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Act No. 140 of 1994 as made
An Act to amend the law relating to superannuation
Administered by: Treasury
Date of Assent 28 Nov 1994
Date of repeal 10 Mar 2016
Repealed by Amending Acts 1990 to 1999 Repeal Act 2016
 

SUPERANNUATION INDUSTRY (SUPERVISION) LEGISLATION AMENDMENT ACT 1994 No. 140, 1994

Making Information
- Assented to 28 November 1994

SUPERANNUATION INDUSTRY (SUPERVISION) LEGISLATION AMENDMENT ACT 1994 No. 140, 1994 - TABLE OF PROVISIONS

TABLE OF PROVISIONS
PART 1-PRELIMINARY
Section
1. Short title
2. Commencement
PART 2-AMENDMENT OF THE SUPERANNUATION INDUSTRY
(SUPERVISION) ACT 1993
Division 1-Principal Act
3. Principal Act
Division 2-Amendments relating to the rules of
approved deposit funds
4. Object
5. Definitions
6. Application
Division 3-Amendments relating to non-bank financial institutions
7. Objects
8. Definitions
9. Meaning of "in-house asset"
Division 4-Amendments relating to the purposes for which
an approved deposit fund may be maintained
10. Object
11. Definitions
Division 5-Amendments relating to the meaning of the expressions
"private sector fund" and "public sector fund"
12. Object
13. Definitions
Division 6-Amendments to make technical corrections to the
definition of "reviewable decision"
14. Object
15. Definitions
16. Application
Division 7-Amendments relating to applications for the issue of
superannuation interests and applications to become a standard
employer-sponsor
17. Object
18. Trustee must not issue interests, or permit persons to become
standard employer-sponsors, except pursuant to applications
Division 8-Amendments relating to arm's length investments of
superannuation entities
19. Object
20. Investments of superannuation entity to be made on arm's
length basis
Division 9-Amendment relating to rollover of benefits between
superannuation funds
21. Object
22. What happens if benefits are below minimum amount
Division 10-Amendments relating to the validity of the
governing rules of superannuation entities
23. Object
24. Trustee not to be subject to direction
25. Exercise of discretion by person other than trustee
Division 11- Amendments relating to the rule prohibiting a
superannuation fund from acquiring assets from its members
26. Object
27. Acquisitions of certain assets from members of regulated
superannuation funds prohibited
Division 12-Amendments relating to the representation of employers
and members in relation to the management and control of standard
employer-sponsored funds
28. Object
29. Pre-1 July 1995 rules-funds with 200 or more members
30. Post-30 June 1995 rules-funds with more than 4, but fewer
than 50, members
31. Post-30 June 1995 rules-funds with more than 49 members
Division 13- Amendment relating to the transition to the
superannuation industry supervision scheme
32. Object
33. Existing trustee may give notice of retirement
Division 14-Amendments relating to the disclosure of information
34. Objects
35. Secrecy
Division 15-Amendments relating to the payment of amounts
equal to the interests of beneficiaries in approved
deposit funds
36. Object
37. Definitions
38. Approved deposit funds-payments by trustees

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39. Covenants to repay amounts to beneficiaries in approved
deposit funds
Division 16-Amendments relating to rights in respect of benefits
that have been automatically rolled-over between funds
40. Object
41. Rights of beneficiary to rolled-over benefits
Division 17-Amendment relating to custodians of
superannuation entities
42. Object
43. Insertion of new section:
126A. Disqualified persons not to be custodians of
superannuation entities
Division 18-Amendment relating to the removal of trustees of
public offer entities
44. Object
45. Insertion of new section:
60A. Dismissal of trustee of public offer entity
Division 19-Amendment relating to arrangements for dealing with
inquiries or complaints
46. Object
47. Duty to establish arrangements for dealing with inquiries or
complaints
Division 20-Application of certain amendments
48. Application
PART 3-AMENDMENT OF THE SUPERANNUATION (RESOLUTION OF
COMPLAINTS) ACT 1993
Division 1-Principal Act
49. Principal Act
Division 2-Technical correction
50. Object
51. Interpretation
Division 3-Amendments relating to exempt public sector
superannuation schemes
52. Objects
53. Insertion of new section:
4A. Act applies to certain exempt public sector
superannuation schemes
54. Functions

SUPERANNUATION INDUSTRY (SUPERVISION) LEGISLATION AMENDMENT ACT 1994 No. 140, 1994 - LONG TITLE

An Act to amend the law relating to superannuation

SUPERANNUATION INDUSTRY (SUPERVISION) LEGISLATION AMENDMENT ACT 1994 No. 140, 1994 - PART 1
PART 1-PRELIMINARY

SUPERANNUATION INDUSTRY (SUPERVISION) LEGISLATION AMENDMENT ACT 1994 No. 140, 1994 - SECT 1
Short title

1. This Act may be cited as the Superannuation Industry (Supervision) Legislation Amendment Act 1994.

(Minister's second reading speech made in-
Senate on 5 May 1994
House of Representatives on 20 October 1994)

SUPERANNUATION INDUSTRY (SUPERVISION) LEGISLATION AMENDMENT ACT 1994 No. 140, 1994 - SECT 2
Commencement

2. (1) Subject to this section, this Act commences on the day on which it receives the Royal Assent.

