Commonwealth Numbered Regulations - Explanatory Statements

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SUPERANNUATION INDUSTRY (SUPERVISION) AMENDMENT REGULATIONS 2000 (NO. 5) 2000 NO. 281

STATUTORY RULES 2000 No. 281

Issued by the authority of the Assistant Treasurer

Superannuation Industry (Supervision) Act 1993

Superannuation Industry (Supervision) Amendment Regulations 2000 (No. 5)

Section 353 of the Superannuation Industry (Supervision) Act 1993 (the Act) provides that the GovernorGeneral may make regulations for the purposes of the Act.

The Act and the Superannuation Industry (Supervision) Regulations 1994 (the Principal Regulations) prescribe a number of operating standards with which regulated superannuation funds. must comply.

Specifically, the Principal Regulations require all post-June 1999 superannuation contributions and superannuation fund earnings to be preserved until preservation age (currently age 55) except in limited circumstances. The preservation arrangements are generally not, however, intended to apply to superannuation benefits that have commenced to be paid as a pension or annuity.

The regulations amend the Principal Regulations to confirm that investment earnings on superannuation benefits that have commenced to be paid as a pension or annuity are not required to be preserved.

The regulations are described in detail in the attachment.

Regulations 1 to 3 commence on gazettal. Schedule 1 is taken to have commenced on 1 July 1999.

Consistent with section 48 of the Acts Interpretation Act 1901, the retrospective commencement of Schedule 1 does not affect the rights of a person (other than the Commonwealth or an authority of the Commonwealth) as at the date of notification of the regulations so as to disadvantage that person, nor impose a liability on a person (other than the Commonwealth or an authority of the Commonwealth) in respect of anything done or omitted to be done before the date of notification.

ATTACHMENT

Superannuation Industry (Supervision) Amendment Regulations 2000 (No. 5)

Regulation 1 - Name of Regulations

The amending regulations are the Superannuation Industry (Supervision) Amendment Regulations 2000 (No. 5).

Regulation 2 - Commencement

Regulations 1 to 3 commence on gazettal. Schedule 1 of the regulations is taken to have commenced on 1 July 1999.

Regulation 3 - Amendment of Superannuation Industry (Supervision) Regulations 1994

Regulation 3 provides that Schedule 1 amends the Superannuation Industry (Supervision) Regulations 1994 (the Principal Regulations).

SCHEDULE 1        AMENDMENTS

Item 1 - Consequential amendment

This item amends regulation 6.15A of the Principal Regulations to create new subregulation 6.15A(1) consequential to the insertion of new subregulations 6.15A(2)-(5) in the Principal Regulations by Item 2.

Item 2 - Investment earnings taken to be unrestricted non-preserved benefits in certain circumstances

This item inserts new subregulations 6.15A(2)-(5) in the Principal Regulations. The effect of new subregulations 6.15A(2)-(5) is that an investment earning in relation to a benefit will be taken to be an unrestricted non-preserved benefit where the following circumstances exist:

*       the investment earning is in relation to a benefit that has commenced to be paid in the form of a noncommutable life pension or a non-commutable life annuity; or

*       the investment earning is in relation to an unrestricted non-preserved benefit that has commenced to be paid in the form of a pension or an annuity.