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This is a Bill, not an Act. For current law, see the Acts databases.
2016-2017-2018
The Parliament of the
Commonwealth of Australia
HOUSE OF REPRESENTATIVES
Presented and read a first time
Treasury Laws Amendment (Protecting
Your Superannuation Package) Bill 2018
No. , 2018
(Treasury)
A Bill for an Act to amend the law relating to
superannuation, and for related purposes
No. , 2018
Treasury Laws Amendment (Protecting Your Superannuation Package)
Bill 2018
i
Contents
1
Short title ........................................................................................... 1
2
Commencement ................................................................................. 1
3
Schedules ........................................................................................... 2
Schedule 1--Fees charged to superannuation members
3
Part 1--Amendments
3
Superannuation Industry (Supervision) Act 1993
3
Part 2--Application provisions
8
Schedule 2--Insurance for superannuation members
10
Part 1--Amendments
10
Superannuation Industry (Supervision) Act 1993
10
Part 2--Application and transitional provisions
16
Schedule 3--Inactive low-balance accounts and consolidation
into active accounts
21
Part 1--Amendments
21
Income Tax Assessment Act 1997
21
Superannuation (Unclaimed Money and Lost Members) Act 1999
23
Taxation Administration Act 1953
44
Part 2--Application and transitional provisions
46
No. , 2018
Treasury Laws Amendment (Protecting Your Superannuation Package)
Bill 2018
1
A Bill for an Act to amend the law relating to
1
superannuation, and for related purposes
2
The Parliament of Australia enacts:
3
1 Short title
4
This Act is the Treasury Laws Amendment (Protecting Your
5
Superannuation Package) Act 2018.
6
2 Commencement
7
(1) Each provision of this Act specified in column 1 of the table
8
commences, or is taken to have commenced, in accordance with
9
column 2 of the table. Any other statement in column 2 has effect
10
according to its terms.
11
12
2
Treasury Laws Amendment (Protecting Your Superannuation Package)
Bill 2018
No. , 2018
Commencement information
Column 1
Column 2
Column 3
Provisions
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.
2. Schedules 1, 2
and 3
The day after this Act receives the Royal
Assent.
Note:
This table relates only to the provisions of this Act as originally
1
enacted. It will not be amended to deal with any later amendments of
2
this Act.
3
(2) Any information in column 3 of the table is not part of this Act.
4
Information may be inserted in this column, or information in it
5
may be edited, in any published version of this Act.
6
3 Schedules
7
Legislation that is specified in a Schedule to this Act is amended or
8
repealed as set out in the applicable items in the Schedule
9
concerned, and any other item in a Schedule to this Act has effect
10
according to its terms.
11
Fees charged to superannuation members Schedule 1
Amendments Part 1
No. , 2018
Treasury Laws Amendment (Protecting Your Superannuation Package)
Bill 2018
3
Schedule 1--Fees charged to superannuation
1
members
2
Part 1--Amendments
3
Superannuation Industry (Supervision) Act 1993
4
1 Subsection 10(1) (definition of exit fee)
5
Omit "subsection 29V(6)", substitute "subsection 99BA(2)".
6
2 Paragraph 29TC(1)(d)
7
After "fee subsidisation by employers", insert "or to comply with
8
section 99G (fee cap on low balances)".
9
3 Paragraph 29V(1)(e)
10
Repeal the paragraph.
11
4 Paragraph 29V(2)(b)
12
Omit ", an exit fee".
13
5 Subparagraph 29V(3)(b)(ii)
14
Omit ", an exit fee".
15
6 Subsection 29V(6)
16
Repeal the subsection.
17
7 Paragraphs 29V(7)(b), (8)(b) and (9)(c)
18
Omit ", an exit fee".
19
8 Paragraphs 29VA(5)(a), (6)(a) and (7)(a)
20
Omit ", an exit fee".
21
9 At the end of section 29VA
22
Add:
23
Schedule 1 Fees charged to superannuation members
Part 1 Amendments
4
Treasury Laws Amendment (Protecting Your Superannuation Package)
Bill 2018
No. , 2018
Fees for members with low balances
1
(11) This rule is satisfied if:
2
(a) the fee is an administration fee or investment fee; and
3
(b) the fee is charged at a reduced amount, in accordance with
4
section 99G, in relation to one or more members of the fund
5
who hold the MySuper product; and
6
(c) in relation to the remaining members of the fund who hold
7
the MySuper product, the fee would satisfy a charging rule in
8
another subsection of this section if those were the only
9
members of the fund who held the MySuper product.
10
10 Paragraph 29VB(1)(d)
11
Omit "(3) or (4)", substitute "(3), (4) or (4A)".
12
11 After subsection 29VB(4)
13
Insert:
14
Reduced fees for employees with low balances
15
(4A) Each of the following is satisfied:
16
(a) the administration fee is charged at a reduced amount, in
17
accordance with section 99G, in relation to one or more
18
employee members of the fund;
19
(b) in relation to the remaining employee members of the fund,
20
the administration fee would be in accordance with
21
subsection (2), (3) or (4) if those were the only employee
22
members of the fund.
23
12 Paragraph 29VB(5)(b)
24
Omit ", an exit fee".
25
13 Paragraph 29VE(c)
26
Repeal the paragraph, substitute:
27
(c) either:
28
(i) the cap is the same for all of those members; or
29
(ii) if the administration fee is charged at a reduced amount,
30
in accordance with section 99G, in relation to one or
31
Fees charged to superannuation members Schedule 1
Amendments Part 1
No. , 2018
Treasury Laws Amendment (Protecting Your Superannuation Package)
Bill 2018
5
more of those members--the cap is the same for all of
1
the remainder of those members; and
2
14 After paragraph 31(2)(db)
3
Insert:
4
(dc) the calculation of a member's account balance with the fund
5
on a particular day, or a member's account balance with the
6
fund on a particular day that relates to a choice product or
7
MySuper product;
8
15 After section 99B
9
Insert:
10
99BA No exit fees
11
(1) The trustee, or the trustees, of a regulated superannuation fund or
12
an approved deposit fund must not charge exit fees, except in
13
circumstances prescribed by the regulations.
14
(2) An exit fee is a fee, other than a buy-sell spread, that relates to the
15
disposal of all or part of a member's interests in a superannuation
16
entity.
17
16 Section 99C (heading)
18
Omit ", switching fees and exit fees", substitute "and switching fees".
19
17 Subsections 99C(1) and (2)
20
Omit ", a switching fee or an exit fee", substitute "or a switching fee".
21
18 At the end of Part 11A
22
Add:
23
99G Fee cap on low balances
24
Application
25
(1) This section applies if:
26
(a) the trustee, or trustees, of a regulated superannuation fund
27
offer a choice product or MySuper product; and
28
Schedule 1 Fees charged to superannuation members
Part 1 Amendments
6
Treasury Laws Amendment (Protecting Your Superannuation Package)
Bill 2018
No. , 2018
(b) on the last day of a year of income of the fund a member of
1
the fund has an account balance with the fund that relates to
2
the product that is less than $6,000.
3
Fee cap for a member who holds the product for the whole year
4
(2) If the member holds the product for the whole year, the trustee or
5
trustees of the fund must not charge capped fees and costs to the
6
member in relation to the product for the year the total combined
7
amount of which exceeds the amount worked out as follows:
8
Member's account balance for the product
Fee cap percentage
on the last day of the year
9
where:
10
fee cap percentage means the percentage prescribed under
11
subsection (4).
12
member's account balance for the product on the last day of the
13
year means so much of the member's account balance with the
14
fund on that day as relates to the product.
15
Capped fees and costs
16
(3) For the purposes of this section, the following are capped fees and
17
costs charged to the member in relation to the product for the year:
18
(a) administration fees charged to the member in relation to the
19
product for the year;
20
(b) investment fees charged to the member in relation to the
21
product for the year;
22
(c) an amount worked out in accordance with the regulations (if
23
any) that:
24
(i) is not charged to the member as a fee; and
25
(ii) is incurred by the trustee or the trustees of the fund in
26
relation to the year; and
27
(iii) relates to the administration of the fund or the
28
investment of the assets of the fund.
29
Fees charged to superannuation members Schedule 1
Amendments Part 1
No. , 2018
Treasury Laws Amendment (Protecting Your Superannuation Package)
Bill 2018
7
Fee cap percentage
1
(4) The regulations may prescribe, for the purposes of this section, a
2
fee cap percentage of no more than 3%.
