Superannuation Industry (Supervision) Amendment Regulations 1999 (No. 2) 1999 No. 31
EXPLANATORY STATEMENT
STATUTORY RULES 1999 NO. 31
Issued by the authority of the Minister for Financial Services and Regulation
Superannuation Industry (Supervision) Act 1993
Superannuation Industry (Supervision) Amendment Regulations 1999 (No. 2)
The Superannuation Industry (Supervision) Act 1993 (the Act) and the Superannuation Industry (Supervision) Regulations 1994 (the Principal Regulations) provide for the prudent management of certain superannuation funds, approved deposit funds and pooled superannuation trusts and for their supervision by the Australian Prudential Regulation Authority (APRA) and the Australian Securities and Investments Commission.
Section 353 of the Act provides that the Governor-General may make Regulations for the purposes of the Act.
On 30 June 1998, amendments were made to the Principal Regulations that reduced the prescribed period for all non-excluded superannuation funds (generally, funds with five or more members) to lodge their annual returns with APRA to four months after the end of the year of income to which the annual return relates. This amendment aligned the reporting date for nonexcluded superannuation funds other than public offer funds (ie, corporate sponsored superannuation funds), which previously reported six months after the end of the year of income, with those for public offer funds.
The Government became aware that this reduced period caused transitional problems for some of these funds, and the Principal Regulations were amended with effect from 22 July 1998 to maintain the prescribed period of six months for a year of income ending before 30 June 1999. Despite this extension for affected funds to comply with the shorter prescribed period of four months, it has come to the Governments attention that some of these funds may still be experiencing transitional problems in meeting this requirement.
The purpose of these Regulations is to allow a further 12 months transition to the shorter prescribed period for the lodgment of annual returns. That is, the prescribed period within which the trustee of a superannuation entity (other than an excluded fund or a public offer entity) must lodge an annual return for a year of income that ends before 30 June 2000 will be six months. The prescribed period for a year of income that ends on or after 30 June 2000 will be four months. This is consistent with the existing requirement for public offer funds, and will ensure a more uniform period for the lodgment of annual returns for APRA supervised funds. The prescribed period for excluded funds will continue to be nine months after the end of the year of income.
(Refer to Item 2 of Schedule 1).
The Regulations also amend the Principal Regulations by amending the prescribed period after the end of a year of income within which an approved auditor must give an audit report to the trustee of a superannuation entity so that it is consistent with the prescribed periods mentioned above. These prescribed periods should be identical, but this is currently not the case due to a drafting oversight made when the prescribed periods for the lodgment of annual returns were previously amended (see above for details). The Regulations address this oversight. (Refer to Item 1 of Schedule 1).
The Regulations are described in detail in the Attachment.
The Regulations commence on gazettal.
ATTACHMENT
SUPERANNUATION INDUSTRY (SUPERVISION) AMENDMENT REGULATIONS 1999 (NO.2)
Regulation 1 - Name of regulations
The name of these regulations is the Superannuation Industry (Supervision) Amendment Regulations 1999 (No.2).
Regulation 2 - Commencement
Regulation 2 provides that the regulations commence on gazettal.
Regulation 3 - Amendment of Superannuation Industry (Supervision) Regulations 1994
Regulation 3 provides that the Superannuation Industry (Supervision) Regulations 1994 (the Principal Regulations) are amended as set out in Schedule 1 of these regulations.
Schedule 1 - Amendments
Background
Prior to 1 July 1998, under Principal Regulation 11.02, trustees of superannuation entities, other than excluded funds and public offer entities (ie, usually corporate sponsored superannuation funds) had a prescribed period of six months after the end of the year of income to lodge their annual return with the Insurance and Superannuation Commissioner.
With the advent of the Australian Prudential Regulation Authority (APRA), this prescribed period was reduced to four months (see Statutory Rule No. 193 of 1998) in order to ensure a more uniform period for the lodgment of annual returns for APRA supervised funds. The prescribed period for trustees of public offer entities was already four months.
The Government became aware that this reduced period caused transitional problems for some of these funds, and Principal Regulation 11.02 was amended from 22 July 1998 to maintain the prescribed period of six months for the a year of income ending before 30 June 1999 (see Statutory Rule No. 240 of 1998). Despite this extension for these funds to comply with the shorter prescribed period of four months, it has come to the Government's attention that some of these funds may still be experiencing transitional problems in meeting this requirement. This concern is now addressed.
In addition, Principal Regulation 8.03 prescribes the period after the year of income within which an approved auditor must give an audit report to the trustee of a superannuation entity. The prescribed periods in Principal Regulations 8.03 and 11.02 should be identical. However, due to an oversight, the prescribed period in paragraph 8.03(c) was not amended when the prescribed periods in paragraph 11.02(c) were previously amended (see above for details). This oversight is now addressed.
Item 1 - Paragraph 8.03(c)
Item 1 of Schedule 1 amends paragraph 8.03(c) of the Principal Regulations by substituting a new paragraph in its place. This is necessary to align the prescribed periods in Principal Regulations 8.03 and 11.02 (as amended by Item 2 of Schedule 1 of these Regulations).
Paragraph 8.03(c) now requires that the period after the year of income within which an approved auditor must give an audit report to the trustee of a superannuation entity (other than an excluded fund or a public offer entity) is:
(i) for a year of income that ends before 30 June 2000 - 6 months; and
(ii) for a year of income that ends on or after 30 June 2000 - 4 months.
Item 2 - Subparagraphs 11.02(c)(i) and (ii)
Item 2 of Schedule 1 amends subparagraphs 11.02(c)(i) and (ii) of the Principal Regulations by omitting the words "30 June 1999", wherever occurring, and inserting in their place the words "30 June 2000".
The effect of these amendments is to allow a further 12 months transition to the shorter prescribed period for the lodgment of annual returns. That is, the prescribed period within which the trustee of a superannuation entity (other than an excluded fund or a public offer entity) must lodge an annual return for a year of income that ends before 30 June 2000 will be six months. The prescribed period for a year of income that ends on or after 30 June 2000 will be four months.