted non-preserved contributions in the fund.

 “(3) Subject to regulation 6.12 and to Subdivision 6.1.5, a type B member’s benefits in a regulated superannuation fund (the transferee fund) that:

• (a)

  were rolled over or transferred from another regulated superannuation fund, an RSA or an exempt public sector superannuation scheme; and

• (b)

  were indexed amounts of restricted non-preserved benefits in that other fund, RSA or scheme;

continue to be subject to indexation in the transferee fund.

 “(4) Subject to regulation 6.12 and to Subdivision 6.1.5, a type B member’s benefits in a regulated superannuation fund (the transferee fund) that:

• (a)

  were rolled over or transferred from another regulated superannuation fund, an RSA or an exempt public sector superannuation scheme; and

• (b)

  were restricted non-preserved contributions in that other fund, RSA or scheme;

continue to be restricted non-preserved contributions in the transferee fund.

 “(5) The references in this regulation to indexation apply subject to regulation 6.14.”.

11.   Regulation 6.08 (Restricted non-preserved benefits in regulated superannuation funds—on and after the changeover day)

11.1   Omit the regulation, substitute:

Restricted non-preserved benefits in regulated superannuation funds—on and after 1 July 1999

 “6.08.(1) Subject to regulations 6.09 and 6.12 and to Subdivision 6.1.5, the amount of a member’s restricted non‑preserved benefits in a regulated superannuation fund at any time on or after 1 July 1999 is the sum of the following amounts:

• (a)

  either:

  • (i)

    for a type A member who is a defined benefit member and for whom the trustee of the regulated superannuation fund chooses to apply this subparagraph—the greater of the amounts of restricted non-preserved benefits in the fund, worked out under subregulation 6.07 (1), that would be payable to the member on 1 July 1999 if, on 1 July 1999, the member:

    • (A)

      resigned from employment; or

    • (B)

      was retrenched from employment; or

  • (ii)

    for a member to whom subparagraph (i) does not apply—the member’s restricted non-preserved benefits in the fund on 30 June 1999, worked out under regulation 6.07; and

• (b)

  the member’s restricted non-preserved benefits received by the fund from another regulated superannuation fund, an RSA 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 member under section 82AAT of the Income Tax Assessment Act 1936 for a member 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.”.

12.   Regulation 6.09 (Restricted non-preserved benefits in regulated superannuation funds—rollover or transfer between funds during 1996, 1997 or 1998)

12.1   Omit the regulation, substitute:

Effect of rollover or transfer on restricted non-preserved benefits

 “6.09. Subject to regulation 6.12 and to Subdivision 6.1.5, a member’s benefits in a regulated superannuation fund that were restricted non-preserved benefits in the source from which they were received continue to be restricted non-preserved benefits.”.

13.   Regulation 6.09A (Restricted non-preserved benefits in RSAs—rollover or transfer to regulated superannuation funds during 1998)

13.1   Omit the regulation.

14.   Regulation 6.10 (Unrestricted non-preserved benefits—regulated superannuation funds)

14.1   Paragraph 6.10 (1) (d):

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

14.2   Add at the end:

 “(3) However, if:

• (a)

  on or after 1 July 1999, a deduction is allowed for the member under section 82AAT of the Income Tax Assessment Act 1936 for a member 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 6.12 (2);

the benefits are taken to be preserved benefits.”.

15.   Regulation 6.11 (Unrestricted non-preserved benefits—approved deposit funds)

15.1   Paragraph 6.11 (1) (e):

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

16.   Regulation 6.14 (Indexation)

16.1   Add at the end:

 “(2) This regulation has no effect after 30 June 1999.”.

17.   Regulation 6.16 (Redistribution of member benefits within a fund in certain circumstances by operation of governing rules or action of trustee)

17.1   Paragraph 6.16 (1) (a):

Omit “by regulation 6.02, 6.03 or 6.05”, substitute “in Subdivision 6.1.2”.

17.2   Paragraph 6.16 (1) (b):

Omit “by regulation 6.07 or 6.08”, substitute “in Subdivision 6.1.3”.

17.3   Paragraph 6.16 (1) (c):

Omit “by regulation 6.10 or 6.11”, substitute “in Subdivision 6.1.4”.

18.   New regulation 6.16A

18.1   After regulation 6.16, insert:

When non-preserved benefits may be reduced

 “6.16A.(1) This regulation applies if, on or after 1 July 1999, the amount of a negative investment return for a period after 30 June 1999 to be debited against a member’s benefits is more than the amount of the member’s preserved benefits.

 “(2) The negative investment return must be debited in the following order:

• (a)

  first, against the member’s preserved benefits; and

• (b)

  second, against the member’s restricted non-preserved benefits; and

• (c)

  third (if required), against the member’s unrestricted non-preserved benefits.”.

19.   Regulation 6.18 (Voluntary cashing of preserved benefits in regulated superannuation funds)

19.1   Paragraph 6.18 (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 member satisfied the condition of release.”.

20.   Regulation 6.19 (Voluntary cashing of restricted non‑preserved benefits in regulated superannuation funds)

20.1   Paragraph 6.19 (2) (b):

Omit the paragraph, substitute:

• “(b)

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

21.   Regulation 6.21 (Compulsory cashing of benefits in regulated superannuation funds)

21.1   After subregulation 6.21 (3), insert:

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

• (a)

  the trustee of the fund must make reasonable attempts to keep itself informed about the member’s ongoing employment status; and

• (b)

  if the trustee of the fund cannot find out the member’s ongoing employment status, the member is taken not to be gainfully employed.”.

22.   Regulation 6.23 (Voluntary cashing of preserved benefits in approved deposit funds)

22.1   Paragraph 6.23 (2) (b):

Omit the paragraph, substitute:

• “(b)

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

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NOTES

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

2. 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 and 108.