Commonwealth Numbered Acts

SUPERANNUATION INDUSTRY (SUPERVISION) ACT 1993 No. 78, 1993 - SECT 63

63.(1) The Commissioner may give the trustee of a regulated superannuation
fund a written notice directing the trustee not to accept any contributions
made to the fund by an employer-sponsor. Pre-1994-95 directions

(2) The Commissioner may only give a direction under this section to the
trustee of a fund before the fund's 1994-95 year of income (whether in
accordance with section 4 of the Acts Interpretation Act 1901 or otherwise) if
the direction takes effect at the beginning of that year of income and, at a
time during the period:

   (a)  beginning on the day on which this Act received the Royal Assent; and

   (b)  ending immediately before the beginning of that year of income; when:

   (c)  the fund was in existence; and

   (d)  there were in force regulations for the purposes of subsection 7(1) of
        the Occupational Superannuation Standards Act 1987 prescribing
        standards applicable to the fund; the fund did not comply with any or
        all of those standards. Post-1993-94 directions

(3) The Commissioner must not give a direction under this section to the
trustee of a fund after the beginning of the fund's 1994-95 year of income
unless:

   (a)  the trustee of the fund has contravened this Act or the regulations on
        one or more occasions after the beginning of that year of income; and

   (b)  the Commissioner is satisfied that the seriousness or frequency, or
        both, of the contraventions warrants the giving of the direction.
        Reasons

(4) A direction under this section must be accompanied by, or included in the
same document as, a statement giving the reasons for the direction. Revocation

(5) The Commissioner may revoke a direction under this section if the trustee
of the fund concerned satisfies the Commissioner that there is, and is likely
to continue to be, substantial compliance by the trustee with the provisions
of this Act and the regulations applicable to the fund. Contravention of equal
representation rules

(6) For the purposes of subsections (3) and (5), if a fund does not comply
with Part 9 (which deals with equal representation), the trustee of the fund
is taken to have contravened this Act. Offence of contravening direction

(7) A trustee of a fund must not, without reasonable excuse, contravene a
direction under this section. Penalty: 100 penalty units. Refund of
contributions

(8) A contravention of subsection (7) does not result in the invalidity of a
transaction. However, if a contribution is accepted in contravention of that
subsection, the trustee concerned must refund the contribution within 28 days
or such further period as the Commissioner allows. Notification to
employer-sponsors

(9) If the trustee of a fund is given a direction under this section, the
trustee must take all reasonable steps to notify the direction to each
employer-sponsor of the fund. Offence of contravening subsection (8) or (9)

(10) A person who, without reasonable excuse, contravenes subsection (8) or
(9) is guilty of an offence punishable on conviction by a fine not exceeding
50 penalty units. Refunded contributions to be ignored for the purposes of
income tax and superannuation guarantee charge

(11) For the purposes of the Income Tax Assessment Act and the
Superannuation Guarantee (Administration) Act 1992, if a contribution is
refunded under this section, the person who made the contribution is taken
never to have made the contribution. Superannuation guarantee charge-shortfall
component to be treated as employer contribution

(12) This section has effect as if the payment of a shortfall component to a
fund under section 65 of the Superannuation Guarantee (Administration) Act 
1992 were a contribution made to the fund by an employer-sponsor. OSSA

(13) A reference in this section to subsection 7(1) of the Occupational 
Superannuation Standards Act 1987 includes a reference to that subsection as
it continues to apply, despite its repeal, because of the Occupational 
Superannuation Standards Amendment Act 1993 .