Occupational Superannuation Standards Regulations (Amendment)

Overview

The Occupational Superannuation Standards Regulations (Amendment) 1992 were enacted to provide minor amendments to the Occupational Superannuation Standards Regulations 1987. This legislation was introduced to address the need for updates and refinements in the regulatory framework governing superannuation funds, approved deposit funds, and pooled superannuation trusts to ensure they remain eligible for taxation concessions under the Income Tax Assessment Act 1936. Issued by authority of the Treasurer, the policy objective of these amendments is to ensure the ongoing compliance and integrity of the superannuation system, thereby maintaining the intended benefits and protections for participants. The regulations specifically modify the criteria for approved auditors and clarify the application of preservation requirements for benefits emerging from made after 1 July 1991.

Scope and Application

The Occupational Superannuation Standards Regulations (Amendment) 1992 are established under Section 22 of the Occupational Superannuation Standards Act 1987. This Act imposes operating standards and conditions on superannuation funds, approved deposit funds, and pooled superannuation trusts to ensure they qualify for taxation concessions under the Income Tax Assessment Act 1936. The Regulations, in turn, amend the Occupational Superannuation Standards Regulations to incorporate minor changes that enhance the administration and compliance of these standards. The Regulations apply nationally, as they are issued by authority of the Governor-General and pertain to entities and individuals operating within the superannuation framework in Australia. Notably, the Regulations extend to include Members or Fellows of the Association of Taxation and Management Accountants as acceptable auditors for the purposes of the Act. Additionally, the Regulations ensure grammatical consistency and clarify the application of preservation requirements to benefits emerging from dates post 1 July 1991.

Key Provisions

The main operative sections of the Occupational Superannuation Standards Regulations (Amendment) 1992 (No. 192) are primarily concerned with minor amendments to the existing regulations under the Occupational Superannuation Standards Act 1987 (the Act). Section 2(1) of the Regulations introduces Members or Fellows of the Association of Taxation and Management Accountants as acceptable auditors for superannuation funds, approved deposit funds and pooled superannuation trusts (section 4(1)(b)(i)). This addition aims to expand the class of persons who can be appointed as auditors for these entities. Section 2(2) ensures grammatical consistency in the regulation by aligning the language used in paragraph 4(2)(b) with that in paragraph 4(1)(ab). Section 3 clarifies that the preservation requirement applies to benefits emerging from made after 1 July 1991 (section 9(4)), ensuring that any benefits accrued after this date must comply with the preservation conditions. The Act imposes several obligations and requirements on superannuation funds, approved deposit funds, and pooled superannuation trusts. Firstly, these entities must adhere to the operating standards and conditions set forth in the Act to be eligible for taxation concessions under the Income Tax Assessment Act 1936. This includes ensuring that they are audited by an acceptable auditor, as specified in the Regulations. The inclusion of Members or Fellows of the Association of Taxation and Management Accountants as acceptable auditors expands the pool of qualified professionals who can conduct these audits. Additionally, the entities must ensure that any benefits emerging after 1 July 1991 comply with the preservation requirements, ensuring that certain benefits are preserved for members until they meet specific conditions, such as reaching retirement age. Failure to comply with the provisions of the Act and the Regulations may result in various civil and criminal consequences. While the specific penalties are not detailed in the Explanatory Statement, breaches of occupational superannuation standards can generally lead to disqualification from the benefits of the Act, including loss of tax concessions. Additionally, individuals responsible for the non-compliance may face personal liability for any resulting tax shortfalls or penalties. The Act also empowers the Commissioner of Taxation to take enforcement actions against non-compliant entities, which could include fines and other administrative penalties. The severity of these penalties would depend on the nature and extent of the breach, as well as any mitigating or aggravating factors.