(2) Divisions 5, 12 and 15 of Part 2 are taken to have commenced on 1 December 1993.

(3) Divisions 7, 8, 11 and 17 of Part 2 commence on the twenty-eighth day after the day on which this Act receives the Royal Assent.

(4) Divisions 1 and 2 of Part 3 commence, or are taken to have commenced, as the case requires, immediately after the commencement of the Superannuation (Resolution of Complaints) Act 1993.

SUPERANNUATION INDUSTRY (SUPERVISION) LEGISLATION AMENDMENT ACT 1994 No. 140, 1994 - PART 2
PART 2-AMENDMENT OF THE SUPERANNUATION INDUSTRY
(SUPERVISION) ACT 1993

SUPERANNUATION INDUSTRY (SUPERVISION) LEGISLATION AMENDMENT ACT 1994 No. 140, 1994 - DIVISION 1
Division 1-Principal Act

SUPERANNUATION INDUSTRY (SUPERVISION) LEGISLATION AMENDMENT ACT 1994 No. 140, 1994 - SECT 3
Principal Act

3. In this Part, "Principal Act" means the Superannuation Industry (Supervision) Act 1993*1*.
*1* No. 78, 1993, as amended. For further amendments, see No. 118, 1993.

SUPERANNUATION INDUSTRY (SUPERVISION) LEGISLATION AMENDMENT ACT 1994 No. 140, 1994 - DIVISION 2
Division 2-Amendments relating to the rules of approved
deposit funds

SUPERANNUATION INDUSTRY (SUPERVISION) LEGISLATION AMENDMENT ACT 1994 No. 140, 1994 - SECT 4
Object

4. The object of this Division is to abolish the requirement for approved
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deposit funds to have approved rules.

SUPERANNUATION INDUSTRY (SUPERVISION) LEGISLATION AMENDMENT ACT 1994 No. 140, 1994 - SECT 5
Definitions

5. Section 10 of the Principal Act is amended:
(a) by omitting "and" from the end of paragraph (b) of the definition of "approved deposit fund";
(b) by omitting paragraph (c) of the definition of "approved deposit fund";
(c) by omitting the definition of "approved rules".

SUPERANNUATION INDUSTRY (SUPERVISION) LEGISLATION AMENDMENT ACT 1994 No. 140, 1994 - SECT 6
Application

6. The amendments made by this Division apply in determining whether a fund is an approved deposit fund at any time after the commencement of this section.

SUPERANNUATION INDUSTRY (SUPERVISION) LEGISLATION AMENDMENT ACT 1994 No. 140, 1994 - DIVISION 3
Division 3-Amendments relating to non-bank financial institutions

SUPERANNUATION INDUSTRY (SUPERVISION) LEGISLATION AMENDMENT ACT 1994 No. 140, 1994 - SECT 7
Objects

7. The objects of this Division are:
(a) to allow approved guarantees to be given by approved non-bank financial institutions; and
(b) to exclude deposits with approved non-bank financial institutions from the definition of "in-house asset".

SUPERANNUATION INDUSTRY (SUPERVISION) LEGISLATION AMENDMENT ACT 1994 No. 140, 1994 - SECT 8
Definitions

8. Section 10 of the Principal Act is amended:
(a) by omitting the definition of "approved guarantee" and substituting the following definition:
" 'approved guarantee' means:
(a) a guarantee given by an approved bank; or
(b) a guarantee given by an approved non-bank financial institution; or
(c) a guarantee given by or on behalf of the Commonwealth, a State or a Territory;";
(b) by inserting the following definition:
" 'approved non-bank financial institution' means a society, or a special services provider, within the meaning of any of the following codes:
(a) the Financial Institutions (NSW) Code of New South Wales;
(b) the Financial Institutions (Victoria) Code of Victoria;
(c) the Financial Institutions (Queensland) Code of Queensland;
(d) the Financial Institutions (Western Australia) Code of Western Australia;
(e) the Financial Institutions (South Australia) Code of South Australia;
(f) the Financial Institutions (Tasmania) Code of Tasmania;
(g) the Financial Institutions (ACT) Code of the Australian Capital Territory;
(h) the Financial Institutions (NT) Code of the Northern Territory;
but does not include:
(i) a society (within the meaning of any of those codes) that is specified in the regulations; or
(j) a special services provider (within the meaning of any of those codes) that is specified in the regulations;".

