Superannuation Legislation Amendment (Early Release of Superannuation) Act 2011

Administered by Department of the Treasury

Legislation au C2011A00108 In force Act

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Superannuation Legislation Amendment (Early Release of Superannuation) Act 2011

 

No. 108, 2011

 

 

 

 

 

An Act to amend the law relating to superannuation, and for related purposes

 

 

Contents

1 Short title

2 Commencement

3 Schedule(s)

Schedule 1—Amendments

Part 1—Administration of early release of superannuation on compassionate grounds

Retirement Savings Accounts Act 1997

Superannuation Industry (Supervision) Act 1993

Part 2—Amendment of the Australian Prudential Regulation Authority Act 1998

Australian Prudential Regulation Authority Act 1998

Part 3—Application and transitional provisions

 

 

 

Superannuation Legislation Amendment (Early Release of Superannuation) Act 2011

No. 108, 2011

 

 

 

An Act to amend the law relating to superannuation, and for related purposes

[Assented to 14 October 2011]

The Parliament of Australia enacts:

1  Short title

  This Act may be cited as the Superannuation Legislation Amendment (Early Release of Superannuation) Act 2011.

2  Commencement

 (1) Each provision of this Act specified in column 1 of the table commences, or is taken to have commenced, in accordance with column 2 of the table. Any other statement in column 2 has effect according to its terms.

 

Commencement information

Column 1

Column 2

Column 3

Provision(s)

Commencement

Date/Details

1.  Sections 1 to 3 and anything in this Act not elsewhere covered by this table

The day this Act receives the Royal Assent.

14 October 2011

2.  Schedule 1

A single day to be fixed by Proclamation.

However, if the provision(s) do not commence within the period of 6 months beginning on the day this Act receives the Royal Assent, they commence on the day after the end of that period.

1 November 2011

(see F2011L02110)

Note:  This table relates only to the provisions of this Act as originally enacted. It will not be amended to deal with any later amendments of this Act.

 (2) Any information in column 3 of the table is not part of this Act. Information may be inserted in this column, or information in it may be edited, in any published version of this Act.

3  Schedule(s)

  Each Act that is specified in a Schedule to this Act is amended or repealed as set out in the applicable items in the Schedule concerned, and any other item in a Schedule to this Act has effect according to its terms.


Schedule 1—Amendments

Part 1—Administration of early release of superannuation on compassionate grounds

Retirement Savings Accounts Act 1997

1  Paragraph 3(1)(b)

Repeal the paragraph, substitute:

 (b) APRA also has the general administration of sections 37 to 39 and section 49 to the extent that it is not conferred on either of the following:

 (i) the Chief Executive Medicare by paragraph (ba);

 (ii) ASIC by paragraph (d); and

 (ba) the Chief Executive Medicare has the general administration of regulations made under section 38 to the extent that the regulations relate to making determinations that an amount of benefits in an RSA may be released on compassionate grounds; and

2  Section 16

Insert:

Chief Executive Medicare has the same meaning as in the Human Services (Medicare) Act 1973.

3  Section 16 (at the end of the definition of Regulator)

Add:

 ; and (c) the Chief Executive Medicare if the provision in which it occurs is, or is being applied for the purposes of, a provision that is administered by the Chief Executive Medicare under paragraph 3(1)(ba).

4  At the end of section 168

Add:

 (4) A reference in this section to the Regulator does not include the Chief Executive Medicare.

Note: For the definition of Regulator, see section 16.

5  Section 173

Before “In this Part”, insert “(1)”.

6  At the end of section 173

Add:

 (2) A reference in this Part to the Regulator does not include the Chief Executive Medicare.

Note: For the definition of Regulator, see section 16.

7  After section 197

Insert:

198  Additional functions of the Chief Executive Medicare

  In addition to the functions of the Chief Executive Medicare under the Human Services (Medicare) Act 1973, the Chief Executive Medicare has such additional functions as are conferred on the Chief Executive Medicare under this Act.

Note: Paragraph 3(1)(ba) of this Act confers functions on the Chief Executive Medicare.

