EXPLANATORY STATEMENT

SELECT LEGISLATIVE INSTRUMENT 2005 No. 143

 

Issued by authority of the Minister for Revenue
and Assistant Treasurer

Superannuation Industry (Supervision) Act 1993

Superannuation Industry (Supervision) Amendment Regulations 2005 (No. 4)

Subsection 353(1) of the Superannuation Industry (Supervision)Act 1993 (the Act) provides, in part, that the Governor-General may make regulations prescribing matters required or permitted by the Act to be prescribed, or necessary or convenient to be prescribed for carrying out or giving effect to the Act.

The purpose of the Regulations is to extend the transitional arrangements provided in subregulation 9.04I(3) of the Superannuation Industry (Supervision) Regulations 1994.  These transitional arrangements provide an exception from regulation 9.04I that prohibits regulated superannuation funds with fewer than fifty members (small superannuation funds) from providing defined benefit pensions.

Subregulation 9.04I(3) allows retiring members of small superannuation funds to continue with plans to commence a defined benefit pension through their fund from 12 May 2004 until 1 July 2005 (transitional period).  The Regulations extend the end of the transitional period until 1 January 2006.

The extended transitional period enables retiring members of small superannuation funds to have access to a full range of pensions while the Government considers the outcomes of the ‘Review of the provision of pensions in small superannuation funds’.

Details of the Regulations are set out in the Attachment.

The Regulations are a legislative instrument for the purposes of the Legislative Instruments Act 2003.  Consultation was not undertaken in relation to this instrument because it is minor or machinery in nature and does not substantially change the law.

 

ATTACHMENT

Superannuation Industry (Supervision) Amendment Regulations 2005 (No. 4)

Regulation 1 – Name of the Regulations

This specifies that the Regulations are the Superannuation Industry (Supervision) Amendment Regulations 2005 (No. 4).

Regulation 2 – Commencement

This provides that the Regulations commence on the day after they are registered.

Regulation 3 – Amendment of the Superannuation Industry (Supervision) Regulations 1994

This provides that Schedule 1 amends the Superannuation Industry (Supervision) Regulations 1994 (the Principal Regulations).

Schedule 1 – Amendments

Item 1 amends subregulation 9.04I(3) of the Principal Regulations to extend the end of the transitional period in subregulation 9.04I(3) from 1 July 2005 until                    1 January 2006.  This permits a regulated superannuation fund with fewer than fifty members to provide a defined benefit pension to a person who was a member of the fund on 11 May 2004, and who retires from the workforce on or after age 55, or attains age 65, before 1 January 2006.  The member must become entitled to be paid the defined benefit pension before 1 January 2006 and the first pension payment must be made within 12 months after the day when the member became entitled to be paid the pension.