SUPERANNUATION INDUSTRY (SUPERVISION) LEGISLATION AMENDMENT ACT 1994 No. 140, 1994 - SECT 9
Meaning of "in-house asset"

9. Section 71 of the Principal Act is amended by inserting after paragraph (1)(b) the following paragraph:
"(ba) a deposit with an approved non-bank financial institution; or".

SUPERANNUATION INDUSTRY (SUPERVISION) LEGISLATION AMENDMENT ACT 1994 No. 140, 1994 - DIVISION 4
Division 4-Amendments relating to the purposes for which an
approved deposit fund may be maintained

SUPERANNUATION INDUSTRY (SUPERVISION) LEGISLATION AMENDMENT ACT 1994 No. 140, 1994 - SECT 10
Object

10. The object of this Division is to enable the Commissioner to extend the purposes for which an approved deposit fund may be maintained.

SUPERANNUATION INDUSTRY (SUPERVISION) LEGISLATION AMENDMENT ACT 1994 No. 140, 1994 - SECT 11
Definitions

11. Section 10 of the Principal Act is amended:
(a) by omitting "the purposes of" from the definition of "approved purposes";
(b) by inserting "the purpose of" before "receiving" in paragraph (a) of the definition of "approved purposes";
(c) by inserting "the purpose of" before "dealing" in paragraph (b) of the definition of "approved purposes";
(d) by adding at the end of the definition of "approved purposes" the following word and paragraph:
"and (d) such other purposes (if any) as the Commissioner approves in writing;".

SUPERANNUATION INDUSTRY (SUPERVISION) LEGISLATION AMENDMENT ACT 1994 No. 140, 1994 - DIVISION 5
Division 5-Amendments relating to the meaning of the
expressions "private sector fund" and "public sector fund"

SUPERANNUATION INDUSTRY (SUPERVISION) LEGISLATION AMENDMENT ACT 1994 No. 140, 1994 - SECT 12
Object

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12. The object of this Division is to confirm that the expressions "private sector fund" and "public sector fund" are confined to funds covered by paragraph (a) of the definition of "superannuation fund" in section 10 of the Principal Act.

SUPERANNUATION INDUSTRY (SUPERVISION) LEGISLATION AMENDMENT ACT 1994 No. 140, 1994 - SECT 13
Definitions

13. Section 10 of the Principal Act is amended:
(a) by inserting "covered by paragraph (a) of the definition of 'superannuation fund'," before "other than" in the definition of "private sector fund";
(b) by omitting from the definition of "public sector fund" all the words after "superannuation fund" and substituting the following words and paragraphs:
"that is:
(a) covered by paragraph (a) of the definition of 'superannuation fund'; and
(b) part of a public sector superannuation scheme;".

SUPERANNUATION INDUSTRY (SUPERVISION) LEGISLATION AMENDMENT ACT 1994 No. 140, 1994 - DIVISION 6
Division 6-Amendments to make technical corrections to the
definition of "reviewable decision"

SUPERANNUATION INDUSTRY (SUPERVISION) LEGISLATION AMENDMENT ACT 1994 No. 140, 1994 - SECT 14
Object

14. The object of this Division is to make technical corrections to the definition of "reviewable decision".

SUPERANNUATION INDUSTRY (SUPERVISION) LEGISLATION AMENDMENT ACT 1994 No. 140, 1994 - SECT 15
Definitions

15. Section 10 of the Principal Act is amended:
(a) by omitting "18(5) or (6)" from paragraph (a) of the definition of "reviewable decision" and substituting "18(6) or (7)";
(b) by omitting "18(9)" from paragraph (b) of the definition of "reviewable decision" and substituting "18(10)".

SUPERANNUATION INDUSTRY (SUPERVISION) LEGISLATION AMENDMENT ACT 1994 No. 140, 1994 - SECT 16
Application

16. The amendments made by this Division apply to decisions made before or after the commencement of this section.

SUPERANNUATION INDUSTRY (SUPERVISION) LEGISLATION AMENDMENT ACT 1994 No. 140, 1994 - DIVISION 7
Division 7-Amendments relating to applications for the issue of
superannuation interests and applications to become a standard
employer-sponsor

SUPERANNUATION INDUSTRY (SUPERVISION) LEGISLATION AMENDMENT ACT 1994 No. 140, 1994 - SECT 17
Object

17. The object of this Division is to regulate the following types of applications:
(a) an application for the issue of a superannuation interest in a public offer entity;
(b) an application to become a standard employer-sponsor of a public offer entity.