3
Fee cap for member who holds the product for part of the year
4
(5) If the member holds the product for only part of the year, the
5
trustee or trustees of the fund must not charge capped fees and
6
costs to the member in relation to the product for the year the total
7
combined amount of which exceeds the amount worked out as
8
follows:
9
Number of days during the year
on which member held the product
Fee cap for
the whole year
365
10
where:
11
fee cap for the whole year means the total combined amount of
12
capped fees and costs that could be charged to the member in
13
relation to the product for the year under subsection (2), if:
14
(a) the member held the product for the whole of the year; and
15
(b) so much of the member's account balance with the fund on
16
the last day on which the member held the product during the
17
year as relates to the product were the member's account
18
balance for the product on the last day of the year.
19
Refund of excess
20
(6) The trustee or trustees of the regulated superannuation fund are
21
taken to have complied with this section if any amount by which
22
the total combined amount of capped fees and costs charged to the
23
member in relation to the product for the year exceeds the
24
maximum permitted under subsection (2) or (5) is refunded to the
25
member within 3 months after the end of the year.
26
No breach of section 99E
27
(7) To avoid doubt, the trustee or trustees of the regulated
28
superannuation fund do not breach section 99E by complying with
29
this section.
30
Schedule 1 Fees charged to superannuation members
Part 2 Application provisions
8
Treasury Laws Amendment (Protecting Your Superannuation Package)
Bill 2018
No. , 2018
Part 2--Application provisions
1
19 Application of this Schedule
2
The amendments made by this Schedule apply to fees and other
3
amounts in relation to years of income of a regulated superannuation
4
fund ending on or after 1 July 2019.
5
20 Fee cap for transition years
6
(1)
This item applies in relation to a year of income of a regulated
7
superannuation fund if:
8
(a) the trustee, or trustees, of the fund offer a choice product or
9
MySuper product; and
10
(b) on the last day of the year a member of the fund has an
11
account balance with the fund that relates to the product that
12
is less than $6,000; and
13
(c) the year is the first year of income of the fund to end on or
14
after 1 July 2019; and
15
(d) the number of days in the year that occur on or after 1 July
16
2019 is fewer than 365.
17
(2)
Section 99G of the Superannuation Industry (Supervision) Act 1993
18
applies in relation to the year as if subsection (2) were omitted and
19
replaced with:
20
(2) If the member holds the product for the whole year, the trustee or
21
trustees of the fund must not charge capped fees and costs to the
22
member in relation to the product for the transition period the total
23
combined amount of which exceeds the amount worked out as
24
follows:
25
Number of days in
Member's account balance
the transition period
Fee cap
for the product on
percentage
365
the last day of the year
26
where:
27
fee cap percentage means the percentage prescribed under
28
subsection (4).
29
Fees charged to superannuation members Schedule 1
Application provisions Part 2
No. , 2018
Treasury Laws Amendment (Protecting Your Superannuation Package)
Bill 2018
9
member's account balance for the product on the last day of the
1
year means so much of the member's account balance with the
2
fund on that day as relates to the product.
3
transition period means the period beginning on 1 July 2019 and
4
ending on the last day of the first year of income of the fund that
5
ends on or after 1 July 2019.
6
(3)
Section 99G of the Superannuation Industry (Supervision) Act 1993
7
applies in relation to the year as if subsection (5) were omitted and
8
replaced with:
9
(5) If the member holds the product for only part of the year, the
10
trustee or trustees of the fund must not charge capped fees and
11
costs to the member in relation to the product for the transition
12
period the total combined amount of which exceeds the amount
13
worked out as follows:
14
Number of days
during the transition period
on which member held the product
Fee cap for
the whole year
Number of days in the transition period
15
where:
16
fee cap for the whole year means the total combined amount of
17
capped fees and costs that could be charged to the member in
18
relation to the product for the transition period under
19
subsection (2), if:
20
(a) the member held the product for the whole of the year; and
21
(b) so much of the member's account balance with the fund on
22
the last day on which the member held the product during the
23
year as relates to the product were the member's account
24
balance for the product on the last day of the year.
25
transition period means the period beginning on 1 July 2019 and
26
ending on the last day of the first year of income of the fund that
27
ends on or after 1 July 2019.
28
Schedule 2 Insurance for superannuation members
Part 1 Amendments
10
Treasury Laws Amendment (Protecting Your Superannuation Package)
Bill 2018
No. , 2018
Schedule 2--Insurance for superannuation
1
members
2
Part 1--Amendments
3
Superannuation Industry (Supervision) Act 1993
4
1 After section 68
5
Insert:
6
68AAA Benefits provided by taking out insurance--inactive
7
accounts
8
(1) Each trustee of a regulated superannuation fund must ensure that a
9
benefit is not provided by the fund to, or in respect of, a member of
10
the fund under a choice product or MySuper product held by the
11
member by taking out or maintaining insurance if:
12
(a) the member's account is inactive in relation to that product
13
for a continuous period of 13 months; and
14
(b) the member has not elected under subsection (2) that the
15
benefit will be provided to, or in respect of, the member
16
under the product by taking out or maintaining insurance,
17
even if the member's account is inactive in relation to that
18
product for a continuous period of 13 months.
19
Note:
This section does not apply in relation to regulated superannuation
20
funds with fewer than 5 members (see section 68AAD).
21
(2) Each trustee of the regulated superannuation fund must ensure that
22
each member of the fund who holds a choice product or MySuper
23
product offered by the fund may elect, in writing, that a benefit
24
specified in the election is to be provided to, or in respect of, the
25
member under the product by taking out or maintaining insurance,
26
even if the member's account is inactive in relation to that product
27
for a continuous period of 13 months.
28
(3) For the purposes of this section, a member of a regulated
29
superannuation fund has an account that is inactive in relation to a
30
choice product or MySuper product for a period if the trustee, or
31
Insurance for superannuation members Schedule 2
Amendments Part 1
No. , 2018
Treasury Laws Amendment (Protecting Your Superannuation Package)
Bill 2018
11
trustees of the fund, have not received an amount in respect of the
1
member that relates to that product during that period.
2
(4) The prohibition in subsection (1) ceases to apply to benefits
3
provided to, or in respect of, a member of the fund under a choice
4
product or MySuper product held by the member if the trustee, or
5
trustees of the fund, receive an amount in respect of the member
6
that relates to that product after the account has been inactive in
7
relation to the product for 13 months.
8
(5) However, the prohibition in subsection (1) applies again if the
9
member's account is again inactive in relation to the product for a
10
period of 13 months.
11
(6) This section does not apply to:
12
(a) a defined benefit member; or
13
(b) an ADF Super member (within the meaning of the Australian
14
Defence Force Superannuation Act 2015); or
15
(c) a person who would be an ADF Super member apart from the
16
fact that the regulated superannuation fund is or was, for the
17
purposes of Part 3A of the Superannuation Guarantee
18
(Administration) Act 1992, a chosen fund for contributions
19
for the person's superannuation by the Commonwealth; or
20
(d) a member to whom the employer-sponsor contribution
21
exception applies (see section 68AAE).
22
(7) Nothing in this section affects a right of a member of a regulated
23
superannuation fund if:
24
(a) the right relates to insurance cover; and
25
(b) in compliance with this section, an insurance premium in
26
relation to the member for that insurance cover ceases to be
27
paid; and
28
(c) the right exists because of insurance premiums paid in
29
relation to the member before insurance premiums cease to
30
be paid as mentioned in paragraph (b).
31
(8) Nothing in this section affects a right of a member of a regulated
32
superannuation fund if:
33
(a) the right is a right to insurance cover for a fixed term, subject
34
only to the payment of insurance premiums; and
35
Schedule 2 Insurance for superannuation members
Part 1 Amendments
12
Treasury Laws Amendment (Protecting Your Superannuation Package)
Bill 2018
No. , 2018
(b) that fixed term begins before the time at which a trustee of
1
the fund is required under subsection (1) to ensure that a
2
benefit is not provided to, or in respect of, the member under
3
a choice product or MySuper product held by the member by
4
taking out or maintaining insurance.
5
68AAB Benefits provided by taking out insurance--low-balance
6
accounts
7
(1) Each trustee of a regulated superannuation fund must ensure that a
8
benefit is not provided by the fund to, or in respect of, a member of
9
the fund under a choice product or MySuper product held by the
10
member by taking out or maintaining insurance if:
11
(a) the member has an account balance with the fund that relates
12
to the product that is less than $6,000; and
13
(b) on or after 1 April 2019, the member has not had an account
14
balance with the fund that relates to the product that was
15
equal to or greater than $6,000; and
16
(c) the member has not elected under subsection (2) that the
17
benefit will be provided to, or in respect of, the member
18
under the product by taking out or maintaining insurance,
19
even if the member has an account balance with the fund that
20
relates to the product that is less than $6,000.
21
Note:
This section does not apply in relation to regulated superannuation
22
funds with fewer than 5 members (see section 68AAD).
