Australian Government

Federal Register of Legislation

Superannuation Industry (Supervision) Act 1993

In force

Administered by

Department of the Treasury

Superseded version

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View as made version

C2013C00392

27 June 2013 - 27 June 2013

Table of contents

Part 1—Preliminary
- Division 1—Preliminary
- Division 2—Interpretation
Part 2A—Licensing of trustees and groups of individual trustees
- Division 1—Object of this Part
  - 29A Object of this Part and the relationship of this Part to other provisions
- Division 2—Classes of RSE licences
  - 29B Classes of RSE licences
- Division 3—Applying for RSE licences
- Division 4—Grant of RSE licences
- Division 5—Conditions on RSE licences
- Division 6—Varying RSE licences
- Division 7—Cancelling RSE licences
- Division 9—Offences and self-incrimination
Part 2B—Registrable superannuation entities
- Division 1—Object of this Part
  - 29K Object etc. of this Part
- Division 2—Applying for registration
- Division 3—Registration
- Division 4—Cancelling registration
  - 29N Cancelling registration
Part 2C—MySuper
- Division 1—Object of this Part
  - 29R Object of this Part
- Division 2—Applying for authority
- Division 3—Authority
- Division 4—Cancelling authority
- Division 5—Fees rules for MySuper products
- Division 6—Offences
- Division 8—Other matters
Part 3—Operating standards
- Division 1—Object of Part
  - 30 Object of Part
- Division 2—Operating standards
- Division 3—Portability forms
  - 34A Portability forms
Part 3A—Prudential standards
- 34B Object of this Part
- 34C APRA may determine prudential standards
- 34D Relationship between prudential standards, this Act and the regulations
- 34E Notice of determination, variation or revocation of certain prudential standards
- 34F APRA to monitor prudential matters
Part 3B—Superannuation data and payment regulations and standards
- Division 1—Superannuation data and payment regulations and standards
- Division 2—Compliance with superannuation data and payment regulations and standards
- Division 3—Infringement notices
- Division 4—Information
  - Subdivision A—Correction and rectification of information
    - 34X Correction and rectification of information
  - Subdivision B—Register of information about certain funds and schemes
    - 34Y Register of information about certain funds and schemes
    - 34Z Trustees to provide information for inclusion in register
Part 4—Accounts, audit and reporting obligations for superannuation entities
- 35 Objects of Part
- 35A Accounting records (all superannuation entities)
- 35B Accounts and statements (self managed superannuation funds only)
- 35C Audit of accounts and statements (all superannuation entities)
- 35D Trustee to lodge annual returns (self managed superannuation funds only)
- 36 Trustee to give copy of audit report to APRA (registrable superannuation entities only)
Part 5—Notices about complying fund status
- Division 1—Objects and interpretation
  - 37 Objects of Part
  - 38 Meaning of entity
- Division 2—The Regulator may give notices about complying fund status
- Division 3—Complying fund status for tax purposes
Part 6—Provisions relating to governing rules of superannuation entities
- 51 Object of Part
- 52 Covenants to be included in governing rules
- 53 Covenants to repay amounts to beneficiaries in approved deposit funds
- 54 Prerequisites to variation of repayment period
- 55 Consequences of contravention of covenant
- 55A Rules about cashing benefits after death of members
- 55B Governing rules do not prevent giving effect to certain elections
- 55C Governing rules do not prevent transfer from pre-MySuper default option to MySuper product
- 56 Indemnification of trustee from assets of entity
- 57 Indemnification of directors of trustee from assets of entity
- 58 Trustee not to be subject to direction
- 59 Exercise of discretion by person other than trustee
- 60 Amendment of governing rules
- 60A Dismissal of trustee of public offer entity
Part 7—Provisions applying only to regulated superannuation funds
- 61 Object of Part
- 62 Sole purpose test
- 62A Self managed superannuation funds—investment in collectables and personal use assets
- 63 Certain regulated superannuation funds not to accept employer contributions in certain circumstances