SUPERANNUATION INDUSTRY (SUPERVISION) LEGISLATION AMENDMENT ACT 1994 No. 140, 1994 - SECT 18
Trustee must not issue interests, or permit persons to become standard
employer-sponsors, except pursuant to applications

18. Section 153 of the Principal Act is amended:
(a) by inserting in subsections (1) and (2) "eligible" before "application";
(b) by adding at the end the following subsections:
"(3) For the purposes of this section, an application is an eligible application if:
(a) the application was made in writing on a form made available by or on behalf of the trustee; and
(b) the form is in accordance with the requirements (if any) specified in a determination made under subsection (4); and
(c) when the applicant received the form, the applicant also received such additional information (if any) and such additional documents (if any) as are required by a determination made under subsection (4).
"(4) The Commissioner may make a written determination for the purposes of subsection (3).
"(5) An instrument under subsection (4) is a disallowable instrument for the purposes of section 46A of the Acts Interpretation Act 1901.".

SUPERANNUATION INDUSTRY (SUPERVISION) LEGISLATION AMENDMENT ACT 1994 No. 140, 1994 - DIVISION 8
Division 8-Amendments relating to arm's length investments of
superannuation entities

SUPERANNUATION INDUSTRY (SUPERVISION) LEGISLATION AMENDMENT ACT 1994 No. 140, 1994 - SECT 19
Object

19. The object of this Division is to ensure that the parties to an investment transaction of a superannuation entity can deal with each other otherwise than at arm's length so long as the terms and conditions of the relevant transaction are no more favourable than those which it is reasonable to expect would apply if the parties were dealing with each other at arm's length.

SUPERANNUATION INDUSTRY (SUPERVISION) LEGISLATION AMENDMENT ACT 1994 No. 140, 1994 - SECT 20
Investments of superannuation entity to be made on arm's length basis

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20. Section 109 of the Principal Act is amended by omitting subsection (1) and substituting the following subsection:
"(1) The trustee or investment manager of a superannuation entity must not invest money of the entity unless:
(a) the trustee or investment manager, as the case may be, and the other party to the relevant transaction are dealing with each other at arm's length in respect of the transaction; or
(b) both:
(i) the trustee or investment manager, as the case may be, and the
other party to the relevant transaction are not dealing with each other at arm's length in respect of the transaction; and
(ii) the terms and conditions of the transaction are no more
favourable to the other party than those which it is reasonable to expect would apply if the trustee or investment manager, as the case may be, were dealing with the other party at arm's length in the same circumstances.".

SUPERANNUATION INDUSTRY (SUPERVISION) LEGISLATION AMENDMENT ACT 1994 No. 140, 1994 - DIVISION 9
Division 9-Amendment relating to rollover of benefits between
superannuation funds

SUPERANNUATION INDUSTRY (SUPERVISION) LEGISLATION AMENDMENT ACT 1994 No. 140, 1994 - SECT 21
Object

21. The object of this Division is to modify the test for determining the minimum threshold for automatic rollover of benefits between funds.

SUPERANNUATION INDUSTRY (SUPERVISION) LEGISLATION AMENDMENT ACT 1994 No. 140, 1994 - SECT 22
What happens if benefits are below minimum amount

22. Section 248 of the Principal Act is amended by omitting paragraph (b) and substituting the following paragraph:
"(b)the amount concerned is less than the minimum amount ascertained in accordance with the regulations;".

SUPERANNUATION INDUSTRY (SUPERVISION) LEGISLATION AMENDMENT ACT 1994 No. 140, 1994 - DIVISION 10
Division 10-Amendments relating to the validity of the
governing rules of superannuation entities

SUPERANNUATION INDUSTRY (SUPERVISION) LEGISLATION AMENDMENT ACT 1994 No. 140, 1994 - SECT 23
Object

23. The object of this Division is to ensure that the governing rules of a superannuation entity are only invalid to the extent of any inconsistency with subsections 58(1) and 59(1) of the Principal Act.

SUPERANNUATION INDUSTRY (SUPERVISION) LEGISLATION AMENDMENT ACT 1994 No. 140, 1994 - SECT 24
Trustee not to be subject to direction

24. Section 58 of the Principal Act is amended by omitting subsection (3) and substituting the following subsection:
"(3) If the governing rules of a superannuation entity are inconsistent with subsection (1), that subsection prevails, and the governing rules are, to the extent of the inconsistency, invalid.".

