Commonwealth Numbered Regulations - Explanatory Statements

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SUPERANNUATION INDUSTRY (SUPERVISION) REGULATIONS (AMENDMENT) 1997 NO.69

Statutory Rules 1997 No. 69

Issued by the authority of the Assistant Treasurer

Superannuation Industry (Supervision) Act 1993

Superannuation Industry (Supervision) Regulations (Amendment)

The Superannuation Industry (Supervision) Act 1993 (the Act) and the Superannuation Industry (Supervision) Regulations (the Principal Regulations) provide for the prudent management of certain superannuation funds, approved deposit funds and pooled superannuation trusts and for their supervision by the Insurance and Superannuation Commissioner.

Section 353 of the Act provides that the Governor-General may make Regulations for the purposes of the Act.

Subsection 23(1) of the Act provides that a constitutional corporation may apply to the Commissioner for an approval as a trustee for the purposes of the Act. In order to ensure that superannuation funds can be regulated by the Commonwealth, corporate trustees must be trading or financial corporations formed within the limits of the Commonwealth. A corporate trustee of a superannuation fund is a financial corporation by virtue of its activity as trustee of the fund.

Paragraph 23(2)(c) of the Act provides that an application must be accompanied by an application fee of the prescribed amount. Regulation 3.02 of the Principal Regulations currently prescribes an application fee of $500.

The Government has agreed to increase the application fee to $2,000. The current application fee of $500 is insufficient to cover the cost of work involved in assessing an application for an approved trustee. A fee of $2,000 more fully reflects the actual cost of assessing an application.

The regulations give effect to the Government's decision.

Regulation 1.1 provides that the Principal Regulations are amended as set out in the Regulations.

Regulation 2.1 omits the application fee for approval as a trustee for the purposes of the Act of $500 and substitutes a new fee of $2,000 in order to more fully reflect the actual cost involved in assessing an application.

The regulations commenced on gazettal.