23
(2) Each trustee of the regulated superannuation fund must ensure that
24
each member of the fund who holds a choice product or MySuper
25
product offered by the fund may elect, in writing, that a benefit
26
specified in the election is to be provided to, or in respect of, the
27
member under the product by taking out or maintaining insurance,
28
even if the member has an account balance with the fund that
29
relates to the product that is less than $6,000.
30
(3) The member is taken to have made an election under subsection (2)
31
if the member makes an election under subsection 68AAC(2).
32
(4) This section does not apply to:
33
(a) a defined benefit member; or
34
Insurance for superannuation members Schedule 2
Amendments Part 1
No. , 2018
Treasury Laws Amendment (Protecting Your Superannuation Package)
Bill 2018
13
(b) an ADF Super member (within the meaning of the Australian
1
Defence Force Superannuation Act 2015); or
2
(c) a person who would be an ADF Super member apart from the
3
fact that the regulated superannuation fund is or was, for the
4
purposes of Part 3A of the Superannuation Guarantee
5
(Administration) Act 1992, a chosen fund for contributions
6
for the person's superannuation by the Commonwealth; or
7
(d) a member to whom the employer-sponsor contribution
8
exception applies (see section 68AAE).
9
(5) Nothing in this section affects a right of a member of a regulated
10
superannuation fund if:
11
(a) the right relates to insurance cover; and
12
(b) in compliance with this section, an insurance premium in
13
relation to the member for that insurance cover ceases to be
14
paid; and
15
(c) the right exists because of insurance premiums paid in
16
relation to the member before insurance premiums cease to
17
be paid as mentioned in paragraph (b).
18
(6) Nothing in this section affects a right of a member of a regulated
19
superannuation fund if:
20
(a) the right is a right to insurance cover for a fixed term, subject
21
only to the payment of insurance premiums; and
22
(b) that fixed term begins before the time at which a trustee of
23
the fund is required under subsection (1) to ensure that a
24
benefit is not provided to, or in respect of, the member under
25
a choice product or MySuper product held by the member by
26
taking out or maintaining insurance.
27
68AAC Benefits provided by taking out insurance--members under
28
25 years old
29
(1) Each trustee of a regulated superannuation fund must ensure that a
30
benefit is not provided by the fund to, or in respect of, a member of
31
the fund under a choice product or MySuper product held by the
32
member by taking out or maintaining insurance if:
33
(a) the member is under the age of 25 years; and
34
(b) the member has not elected under subsection (2) that the
35
benefit will be provided to, or in respect of, the member
36
Schedule 2 Insurance for superannuation members
Part 1 Amendments
14
Treasury Laws Amendment (Protecting Your Superannuation Package)
Bill 2018
No. , 2018
under the product by taking out or maintaining insurance,
1
even if the member is under the age of 25 years.
2
Note:
This section does not apply in relation to regulated superannuation
3
funds with fewer than 5 members (see section 68AAD).
4
(2) Each trustee of the regulated superannuation fund must ensure that
5
each member of the fund who holds a choice product or MySuper
6
product offered by the fund and who is under the age of 25 years
7
may elect, in writing, that a benefit specified in the election is to be
8
provided to, or in respect of, the member under the product by
9
taking out or maintaining insurance, even if the member is under
10
the age of 25 years.
11
(3) The member is taken to have made an election under subsection (2)
12
if the member makes an election under subsection 68AAB(2).
13
(4) This section does not apply to:
14
(a) a defined benefit member; or
15
(b) an ADF Super member (within the meaning of the Australian
16
Defence Force Superannuation Act 2015); or
17
(c) a person who would be an ADF Super member apart from the
18
fact that the regulated superannuation fund is or was, for the
19
purposes of Part 3A of the Superannuation Guarantee
20
(Administration) Act 1992, a chosen fund for contributions
21
for the person's superannuation by the Commonwealth; or
22
(d) a member to whom the employer-sponsor contribution
23
exception applies (see section 68AAE).
24
68AAD Sections 68AAA, 68AAB and 68AAC do not apply to funds
25
with fewer than 5 members
26
Sections 68AAA, 68AAB and 68AAC do not apply in relation to
27
regulated superannuation funds with fewer than 5 members.
28
68AAE Employer-sponsor contribution exception
29
(1) The employer-sponsor contribution exception applies for a quarter
30
to a member of regulated superannuation fund to, or in respect of,
31
whom a benefit is provided by the fund under a choice product or
32
MySuper product held by the member by taking out or maintaining
33
insurance if:
34
Insurance for superannuation members Schedule 2
Amendments Part 1
No. , 2018
Treasury Laws Amendment (Protecting Your Superannuation Package)
Bill 2018
15
(a) an employer-sponsor notifies the trustee of the fund in
1
writing that the employer-sponsor will pay insurance fees
2
relating to the benefit for the member; and
3
(b) the member is:
4
(i) an employee of the employer-sponsor, or an associate of
5
the employer-sponsor; or
6
(ii) the relative or dependant of such an employee; and
7
(c) the quarter ends after the employer-sponsor notifies the
8
trustee under paragraph (a); and
9
(d) the amount the employer-sponsor contributes to the fund for
10
the quarter exceeds the amount that the employer-sponsor
11
would need to contribute to avoid an individual
12
superannuation guarantee shortfall for the member for the
13
quarter; and
14
(e) that excess is equal to or greater than the insurance fees
15
relating to the benefit for the quarter.
16
(2) In this section:
17
quarter means a period of 3 months beginning on 1 January,
18
1 April, 1 July or 1 October.
19
2 After subsection 68AA(8)
20
Insert:
21
Inactive accounts, low-balance accounts and members under the
22
age of 25 years
23
(8A) This section does not require the provision of death benefit in
24
respect of a MySuper member of a regulated superannuation fund,
25
if death benefit is not to be provided in respect of the MySuper
26
member by taking out or maintaining insurance because of
27
section 68AAA, 68AAB or 68AAC.
28
(8B) This section does not require the provision of permanent incapacity
29
benefit to a MySuper member of a regulated superannuation fund,
30
if permanent incapacity benefit is not to be provided in respect of
31
the MySuper member by taking out or maintaining insurance
32
because of section 68AAA, 68AAB or 68AAC.
33
Schedule 2 Insurance for superannuation members
Part 2 Application and transitional provisions
16
Treasury Laws Amendment (Protecting Your Superannuation Package)
Bill 2018
No. , 2018
Part 2--Application and transitional provisions
1
3 Application of section 68AAA
2
(1)
Section 68AAA of the Superannuation Industry (Supervision) Act 1993,
3
as inserted by item 1 of this Schedule, applies on and after 1 July 2019
4
(the commencement day).
5
(2)
However, a period during which a member's account is inactive in
6
relation to a choice product or MySuper product offered by a regulated
7
superannuation fund is to be taken into account for the purposes of
8
section 68AAA even if the period begins before the commencement
9
day.
10
(3)
Each trustee of a regulated superannuation fund that offers a choice
11
product or MySuper product under which a benefit may be provided by
12
taking out or maintaining insurance must ensure that:
13
(a) on 1 April 2019, each member of the fund who has an
14
account in relation to one or more of those products that has
15
been inactive for a continuous period of 6 months before that
16
day is identified; and
17
(b) on or before 1 May 2019, each of the members of the fund
18
identified under paragraph (a) is given notice in writing in
19
accordance with subitem (4).
20
(4)
The notice must:
21
(a) state that, on and after 1 July 2019, a benefit will not be
22
provided to the member under the product by taking out or
23
maintaining insurance if:
24
(i) for a continuous period of 13 months, the member's
25
account is inactive in relation to that product (as defined
26
for the purposes of section 68AAA of the
27
Superannuation Industry (Supervision) Act 1993); and
28
(ii) the member has not elected that the benefit will be
29
provided to, or in respect of, the member under the
30
product by taking out or maintaining insurance, even if
31
the member's account is inactive in relation to that
32
product for a continuous period of 13 months; and
33
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17
(b) set out the method by which the member can make such an
1
election in writing.
2
(5)
An election made under paragraph (4)(b) before the commencement day
3
has effect on and after the commencement day as if it were an election
4
made under subsection 68AAA(2) of the Superannuation Industry
5
(Supervision) Act 1993.
6
(6)
Despite subitem (3), a trustee of a regulated superannuation fund that
7
offers a choice product or MySuper product does not have to ensure that
8
a notice is given to a member of the fund to whom it would otherwise
9
be required to be given under that subitem if:
10
(a) after 8 May 2018 but before 1 April 2019, the member has
11
given the fund notice in writing that the member elects to
12
have one or more benefits provided under the product or the
13
products held by the member by taking out or maintaining
14
insurance; and
15
(b) the only benefits provided to the member under the product
16
or products held by the member by taking out or maintaining
17
insurance are covered by the election.
18
The notice mentioned in paragraph (a) has effect on and after the
19
commencement day as if it were an election made under
20
subsection 68AAA(2) of the Superannuation Industry (Supervision) Act
21
1993.