SUPERANNUATION INDUSTRY (SUPERVISION) LEGISLATION AMENDMENT ACT 1994 No. 140, 1994 - SECT 25
Exercise of discretion by person other than trustee

25. Section 59 of the Principal Act is amended by omitting subsection (2) and substituting the following subsection:
"(2) If the governing rules of a superannuation entity are inconsistent with subsection (1), that subsection prevails, and the governing rules are, to the extent of the inconsistency, invalid.".

SUPERANNUATION INDUSTRY (SUPERVISION) LEGISLATION AMENDMENT ACT 1994 No. 140, 1994 - DIVISION 11
Division 11-Amendments relating to the rule prohibiting a
superannuation fund from acquiring assets from its members

SUPERANNUATION INDUSTRY (SUPERVISION) LEGISLATION AMENDMENT ACT 1994 No. 140, 1994 - SECT 26
Object

26. The object of this Division is to allow an excluded superannuation fund to acquire real property used in a business carried on by a member, or a relative of a member, only if the business is the principal business of the member or of the relative, as the case requires.

SUPERANNUATION INDUSTRY (SUPERVISION) LEGISLATION AMENDMENT ACT 1994 No. 140, 1994 - SECT 27
Acquisitions of certain assets from members of regulated superannuation funds prohibited

27. Section 66 of the Principal Act is amended:
(a) by inserting in paragraph (2)(a) "exempt" before "business real property";
(b) by omitting "the person's business" from the definition of "business real property" in subsection (5) and substituting "a business carried on by the person";
(c) by inserting in subsection (5) the following definition:
" 'exempt business real property', in relation to a person, means:
(a) if the person carries on a single business-the business real property of the person; or
(b) if the person carries on 2 or more businesses-so much of the business real property of the person as is used wholly and exclusively in whichever of those businesses is the principal business carried on by the person;".

SUPERANNUATION INDUSTRY (SUPERVISION) LEGISLATION AMENDMENT ACT 1994 No. 140, 1994 - DIVISION 12
Division 12-Amendments relating to the representation of
employers and members in relation to the management and
control of standard employer-sponsored funds

SUPERANNUATION INDUSTRY (SUPERVISION) LEGISLATION AMENDMENT ACT 1994 No. 140, 1994 - SECT 28
Object

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28. The object of this Division is to give standard employer-sponsored funds the option of complying with the basic equal representation rules if the funds are public offer funds.

SUPERANNUATION INDUSTRY (SUPERVISION) LEGISLATION AMENDMENT ACT 1994 No. 140, 1994 - SECT 29
Pre-1 July 1995 rules-funds with 200 or more members

29. Section 91 of the Principal Act is amended by omitting paragraph (3)(a) and substituting the following paragraph:
"(a) either:
(i) the trustee of the fund must be an independent trustee; or
(ii) the fund must comply with the basic equal representation rules; and".

SUPERANNUATION INDUSTRY (SUPERVISION) LEGISLATION AMENDMENT ACT 1994 No. 140, 1994 - SECT 30
Post-30 June 1995 rules-funds with more than 4, but fewer than 50, members

30. Section 92 of the Principal Act is amended by omitting paragraph (3)(a) and substituting the following paragraph:
"(a) either:
(i) the trustee of the fund must be an independent trustee; or
(ii) the fund must comply with the basic equal representation rules; and".

SUPERANNUATION INDUSTRY (SUPERVISION) LEGISLATION AMENDMENT ACT 1994 No. 140, 1994 - SECT 31
Post-30 June 1995 rules-funds with more than 49 members

31. Section 93 of the Principal Act is amended by omitting paragraph (3)(a) and substituting the following paragraph:
"(a) either:
(i) the trustee of the fund must be an independent trustee; or
(ii) the fund must comply with the basic equal representation
rules; and".

SUPERANNUATION INDUSTRY (SUPERVISION) LEGISLATION AMENDMENT ACT 1994 No. 140, 1994 - DIVISION 13
Division 13-Amendment relating to the transition to the
superannuation industry supervision scheme

SUPERANNUATION INDUSTRY (SUPERVISION) LEGISLATION AMENDMENT ACT 1994 No. 140, 1994 - SECT 32
Object

32. The object of this Division is to ensure that the existing trustee of a superannuation entity may retire without having to hold a meeting of beneficiaries.

