Superannuation Industry (Supervision) (Transitional Provisions) Regulations (Amendment) 1998 No. 81
EXPLANATORY STATEMENT
STATUTORY RULES 1998 NO. 81
Issued by the authority of the Assistant Treasurer
Superannuation Industry (Supervision) Act 1993
Superannuation Industry (Supervision) (Transitional Provisions) Regulations (Amendment)
The Superannuation Industry (Supervision) Act 1993 (the Act) provides for the prudent management of certain superannuation funds and for their supervision by the Insurance and Superannuation Commissioner (the Commissioner).
Section 353 of the Act provides that the Governor-General may make Regulations for the purposes of the Act.
The Superannuation Industry (Supervision) (Transitional Provisions) Regulations (the Principal Regulations) prescribe the transitional superannuation fund conditions and regulatory system that applies to superannuation funds from the commencement of their 1994-95 year of income (the commencement of the Act) until the day they elect to be regulated under the Act (that is, their 'pre-lodgment period').
The purpose of the Regulations is to rectify a transcription error which occurred when the Principal Regulations were amended previously.
The transitional superannuation fund conditions are based on provisions in the Occupational Superannuation Standards Act 1987 (the 'OSS Act') and Occupational Superannuation Standards Regulations (the 'OS S Regulations') with some modifications. The OSS Act and OSS Regulations set out the standards superannuation funds must have complied with in order to be eligible for taxation concessions prior to the commencement of a superannuation fund's 1994-95 year of income. However, in order to establish what was prescribed by the Principal Regulations, it was necessary to read the Principal Regulations with the OSS Act and OSS Regulations.
Previous amendments to the Principal Regulations, among other things, set out in full the modified OSS Regulations so that it is no longer necessary to read the Principal Regulations with the OSS Regulations to determine what is prescribed by the Principal Regulations. However, in setting out the modified provisions of the OSS Regulations in the Principal Regulations there was a transcription error.
The Regulations will rectify the transcription error by deleting item 5 of Part 2 of Schedule 2 of the Principal Regulations which sets out subregulations 18(1) and (2) of the OSS Regulations as the applicable provisions and inserting subregulations 18B(1) and (3) of the OSS Regulations. Subregulations 18B(1) and (3) are the provisions that are to apply to superannuation funds during their pre-lodgment period, not subregulations 18(1) and (2).
The Regulations take effect retrospectively from 1 July 1996. The retrospective effect of the Regulations will not adversely affect the rights of any person. Therefore, subsection 48(2) of the Acts Interpretation Act 1901 will not be contravened. The retrospective effect of the Regulations is in line with the commencement of the previous amendments to the Principal Regulations and therefore ensures consistency in the regulatory regime for funds during their 'pre-lodgment period'.
Overview
The Superannuation Industry (Supervision) (Transitional Provisions) Regulations (Amendment) 1998 No. 81 was enacted to address a transcription error identified in the Superannuation Industry (Supervision) (Transitional Provisions) Regulations of 1994, which were themselves amendments to the Superannuation Industry (Supervision) Act 1993. The primary aim of this legislative amendment was to ensure the accuracy and consistency of the transitional provisions governing superannuation funds during their pre-lodgment period, prior to their election to be regulated under the Act. The issue arose from the incorporation of modified provisions from the Occupational Superannuation Standards Regulations, where an incorrect set of subregulations was mistakenly referenced. The Regulations were issued by the authority of the Assistant Treasurer and take retrospective effect from 1 July 1996, ensuring that the rights of any person are not adversely affected, thereby adhering to the provisions of the Acts Interpretation Act 1901. This amendment maintains the integrity of the regulatory framework for superannuation funds during the specified transitional period.
Scope and Application
The Superannuation Industry (Supervision) (Transitional Provisions) Regulations (Amendment) 1998 No. 81 applies to superannuation funds and the regulatory framework established under the Superannuation Industry (Supervision) Act 1993. The Act pertains to the prudent management and supervision of certain superannuation funds by the Insurance and Superannuation Commissioner. The Regulations focus on the transitional provisions applicable to superannuation funds from the commencement of their 1994-95 year of income until they elect to be regulated under the Act. The Regulations amend the Principal Regulations to correct a transcription error that had been identified, ensuring that the correct provisions from the Occupational Superannuation Standards Regulations are applied to superannuation funds during their pre-lodgment period. The Regulations take effect retrospectively from 1 July 1996, and their retrospective application does not contravene subsection 48(2) of the Acts Interpretation Act 1901, as it does not adversely affect the rights of any person.
Key Provisions
The Superannuation Industry (Supervision) (Transitional Provisions) Regulations (Amendment) 1998 No. 81, amend the existing transitional provisions for superannuation funds to correct a transcription error that occurred when the original regulations were previously amended. Section 353 of the Superannuation Industry (Supervision) Act 1993 grants the authority to make these regulations, which are intended to rectify the error and ensure that the correct provisions from the Occupational Superannuation Standards Regulations apply to superannuation funds during their pre-lodgment period.
These regulations impose specific transitional conditions and regulatory systems on superannuation funds, based on the Occupational Superannuation Standards Act 1987 and its associated regulations, with some modifications. The primary obligation for entities governed by these regulations is to comply with the corrected provisions, which ensure the proper application of relevant standards to superannuation funds during their pre-lodgment period. The regulations explicitly state that the amendments take effect retrospectively from 1 July 1996, but assure that this will not adversely affect any person's rights, thereby complying with subsection 48(2) of the Acts Interpretation Act 1901.
The regulations do not introduce new offences or penalties, as they are intended solely to correct an existing error in the regulatory framework. However, non-compliance with the corrected provisions could potentially result in regulatory scrutiny or action if the amended regulations are not adhered to. The main consequence for non-compliance would be the application of incorrect standards to superannuation funds during their pre-lodgment period, which could have implications for the funds' eligibility for taxation concessions. The regulations ensure consistency in the regulatory regime for funds during this period, thereby maintaining the integrity of the superannuation system.