Superannuation Industry (Supervision) Act 1993

8  Paragraph 6(1)(b)

Repeal the paragraph, substitute:

 (b) APRA also has the general administration of Parts 3 and 6 (other than section 60A) and section 105 to the extent that that administration is not conferred on any of the following:

 (i) the Chief Executive Medicare by paragraph (ba);

 (ii) ASIC by paragraph (d);

 (iii) the Commissioner of Taxation by paragraph (f); and

 (ba) the Chief Executive Medicare has the general administration of regulations made under Part 3 to the extent that the regulations relate to making determinations that an amount of benefits in a superannuation entity may be released on compassionate grounds; and

9  After subparagraph 6(1)(f)(i)

Insert:

 (ia) to the extent that administration is not conferred on the Chief Executive Medicare by paragraph (ba); and

10  Subsection 10(1)

Insert:

Chief Executive Medicare has the same meaning as in the Human Services (Medicare) Act 1973.

11  Subsection 10(1) (at the end of the definition of Regulator)

Add:

 ; and (d) the Chief Executive Medicare if the provision in which it occurs is, or is being applied for the purposes of, a provision that is administered by the Chief Executive Medicare under paragraph 6(1)(ba).

12  At the end of section 320

Add:

 (4) A reference in this section to the Regulator does not include the Chief Executive Medicare.

Note: For the definition of Regulator, see subsection 10(1).

13  Subsection 326(1)

Omit “(1)”.

14  Section 327

Before “In this Part”, insert “(1)”.

15  At the end of section 327

Add:

 (2) A reference in this Part to the Regulator does not include the Chief Executive Medicare.

Note: For the definition of Regulator, see subsection 10(1).

16  After section 350

Insert:

351  Additional functions of the Chief Executive Medicare

  In addition to the functions of the Chief Executive Medicare under the Human Services (Medicare) Act 1973, the Chief Executive Medicare has such additional functions as are conferred on the Chief Executive Medicare under this Act.

Note: Paragraph 6(1)(ba) of this Act confers functions on the Chief Executive Medicare.


Part 2—Amendment of the Australian Prudential Regulation Authority Act 1998

Australian Prudential Regulation Authority Act 1998

17  Paragraphs 50(1)(a) and (b)

Repeal the paragraphs, substitute:

 (a) a determination specifying the amount of the levy money payable to the Commonwealth, in respect of levy for that financial year, to cover the costs to the Commonwealth of:

 (i) providing market integrity and consumer protection functions for prudentially regulated institutions; and

 (ii) administering the function of making determinations about the release on compassionate grounds of benefits that are in a superannuation entity or retirement savings account;

 (b) a determination, in respect of each class of levy for that financial year, specifying the amount of the levy money payable to the Commonwealth in respect of that class of levy for that financial year, to cover the costs to the Commonwealth of:

 (i) providing market integrity and consumer protection functions for prudentially regulated institutions; and

 (ii) administering the function of making determinations about the release on compassionate grounds of benefits that are in a superannuation entity or retirement savings account.

Note: Regulations made under the Superannuation Industry (Supervision) Act 1993 and the Retirement Savings Accounts Act 1997 provide for the making of determinations about the release of benefits on compassionate grounds.

18  Subsection 50(6)

Insert:

retirement savings account has the same meaning as in the Retirement Savings Accounts Act 1997.

19  Subsection 50(6)

Insert:

superannuation entity has the same meaning as in the Superannuation Industry (Supervision) Act 1993.


Part 3—Application and transitional provisions

20  Application provision—determinations about release on compassionate grounds

The amendments made by Part 1 of this Schedule apply in relation to any application for a determination that an amount of benefits be released on compassionate grounds that is made after this Schedule commences.

21  Transitional—pending applications for determinations

(1) This item applies to an application for a determination that an amount of benefits be released on compassionate grounds:

 (a) that is made to APRA before Part 1 of this Schedule commences; and

 (b) for which no determination has been made immediately before Part 1 of this Schedule commences.

(2) After this Schedule commences, the application is taken to have been made to the Chief Executive Medicare.

22  Application provision—determinations about amount of levy money to cover Commonwealth costs

The amendments made by Part 2 of this Schedule apply to:

 (a) the financial year that includes the day this Schedule commences; and

 (b) any financial year that commences after this Schedule commences.