SUPERANNUATION INDUSTRY (SUPERVISION) LEGISLATION AMENDMENT ACT 1994 No. 140, 1994 - SECT 33
Existing trustee may give notice of retirement

33. Section 363 of the Principal Act is amended by inserting after subsection (2) the following subsection:
"(2A) The provisions of the governing rules of the fund or trust concerned have no effect to the extent to which they require the holding of a meeting of beneficiaries before the existing trustee may give a notice.".

SUPERANNUATION INDUSTRY (SUPERVISION) LEGISLATION AMENDMENT ACT 1994 No. 140, 1994 - DIVISION 14
Division 14-Amendments relating to the disclosure of information

SUPERANNUATION INDUSTRY (SUPERVISION) LEGISLATION AMENDMENT ACT 1994 No. 140, 1994 - SECT 34
Objects

34. The objects of this Division are:
(a) to authorise the disclosure of information to the Superannuation Complaints Tribunal; and
(b) to allow the Minister to authorise the public disclosure of information collected under the Principal Act; and
(c) to limit the circumstances in which personal information may be disclosed.

SUPERANNUATION INDUSTRY (SUPERVISION) LEGISLATION AMENDMENT ACT 1994 No. 140, 1994 - SECT 35
Secrecy

35. Section 346 of the Principal Act is amended:
(a) by inserting after paragraph (6)(c) the following paragraph:
"(ca) the Superannuation Complaints Tribunal for the purposes of the performance of any of its functions or the exercise of any of its powers; or";
(b) by adding at the end of subsection (6) the following word and paragraph:
"; or (f) if the Minister states in writing that, in his or her opinion, it is in the public interest that the information be disclosed or the document be produced to members of the public-a member of the public.";
(c) by inserting after subsection (6) the following subsection:
Limitation on disclosure of personal information
"(6A) Paragraphs (6)(e) and (f) do not authorise the disclosure of information, or the production of a document, relating to the personal affairs of an individual if the disclosure or production, as the case requires, would be unreasonable in the circumstances.".

SUPERANNUATION INDUSTRY (SUPERVISION) LEGISLATION AMENDMENT ACT 1994 No. 140, 1994 - DIVISION 15
Division 15-Amendments relating to the payment of amounts equal
to the interests of beneficiaries in approved deposit funds

SUPERANNUATION INDUSTRY (SUPERVISION) LEGISLATION AMENDMENT ACT 1994 No. 140, 1994 - SECT 36
Object

36. The object of this Division is to clarify the obligations imposed on the trustee of an approved deposit fund in relation to the payment of amounts equal to the interests of beneficiaries.<-

SUPERANNUATION INDUSTRY (SUPERVISION) LEGISLATION AMENDMENT ACT 1994 No. 140, 1994 - SECT 37
Definitions

37. Section 10 of the Principal Act is amended by omitting paragraph (c) of
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the definition of "approved purposes" and substituting the following paragraph:
"(c) subject to any inconsistent requirement in the standards from time to time applicable to the fund under section 32, the purpose of paying to beneficiaries, or to the legal personal representatives of beneficiaries, upon request, amounts equal to the beneficiary's interest in the fund;".

SUPERANNUATION INDUSTRY (SUPERVISION) LEGISLATION AMENDMENT ACT 1994 No. 140, 1994 - SECT 38
Approved deposit funds-payments by trustees

38. Section 15 of the Principal Act is amended:
(a) by inserting in subsection (1) "and for the purposes of section 53" after "section 10";
(b) by omitting paragraph (1)(a) and substituting the following paragraph:
"(a) a beneficiary has an interest in a fund; and";
(c) by omitting from paragraph (1)(b) "a beneficiary, the amount" and substituting "the beneficiary, an amount equal to the beneficiary's interest";
(d) by omitting from subsection (1) "amount is taken to be a repayment by the fund of the amount concerned" and substituting "trustee of the fund is taken to have paid the amount";
(e) by inserting after subsection (1) the following subsections:
"(1A) For the purposes of paragraph (c) of the definition of 'approved purposes' in section 10 and for the purposes of section 53, if:
(a) a beneficiary has an interest in a fund; and
(b) on the request of the beneficiary, an amount equal to the beneficiary's interest is paid by the fund to:
(i) an approved deposit fund; or
(ii) a regulated superannuation fund;
the trustee of the first-mentioned fund is taken to have paid the amount to the beneficiary on request.
"(1B) For the purposes of paragraph (c) of the definition of 'approved purposes' in section 10, if a payment is not made immediately on request but is deferred for a period determined by the trustee concerned, the payment is taken to have been made on request.";
(f) by inserting in subsection (2) "or (1A)" after "(1)".