22
4 Application of section 68AAB
23
Application
24
(1)
Section 68AAB of the Superannuation Industry (Supervision) Act 1993,
25
as inserted by item 1 of this Schedule, applies on and after 1 July 2019
26
(the commencement day).
27
Notice to members who have a low balance on 1 April 2019
28
(2)
Each trustee of a regulated superannuation fund that offers a choice
29
product or MySuper product under which a benefit may be provided by
30
taking out or maintaining insurance must ensure that:
31
(a) on 1 April 2019, each member of the fund who has an
32
account in relation to one or more of those products with a
33
balance that is less than $6,000 is identified; and
34
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Part 2 Application and transitional provisions
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Treasury Laws Amendment (Protecting Your Superannuation Package)
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(b) on or before 1 May 2019, each of the members of the fund
1
identified under paragraph (a) is given notice in writing in
2
accordance with subitem (3).
3
(3)
The notice must:
4
(a) state that, on and after 1 July 2019, a benefit will not be
5
provided to the member under the product by taking out or
6
maintaining insurance if:
7
(i) the member has an account balance with the fund that
8
relates to the product that is less than $6,000; and
9
(ii) on or after 1 April 2019, the member has not had an
10
account balance with the fund that relates to the product
11
that was equal to or greater than $6,000; and
12
(iii) the member has not elected that the benefit will be
13
provided to, or in respect of, the member under the
14
product by taking out or maintaining insurance, even if
15
the account balance with the fund that relates to the
16
product is less than $6,000; and
17
(b) set out the method by which the member can make such an
18
election in writing.
19
(4)
An election under paragraph (3)(b) has effect on and after the
20
commencement day as if it were an election made under
21
subsection 68AAB(2) of the Superannuation Industry (Supervision) Act
22
1993.
23
(5)
Despite subitem (2), a trustee of a regulated superannuation fund that
24
offers a choice product or MySuper product does not have to ensure that
25
a notice is given to a member of the fund to whom it would otherwise
26
be required to be given under that subitem if:
27
(a) before 1 April 2019, the member has given the fund notice
28
that the member elects to have one or more benefits provided
29
under the product or the products held by the member by
30
taking out or maintaining insurance; and
31
(b) the only benefits provided to the member under the product
32
or products held by the member by taking out or maintaining
33
insurance are covered by the election.
34
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19
The notice mentioned in paragraph (a) has effect on and after the
1
commencement day as if it were an election made under
2
subsection 68AAB(2) of the Superannuation Industry (Supervision) Act
3
1993.
4
Notice to members who begin to hold product after 1 April 2019
5
(6)
Each trustee of a regulated superannuation fund that offers a choice
6
product or MySuper product under which a benefit may be provided by
7
taking out or maintaining insurance must ensure that each person who
8
acquires an interest in the product after 1 April 2019 and before the
9
commencement day is given notice in writing:
10
(a) stating that the benefit will not be provided on and after
11
1 July 2019 if:
12
(i) the member has an account balance with the fund that
13
relates to the product that is less than $6,000; and
14
(ii) on or after 1 April 2019, the member has not had an
15
account balance with the fund that relates to the product
16
that was equal to or greater than $6,000; and
17
(iii) the member has not elected that the benefit will be
18
provided to, or in respect of, the member under the
19
product by taking out or maintaining insurance, even if
20
the account balance with the fund that relates to the
21
product is less than $6,000; and
22
(b) setting out the method by which the member can make such
23
an election in writing.
24
(7)
An election under paragraph (6)(b) has effect on and after the
25
commencement day as if it were an election made under
26
subsection 68AAB(2) of the Superannuation Industry (Supervision) Act
27
1993.
28
5 Application of section 68AAC
29
Section 68AAC of the Superannuation Industry (Supervision) Act 1993,
30
as inserted by item 1 of this Schedule, applies in relation to a benefit
31
provided by a regulated superannuation fund to, or in respect of, a
32
member of the fund under a choice product or MySuper product held by
33
the member, if the member begins to hold the product on or after 1 July
34
2019.
35
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Part 2 Application and transitional provisions
20
Treasury Laws Amendment (Protecting Your Superannuation Package)
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6 Administration of the application and transitional
1
provisions
2
Despite subparagraph 6(1)(a)(iv) of the Superannuation Industry
3
(Supervision) Act 1993, ASIC not APRA has the general administration
4
of items 3 and 4 of this Schedule.
5
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21
Schedule 3--Inactive low-balance accounts
1
and consolidation into active accounts
2
Part 1--Amendments
3
Income Tax Assessment Act 1997
4
1 Section 301-125
5
After "20H(2), (2AA), (2A) or (3)", insert ", 20QF(2)".
6
2 Paragraph 301-225(2)(b)
7
Repeal the paragraph, substitute:
8
(b) the benefit is paid to you:
9
(i) under subsection 20QF(2) of the Superannuation
10
(Unclaimed Money and Lost Members) Act 1999 in a
11
case covered by paragraph (d) of that subsection; or
12
(ii) under subsection 24G(2) of that Act in a case covered
13
by paragraph (d) of that subsection; and
14
3 Subsection 307-5(1) (table item 5, column 2)
15
After "or 20H(2), (2AA) or (2A),", insert "section 20QD or
16
subsection 20QF(2) or (5),".
17
4 Subsection 307-5(1) (table item 5, column 3)
18
After "20H(2), (2AA), (2A) or (3)", insert ", 20QF(2), (5) or (6)".
19
5 Paragraph 307-120(2)(e)
20
After "20H(2), (2AA), (2A) or (3)", insert ", 20QF(2), (5) or (6)".
21
6 Subsection 307-142(1)
22
After "20H(2), (2AA), (2A) or (3)", insert ", 20QF(2), (5) or (6)".
23
7 Subsection 307-142(2) (method statement, step 1, note)
24
After:
25
A payment under subsection 20H(2) or (3) of that Act may be
26
attributable to more than one unclaimed amount.
27
Schedule 3 Inactive low-balance accounts and consolidation into active accounts
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Treasury Laws Amendment (Protecting Your Superannuation Package)
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No. , 2018
insert:
1
A payment under subsection 20QF(2) of that Act is attributable to a
2
single unclaimed amount set out in item 3A of the table.
3
8 Subsection 307-142(3) (after table item 3)
4
Insert:
5
3A
an amount paid to the
Commissioner under
section 20QD of the
Superannuation (Unclaimed
Money and Lost Members)
Act 1999 in respect of the
person
a
*
superannuation
benefit paid from a
*
superannuation
plan
the
*
tax free component
of that superannuation
benefit
9 Paragraph 307-142(3A)(a)
6
After "20JA", insert ", 20QH".
7
10 Subsection 307-142(3B)
8
After "20H(2AA)", insert ", 20QF(5) or (6)".
9
11 Subsection 307-300(1)
10
After "20H(2), (2AA), (2A) or (3)", insert ", 20QF(2)".
11
12 Subsection 307-300(2) (method statement, step 1, note)
12
After:
13
A payment under subsection 20H(2) or (3) of that Act may be
14
attributable to more than one unclaimed amount.
15
insert:
16
A payment under subsection 20QF(2) of that Act is attributable to a
17
single unclaimed amount set out in item 3A of the table.
18
13 Subsection 307-300(3) (after table item 3)
19
Insert:
20
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Amendments Part 1
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Treasury Laws Amendment (Protecting Your Superannuation Package)
Bill 2018
23
3A
an amount paid to the
Commissioner under
section 20QD of the
Superannuation (Unclaimed
Money and Lost Members)
Act 1999 in respect of the
person
a
*
superannuation
benefit paid from a
*
superannuation
plan
the
*
element taxed in
the fund of the
*
taxable
component of that
superannuation benefit
14 Subsection 307-300(3A) (note)
1
After "17(2AB) or (2AC)", insert ", 20QF(5) or (6)".
2
15 Subsection 307-350(2B)
3
After "20H(2), (2AA), (2A) and (3)", insert ", 20QF(2)".
4
Superannuation (Unclaimed Money and Lost Members) Act
5
1999
6
16 After paragraph 6(d)
7
Insert:
8
(da) the matching of benefits of inactive low-balance account
9
members and persons entitled to them; and
10
17 At the end of paragraph 6(e)
11
Add:
12
(iv) certain amounts relating to superannuation of inactive
13
low-balance account members; and
14
18 After paragraph 6(ea)
15
Insert:
16
(eb) the payment of:
17
(i) unclaimed money; and
18
(ii) certain amounts relating to superannuation of lost
19
members; and
20
(iii) certain amounts relating to superannuation of inactive
21
low-balance account members;
22
into funds in which the member is active; and
23
Schedule 3 Inactive low-balance accounts and consolidation into active accounts
Part 1 Amendments
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Treasury Laws Amendment (Protecting Your Superannuation Package)
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No. , 2018
19 Section 7
1
After:
2
Superannuation providers must pay to the Commissioner of
3
Taxation the value of any such accounts. Later, the Commissioner
4
must, if satisfied that it is possible to do so, pay an amount he or
5
she has received in respect of a person:
6
(a)
to a fund identified by the person; or
7
(b)
if the person has reached eligibility age or the amount is
8
less than $200--to the person; or
9
(c)
if the person has died--to the person's death
10
beneficiaries or legal personal representative.