- 64 Superannuation contributions—deductions from salary or wages to be remitted promptly
- 64A Compliance with determinations of the Superannuation Complaints Tribunal
- 65 Lending to members of regulated superannuation fund prohibited
- 66 Acquisitions of certain assets from members of regulated superannuation funds prohibited
- 67 Borrowing
- 67A Limited recourse borrowing arrangements
- 67B Limited recourse borrowing arrangements—replacement assets
- 68 Victimisation of trustees etc.
- 68A Conduct relating to fund membership
Part 8—In-house asset rules applying to regulated superannuation funds
- Division 1—Object and interpretation
- Division 2—Historical cost ratio of fund’s in-house assets
- Division 3—Market value ratio of fund’s in-house assets
- Division 3A—Limit on in-house assets of certain defined benefit funds
- Division 4—Enforcement
  - 84 In-house asset rules must be complied with
- Division 5—Anti-avoidance
  - 85 Prohibition of avoidance schemes
Part 9—Equal representation of employers and members—employer-sponsored funds
- 86 Object of Part
- 87 Consequences of non-compliance with this Part
- 88 This Part does not apply if acting trustee appointed under Part 17
- 89 Basic equal representation rules
- 90 Pre-1 July 1995 rules—funds with fewer than 200 members
- 91 Pre-1 July 1995 rules—funds with 200 or more members
- 92 Post-30 June 1995 rules—funds with more than 4, but fewer than 50, members
- 93 Post-30 June 1995 rules—funds with more than 49 members
- 93A A trustee who is an employer-sponsor of a fund may still be an independent trustee
Part 10—Provisions applying only to approved deposit funds
- 94 Object of Part
- 95 Borrowing
Part 11—Provisions applying only to pooled superannuation trusts
- 96 Object of Part
- 97 Borrowing
- 98 Lending to unit-holders prohibited
- 99 Civil penalty provisions
Part 11A—General fees rules
- 99A Application
- 99B No entry fees
- 99C Buy-sell spreads, switching fees and exit fees to be charged on a cost recovery basis
- 99D Cost of advice to employers not to be borne by members
- 99E Fair and reasonable attribution of costs between classes of beneficial interest in a regulated superannuation fund
- 99F Cost of financial product advice
Part 12—Duties of trustees and investment managers of superannuation entities
- 100 Object of Part
- 101 Duty to establish arrangements for dealing with inquiries or complaints
- 102 Duty to seek information from investment manager
- 103 Duty to keep minutes and records
- 104 Duty to keep records of changes of trustees
- 104A Trustees etc. of self managed superannuation fund—recognition of obligations and responsibilities
- 105 Duty to keep reports
- 106 Duty to notify the Regulator of significant adverse events
- 106A Duty to notify Commissioner of Taxation of change in status of entity
- 107 Duty of trustee of employer-sponsored fund to establish procedure for appointing member representatives
- 108 Duty of trustee of employer-sponsored fund to establish procedure for appointing independent trustee or independent member of board of directors of corporate trustee
- 109 Investments of superannuation entity to be made and maintained on arm’s length basis
Part 14—Other provisions applying to superannuation entities
- 114 Object of Part
- 115 Trustee of superannuation entity may maintain reserves
- 116 Agreement between trustee and investment manager
- 117 Circumstances in which amounts may be paid out of an employer-sponsored fund to an employer-sponsor
- 118 Consents to appointments
Part 15—Standards for trustees, custodians and investment managers of superannuation entities
- Division 1—Object of Part and definition of disqualified person
  - 119 Object of Part
  - 120 Disqualified persons
- Division 2—Requirements for custodians and investment managers
- Division 3—Disqualified persons
- Division 4—Non-compliance not to invalidate appointment or transaction
  - 127 Non-compliance not to invalidate appointment or transaction
Part 16—Actuaries and auditors of superannuation entities
- Division 1—Object of Part
  - 128 Object of Part
- Division 1A—Approved SMSF auditors
- Division 2—Obligations of actuaries and auditors
- Division 3—Disqualifying and removing actuaries and auditors
