Select Legislative Instrument 2007 No. 331

Subject - Superannuation Industry (Supervision) Act 1993

Superannuation Industry (Supervision) Amendment Regulations 2007
(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 Superannuation Industry (Supervision) Regulations 1994 (the Principal Regulations) set out the contribution and benefit accrual standards, set out a member’s minimum benefit and prescribe those schemes which are exempt public sector superannuation schemes.

The purpose of the Regulations is to declare an Australian Capital Territory (ACT) superannuation scheme as an exempt public sector superannuation scheme (EPSSS) to enable scheme members to benefit from the Government’s Simplified Superannuation reforms announced in the 5 September 2006 statement A Plan to Simplify and Streamline Superannuation – Outcomes of Consultation.

Under the Income Tax Assessment Act 1997, superannuation income streams paid to members aged 60 or more are eligible for a 10 per cent tax offset, if they are paid from an untaxed complying superannuation fund or public sector superannuation scheme. A public sector superannuation scheme is either a regulated superannuation fund or an EPSSS.

For the purposes of the definition of an EPSSS, specific schemes are listed in the Principal Regulations.

The Supreme Court Act 1933 (ACT) makes provision for the payment of superannuation income streams to former members of the ACT judiciary. These payments are made from an untaxed scheme. Before these regulations commenced, the scheme established under the Supreme Court Act 1933 was neither a regulated superannuation fund nor listed as an EPSSS.

The Regulations list the scheme as an EPSSS to enable recipients of superannuation income streams paid in accordance with the Supreme Court Act 1933 to access the 10 per cent tax offset.

Details of the Regulations are set out in the Attachment A.

The Act specifies no conditions that need to be met before the power to make the proposed Regulations may be exercised.

The Regulations commenced on the day after they were registered on the Federal Register of Legislative Instruments.

The Regulations are a legislative instrument for the purposes of the Legislative Instruments Act 2003.

Authority: Subsection 353(1) of the

Income Tax Assessment Act 1997

ATTACHMENT A

Details of Superannuation Industry (Supervision) Amendment Regulations 2007 (No. 4)

Regulation 1 specifies the name of the regulations as the Superannuation Industry (Supervision) Amendment Regulations 2007 (No. 4).

Regulation 2 provides that the regulations commence on the day after they are registered.

Regulation 3 provides that Schedule 1 amends the Superannuation Industry (Supervision) Regulations 1994 (SISR).

Schedule 1 Amendments

Item 1 prescribes the Supreme Court Act 1933 (ACT) in Part 3 of Schedule 1AA to the SISR. As a consequence, the scheme established under the Supreme Court Act 1933 is an exempt public sector superannuation scheme. This provides recipients (aged 60 and above) of superannuation income streams paid in accordance with the Supreme Court Act 1933 with access to the 10 per cent tax offset available under the Income Tax Assessment Act 1997.