Occupational Superannuation Standards Regulations 1987
Statutory Rules No. 322, 1987 as amended
made under the
Superannuation Entities (Taxation) Act 1987
Compilation start date: 1 July 2013
Includes amendments up to: SLI No. 152, 2013
About this compilation
This compilation
This is a compilation of the Occupational Superannuation Standards Regulations 1987 as in force on 1 July 2013. It includes any commenced amendment affecting the legislation to that date.
This compilation was prepared on 18 September 2013.
The notes at the end of this compilation (the endnotes) include information about amending laws and the amendment history of each amended provision.
Uncommenced amendments
The effect of uncommenced amendments is not reflected in the text of the compiled law but the text of the amendments is included in the endnotes.
Application, saving and transitional provisions for provisions and amendments
If the operation of a provision or amendment is affected by an application, saving or transitional provision that is not included in this compilation, details are included in the endnotes.
Modifications
If a provision of the compiled law is affected by a modification that is in force, details are included in the endnotes.
Provisions ceasing to have effect
If a provision of the compiled law has expired or otherwise ceased to have effect in accordance with a provision of the law, details are included in the endnotes.
Contents
Part I—Preliminary
1 Citation
2 Commencement
3 Interpretation
3A Meaning of pooled superannuation trust
3B Vesting and payment standards: estimated earnings
3C Application of superannuation orders
3D Prescribed age: definition of superannuation fund—subsection 3(1)
3E Meaning of annuity—subsection 3(1) of the Act
3F Meaning of pension—subsection 3(1) of the Act
3G Periods when beneficiary may not receive benefits
4 Approved auditors
Part IA—Reasonable benefit limits
Division 1—Preliminary
4A Interpretation
4B Special rules relating to HAS
4C Indexation
4D Capital value of superannuation pensions
4DA Commissioner may determine standard indexation rate
Division 2—Information and time periods
4E Extension of certain time periods
4F Information under section 15F of the Act
4G Information under section 15G of the Act
4H Prescribed amount—subsection 15G(4) of Act
4J Information under section 15J of the Act
4K Periods for determination of reasonable benefit limits
4L Request for information by payers
Division 3—Interim determinations
4M Interim determinations
4N Amendment of interim applications
Division 4—Determinations
4P Amounts to be taken into account
4Q Amounts of ETP’s paid by superannuation funds or approved deposit funds counted towards reasonable benefit limits
4R Amounts of superannuation pensions counted towards reasonable benefit limits
4S Amounts of ETP’s paid by life assurance companies or registered organisations counted towards reasonable benefit limits
4T Amounts of annuities counted towards reasonable benefit limits
4U Amounts of ETP’s paid by employers counted towards reasonable benefit limits
4UA Amount of ETP paid out of employee share participation scheme that counts towards RBL
4V Revised determinations
4W Determinations
4X Assessment of benefits against lump sum RBL
4Y Qualifying portion
4Z Assessment of benefits against pension RBL
4ZA Reasonable benefit limit…
Overview
The Occupational Superannuation Standards Regulations 1987 were enacted to address the need for uniform standards governing the operation of superannuation funds and related entities in Australia, ensuring that they adhere to prescribed financial, operational, and disclosure requirements. These regulations were made under the Occupational Superannuation Standards Act 1987 by the Australian Government. They aim to safeguard the interests of superannuation fund members by setting clear rules on fund management, benefit payments, and the preservation of benefits. The regulations establish detailed standards for the investment, vesting, and payout of superannuation benefits, and they mandate the disclosure of specific information to fund members and trustees to enhance transparency and accountability within the superannuation industry.
Scope and Application
The Occupational Superannuation Standards Regulations 1987 made under the Occupational Superannuation Standards Act 1987, apply to superannuation funds, approved deposit funds, and pooled superannuation trusts, regulating their establishment, operations, and transactions. These regulations are in force across Australia, with some provisions applying to both Commonwealth and state/territory jurisdictions. The Act applies to trustees and other persons responsible for the management of these funds, as well as to the members and beneficiaries of these funds. The regulations lay down standards for the vesting and payment of benefits, investment of assets, and disclosure of information, among others. Certain exclusions apply, such as for small funds (with total assets below $500) and for transactions predating 1 July 1988. The application and scope of the Act can be extended or modified by subordinate instruments, such as the Superannuation Industry (Supervision) Regulations 1994.
Key Provisions
- The Occupational Superannuation Standards Regulations 1987 outline several key provisions that govern the operations of superannuation funds and related entities in Australia. Regulation 5AAA, for example, requires that superannuation funds must not invite members or accept contributions unless a prospectus has been registered by the Commissioner. Regulation 5AA mandates that superannuation funds must not accept contributions for new members unless the member is employed either part-time or full-time. Regulation 5AB stipulates the rights of members to receive benefits and requires these rights to be fully secured. The regulations also set forth vesting and payment standards for superannuation funds, which include determining the ages at which benefits can be paid out (Regulation 5AC), and the preservation standards that must be observed (Regulation 9). In terms of information disclosure, Regulation 18G requires trustees to provide members with regular reports that detail fund management and performance (Regulation 18G).
- These regulations impose various obligations on the parties they govern. For instance, superannuation funds must ensure that their governing rules are updated and include any new requirements or standards (Regulations 18 and 18A). Trustees of superannuation funds must keep detailed records of fund operations and retain these records for at least five years (Regulation 23Q). Approved auditors are required to certify the accuracy of financial reports and confirm that the fund complies with all applicable standards (Regulations 24 and 24A). Additionally, trustees must provide certain information to members and former members as per the regulations (Regulations 18E to 18M).
- Breaching the provisions of these regulations can result in both civil and criminal consequences. For example, failure to register a prospectus or to adhere to the prescribed standards can lead to fines and penalties. Regulation 25A specifies that late lodgment fees may be imposed on trustees who fail to submit required returns on time. Under Regulation 26, trustees who fail to pay tax when due may still be held to the standards set out in the regulations, but failure to comply can lead to further penalties. The regulations also include provisions for the Commissioner to take action in cases of non-compliance, which can include issuing notices, imposing fines, or revoking approvals (Regulations 18QA and 18R). The severity of penalties can vary depending on the nature and extent of the breach, with potential maximum penalties detailed in the relevant sections of the Act.
- Area of Law
- Superannuation Law
- Instrument
- Regulation
- Concepts
- Definitions & Interpretation
- Commencement Provisions
- Reporting & Disclosure Obligations
- Licensing & Registration
- Preservation Standards
- Investment Standards
