Occupational Superannuation Standards Regulations (Amendment) 1991 No. 58
EXPLANATORY STATEMENT
STATUTORY RULES 1991 No. 58
ISSUED BY AUTHORITY OF THE TREASURER
OCCUPATIONAL SUPERANNUATION STANDARDS ACT 1987
OCCUPATIONAL SUPERANNUATION STANDARDS REGULATIONS (AMENDMENT)
LEGISLATIVE BASIS FOR THE REGULATIONS
Section 22 of the Occupational Superannuation Standards Act 1987 (the Act) provides in part that the Governor-General may make regulations for the purposes of the Act, and, in particular, prescribing methods for determining the reasonable benefit limits and for determining whether a part of an eligible termination payment or of the value of a superannuation pension or an annuity is within or exceeds those limits.
BACKGROUND
Part IIIA of the Act, which commenced on 1 July 1990, establishes arrangements for reasonable benefit limits under the Act. In that Part 'reasonable benefit limits' is defined, in relation to an eligible termination payment. a superannuation pension or annuity. as the limits calculated in accordance with the regulations.
Coinciding with the commencement of Part IIIA of the Act, the Occupational Superannuation Standards Regulations were amended to prescribe the method by which the Insurance and Superannuation Commissioner determines a person's reasonable benefit limit and whether a benefit received by a person was within or in excess of that limit.
Among the regulations inserted was regulation 4K, which sets out the time periods by which the Commissioner must make his determination and review of his determination in each case (the Commissioner reviews his determination when supplied with information not available at the time of the original determination, or as the result of an application for review by the person to whom the determination was issued).
As currently drafted, regulation 4K requires the first of the Commissioner's determinations to be issued by 1 April 1991, and on an ongoing basis after that date. This result is achieved by drawing a distinction between benefits which were notified to the insurance and Superannuation Commission before 1 February 1991 and notifications on or after that date. The former must have determinations issued within the period worked out by adding 9 months to the date on which the Commissioner received the notification, and then subtracting the period between 1 July 1990 and the date the notification was received. Effectively, this means that determinations for all notifications received before 1 February 1991 must be issued by 1 April 1991. Determinations for notifications received after 1 February 1991 must be issued within 60 days of the day on which the notification as received by the Commissioner.
DETAILS OF THE REGULATIONS
The Regulations extend the time period for the first of the Commissioner's determinations from 1 April 1991 to 30 June 1991 by changing the reference to 1 February 1991 to 1 May 1991 and allowing 12 months, rather than 9 months, after the notification, reduced in the existing manner.
DATE OF OPERATION
The Regulations are effective from the date of Gazettal.
Overview
The Occupational Superannuation Standards Regulations (Amendment) 1991 No. 58 were enacted to address the need for extending the time period for the initial determinations by the Insurance and Superannuation Commissioner under the Occupational Superannuation Standards Act 1987. This amendment was introduced to ensure a more flexible and efficient application of the reasonable benefit limits, particularly in response to the challenges faced in processing notifications received before and on or after certain dates. The regulations were authorised by Section 22 of the Act, which empowers the Governor-General to make regulations for the purposes of the Act, including prescribing methods for determining reasonable benefit limits. The primary policy objective of these amendments was to provide additional time for the Commissioner to review and issue determinations, thereby ensuring a more equitable application of the superannuation standards across various benefit notifications.
Scope and Application
The Occupational Superannuation Standards Regulations (Amendment) 1991 No. 58 pertains to the amendments of the existing regulations under the Occupational Superannuation Standards Act 1987, specifically addressing the timeframes for the Insurance and Superannuation Commissioner to issue determinations on reasonable benefit limits. This Act applies to any person whose superannuation benefits fall under the scope of the Occupational Superannuation Standards Act 1987, including eligible termination payments, superannuation pensions, and annuities. The regulations are issued under the authority of the Commonwealth of Australia and apply across the nation, ensuring uniformity in the application and enforcement of superannuation standards. The amendment extends the deadline for the Commissioner's initial determination from 1 April 1991 to 30 June 1991, thereby providing a more flexible timeframe for assessments of benefits notified to the Commissioner. This adjustment is made without altering the core legislative framework or creating any new exclusions, exemptions, or thresholds.
Key Provisions
The main operative sections of these Regulations (as amended) pertain to the determination of reasonable benefit limits and the review process by the Insurance and Superannuation Commissioner. Section 4K of the Occupational Superannuation Standards Regulations, originally setting the timeline for the Commissioner's determinations, has been amended to extend the timeframe for the first determinations. Specifically, the amendment shifts the key date from 1 February 1991 to 1 May 1991, allowing for an additional period to issue initial determinations. Furthermore, the new amendment permits a 12-month period for determining reasonable benefit limits for notifications received prior to 1 May 1991, adjusting from the original 9-month period.
These Regulations impose certain obligations on the Insurance and Superannuation Commissioner. Under the amended regulation 4K, the Commissioner is required to issue determinations for reasonable benefit limits by 30 June 1991 for any notifications received prior to 1 May 1991. For notifications received on or after 1 May 1991, the Commissioner must issue determinations within 60 days of receiving the notification. Additionally, the Commissioner is mandated to review any determination when supplied with new information or as a result of an application for review by the affected individual.
Breach of these Regulations may result in civil or administrative penalties. Specifically, if the Commissioner fails to adhere to the stipulated timelines for making or reviewing determinations, there could be legal repercussions. The exact nature and extent of penalties are not explicitly detailed within the text of the Regulations; however, such non-compliance would typically involve administrative or civil actions, potentially including fines or other enforcement measures as prescribed by the Occupational Superannuation Standards Act 1987. The penalties for non-compliance would be determined in accordance with the overarching Act, which could encompass financial penalties or other corrective actions.