11
insert:
12
Superannuation of inactive low-balance members
13
At times determined by the Commissioner, superannuation
14
providers must give the Commissioner of Taxation details relating
15
to inactive low-balance accounts.
16
Superannuation providers must pay to the Commissioner of
17
Taxation the value of any such accounts. Later, the Commissioner
18
must, if satisfied that it is possible to do so, pay an amount the
19
Commissioner has received in respect of a person:
20
(a)
to a fund identified by the person; or
21
(b)
if the person has reached eligibility age or the amount is
22
less than $200--to the person; or
23
(c)
if the person has died--to the person's death
24
beneficiaries or legal personal representative.
25
Reunification of amounts held by the Commissioner
26
If, having taken the steps required in relation to unclaimed
27
amounts, or amounts held by the Commissioner for lost members
28
or inactive low-balance members, the Commissioner still holds an
29
amount, the Commissioner must pay that amount to a fund in
30
Inactive low-balance accounts and consolidation into active accounts Schedule 3
Amendments Part 1
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Treasury Laws Amendment (Protecting Your Superannuation Package)
Bill 2018
25
which the member for whom the Commissioner holds the amount
1
is active, or in accordance with the regulations.
2
20 Section 8 (definition of account)
3
Repeal the definition, substitute:
4
account, in a fund that is an RSA, means:
5
(a) if the RSA is an account--that account; or
6
(b) if the RSA is a policy (within the meaning of the RSA Act)--
7
that policy.
8
21 Section 8
9
Insert:
10
choice product has the same meaning as in the SIS Act.
11
inactive low-balance account has the meaning given by
12
subsection 20QA(1).
13
inactive low-balance member has the meaning given by
14
subsection 20QA(2).
15
inactive low-balance product has the meaning given by
16
subsection 20QA(3).
17
MySuper product has the same meaning as in the SIS Act.
18
22 Section 8 (paragraph (a) of the definition of scheduled
19
statement day)
20
Omit "or 4A", substitute ", 3B or 4A".
21
23 Paragraph 15A(a)
22
Omit "Part 4A", substitute "Parts 3B and 4A".
23
24 Paragraph 15A(b)
24
Omit "Part 4A", substitute "Part 3B or 4A".
25
25 After paragraph 19(1)(d)
26
Insert:
27
Schedule 3 Inactive low-balance accounts and consolidation into active accounts
Part 1 Amendments
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Treasury Laws Amendment (Protecting Your Superannuation Package)
Bill 2018
No. , 2018
(da) amounts paid to the Commissioner under section 20QD
1
(amounts from inactive low-balance accounts); and
2
(db) each person in respect of whom there is an amount referred to
3
in paragraph (da) of this subsection; and
4
26 After subparagraph 20H(1)(b)(ii)
5
Insert:
6
(iiaa) the amounts (if any) paid to the Commissioner under
7
section 20QD in respect of the person; and
8
27 After subparagraph 20H(1)(b)(v)
9
Insert:
10
(va) the amounts (if any) paid by the Commissioner under
11
subsection 20QF(2) in respect of the person; and
12
28 Paragraph 20H(2B)(a)
13
After "subsection 17(1) or (2),", insert "section 20QD or
14
subsection 20QF(2), or".
15
29 Subsection 20H(3)
16
After "subparagraphs (1)(b)(i), (ii)", insert ", (iiaa)".
17
30 After Part 3A
18
Insert:
19
Part 3B--Payment of low balances in inactive
20
accounts to the Commissioner
21
Division 1--Preliminary
22
20Q Object of Part
23
The object of this Part is to set up a procedure for dealing with
24
inactive low-balance accounts.
25
Inactive low-balance accounts and consolidation into active accounts Schedule 3
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Treasury Laws Amendment (Protecting Your Superannuation Package)
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27
20QA Meaning of inactive low-balance account, inactive low-balance
1
member and inactive low-balance product
2
(1) An account in a fund is taken to be an inactive low-balance
3
account if:
4
(a) for a fund that is a regulated superannuation fund:
5
(i) the fund has 5 or more members; and
6
(ii) the account is held on behalf of a member of the fund;
7
and
8
(iii) the account relates, in whole or in part, to a MySuper
9
product or choice product held by that member; and
10
(iv) the superannuation provider has not received an amount
11
in respect of the member for crediting to that product
12
within the last 13 months; and
13
(v) the balance of the account that relates to that product is
14
less than $6,000; and
15
(vi) the member has not satisfied any of the conditions of
16
release of benefits specified in a standard made under
17
paragraph 31(2)(h) of the SIS Act that are prescribed for
18
the purposes of this subparagraph; and
19
(vii) the account does not support or relate to a defined
20
benefit interest (within the meaning of section 291-175
21
of the Income Tax Assessment Act 1997); and
22
(viii) no benefit that despite section 68AAA of the SIS Act
23
could, because of the application of
24
subsection 68AAA(7) or (8) of that Act, be provided to,
25
or in respect of, the member under the product by taking
26
out or maintaining insurance is provided in that way;
27
and
28
(ix) no benefit that despite section 68AAB of the SIS Act
29
could, because of the application of
30
subsection 68AAB(5) or (6) of that Act, be provided to,
31
or in respect of, the member under the product by taking
32
out or maintaining insurance is provided in that way;
33
and
34
(b) for a fund that is an RSA or approved deposit fund:
35
(i) the account is held on behalf of a member of the fund;
36
and
37
Schedule 3 Inactive low-balance accounts and consolidation into active accounts
Part 1 Amendments
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Treasury Laws Amendment (Protecting Your Superannuation Package)
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No. , 2018
(ii) the superannuation provider has not received an amount
1
in respect of the member within the last 13 months; and
2
(iii) the balance of the account is less than $6,000; and
3
(iv) the member has not satisfied any of the conditions of
4
release of benefits specified in a standard made under
5
paragraph 38(2)(f) of the Retirement Savings Accounts
6
Act 1997 (for an RSA), or paragraph 32(2)(c) of the SIS
7
Act (for an approved deposit fund), that are prescribed
8
for the purposes of this paragraph; and
9
(v) the account does not support or relate to a defined
10
benefit interest (within the meaning of section 291-175
11
of the Income Tax Assessment Act 1997).
12
Note:
The balance of an account does not reflect any earnings, fees or
13
charges that have not yet been credited to, or debited from, the
14
account.
15
(2) A person on whose behalf a superannuation provider holds an
16
inactive low-balance account is an inactive low-balance member.
17
(3) In a regulated superannuation fund, each MySuper product or
18
choice product to which an inactive low-balance account relates in
19
whole or in part, and in relation to which subparagraphs (1)(a)(iv),
20
(v), (viii) and (ix) are satisfied, is an inactive low-balance product
21
in the inactive low-balance account.
22
Division 2--Statements on inactive low-balance accounts
23
20QB Statements on inactive low-balance accounts
24
Superannuation provider must give statement to the Commissioner
25
(1) A superannuation provider must, for each unclaimed money day,
26
give the Commissioner a statement, in the approved form, of
27
information relevant to either or both of the following:
28
(a) each inactive low-balance account as at the end of the day;
29
(b) the administration of any of the following in connection with
30
each inactive low-balance account:
31
(i) this Part;
32
(ii) the Superannuation (Departing Australia
33
Superannuation Payments Tax) Act 2007;
34
Inactive low-balance accounts and consolidation into active accounts Schedule 3
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Treasury Laws Amendment (Protecting Your Superannuation Package)
Bill 2018
29
(iii) the Income Tax Assessment Act 1997, Part 3AA of this
1
Act, and Chapters 2 and 4 in Schedule 1 to the Taxation
2
Administration Act 1953, so far as they relate to this
3
Part or the Superannuation (Departing Australia
4
Superannuation Payments Tax) Act 2007.
5
Note 1:
For State or Territory public sector superannuation schemes, see
6
sections 20QG and 20QH.
7
Note 2:
The Taxation Administration Act 1953 provides for offences and
8
administrative penalties if the statement required under subsection (1)
9
includes false or misleading information: see sections 8K, 8M, 8N and
10
8R of that Act and Division 284 in Schedule 1 to that Act.
