Commonwealth Numbered Regulations - Explanatory Statements

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RETIREMENT SAVINGS ACCOUNTS AMENDMENT REGULATIONS 2002 (NO. 2) 2002 NO. 47

STATUTORY RULES 2002 No. 47

ISSUED BY THE AUTHORITY OF THE MINISTER FOR REVENUE AND ASSISTANT TREASURER

Retirement Savings Accounts Act 1997

Retirement Savings Accounts Amendment Regulations 2002 (No. 2)

Subsection 200(1) of the Retirement Savings Accounts Act 1997 (the RSA Act) provides that the Governor General may make regulations prescribing matters required or permitted by the RSA Act to be prescribed, or necessary or convenient to be prescribed, for carrying out or giving effect to the RSA Act.

The purpose of the Regulations is to amend the Retirement Savings Accounts Regulations 1997 to clarify the information and disclosure requirements for Retirement Savings Account (RSA) providers (such as banks and building societies) in respect of an RSA interest that is split between the person who holds the interest (the member spouse) and their spouse (the non-member spouse) upon their separation.

The Regulations are consequential to Part VIIIB of the Family Law Act 1975, inserted by the Family Law Legislation Amendment (Superannuation) Act 2001. Part VIIIB allows the member spouse to make an agreement with his or her non-member spouse to split the member spouse's superannuation interest between them upon separation. In the event that the parties are unable to agree, the Family Court will be able to order that the superannuation interest be split between them. Part VIIIB applies to all superannuation interests, including those that are held in an RSA. A superannuation payment that is liable to be split is referred to as a splittable payment. The Regulations:

•       introduce new definitions and modify others contained in the RSA Regulations in order to conform with the Family Law Legislation Amendment (Superannuation) Act 2001;

•       ensure that the information requirements concerning significant events are not triggered by an RSA provider giving effect to a payment split in respect of the RSA; and

•       modify the definition of a concerned person to include a non-member spouse as RSA providers are required to give certain information and documents to a concerned person on request.

Further amendments to the RSA Regulations are necessary to allow an RSA interest to be split and a separate interest to be created in the name of the non-member spouse. These further amendments will be made at a later date as they rely on an amendment to section 41 of the RSA Act which is currently before Parliament.

EXPLANATION OF PROVISIONS

Regulation 1 - Name of Regulations

This clause is a formal provision specifying the mode of citation of the Regulations.

Regulation 2 - Commencement

The Regulations will commence on gazettal.

Regulation 3 - Amendment of Retirement Savings Accounts Regulations 1997

This clause provides that the Retirement Savings Accounts Regulations 1997 (the RSA Regulations) are amended as set out in Schedule 1.

SCHEDULE 1 - AMENDMENTS

ITEMS 1 TO 3 - DEFINITIONS

Regulation 1.03 (1) of the RSA Regulations defines the terms used in the Regulations. Items 1 to 3 will introduce a number of new definitions. Where relevant, these terms will have the same meaning under both the Family Law Legislation Amendment (Superannuation) Act 2001 and the RSA Regulations.

Item 1 defines non-member spouse according to Part VIIIB of the Family Law Act 1975.

Item 2 defines payment split according to Part VIIIB of the Family Law Act 1975.

Item 3 defines RSA interest to ensure that an interest that a person has as the holder of an RSA does not include a reversionary interest.

ITEMS 4 TO 11 - INFORMATION REQUIREMENTS FOR AN RSA INTEREST THAT IS SUBJECT TO A PAYMENT SPLIT

Regulation 2.04 ensures that an RSA provider is not required to provide information to an RSA holder if the trustee does not have contact details for the RSA holder or is satisfied on reasonable grounds that the contact details that the RSA provider has for the RSA holder are incorrect. Item 4 adds a new subregulation to regulation 2.04 so that a non-member spouse in respect of an interest that is subject to a payment split is considered an RSA holder for the purposes of regulation 2.04.

Items 5 to 10 amend certain provisions contained in Division 2.5 of the RSA Regulations concerning the provision of information concerning significant events. The amendments ensure that the information requirements in Division 2.5 are not triggered by an RSA provider giving effect to a payment split in respect of the RSA.

Item 11 amends paragraph 2.34(3)(c) to ensure that a non-member spouse is a concerned person for the purposes of Regulations 2.34 and 2.35. Regulations 2.34 and 2.35 specify information and documents that must be given to a concerned person on request.