Superannuation Legislation Amendment Act 1999
No. 38, 1999
An Act to amend the law relating to superannuation, and for related purposes
Contents
1 Short title
2 Commencement
3 Schedule(s)
Schedule 1—Amendment of the Bankruptcy Act 1966
Schedule 2—Amendment of the Superannuation Industry (Supervision) Act 1993
Part 1—Amendments commencing on date of Assent
Part 2—Amendments commencing 28 days after date of Assent
Part 3—Amendments that are taken to have commenced on 5 June 1997
Part 4—Amendment commencing on 1 July 1999
Part 5—Amendment commencing 6 months after date of Assent
Schedule 3—Amendment of the Superannuation (Resolution of Complaints) Act 1993
Superannuation Legislation Amendment Act 1999
No. 38, 1999
An Act to amend the law relating to superannuation, and for related purposes
[Assented to 31 May 1999]
The Parliament of Australia enacts:
1 Short title
This Act may be cited as the Superannuation Legislation Amendment Act 1999.
2 Commencement
(1) Subject to this section, this Act commences on the day on which it receives the Royal Assent.
(2) Part 2 of Schedule 2 commences on the 28th day after the day on which this Act receives the Royal Assent.
(3) Part 3 of Schedule 2 is taken to have commenced on 5 June 1997, immediately after the commencement of the Superannuation Contributions Tax (Consequential Amendments) Act 1997.
(4) Part 4 of Schedule 2 commences, or is taken to have commenced, on 1 July 1999.
(5) Part 5 of Schedule 2 commences on the first day after the end of the period of 6 months beginning on the day on which this Act receives the Royal Assent.
3 Schedule(s)
Subject to section 2, each Act that is specified in a Schedule to this Act is amended or repealed as set out in the applicable items in the Schedule concerned, and any other item in a Schedule to this Act has effect according to its terms.
Schedule 1—Amendment of the Bankruptcy Act 1966
1 At the end of subparagraph 116(2)(d)(iii)
Add:
or (C) an exempt public sector superannuation scheme (within the meaning of that Act);
2 After sub‑subparagraph 249(6)(a)(ii)(B)
Insert:
(BAA) a payment from an exempt public sector superannuation scheme (within the meaning of that Act); or
3 After sub‑subparagraph 249(7)(a)(ii)(B)
Insert:
(BAA) a payment from an exempt public sector superannuation scheme (within the meaning of that Act); or
4 After sub‑subparagraph 249(8)(a)(ii)(B)
Insert:
(BAA) a payment from an exempt public sector superannuation scheme (within the meaning of that Act); or
Schedule 2—Amendment of the Superannuation Industry (Supervision) Act 1993
Part 1—Amendments commencing on date of Assent
1 Subsection 10(1) (at the end of the definition of relevant person)
Add:
; or (e) a person who is a custodian in relation to the fund or trust.
2 Before paragraph 28(2)(a)
Insert:
(aa) the trustee has requested in writing that the approval be revoked; or
3 Subsection 28(3)
Omit “The Commissioner”, substitute “Except in a case covered by paragraph (2)(aa), the Commissioner”.
4 Subsection…
Overview
The Superannuation Legislation Amendment Act 1999, enacted by the Parliament of Australia, seeks to amend existing superannuation laws to address various issues and enhance regulatory oversight. This Act introduces a series of amendments to the Bankruptcy Act 1966, the Superannuation Industry (Supervision) Act 1993, and the Superannuation (Resolution of Complaints) Act 1993, aiming to refine the regulatory framework governing superannuation funds. Key changes include modifications to the definitions of insolvency and investment, enhancements to the powers of the Commissioner under the Superannuation Industry (Supervision) Act 1993, and updates to the complaint resolution process under the Superannuation (Resolution of Complaints) Act 1993. These amendments are designed to strengthen the governance and administration of superannuation funds, ensuring better protection for fund members and improved regulatory compliance.
Scope and Application
The Superannuation Legislation Amendment Act 1999 applies to various entities and persons involved in the superannuation industry in Australia, particularly focusing on amendments to the Superannuation Industry (Supervision) Act 1993 and related Acts. The Act impacts trustees, investment managers, public offer entities, and members of superannuation funds. Its amendments are designed to enhance the regulation and supervision of superannuation entities, ensuring compliance with legislative standards and improving the governance and operation of superannuation funds. The Act also extends to the Bankruptcy Act 1966, impacting the treatment of exempt public sector superannuation schemes. The application of the Act is Commonwealth-wide, affecting entities and persons across Australia. The Act does not specify exclusions but includes provisions that apply conditionally, such as those related to defined benefit funds and their in-house assets. The Act's application can be further extended or modified through subordinate instruments, which may include regulations or guidelines issued under the authority of the Act.
Key Provisions
- The Superannuation Legislation Amendment Act 1999 (No. 38, 1999) introduces several amendments to existing superannuation laws. Key provisions include amendments to the definition of "relevant person" under the Superannuation Industry (Supervision) Act 1993, now including a person who is a custodian in relation to a fund or trust (section 10(1)). Additionally, it modifies the conditions under which trustees can revoke approval and allows governing rules to specify how benefits are to be provided to certain beneficiaries after a member’s death (subsection 28(3) and new subsection 59(1A)). The Act also introduces a new Division (Division 3A) limiting the in-house assets of defined benefit funds under specific circumstances (sections 83A-83E).
- The Act imposes various obligations on trustees and other parties involved in superannuation funds. Trustees must comply with new rules regarding the revocation of approvals, the distribution of benefits, and the management of in-house assets. Trustees of defined benefit funds must ensure that the market value of in-house assets does not exceed prescribed limits, and they must not acquire in-house assets if doing so would breach these limits (section 83C and 83E). The Act also mandates that certain decisions by trustees and the Commissioner must be recorded in writing and published in the Gazette (subsections 131(4), 131(4A), and 131(10)).
- Breaches of the Act's provisions can lead to significant penalties. For example, failure to comply with certain notice requirements can result in imprisonment for up to two years (subsection 285). Trustees who intentionally or recklessly fail to comply with specific duties face penalties of up to 50 penalty units (subsection 24A(7)). Additionally, the Act imposes strict confidentiality requirements, with penalties of up to two years imprisonment for unauthorized disclosure of personal information relating to a complaint (subsection 63(3B)). These provisions underscore the importance of compliance and the severe consequences of non-compliance under the amended superannuation laws.
- Area of Law
- Superannuation Law
- Instrument
- Act
- Concepts
- Commencement Provisions
- Repeal & Amendment
- Reporting & Disclosure Obligations
- Licensing & Registration
- Civil Penalty Provisions
- Enforcement Powers