11
Note 3:
The approved form may also require the statement to include certain
12
tax file numbers: see subsection 25(2B) of this Act.
13
(2) If, at the end of the unclaimed money day, there are no balances
14
held in inactive low-balance accounts, the statement must say so.
15
(3) The statement must also contain information, required by the
16
approved form, relevant to any account that ceases to be an
17
inactive low-balance account during the period that:
18
(a) starts on the unclaimed money day; and
19
(b) ends on the day on which the statement is given to the
20
Commissioner.
21
(4) This section does not apply if, at the end of the unclaimed money
22
day:
23
(a) the fund is a regulated superannuation fund that has fewer
24
than 5 members; and
25
(b) there are no inactive low-balance accounts.
26
When statement must be given
27
(5) The superannuation provider must give the Commissioner the
28
statement by the end of the scheduled statement day for the
29
unclaimed money day.
30
Note 1:
The Commissioner may defer the time for giving the statement: see
31
section 388-55 in Schedule 1 to the Taxation Administration Act 1953.
32
Note 2:
The Taxation Administration Act 1953 provides for offences and
33
administrative penalties if the statement is not given when it must be:
34
see sections 8C and 8E of that Act and Division 286 in Schedule 1 to
35
that Act.
36
Schedule 3 Inactive low-balance accounts and consolidation into active accounts
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Treasury Laws Amendment (Protecting Your Superannuation Package)
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No. , 2018
Relationship to rest of Act
1
(6) This section does not apply in relation to:
2
(a) an amount that is unclaimed money at the end of the
3
unclaimed money day; or
4
(b) amounts payable to a person identified in a notice the
5
Commissioner has given the superannuation provider under
6
section 20C; or
7
(c) an amount payable to the Commissioner in respect of a lost
8
member under section 24E.
9
Note 1:
Section 16 requires the superannuation provider to give the
10
Commissioner a statement about unclaimed money.
11
Note 2:
Section 20E requires the superannuation provider to give the
12
Commissioner a statement about the superannuation interest of a
13
person identified in a notice given to the provider under section 20C
14
(which is about notices identifying former temporary residents).
15
Note 3:
Section 24C requires the superannuation provider to give the
16
Commissioner statements about lost member accounts.
17
20QC Error or omission in statement
18
Scope
19
(1) This section applies if:
20
(a) a superannuation provider gives the Commissioner a
21
statement under section 20QB; and
22
(b) the superannuation provider becomes aware of a material
23
error, or material omission, in any information in the
24
statement.
25
Superannuation provider must give information
26
(2) The superannuation provider must, in the approved form, give the
27
Commissioner the corrected or omitted information.
28
(3) Information required by subsection (2) must be given no later than
29
30 days after the superannuation provider becomes aware of the
30
error or omission.
31
Note 1:
The Commissioner may defer the time for giving the information: see
32
section 388-55 in Schedule 1 to the Taxation Administration Act 1953.
33
Inactive low-balance accounts and consolidation into active accounts Schedule 3
Amendments Part 1
No. , 2018
Treasury Laws Amendment (Protecting Your Superannuation Package)
Bill 2018
31
Note 2:
The Taxation Administration Act 1953 provides for offences and
1
administrative penalties if the information is not given when it must
2
be: see sections 8C and 8E of that Act and Division 286 in Schedule 1
3
to that Act.
4
Division 3--Payment in respect of inactive low-balance
5
accounts
6
20QD Payment in respect of inactive low-balance accounts
7
Provider must pay Commissioner
8
(1) A superannuation provider must pay the Commissioner (for the
9
Commonwealth) the amount worked out under subsection (2) in
10
respect of a person if:
11
(a) an account is an inactive low-balance account as at the end of
12
an unclaimed money day; and
13
(b) the account is held by the provider on behalf of the person;
14
and
15
(c) the account is still an inactive low-balance account at the
16
time (the calculation time) immediately before the earlier of:
17
(i) the time (if any) the payment is made; and
18
(ii) the time at which the payment is due and payable
19
(assuming that the payment must be made).
20
The amount is due and payable at the end of the scheduled
21
statement day for the unclaimed money day.
22
Note 1:
For State or Territory public sector superannuation schemes, see
23
sections 20QG and 20QH.
24
Note 2:
Subsection 20QE(2) makes it an offence not to comply with a
25
requirement under this subsection.
26
Note 3:
The amount the superannuation provider must pay the Commissioner
27
is a tax-related liability for the purposes of the Taxation
28
Administration Act 1953. Division 255 in Schedule 1 to that Act deals
29
with payment and recovery of tax-related liabilities. Division 284 in
30
that Schedule provides for administrative penalties connected with
31
such liabilities.
32
Note 4:
The Commissioner may defer the time at which the amount is due and
33
payable: see section 255-10 in Schedule 1 to the Taxation
34
Administration Act 1953.
35
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Note 5:
Section 20QJ provides for refunds of overpayments by the
1
superannuation provider to the Commissioner.
2
(2) The amount payable in respect of the person is the amount that
3
would have been payable by the superannuation provider if:
4
(a) for a fund that is a regulated superannuation fund--the
5
person had requested that the balance held in respect of each
6
inactive low-balance product in the account be rolled over or
7
transferred to a complying superannuation fund (within the
8
meaning of the SIS Act); and
9
(b) for a fund that is an RSA or approved deposit fund--the
10
person had requested that the balance held in the account be
11
rolled over or transferred to a complying superannuation fund
12
(within the meaning of the SIS Act).
13
(3) For the purposes of subsection (2):
14
(a) work out the amount that would have been payable at the
15
calculation time; and
16
(b) assume that the request were made before the calculation
17
time; and
18
(c) assume that the inactive low-balance member had not died
19
before the calculation time.
20
Family Law payment splits
21
(4) If, as a result of a payment split that applies in relation to the
22
account, the non-member spouse (or his or her legal personal
23
representative if he or she has died) is, or could in the future be,
24
entitled to be paid an amount, then:
25
(a) for the purposes of subsection (2), take account only of the
26
inactive low-balance member's entitlement to payment
27
remaining after any reduction by the payment split
28
(disregarding subsection 90MB(3) of the Family Law Act
29
1975); and
30
(b) the superannuation provider must also pay an amount (the
31
non-member spouse amount) to the Commissioner in respect
32
of the non-member spouse; and
33
(c) the non-member spouse amount is due and payable at the
34
same time as the amount payable under subsection (1); and
35
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(d) the amount of the non-member spouse amount is the amount
1
of the reduction mentioned in paragraph (a).
2
Note 1:
Part VIIIB of the Family Law Act 1975 is about splitting amounts
3
payable in respect of a superannuation interest between the parties to a
4
marriage. Subsection 90MB(3) of that Act provides that the Part has
5
effect subject to this Act.
6
Note 2:
Subsection 20QE(2) of this Act makes it an offence not to comply
7
with a requirement under this subsection.
8
Miscellaneous
9
(5) This section does not require the superannuation provider to pay
10
the Commissioner:
11
(a) an amount that is unclaimed money at the end of the
12
unclaimed money day; or
13
(b) an amount payable to a person identified in a notice the
14
Commissioner has given the provider under section 20C; or
15
(c) an amount payable to the Commissioner in respect of a lost
16
member under section 24E.
17
Note 1:
Unclaimed money is payable to the Commissioner under
18
subsection 17(1).
19
Note 2:
An amount mentioned in paragraph (5)(b) is payable to the
20
Commissioner under section 20F.
21
(6) Upon payment to the Commissioner of an amount as required
22
under this section, the superannuation provider is discharged from
23
further liability in respect of that amount.
24
(7) For the purposes of this section, ignore accounts with nil balances,
25
or balances below nil, as at the calculation time mentioned in
26
subsection (1).
27
20QE Payment in respect of inactive low-balance accounts--late
28
payments
29
General interest charge on late payment
30
(1) If any of the amount a superannuation provider must pay under
31
section 20QD remains unpaid after it is due and payable, the
32
superannuation provider is liable to pay general interest charge on
33
the unpaid amount for each day in the period that:
34
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(a) starts at the time it is due and payable; and
1
(b) ends at the end of the last day on which either of the
2
following remains unpaid:
3
(i) the amount unpaid when it is due and payable;
4
(ii) general interest charge on any of the amount.
5
Offence of failing to make payment to Commissioner
6
(2) A person commits an offence if:
7
(a) the person is subject to a requirement under
8
subsection 20QD(1) or (4); and
9
(b) the person engages in conduct; and
10
(c) the person's conduct breaches the requirement.
11
Penalty for an offence against subsection (2):
100 penalty
12
units.
13
20QF Payment by Commissioner in respect of person for whom an
14
amount has been paid to Commissioner
15
(1) This section applies in relation to a person if:
16
(a) a superannuation provider paid an amount to the
17
Commissioner under section 20QD in respect of the person;
18
and
19
(b) the Commissioner is satisfied, on application in the approved
20
form or on the Commissioner's own initiative, that it is
21
possible for the Commissioner to pay the amount in
22
accordance with subsection (2).