SUPERANNUATION INDUSTRY (SUPERVISION) LEGISLATION AMENDMENT ACT 1994 No. 140, 1994 - SECT 39
Covenants to repay amounts to beneficiaries in approved deposit funds

39. Section 53 of the Principal Act is amended:
(a) by omitting paragraph (2)(a) and substituting the following paragraph:
"(a) that, if:
(i) a beneficiary, by written notice given to the trustee,
requests the trustee to pay to the beneficiary an amount equal to the beneficiary's interest in the fund; and
(ii) compliance by the trustee with the request would not be
inconsistent with the standards applicable to the fund under section 32;
the trustee will pay that amount within a period (not being more than 12 months) determined by the trustee; and";
(b) by inserting after subsection (2) the following subsection:
Legal personal representatives of beneficiaries
"(2A) A reference in subsection (2) to a beneficiary includes a reference to the legal personal representative of a beneficiary.
Note: Section 15 sets out additional rules relating to the interpretation of subsection (2).".

SUPERANNUATION INDUSTRY (SUPERVISION) LEGISLATION AMENDMENT ACT 1994 No. 140, 1994 - DIVISION 16
Division 16-Amendments relating to rights in respect of benefits
that have been automatically rolled-over between funds

SUPERANNUATION INDUSTRY (SUPERVISION) LEGISLATION AMENDMENT ACT 1994 No. 140, 1994 - SECT 40
Object

40. The object of this Division is to ensure that mere contingent rights to death or disability benefits are not treated as rights in respect of benefits that have been automatically rolled-over between funds.

SUPERANNUATION INDUSTRY (SUPERVISION) LEGISLATION AMENDMENT ACT 1994 No. 140, 1994 - SECT 41
Rights of beneficiary to rolled-over benefits

41. Section 251 of the Principal Act is amended by adding at the end the following subsections:
"(2) For the purposes of this section, a mere contingent right to a death or disability benefit is taken not to be a right in respect of the first-mentioned benefits.
"(3) Subsection (2) is enacted for the avoidance of doubt.".

SUPERANNUATION INDUSTRY (SUPERVISION) LEGISLATION AMENDMENT ACT 1994 No. 140, 1994 - DIVISION 17
Division 17-Amendment relating to custodians of
superannuation entities

SUPERANNUATION INDUSTRY (SUPERVISION) LEGISLATION AMENDMENT ACT 1994 No. 140, 1994 - SECT 42
Object

42. The object of this Division is to provide that disqualified persons (within the meaning of Part 15 of the Principal Act) must not be custodians of superannuation entities.

SUPERANNUATION INDUSTRY (SUPERVISION) LEGISLATION AMENDMENT ACT 1994 No. 140, 1994 - SECT 43
Insertion of new section

43. After section 126 of the Principal Act the following section is inserted:

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Disqualified persons not to be custodians of superannuation entities
Basic prohibition
"126A. (1) A person must not intentionally be, or act as, a custodian of a superannuation entity (other than an excluded fund) if the person is, and knows that the person is, a disqualified person.
Penalty: Imprisonment for 2 years.

Exception-transition to new custodian
"(2) Subsection (1) does not prohibit a person from being or acting as a custodian of a superannuation entity if:
(a) the person immediately tells the trustee of the entity and the Commissioner in writing that the person is, or has become, a disqualified person; and
(b) the person is, or is acting as, the custodian of the entity during:
(i) the 28-day period beginning at whichever is the later of the
following times:
(A) the time when the person became a disqualified person;
(B) the beginning of the entity's 1994-95 year of income; or
(ii) such longer period as the Commissioner allows; and
(c) the trustee of the entity has made, or proposes to make, arrangements for the orderly dismissal of the person as the custodian; and
(d) the person is taking, or is willing to take, all reasonable steps to assist the trustee in carrying out those arrangements.

Prohibition-responsible officer of body corporate
"(3) A body corporate that is a custodian of a superannuation entity must not permit a disqualified person to be, or act as, a responsible officer of the body corporate if the body corporate knows, or has reasonable grounds to suspect, that the person is a disqualified person.
Penalty: 600 penalty units.

Obligations where custodian is or becomes a disqualified person
"(4) If a custodian of a superannuation entity is or becomes a disqualified person:
(a) the custodian must immediately tell the trustee of the entity and the Commissioner in writing; and
(b) the trustee must make arrangements for the orderly dismissal of the custodian; and
(c) the trustee must make those arrangements before the end of:
(i) the 28-day period beginning at whichever is the later of the
following times:
(A) the time when the custodian became a disqualified person;
(B) the beginning of the entity's 1994-95 year of income; or
(ii) such longer period as the Commissioner allows.

