Commonwealth Numbered Regulations

1997 No. 116 RETIREMENT SAVINGS ACCOUNTS REGULATIONS - REG 3.06

3.06. (1) Subject to this regulation, contributions to an RSA are taken to be
mandated employer contributions.

(2) If:

   (a)  at least 1 year has elapsed since the RSA provider received the
        contributions in respect of the RSA; and

   (b)  the RSA provider:

        (i)    is satisfied that the contributions are not in fact mandated 
               employer contributions; and

        (ii)   decides not to continue to treat the contributions as
               mandated employer contributions; subregulation (1) ceases to
               apply to the contributions.

(3) If:

   (a)  less than 1 year has elapsed since the RSA provider received the
        contributions in respect of the RSA; and

   (b)  the RSA provider is satisfied that the contributions are not in fact
        mandated employer contributions; subregulation (1) ceases to apply to
        the contributions.

(4) The RSA provider has power to make a decision of the kind mentioned in
subparagraph 2 (b) (ii) despite anything in the terms and conditions of the
RSA. [EXAMPLE OF THE APPLICATION OF THIS REGULATION: An RSA provider may
receive a non-mandated employer contribution from an employer that the RSA
provider does not know is a non-mandated employer contribution (ie, a
contribution not made in satisfaction of the employer's superannuation
guarantee or award obligation). On acceptance, the contribution will be taken
to be a mandated employer contribution. From this point, one of three
circumstances may apply:

   (a)  the RSA provider may become aware in the first year after the
        contribution was received that the contribution is a non-mandated
        employer contribution, and, if this is the case, the RSA provider must
        treat the contribution as a non-mandated employer contribution; or

   (b)  the RSA provider may become aware more than a year after the
        contribution was received that the contribution is a non-mandated
        employer contribution, and, if this is the case, the RSA provider may
        continue to treat the contribution as a mandated employer contribution
        instead of making corrections to reflect the change; or

   (c)  the RSA provider may never become aware that the contribution is a
        non-mandated employer contribution, and, if this is the case, the
        contribution will always be taken to be a mandated employer 
        contribution.]