Self-managed Superannuation Funds (Assets Acquired on Marriage Breakdown) Repeal Determination 2011

Overview

The Self-managed Superannuation Funds (Assets Acquired on Marriage Breakdown) Repeal Determination 2011 is a legislative instrument made under the Superannuation Industry (Supervision) Act 1993 (SIS Act 1993) to repeal the Self-managed Superannuation Funds (Assets Acquired on Marriage Breakdown) Determination 2006 (F2006L02884). This repeal was necessitated by the insertion of subsection 66(2B) into the SIS Act 1993 through the Superannuation Legislation Amendment Act 2010, which addressed the same issue and rendered the 2006 Determination redundant for acquisitions occurring on or after 17 November 2010. The repeal was designed to streamline the legislation, ensuring that only the newly inserted subsection applies to trustees or investment managers of regulated superannuation funds when acquiring assets from related parties of the fund due to a relationship breakdown of fund members and their spouse or former spouse. The repeal ensures that the benefits of the legislative change come into effect from 17 November 2010, while the 2006 Determination remains in effect until that date. This legislative instrument was developed to ensure that the benefits of the amendment are realised without adversely affecting the rights or liabilities of any person other than the Commonwealth.

Scope and Application

The Self-managed Superannuation Funds (Assets Acquired on Marriage Breakdown) Repeal Determination 2011 applies to trustees or investment managers of regulated superannuation funds in Australia. It concerns the acquisition of assets from related parties, particularly where such acquisitions result from the relationship breakdown of fund members and their spouse or former spouse. The repeal determination operates within the framework of the Commonwealth, specifically under the Superannuation Industry (Supervision) Act 1993. It nullifies the Self-managed Superannuation Funds (Assets Acquired on Marriage Breakdown) Determination 2006, rendering it redundant from 17 November 2010, due to the introduction of subsection 66(2B) in the SIS Act 1993 via the Superannuation Legislation Amendment Act 2010. The repeal ensures that only the provisions of subsection 66(2B) are applicable to the relevant acquisitions occurring from the commencement date of 17 November 2010. No consultation was required in the development of this instrument, and it does not adversely affect any rights or liabilities other than those of the Commonwealth, ensuring that the benefits of legislative change are implemented effectively.

Key Provisions

The Self-managed Superannuation Funds (Assets Acquired on Marriage Breakdown) Repeal Determination 2011 (F2011L02122) primarily focuses on repealing the Self-managed Superannuation Funds (Assets Acquired on Marriage Breakdown) Determination 2006 (F2006L02884), effective from 17 November 2010 (paragraphs 4 and 7). This repeal is due to the introduction of subsection 66(2B) into the Superannuation Industry (Supervision) Act 1993 (SIS Act 1993) by the Superannuation Legislation Amendment Act 2010, which now addresses the same issue (paragraph 13). This determination ensures that only subsection 66(2B) applies to trustees or investment managers of regulated superannuation funds when they acquire assets from a related party of the fund due to a relationship breakdown of members of the fund and their spouse or former spouse (paragraph 8). The 2006 determination remains applicable until 17 November 2010 (paragraph 9). The repealed determination had previously ensured that trustees of a self-managed superannuation fund would not commit an offence if they acquired an asset from a related party, such as the trustees of another superannuation fund, as a result of a marriage breakdown of a fund member (paragraph 11). The new subsection 66(2B) now provides the same protection, rendering the 2006 determination redundant. Trustees and investment managers must now comply with the requirements and obligations stipulated in subsection 66(2B) of the SIS Act 1993 (paragraph 12). This means they need to ensure their actions align with the updated legislative framework, which includes the new provision for managing asset acquisitions in the context of relationship breakdowns. There are no specific obligations or requirements imposed by this repeal determination itself, as its primary function is to remove outdated provisions (paragraph 14). However, trustees and investment managers must adhere to the provisions of subsection 66(2B) of the SIS Act 1993. They must ensure that any asset acquisitions resulting from a relationship breakdown are conducted in compliance with this subsection. This includes proper documentation and adherence to any additional guidelines or requirements that may be stipulated in the SIS Act 1993 or other relevant regulations. In terms of consequences for non-compliance, subsection 66(2B) of the SIS Act 1993 may include civil or criminal penalties, although the specific penalties are not detailed in the explanatory statement (paragraph 8). Generally, breaches of superannuation legislation can result in significant financial penalties, including fines and potential imprisonment for serious offences. Trustees and investment managers should consult the SIS Act 1993 and related regulations for detailed information on penalties and consequences for non-compliance with the new provisions.