- Division 4—Offences and failure to carry out duties etc.
Part 17—Suspension or removal of trustee of superannuation entity
- 132 Object of Part
- 133 Suspension or removal of trustee of superannuation entity
- 134 APRA to appoint acting trustee in cases of suspension or removal
- 135 Terms and conditions of appointment of acting trustee
- 136 Termination of appointment of acting trustee
- 137 Resignation of acting trustee
- 138 Property vesting orders
- 139 Powers of acting trustee
- 140 Acting trustee to notify appointment to beneficiaries
- 141 The Regulator may give directions to acting trustee
- 141A Property vested in acting trustee—former trustee’s obligations relating to books, identification of property and transfer of property
- 142 The Regulator may formulate a scheme for the winding-up or dissolution, or both, of a superannuation entity
Part 18—Amalgamation of funds
- 143 Object of Part
- 144 Benefits may be transferred to a new fund with APRA’s approval etc.
- 145 Application for approval of transfer
- 146 Approval of transfer
- 147 Cessation of rights against transferor fund
Part 19—Public offer entities: provisions relating to superannuation interests
- Division 1—Preliminary
  - 151 Contravention of Part does not affect validity of issue of superannuation interest etc.
- Division 2—Issuing, offering etc. superannuation interests in public offer entities
Part 21—Civil and criminal consequences of contravening civil penalty provisions
- Division 1—Preliminary
- Division 2—Civil penalty orders
- Division 3—Criminal proceedings
  - 202 When contravention of civil penalty provisions is an offence
  - 203 Application for civil penalty order precludes later criminal proceedings
- Division 4—Effect of criminal proceedings on application for civil penalty order
- Division 5—Compensation for loss suffered by superannuation entity
- Division 6—Miscellaneous
  - 221 Relief from liability for contravention of civil penalty provision
  - 222 Part does not limit power to award punitive damages
Part 23—Financial assistance to certain funds
- Division 1—Preliminary
- Division 2—Determination of applications for financial assistance
- Division 3—Repayment of financial assistance
Part 24—Facility to pay benefits to eligible rollover funds
- 241 Object of Part
- 242 Interpretation
- 243 Payment of benefits to eligible rollover fund
- 244 Operating standards for transferor funds—information and records
- 248 Claims for benefits
Part 24A—Transitional provisions relating to pre-1 July 1995 automatic rollovers of benefits between funds
- 249 Object of Part
- 250 Definitions
- 251 Rights of beneficiary to rolled-over benefits
- 252 Claims to rolled-over benefits
Part 24B—Provisions relating to the administration by APRA and the Commissioner of Taxation of superannuation funds with fewer than 5 members
- Division 1—Monitoring of superannuation funds with fewer than 5 members
  - 252A APRA or Commissioner of Taxation may request certain information
  - 252B Contravention notices
- Division 3—Transitional and savings provisions relating to the regulation of self managed superannuation funds by the Commissioner of Taxation
Part 25—Monitoring and investigation
- Division 1—Preliminary
  - 253 Objects of Part
  - 253A Notices may be given to former relevant persons
- Division 2—Monitoring
- Division 3—APRA may require trustee of superannuation entity to appoint an individual, or a committee, to investigate the financial position of the entity
- Division 3A—Regulator may accept and enforce undertakings
  - 262A Acceptance and enforcement of undertakings
- Division 4—Investigations by Regulator
- Division 5—Examinations
- Division 6—Reports
  - 284 Report of inspector
- Division 7—Offences
- Division 8—Evidentiary use of certain material
- Division 9—Miscellaneous
Part 25A—Tax file numbers
- Division 1—Quotation of employee’s tax file number
- Division 2—Quotation, use and transfer of beneficiary’s tax file number
- Division 3—Method of quotation of tax file numbers, including deemed quotation
- Division 3A—Commissioner of Taxation may issue notices about tax file numbers
- Division 4—Provision of tax file numbers in forms etc.
  - 299U Forms etc. may require tax file number
  - 299V Failure to quote tax file number
- Division 5—General
