Military Superannuation and Benefits Amendment Trust Deed 2007 (No. 3)

Administered by Department of Veterans' Affairs

Legislation au F2007L02209 Not in force Legislative Instrument

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EXPLANATORY STATEMENT

 

Issued by the authority of the Minister for Veterans’ Affairs

 

MILITARY SUPERANNUATION AND BENEFITS AMENDMENT TRUST

DEED 2007 (No. 3)

 

The Schedule to the Trust Deed made by the Minister for Veterans' Affairs under section 5 of the Military Superannuation and Benefits Act 1991 (‘the MSB Act’) contains Rules (‘the MSB Rules’) which deal with the benefits to be provided to members of the MSB Scheme upon retirement, or to dependants of deceased members of the scheme.  The benefits payable are a member benefit based on member contributions, accrued MSB Fund earnings and an employer benefit which includes employer contributions.

 

Section 5 of the MSB Act provides that the Minister may amend the Trust Deed (including the MSB Rules) by a signed instrument.  This is a legislative instrument for the purpose of section 44(2) of the Legislative Instruments Act 2003.

 

From 1 July 2007, superannuation funds will not be able to accept after-tax member contributions if the member does not provide a tax file number to the fund.  The Rules of the Military Superannuation and Benefits Act 1991, are amended in accordance with

sub regulation 7.04 (2) of the Superannuation Industry (Supervision) Amendment Regulations 2007 (No. 1). 

 

Schedule 1 amends the Rules to provide for the treatment of member contributions that are paid into the Military Superannuation and Benefits Scheme Fund where no tax file number has been provided. 

 

A definition of tax file number is also inserted into the Rules.     

 

The Military Superannuation and Benefits Amendment Trust Deed 2007 (No. 3) will commence on 1 July 2007. 

 

Consultation in respect of this instrument has taken place between the Military Superannuation and Benefits Board of Trustees No. 1, Commonwealth Superannuation Administration, the Office of Legislative Drafting and Defence.

 


Clause 1 cites the full title of the Trust Deed amendment.

 

Clause 2 provides for commencement on 1 July 2007.


Clause 3 provides for the amendment to the Trust Deed.

 

Schedule 1 – Amendments

 

Item 1- Rules, after subrule 10 (1)

 

This item inserts a new subrule 10 (1AA) to make it clear that the Department will pay an employer contribution on behalf of a member even if the member does not provide a tax file number to the Board and the contribution is returned by the Board under rule 11QA.

 

Item 2 - Rules, subrule 11Q (3)

 

This item omits the term “The Board” and inserts the term “Subject to rule 11QA, the Board”.  Rule 11QA is a new rule, which is inserted into the Rules, to provide guidance to the Board on the treatment of contributions where no tax file number has been provided.

 

Item 3 – Rules, after rule 11Q

 

This item inserts a new rule 11QA to provide for the treatment of contributions where no tax file number has been provided to the Board.  The new rule also provides for the treatment of contributions if a tax file number is provided to the Board within 30 days of the contribution being received by the Board.  If a tax file number is not received by the Board within 30 days of the contribution being received, then the contribution must be returned.

 

Item 4 – Rules, subrule 105 (2)

 

This item omits the term “The Board” and inserts the term “Subject to rules 105A and 105B, the Board”.  Rules 105A and 105B are new rules which are inserted in this amendment. 

 

Item 5 – Rules, after rule 105

 

This item inserts a new rule 105A which provides guidance to the Board on the treatment of additional personal contributions where a member has not provided a tax file number.  In this rule the term “member” also refers to a Defence Force Retirement and Death Benefits Scheme member who contributes additional personal contributions into the Military Superannuation and Benefits Fund.

 

This item also inserts a new rule 105B which provides guidance to the Board on the treatment of contributions for the benefit of a member’s spouse where the spouse’s tax file number has not been provided.  In this rule the term “member” also refers to a Defence Force Retirement and Death Benefits Scheme member who contributes additional personal contributions into the Military Superannuation and Benefits Fund.