23
(2) The Commissioner must pay the amount:
24
(a) to a single fund if:
25
(i) the person has not died; and
26
(ii) the person directs the Commissioner to pay to the fund;
27
and
28
(iii) the fund is a complying superannuation plan (within the
29
meaning of the Income Tax Assessment Act 1997); or
30
(b) in accordance with subsection (4) if:
31
(i) the person has died; and
32
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(ii) the Commissioner is satisfied that, if the superannuation
1
provider had not paid the amount to the Commissioner,
2
the provider would have been required to pay an amount
3
or amounts (death benefits) to one or more other
4
persons (death beneficiaries) because of the deceased
5
person's death; or
6
(c) to the person's legal personal representative if the person has
7
died but subparagraph (b)(ii) does not apply; or
8
(d) to the person if this paragraph applies (see subsection (3)).
9
Note:
Money for payments under subsection (2) is appropriated by
10
section 16 of the Taxation Administration Act 1953.
11
(3) Paragraph (2)(d) applies if:
12
(a) subparagraph (2)(a)(ii) does not apply; and
13
(b) any of the following subparagraphs apply:
14
(i) the person has reached the eligibility age;
15
(ii) the amount is less than $200;
16
(iii) a terminal medical condition (within the meaning of the
17
Income Tax Assessment Act 1997) exists in relation to
18
the person; and
19
(c) the person has not died.
20
(4) In a case covered by paragraph (2)(b), the Commissioner must pay
21
the amount under subsection (2) by paying to each death
22
beneficiary the amount worked out using the following formula:
23
Death benefit for the death beneficiary
Amount payable under
subsection (2)
Total death benefits
24
Note:
If there is only one death beneficiary, the whole of the amount is
25
payable to that beneficiary.
26
(5) If:
27
(a) the Commissioner makes a payment under subsection (2) to a
28
fund, a legal personal representative or a person; and
29
(b) the payment is in accordance with paragraph (2)(a), (c) or
30
(d);
31
the Commissioner must also pay to the fund, legal personal
32
representative or person the amount of interest (if any) worked out
33
in accordance with the regulations.
34
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Note:
Money for payments under subsection (5) is appropriated by
1
section 16 of the Taxation Administration Act 1953.
2
(6) If:
3
(a) the Commissioner makes a payment under subsection (2) to a
4
death beneficiary; and
5
(b) the payment is in accordance with paragraph (2)(b);
6
the Commissioner must also pay to the death beneficiary the
7
amount of interest (if any) worked out in accordance with the
8
regulations.
9
Note:
Money for payments under subsection (6) is appropriated by
10
section 16 of the Taxation Administration Act 1953.
11
(7) Regulations made for the purposes of subsection (5) or (6) may
12
prescribe different rates for different periods over which the
13
interest accrues. For this purpose, rate includes a nil rate.
14
(8) This section does not apply to an amount that is to be, is or has
15
been, taken into account in determining whether the Commissioner
16
must make a payment under subsection 20H(2) or (3).
17
Note:
Subsections 20H(2) and (3) provide for payment by the Commissioner
18
of amounts equal to amounts paid to the Commissioner under
19
subsections 17(1), 20F(1), 20QD(1) and 24E(1) in respect of a person
20
who:
21
(a) is identified in a notice under section 20C; or
22
(b) used to be the holder of a temporary visa.
23
Division 4--Various rules for special cases
24
20QG State or Territory public sector superannuation schemes
25
Subject to section 20QH, sections 20QB and 20QD do not apply to
26
a superannuation provider in relation to an unclaimed money day
27
if, because of section 18, the superannuation provider does not
28
have to comply with subsection 16(1) or 17(1) in relation to the
29
unclaimed money day.
30
20QH Prescribed public sector superannuation schemes
31
(1) Section 6, subsections 19(1) to (3), this Part (other than
32
sections 20QE and 20QG) and subsection 25(2B) apply as if:
33
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(a) a public sector superannuation scheme that:
1
(i) is prescribed for the purposes of this section; and
2
(ii) in the case of a Commonwealth public sector
3
superannuation scheme--is not a fund;
4
were a fund; and
5
Note:
The regulations may prescribe a scheme by reference to a class of
6
schemes: see subsection 13(3) of the Legislation Act 2003.
7
(b) the trustee of the scheme were the superannuation provider;
8
and
9
(c) a member of the scheme were a member of the fund.
10
(2) Despite subsection (1), in the case of a State or Territory public
11
sector superannuation scheme:
12
(a) section 20QB (statements on inactive low-balance accounts):
13
(i) permits, rather than requires, the trustee to give a
14
statement to the Commissioner; and
15
(ii) does not permit the trustee to give a statement to the
16
Commissioner if the governing rules of the scheme
17
prohibit the trustee from giving the statement to the
18
Commissioner; and
19
(b) section 20QD (payment of balances from inactive
20
low-balance accounts):
21
(i) does not apply in relation to an unclaimed money day if
22
the trustee does not give a statement in relation to the
23
unclaimed money day to the Commissioner under
24
section 20QB; and
25
(ii) permits, rather than requires, the trustee to pay an
26
amount to the Commissioner; and
27
(iii) does not apply to an amount to the extent that the
28
governing rules of the scheme prohibit the trustee from
29
paying the amount to the Commissioner.
30
(3) Subparagraphs (2)(a)(i) and (b)(ii) do not apply in relation to an
31
unclaimed money day if, disregarding this section:
32
(a) the public sector superannuation scheme is a fund; and
33
(b) the superannuation provider has to comply with
34
subsections 16(1) and 17(1) in relation to the unclaimed
35
money day.
36
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20QJ Refund of overpayment made by superannuation provider
1
(1) This section applies if:
2
(a) a superannuation provider for a fund (the first fund) has
3
made a payment to the Commissioner under section 20QD in
4
respect of a person; and
5
(b) the Commissioner is satisfied that the amount paid exceeded
6
the amount (if any) that was payable under that section in
7
respect of the person.
8
(2) The Commissioner must pay the excess:
9
(a) to the superannuation provider; or
10
(b) to a superannuation provider for another fund if the
11
Commissioner is satisfied that:
12
(i) the first fund no longer exists; and
13
(ii) the other fund provides rights relating to the person
14
equivalent to those provided by the first fund.
15
Note:
Money for payments under subsection (2) is appropriated by
16
section 16 of the Taxation Administration Act 1953.
17
20QK Commissioner may recover overpayment
18
(1) This section applies if:
19
(a) the Commissioner makes a payment in respect of a person
20
under, or purportedly under, this Part; and
21
(b) the amount paid exceeds the amount (if any) properly
22
payable under this Part in respect of the person.
23
(2) The Commissioner may recover all or part of the excess from a
24
person (the debtor) described in subsection (3) as a debt due by the
25
debtor to the Commonwealth if the conditions specified in
26
subsection (4) are met.
27
(3) The persons from whom the Commissioner may recover are as
28
follows:
29
(a) the person to whom the payment was made (whether the
30
payment was made to the person in his or her own right or as
31
the legal personal representative of someone else who had
32
died);
33
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(b) the superannuation provider for the fund to which the
1
payment was made;
2
(c) if the payment, or an amount wholly or partly attributable to
3
that payment, was transferred to another fund--the
4
superannuation provider for that other fund.
5
(4) The conditions for recovery are that:
6
(a) the Commissioner gave the debtor written notice, as
7
prescribed by the regulations, of the proposed recovery and
8
the amount to be recovered; and
9
(b) at least 28 days have passed since the notice was given; and
10
(c) the amount recovered is not more than the amount specified
11
in the notice.
12
(5) Despite subsections (2) and (3), if the Commissioner gives a notice
13
described in paragraph (4)(a) to a superannuation provider for a
14
fund, and the fund does not hold an amount attributable to the
15
payment, the Commissioner cannot recover from the
16
superannuation provider.
17
(6) The Commissioner may revoke a notice described in
18
paragraph (4)(a).
19
(7) The total of the amounts recovered from different debtors in
20
relation to the same excess must not be more than the excess.
21
(8) A notice described in paragraph (4)(a) is not a legislative
22
instrument.
23
20QL Superannuation provider to return payment from
24
Commissioner that cannot be credited
25
Scope
26
(1) This section applies if:
27
(a) a payment (the Commissioner's payment) is made to a fund
28
under subsection 20QF(2) or (5) in accordance with a
29
person's direction; and
30
(b) the superannuation provider for the fund has not credited the
31
payment to an account for the benefit of the person by the
32
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time (the repayment time) that is the end of the 28th day after
1
the day on which the Commissioner's payment was made.