Part 26—Offences relating to statements, records etc.
- 300 Object of Part
- 301 Interpretation
- 303 Incorrectly keeping records etc.
- 306 Incorrectly keeping or making records etc.
- 307 Incorrectly keeping records with intention of deceiving or misleading etc.
- 308 Falsifying or concealing identity with intention of deceiving or misleading etc.
Part 27—Powers of Court
- 309 Object of Part
- 310 Power to grant relief
- 311 Power of Court to give directions with respect to meetings ordered by the Court
- 312 Irregularities
- 313 Power of Court to prohibit payment or transfer of money or property
- 314 Court may order the disclosure of information or the publication of advertisements—contravention of provisions relating to issue of superannuation interests etc.
- 315 Injunctions
- 316 Effect of sections 313, 314 and 315
- 317 Power of Court to punish for contempt of court
- 318 Court may resolve transitional difficulties
Part 28—Proceedings
- 319 Object of Part
- 320 Power of Regulator to intervene in proceedings
- 321 Civil proceedings not to be stayed
- 322 Standard of proof
- 323 Relief from civil liability for contravention of certain provisions
- 324 Evidence of contravention
- 324A Time for instituting criminal proceedings
- 325 Vesting of property
Part 29—Exemptions and modifications
- 326 Object of Part
- 327 Interpretation
- 328 Regulator’s powers of exemption—modifiable provisions
- 330 Regulator’s powers of exemption—general issues
- 331 Enforcement of conditions to which exemption is subject
- 332 Regulator’s powers of modification—modifiable provisions
- 334 Regulator’s powers of modification—general issues
- 335 Variation and revocation of exemptions and modifications
- 336 Notice of exemptions and modifications
Part 29A—Protections in relation to information
- Division 1—Protection for whistleblowers
- Division 2—Self-incrimination
  - 336F Self-incrimination
Part 29B—Employers to give information about superannuation contributions
- 336J Object of this Part
- 336JA Requirement to give information
- 336JB Requirement is a civil remedy provision under the Fair Work Act
- 336JC Geographical application of this Part
- 336JD Compliance with the requirement
- 336JE Disclosing information relating to this Part
- 336JF Alternative constitutional basis
Part 30—Miscellaneous
- 337 Object of Part
- 337A Trustee may give effect to award made under arbitration agreement
- 338 Conduct by directors, servants and agents
- 338A Liability of trustees required to ensure thing occurs
- 339 Conviction does not relieve defendant from civil liability
- 341 Civil immunity where defendant was complying with this Act
- 342 Pre-1 July 88 funding credits and debits
- 343 Rules against perpetuities not to apply to superannuation entity
- 344 Review of certain decisions
- 345 Statements to accompany notification of decisions
- 347 How information may be given to the Commissioner of Taxation
- 347A The Regulator may collect statistical information
- 348 The Regulator may publish statistical information
- 349 This Act and the regulations to be subject to certain superannuation orders
- 349A Payment out of a fund in accordance with the Bankruptcy Act 1966
- 349B Acquisition of property
- 350 Concurrent operation of State/Territory laws
- 351 Additional functions of the Chief Executive Medicare
- 353 Regulations
Part 32—Additional transitional provisions—tax file numbers
- 381 Object of Part
- 382 Quotation of tax file number
- 383 Pre-1 July 1994 quotation of tax file number to be treated as if made under provisions commencing on 1 July 1994
- 384 Pre-1 July 1994 quotation of tax file number—request for quotation, or recording, of number not prohibited by the Taxation Administration Act 1953
- 385 Pre-1 July 1994 quotation of tax file number—objects of tax file number system
Part 33—Additional transitional provisions relating to MySuper
- Division 1—Moving accrued default amounts to MySuper products
- Division 2—Miscellaneous
  - 389 Prudential standards dealing with transitional matters
  - 390 Regulations dealing with transitional, savings and application matters
Endnotes
- Endnote 1—Legislation history
- Endnote 2—Amendment history
- Endnote 3—Uncommenced amendments
- Endnote 4—Misdescribed amendments
- Endnote 5—Modifications