 

Item 6 – Rules, Schedule 1, after definition of surcharge deduction amount

 

This item inserts a definition for tax file number.

Overview

The Military Superannuation and Benefits Amendment Trust Deed 2007 (No. 3) was enacted to amend the Military Superannuation and Benefits Act 1991, addressing the issue of after-tax member contributions within superannuation funds, particularly in the context of the Military Superannuation and Benefits Scheme. This legislative instrument, issued by the Minister for Veterans' Affairs, aims to align the Military Superannuation and Benefits Rules with broader superannuation regulations, ensuring that contributions are properly managed and taxed. Commencing on 1 July 2007, the amendment ensures that contributions are subject to the requirement for members to provide a tax file number, thereby preventing funds from accepting after-tax contributions without such identification. This aligns with the overarching policy objective to maintain the integrity and compliance of superannuation contributions within the military context.

Scope and Application

The Military Superannuation and Benefits Amendment Trust Deed 2007 (No. 3) applies to members and beneficiaries of the Military Superannuation and Benefits Scheme, administered under the Military Superannuation and Benefits Act 1991. This includes serving and former members of the Australian Defence Force, as well as their dependants. The amendment modifies the rules governing the treatment of member contributions in the absence of a tax file number, ensuring compliance with the broader regulatory framework under the Superannuation Industry (Supervision) Amendment Regulations 2007. The changes came into effect on 1 July 2007, impacting the administration and operation of the Military Superannuation and Benefits Scheme across the Commonwealth of Australia. The Trust Deed amendment specifically addresses scenarios where members fail to provide a tax file number, establishing procedures for the handling of such contributions and ensuring that the Department continues to make employer contributions on behalf of members under certain conditions.

Key Provisions

The Military Superannuation and Benefits Amendment Trust Deed 2007 (No. 3) primarily focuses on amending the Rules within the Military Superannuation and Benefits Act 1991 (MSB Act) to address the handling of member contributions without a tax file number (TFN) (Schedule, Item 3). This amendment includes the insertion of new rules, such as Rule 11QA, which outlines the treatment of contributions when no TFN is provided (Schedule, Item 3). Furthermore, it introduces Rule 105A and Rule 105B, providing specific guidance on additional personal contributions and contributions for a member's spouse, respectively, when no TFN is available (Schedule, Item 5). The amendment also clarifies that the Department will still pay employer contributions even if a member does not provide a TFN, though such contributions will be returned if not processed within the stipulated timeframe (Schedule, Item 1). The Act imposes several obligations on the parties involved. Members of the Military Superannuation and Benefits Scheme must ensure that they provide their TFN when making contributions (Schedule, Item 3). The Board is mandated to follow the newly inserted rules regarding the treatment of contributions without a TFN, including returning contributions if a TFN is not provided within 30 days (Schedule, Item 3). Additionally, the Board must adhere to the specific guidelines in Rules 105A and 105B for handling additional personal contributions and contributions for spouses without a TFN (Schedule, Item 5). The Department, on the other hand, is required to continue making employer contributions as per the amended Rules, with the condition that these contributions are returned if the member fails to provide a TFN (Schedule, Item 1). Breaches of the provisions outlined in the Military Superannuation and Benefits Amendment Trust Deed 2007 (No. 3) may lead to specific consequences. Although the Explanatory Statement does not explicitly state penalties for non-compliance, it is implied that failure to adhere to the stipulated rules for handling contributions without a TFN could result in the return of contributions and potential disruptions in the processing of superannuation benefits. The absence of a TFN might also impact the calculation and disbursement of benefits, as the Board is directed to return contributions if the TFN is not provided within the specified period (Schedule, Item 3). Therefore, compliance with these rules is crucial to ensure the smooth operation of the Military Superannuation and Benefits Scheme.

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Sourced from the Federal Register of Legislation at 26 August 2026. For the latest information on Australian Government law please go to https://www.legislation.gov.au.