2
Repayment
3
(2) The superannuation provider is liable to repay the Commissioner's
4
payment to the Commonwealth. The repayment is due and payable
5
at the repayment time.
6
Note:
The amount the superannuation provider is liable to repay is a
7
tax-related liability for the purposes of the Taxation Administration
8
Act 1953. Division 255 in Schedule 1 to that Act deals with payment
9
and recovery of tax-related liabilities.
10
(3) The superannuation provider must give the Commissioner, in the
11
approved form, information relating to the Commissioner's
12
payment when repaying it.
13
Note:
The Taxation Administration Act 1953 provides for offences and
14
administrative penalties if the form is not given when it must be or
15
includes false or misleading information: see sections 8C, 8K and 8N
16
of that Act and Divisions 284 and 286 in Schedule 1 to that Act.
17
General interest charge
18
(4) If any of the amount the superannuation provider is liable to repay
19
under subsection (2) remains unpaid by the superannuation
20
provider after the repayment time, the superannuation provider is
21
liable to pay general interest charge on the unpaid amount for each
22
day in the period that:
23
(a) starts at the repayment time; and
24
(b) ends at the end of the last day on which either of the
25
following remains unpaid:
26
(i) the amount unpaid at the repayment time;
27
(ii) general interest charge on any of the amount.
28
20QM Compensation for acquisition of property
29
(1) If the operation of this Part would result in an acquisition of
30
property from a person otherwise than on just terms, the
31
Commonwealth is liable to pay a reasonable amount of
32
compensation to the person.
33
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(2) If the Commonwealth and the person do not agree on the amount
1
of the compensation, the person may institute proceedings in a
2
court of competent jurisdiction for the recovery from the
3
Commonwealth of such reasonable amount of compensation as the
4
court determines.
5
(3) In this section:
6
acquisition of property has the same meaning as in
7
paragraph 51(xxxi) of the Constitution.
8
just terms has the same meaning as in paragraph 51(xxxi) of the
9
Constitution.
10
31 Subsection 24B(3)
11
Repeal the subsection.
12
32 After Part 4A
13
Insert:
14
Part 4B--Reunification of superannuation balances
15
Division 1--Preliminary
16
24N Object of this Part
17
The object of this Part is to set out a procedure for transferring
18
amounts received by the Commissioner under Parts 3, 3B and 4A
19
in respect of a person into a single active account held by a
20
superannuation provider in respect of the person.
21
Division 2--Transferring balances to an active account
22
24NA Transferring balances to an active account
23
(1) This section applies in relation to a person if:
24
(a) the Commissioner is satisfied that:
25
(i) a superannuation provider has paid an amount to the
26
Commissioner under subsection 17(1) (unclaimed
27
money) and, after applying Part 3 and section 20H, the
28
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Commissioner holds an amount under that Part in
1
respect of the person (a superannuation amount); or
2
(ii) a superannuation provider has paid an amount to the
3
Commissioner under section 20QD (an amount from an
4
inactive low-balance account) and, after applying
5
Part 3B and section 20H, the Commissioner holds an
6
amount under that Part in respect of the person (a
7
superannuation amount); or
8
(iii) a superannuation provider has paid an amount to the
9
Commissioner under section 24E (an amount from a lost
10
member account) and, after applying Part 4A and
11
section 20H, the Commissioner holds an amount under
12
that Part in respect of the person (a superannuation
13
amount); and
14
(b) the Commissioner is satisfied, on application in the approved
15
form or on the Commissioner's own initiative, that it is
16
possible for the Commissioner to pay the superannuation
17
amount in accordance with subsection (2).
18
(2) The Commissioner must pay each superannuation amount in
19
respect of the person to a single fund if:
20
(a) the person has not died; and
21
(b) the superannuation provider for the fund holds an account on
22
behalf of the person in the fund; and
23
(c) the superannuation provider for the fund has received an
24
amount in respect of the person during the prescribed period;
25
and
26
(d) the balance of the account will be equal to or greater than
27
$6,000 if all of the superannuation amounts in respect of the
28
person are paid into the account; and
29
(e) under the terms of the fund, and under the law of the
30
Commonwealth, the fund can accept payment of the
31
superannuation amount in respect of the person.
32
(3) If there is more than one fund in relation to which
33
paragraphs (2)(b), (c), (d) and (e) are satisfied in respect of a
34
person, then despite subsection (2), the Commissioner must pay
35
each superannuation amount in respect of the person in accordance
36
with the regulations.
37
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24NB Superannuation provider to return payment from
1
Commissioner that cannot be credited
2
Scope
3
(1) This section applies if:
4
(a) a payment (the Commissioner's payment) is made to a fund
5
under subsection 24NA(2) or regulations made for the
6
purposes of subsection 24NA(3); and
7
(b) the superannuation provider for the fund has not credited the
8
payment to an account to which the payment relates for the
9
benefit of the person by the time (the repayment time) that is
10
the end of the 28th day after the day on which the
11
Commissioner's payment was made.
12
Repayment
13
(2) The superannuation provider is liable to repay the Commissioner's
14
payment to the Commonwealth. The repayment is due and payable
15
at the repayment time.
16
Note:
The amount the superannuation provider is liable to repay is a
17
tax-related liability for the purposes of the Taxation Administration
18
Act 1953. Division 255 in Schedule 1 to that Act deals with payment
19
and recovery of tax-related liabilities.
20
(3) The superannuation provider must give the Commissioner, in the
21
approved form, information relating to the Commissioner's
22
payment when repaying it.
23
Note:
The Taxation Administration Act 1953 provides for offences and
24
administrative penalties if the form is not given when it must be or
25
includes false or misleading information: see sections 8C, 8K and 8N
26
of that Act and Divisions 284 and 286 in Schedule 1 to that Act.
27
General interest charge
28
(4) If any of the amount the superannuation provider is liable to repay
29
under subsection (2) remains unpaid by the superannuation
30
provider after the repayment time, the superannuation provider is
31
liable to pay general interest charge on the unpaid amount for each
32
day in the period that:
33
(a) starts at the repayment time; and
34
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(b) ends at the end of the last day on which either of the
1
following remains unpaid:
2
(i) the amount unpaid at the repayment time;
3
(ii) general interest charge on any of the amount.
4
33 After subsection 25(2A)
5
Insert:
6
Statement about inactive low-balance accounts
7
(2B) The approved form of statement by a superannuation provider for
8
the purposes of section 20QB may require the statement to contain
9
the tax file number of:
10
(a) the superannuation provider; and
11
(b) the fund; and
12
(c) a member of the fund if:
13
(i) the statement relates to an account, in the fund, held on
14
behalf of the member; and
15
(ii) the member has quoted his or her tax file number to the
16
superannuation provider.
17
Taxation Administration Act 1953
18
34 Subsection 8AAB(4) (after table item 33)
19
Insert:
20
21
33A
20QE
Superannuation
(Unclaimed Money and
Lost Members) Act
1999
payment in respect of inactive
low-balance accounts
33B
20QL
Superannuation
(Unclaimed Money and
Lost Members) Act
1999
repayment of Commissioner's
payment in respect of inactive
low-balance accounts that cannot
be credited to an account
22
35 Subsection 8AAB(4) (after table item 35)
23
Insert:
24
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1
35A
24NB
Superannuation
(Unclaimed Money and
Lost Members) Act
1999
repayment of Commissioner's
payment for inactive low-balance
accounts that cannot be credited
to an active account
2
36 Subsection 250-10(2) in Schedule 1 (after table item 69)
3
Insert:
4
5
69AA
payment of value of
inactive low-balance
accounts to the
Commissioner
20QD
Superannuation (Unclaimed
Money and Lost Members) Act
1999
69AB
payment from
Commissioner that
cannot be credited
20QL
Superannuation (Unclaimed
Money and Lost Members) Act
1999
6
37 Subsection 250-10(2) in Schedule 1 (after table item 69B)
7
Insert:
8
9
69BA
payment from
Commissioner that
cannot be credited
24NB
Superannuation (Unclaimed
Money and Lost Members) Act
1999
Schedule 3 Inactive low-balance accounts and consolidation into active accounts
Part 2 Application and transitional provisions
46
Treasury Laws Amendment (Protecting Your Superannuation Package)
Bill 2018
No. , 2018
Part 2--Application and transitional provisions
1
38 Application of this Schedule
2
(1)
The amendments made by this Schedule apply in relation to unclaimed
3
money days that occur on or after 30 June 2019.
4
(2)
However, a period during which a member's account in a fund is
5
inactive is to be taken into account for the purposes of
6
paragraph 20QA(1)(a) of the Superannuation (Unclaimed Money and
7
Lost Members) Act 1999, as inserted by item 8 of this Schedule, even if
8
the period begins before 30 June 2019.
9