Northern Territory Explanatory Statements

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LEGISLATIVE ASSEMBLY MEMBERS' SUPERANNUATION CONTRIBUTIONS AMENDMENT BILL 2015

This Bill amends the Legislative Assembly Members’ Superannuation Contributions Act.

The purpose of this Bill is to allow Members of the Legislative Assembly to nominate a self managed superannuation fund (‘SMSF’) for employer and employee superannuation contributions.

NOTES ON CLAUSES

Clause 1. Short Title

This is a formal clause which provides for the citation of the Bill. The Bill when passed will be cited as the Legislative Assembly Members’ Superannuation Contributions Amendment Act (‘the Act’).

Clause 2. Commencement

This clause provides for the commencement of the Amendment Act on the day fixed by the Administrator by Gazette notice.

Clause 3. Act amended

Clause 4. Section 3 amended

This clause amends Section 3 of the Act to omit the definition of SMSF.

Clause 5. Section 7 amended

This clause amends Section 7(2)(a) to omit the exclusion of SMSFs, allowing Members of the Legislative Assembly to choose a SMSF for employer and employee superannuation contributions.

Clause 6. Section 9 amended

This clause omits Section 9(f) that stated for the purposes of the Act if a nominated superannuation fund became a SMSF, the fund ceased to be a valid choice of fund under the act.

The clause amends Section 9 to allow SMSFs to remain a valid choice of fund for Members of the Legislative Assembly.

Clause 7. Schedule 10 amended

This clause amends Section 10(2)(a)(i) to omit the exclusion of SMSFs for a variation of superannuation fund choice under the Act.

Clause 8. Schedule 12 amended

This clause amends Section 10(2)(a)(i) to omit the express exclusion of SMSFs for an elected or re-elected Member, when the Clerk provides written notice outlining the operation of the Act.

Clause 9. Schedule 13 amended

This clause inserts Section 13(9) providing a referential definition of SMSF to the ‘same meaning as in the Superannuation Industry (Supervision) Act 1993 (Cth)’.

A declared default fund by the Minister must not only be a complying superannuation fund, but as the default fund for all individuals eligible to receive contributions, the fund must be accessible and open to membership to all potential eligible recipients of contributions. It is therefore necessary to exclude the Section 13(2) exclusion of SMSFs for a declaration of the default fund for the purposes of the Act.

Clause 10. Expiry of Act

This clause provides that the Bill will expire on the day after it commences.

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