 

 

[Minister’s second reading speech made in—

House of Representatives on 6 July 2011

Senate on 12 September 2011]

(145/11)

 

Overview

The Superannuation Legislation Amendment (Early Release of Superannuation) Act 2011 was enacted by the Parliament of Australia to address the issue of providing a more flexible means for individuals to access their superannuation funds in circumstances of severe financial hardship or compassionate need. The Act introduces amendments to existing legislation to facilitate the compassionate release of superannuation benefits. The primary objective of the Act is to enable the Chief Executive of Medicare to administer the release of superannuation benefits on compassionate grounds, a function previously overseen by the Australian Prudential Regulation Authority (APRA). This shift aims to better align the administration of these benefits with the broader health and welfare objectives of the government, as managed by the Medicare system. The Act amends the Retirement Savings Accounts Act 1997 and the Superannuation Industry (Supervision) Act 1993 to transfer the responsibility for determining the release of superannuation benefits on compassionate grounds from APRA to the Chief Executive of Medicare. This change is intended to streamline the process and ensure that individuals in need can access their superannuation funds more efficiently. The Act also includes provisions to ensure a smooth transition of pending applications from APRA to the Chief Executive of Medicare, thus maintaining continuity of service for those already in the process of seeking a compassionate release of their superannuation benefits.

Scope and Application

The Superannuation Legislation Amendment (Early Release of Superannuation) Act 2011 is a Commonwealth Act that amends the law relating to superannuation, specifically addressing the early release of superannuation benefits on compassionate grounds. The Act applies to the Retirement Savings Accounts Act 1997 and the Superannuation Industry (Supervision) Act 1993, conferring additional functions and responsibilities on the Chief Executive Medicare for the administration of these provisions. It also amends the Australian Prudential Regulation Authority Act 1998 to redefine the determination of levy money to cover the Commonwealth's costs of providing market integrity and consumer protection functions, as well as administering the compassionate release of superannuation benefits. The Act came into effect on 14 October 2011, with further provisions commencing on a date to be fixed by proclamation but no later than 30 April 2012. The Act extends its application to any applications for compassionate release of superannuation benefits made after its commencement and to any pending applications made to APRA before its commencement but for which no determination was made immediately before the commencement.

Key Provisions

The Superannuation Legislation Amendment (Early Release of Superannuation) Act 2011 introduces significant changes to the administration and regulation of early release of superannuation on compassionate grounds. Section 1 specifies that the Act may be cited as the Superannuation Legislation Amendment (Early Release of Superannuation) Act 2011, and section 2 outlines the commencement of the Act, with certain sections coming into effect on 14 October 2011 and others on 1 November 2011, unless otherwise specified. The Act amends the Retirement Savings Accounts Act 1997 and the Superannuation Industry (Supervision) Act 1993 to allocate specific administrative responsibilities to the Chief Executive Medicare for determinations related to the compassionate release of superannuation benefits. The Act imposes specific obligations on the Chief Executive Medicare, which now has the general administration of regulations related to the compassionate release of superannuation benefits. This includes the authority to make determinations regarding the release of benefits in RSAs and superannuation entities. The Chief Executive Medicare must also ensure compliance with the Act and related regulations, including the establishment of processes for handling applications for compassionate release and the enforcement of decisions made under the Act. Failure to comply with the Act's provisions can result in various penalties and consequences. The Act does not explicitly state specific criminal or civil penalties for non-compliance, but breaches of superannuation laws generally can lead to significant fines and potential criminal charges for individuals or entities found in violation. The Australian Prudential Regulation Authority (APRA) and the Australian Securities and Investments Commission (ASIC) may also take enforcement actions against entities that fail to comply with the regulations. The Act ensures that those responsible for the administration of superannuation funds adhere to the prescribed standards and guidelines to protect the interests of superannuation fund members.

Legal classification tags

Area of Law
Superannuation Law
Instrument
Act
Concepts
Commencement Provisions
Repeal & Amendment
Licensing & Registration
Reporting & Disclosure Obligations
Enforcement Powers
Compliance Obligations

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Sourced from the Federal Register of Legislation at 26 August 2026. For the latest information on Australian Government law please go to https://www.legislation.gov.au.