Superannuation Industry (Supervision) Regulations (Amendment) 1998 No. 240
EXPLANATORY STATEMENT
Statutory Rules 1998 No. 240
Issued by the Authority of the Treasurer
Superannuation Industry (Supervision) Act 1993
Superannuation Industry (Supervision) Regulations (Amendment)
Section 353 of the Superannuation Industry (Supervision) Act 1993 (the Act) provides that the GovernorGeneral may make regulations, not inconsistent with the Act, prescribing all matters required or permitted by the Act to be prescribed by regulations, or necessary or convenient to be prescribed by regulations, for carrying out or giving effect to the Act.
On 30 June 1998 a regulation was made which reduced the prescribed period from 6 months to 4 months that some superannuation entities have to lodge their annual returns with the Australian Prudential Regulation Authority (APRA) after each year of income. Since this time the Government has become aware that this reduced period may cause transitional problems for some funds, particularly in relation to the scheduling of audit processes.
The purpose of this regulation is to ensure that the prescribed period for lodgement of annual returns in 1998/99 to APRA is unchanged from the prescribed period for lodgement of annual returns in 1997/98 to the Insurance and Superannuation Commission. All superannuation entities, other than excluded funds or public offer entities which balance before 30 June 1999, will be given 6 months after the end of their year of income to lodge an annual return. Public offer superannuation entities, other than excluded funds, will be given 4 months after the end of their year of income to lodge an annual return (Regulation 3.1).
The regulation also provides for a reduction in the prescribed period for lodgement of annual returns from those entities which balance on or after 30 June 1999, consistent with the 30 June 1998 regulation. Trustees of all superannuation entities, other than excluded funds, will be required to lodge an annual return 4 months after the end of the year of income. This will ensure a more uniform period for the lodgement of annual returns for all APRA supervised funds (Regulation 3.1).
The prescribed period for excluded funds continues to be 9 months after the end of the year of income.
The regulation commences on gazettal.
Overview
The Superannuation Industry (Supervision) Regulations (Amendment) 1998 No. 240, issued under the authority of the Treasurer, amends the Superannuation Industry (Supervision) Regulations 1994 to address transitional issues that arose from a previous regulation reducing the prescribed period for superannuation entities to lodge their annual returns with the Australian Prudential Regulation Authority (APRA). The objective of this amendment is to alleviate potential difficulties encountered by certain funds in scheduling their audit processes due to the shortened lodgement period. This legislative amendment ensures that the prescribed period for lodging annual returns for the 1998/99 financial year remains consistent with the previous period under the Insurance and Superannuation Commission for all superannuation entities, except for excluded funds or public offer entities that balance before 30 June 1999. Public offer superannuation entities, excluding excluded funds, will still be required to lodge their annual returns within 4 months of the end of their financial year. For entities balancing on or after 30 June 1999, the amendment introduces a more uniform 4-month lodgement period for all APRA-supervised funds, while the prescribed period for excluded funds remains at 9 months after the end of the financial year.
Scope and Application
The Superannuation Industry (Supervision) Regulations (Amendment) 1998 No. 240 applies to all superannuation entities in Australia, which includes entities that are subject to supervision by the Australian Prudential Regulation Authority (APRA). These entities are required to lodge their annual returns within specified periods, and the regulation adjusts these periods to accommodate transitional issues. The Act affects trustees and other responsible persons of superannuation funds, ensuring compliance with the prescribed lodgement periods. The regulation specifies that funds balancing before 30 June 1999 will have a lodgement period of 6 months, while funds balancing on or after this date will have a reduced period of 4 months. However, public offer superannuation entities, except for excluded funds, will continue to have a 4-month period regardless of the balance date. Excluded funds retain a lodgement period of 9 months after the end of their income year. This regulation is made under the authority of Section 353 of the Superannuation Industry (Supervision) Act 1993 and is designed to ensure smooth compliance and audit scheduling for superannuation entities.
Key Provisions
The Superannuation Industry (Supervision) Regulations (Amendment) 1998 No. 240, issued under the authority of the Treasurer, modifies the timeframes for lodging annual returns by superannuation entities with the Australian Prudential Regulation Authority (APRA). According to section 353 of the Superannuation Industry (Supervision) Act 1993, the Governor-General can issue regulations to enforce the Act, provided they do not contradict it. Regulation 3.1 specifies that, for the 1998/99 financial year, superannuation entities, excluding certain funds or public offer entities, must lodge their annual returns within six months from the end of their income year. Public offer entities, excluding excluded funds, must do so within four months. These timelines align with the previous requirements set for the Insurance and Superannuation Commission. The regulation also mandates a uniform four-month period for all APRA-supervised funds that balance on or after 30 June 1999. Excluded funds continue to have a nine-month period for lodging their returns.
These regulations impose specific obligations on superannuation entities, which must adhere to the prescribed timeframes for lodging their annual returns with APRA. Excluded funds have a nine-month period, while public offer entities and other funds have a six-month period, and those balancing on or after 30 June 1999 have a four-month period. Trustees of these entities must ensure that the annual returns are prepared and submitted within the specified timeframes. This includes coordinating with auditors and other relevant parties to meet these deadlines. The regulations aim to streamline the process and ensure consistent lodgement periods across all supervised funds.
Failure to comply with the requirements of these regulations can lead to various consequences. Although the explanatory statement does not specify the exact penalties, under the Superannuation Industry (Supervision) Act 1993, non-compliance with regulations can result in administrative penalties, including fines. For civil penalties, the Act provides for penalties of up to $20,200 per offence, while criminal penalties can include fines of up to $101,000 and imprisonment for up to five years. These penalties underscore the importance of adhering to the stipulated lodgement periods to avoid potential legal repercussions.