Commonwealth Numbered Regulations - Explanatory Statements

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RETIREMENT SAVINGS ACCOUNTS AMENDMENT REGULATIONS 2000 (NO. 1) 2000 NO. 279

STATUTORY RULES 2000 No. 279

Issued by the authority of the Assistant Treasurer

Retirement Savings Accounts Act 1997

Retirement Savings Accounts Amendment Regulations 2000 (No. 1)

Section 200 of the Retirement Savings Accounts Act 1997 (the Act) provides that the Governor-General may make regulations for the purposes of the Act.

The Act and the Retirement Savings Accounts Regulations 1997 (the Principal Regulations) prescribe a number of operating standards with which the providers of Retirement Savings Accounts (RSAs) must comply.

Specifically, the Principal Regulations require all post-June 1999 superannuation contributions to RSAs and investment earnings on amounts held in RSAs 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 from an RSA 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 from an RSA 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

Retirement Savings Accounts Amendment Regulations 2000 (No. 1)

Regulation 1 - Name of Regulations

The amending regulations are the Retirement Savings Accounts Amendment Regulations 2000 (No. 1).

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 Retirement Savings Accounts Regulations 1997

Regulation 3 provides that Schedule 1 amends the Retirement Savings Accounts Regulations 1997 (the Principal Regulations).

SCHEDULE 1        AMENDMENTS

Item 1 - Investment earnings taken to be unrestricted non-preserved benefits in certain circumstances

This item inserts new subregulations 4.17B(1)-(4) in the Principal Regulations. The effect of new subregulations 4.17B(1)-(4) is that an investment earning in relation to a benefit paid from an RSA 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 from an RSA in the form of a non-commutable 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 from an RSA in the form of a pension or an annuity.