Superannuation (CSS) Unclaimed Money Regulations 1997 No. 99
EXPLANATORY STATEMENT
STATUTORY RULES 1997 No. 99
Issued by the authority of the Minister for Finance
Superannuation Act 1976
Superannuation (CSS) Unclaimed Money Regulations
The Superannuation Act 1976 (the 1976 Act) makes provision for and in relation to an occupational superannuation scheme, the Commonwealth Superannuation Scheme (the CSS), for certain Commonwealth employees and other persons, including employees of approved authorities.
Section 168 of the 1976 Act provides that the Governor-General may make regulations for the purposes of that Act.
Section 155C of the 1976 Act provides for the making of regulations under the Act to make provision as is necessary for the purposes of enabling the CSS to satisfy any condition or requirement specified in the Superannuation Industry (Supervision) Act 1993 and the regulations under that Act (SIS) or any other laws.
SIS provides a regulatory system for superannuation funds including public sector superannuation schemes such as the CSS. The CSS became a regulated superannuation fund under section 19 of the SIS Act on 29 June 1995.
On 1 July 1997, it is expected that new SIS provisions will apply to regulated superannuation funds. The new provisions provide that the trustee of a fund must provide a statement of all unclaimed money in the fund at the end of each half-year and pay that unclaimed superannuation money to the Commissioner of Taxation (the Commissioner) within the prescribed time and commencing with the half-year ending 30 June 1997.
The regulations require the CSS Board to meet the new SIS provisions applying to unclaimed monies.
Regulation 1 provides that the Regulations may be cited as the Superannuation (CSS) Unclaimed Money Regulations.
Regulation 2 provides that the Regulations commence on 1 July 1997.
Regulation 3 provides an interpretation provision in which "the Act" is defined for the purposes of the Regulations as the Superannuation Act 1976.
Subsection 158A(1) of the 1976 Act provides that, if a lump sum benefit becomes payable to a person under that Act, and the person does not provide details to enable the payment to be made, the CSS Board may make payment of the benefit to an eligible roll-over fund on behalf of the person.
Regulation 4 provides that if subsection 158A(1) of the 1976 Act applies in relation to a benefit that is payable to a person, and the amount of the benefit is "unclaimed money" within the meaning of section 225 of the SIS Act, and required to be paid to the Commissioner for Taxation under that section, the Board must comply with that requirement.
To ensure no breach of SIS occurs, the regulations commence on 1 July 1997, the day after the end of the first half-year period. In the event that the SIS provisions do not commence as planned, the Regulations will have no effect until the day the new provisions under section 225 of the SIS Act become operational.
Overview
The Superannuation (CSS) Unclaimed Money Regulations 1997 No. 99 were enacted by the Australian Parliament to address the issue of unclaimed money within the Commonwealth Superannuation Scheme (CSS). These regulations were introduced to ensure compliance with new provisions under the Superannuation Industry (Supervision) Act 1993 (SIS Act), which required the trustee of a fund to provide a statement of all unclaimed money at the end of each half-year and pay that unclaimed superannuation money to the Commissioner of Taxation within a prescribed time. The policy objective was to prevent any breaches of the SIS Act by ensuring that the CSS met the new regulatory requirements for unclaimed monies. The regulations were designed to commence on 1 July 1997, in alignment with the new SIS provisions, and to have no effect until the day the new provisions under section 225 of the SIS Act became operational.
Scope and Application
The Superannuation (CSS) Unclaimed Money Regulations 1997 No. 99 apply to the Commonwealth Superannuation Scheme (CSS) as governed by the Superannuation Act 1976. These regulations specifically mandate the CSS Board to comply with the new Superannuation Industry (Supervision) Act 1993 provisions concerning unclaimed moneys, which require trustees of regulated superannuation funds to report and remit unclaimed superannuation moneys to the Commissioner of Taxation by the end of each half-year. This applies to any benefit payable under the Superannuation Act 1976 that qualifies as "unclaimed money" under the SIS Act. The regulations aim to ensure that the CSS adheres to the new SIS provisions and avoid any breaches in the regulatory framework. The regulations are effective from 1 July 1997, which is the day following the end of the first half-year period, and their commencement is contingent on the new SIS provisions becoming operational.
Key Provisions
The Superannuation (CSS) Unclaimed Money Regulations 1997 (No. 99) are primarily concerned with the management and reporting of unclaimed money within the Commonwealth Superannuation Scheme (CSS). Regulation 4, in particular, mandates that if a benefit becomes payable under the Superannuation Act 1976 and remains unclaimed, and the amount qualifies as "unclaimed money" under the Superannuation Industry (Supervision) Act 1993, the CSS Board must transfer the funds to the Commissioner of Taxation. This requirement ensures that the CSS complies with the regulatory framework set out in the SIS Act, specifically concerning the handling of unclaimed superannuation monies.
Under these regulations, the CSS Board is obligated to identify, calculate, and report all unclaimed money within the specified timeframes. This includes providing a detailed statement of all unclaimed money in the fund at the end of each half-year period, starting with the half-year ending 30 June 1997. The Board must ensure that these funds are transferred to the Commissioner of Taxation within the prescribed time frame, as stipulated by the new SIS provisions. This obligation is designed to maintain transparency and compliance with the regulatory requirements governing superannuation funds.
Failure to comply with the provisions of these regulations can lead to various consequences. If the CSS Board does not adhere to the requirements for reporting and transferring unclaimed money, it may breach the SIS Act. Such breaches can result in civil or criminal penalties, although the specific penalties are not detailed in the regulations. However, the implications of non-compliance could include enforcement actions by the Australian Taxation Office or other relevant authorities, which may include fines or other sanctions. It is crucial for the CSS Board to ensure strict adherence to these regulations to avoid any adverse consequences.