Contravention of paragraph (4)(a)
"(5) A person who contravenes subsection (4) because of paragraph (a) of that subsection is guilty of an offence punishable on conviction by a fine not exceeding 50 penalty units.

Contravention of paragraph (4)(b) or (c)
"(6) A person who contravenes subsection (4) because of paragraph (b) or (c) of that subsection is guilty of an offence punishable on conviction by a fine not exceeding 100 penalty units.".

SUPERANNUATION INDUSTRY (SUPERVISION) LEGISLATION AMENDMENT ACT 1994 No. 140, 1994 - DIVISION 18
Division 18-Amendment relating to the removal of trustees
of public offer entities

SUPERANNUATION INDUSTRY (SUPERVISION) LEGISLATION AMENDMENT ACT 1994 No. 140, 1994 - SECT 44
Object

44. The object of this Division is to ensure that the governing rules of a public offer entity do not permit the trustee of the entity to be removed by a person other than the Commissioner. However, this rule will not apply if the removal is of a kind specified in the regulations.

SUPERANNUATION INDUSTRY (SUPERVISION) LEGISLATION AMENDMENT ACT 1994 No. 140, 1994 - SECT 45
Insertion of new section

45. After section 60 of the Principal Act the following section is inserted:
Dismissal of trustee of public offer entity
"60A. (1) Subject to subsection (2), the governing rules of a public offer entity must not permit the trustee to be removed by a person other than the Commissioner.
Note: Part 17 provides for the removal of trustees by the Commissioner.
"(2) Subsection (1) does not apply to a removal of a kind specified in regulations made for the purposes of this subsection.
"(3) If the governing rules of the public offer entity are inconsistent with subsection (1), that subsection prevails, and the governing rules are, to the extent of the inconsistency, invalid.".

SUPERANNUATION INDUSTRY (SUPERVISION) LEGISLATION AMENDMENT ACT 1994 No. 140, 1994 - DIVISION 19
Division 19-Amendment relating to arrangements for dealing with
inquiries or complaints

SUPERANNUATION INDUSTRY (SUPERVISION) LEGISLATION AMENDMENT ACT 1994 No. 140, 1994 - SECT 46
Object

46. The object of this Division is to require the trustee of an exempt public sector superannuation scheme that is subject to the Superannuation (Resolution of Complaints) Act 1993 to set up arrangements for dealing with inquiries or complaints.

SUPERANNUATION INDUSTRY (SUPERVISION) LEGISLATION AMENDMENT ACT 1994 No. 140, 1994 - SECT 47
Duty to establish arrangements for dealing with inquiries or complaints

47. Section 101 of the Principal Act is amended by adding at the end the following subsection:
"(3) In this section:
'regulated superannuation fund' includes an exempt public sector superannuation scheme that is a regulated superannuation fund for the purposes of the Superannuation (Resolution of Complaints) Act 1993.".

SUPERANNUATION INDUSTRY (SUPERVISION) LEGISLATION AMENDMENT ACT 1994 No. 140, 1994 - DIVISION 20
Division 20-Application of certain amendments

SUPERANNUATION INDUSTRY (SUPERVISION) LEGISLATION AMENDMENT ACT 1994 No. 140, 1994 - SECT 48
Application

48. The amendments made by this Part (other than the amendments of Parts 1, 19 and 24 of the Principal Act) do not apply to a fund, scheme or trust in relation to a year of income of the fund, scheme or trust earlier than the 1994-95 year of income.

SUPERANNUATION INDUSTRY (SUPERVISION) LEGISLATION AMENDMENT ACT 1994 No. 140, 1994 - PART 3
PART 3-AMENDMENT OF THE SUPERANNUATION (RESOLUTION OF
COMPLAINTS) ACT 1993

SUPERANNUATION INDUSTRY (SUPERVISION) LEGISLATION AMENDMENT ACT 1994 No. 140, 1994 - DIVISION 1
Division 1-Principal Act

SUPERANNUATION INDUSTRY (SUPERVISION) LEGISLATION AMENDMENT ACT 1994 No. 140, 1994 - SECT 49
Principal Act

49. In this Part, "Principal Act" means the Superannuation (Resolution of Complaints) Act 1993*2*.
*2* No. 80, 1993.

SUPERANNUATION INDUSTRY (SUPERVISION) LEGISLATION AMENDMENT ACT 1994 No. 140, 1994 - DIVISION 2
Division 2-Technical correction

SUPERANNUATION INDUSTRY (SUPERVISION) LEGISLATION AMENDMENT ACT 1994 No. 140, 1994 - SECT 50
Object

50. The object of this Division is to make a technical correction to the definition of "excluded subject matter" in subsection 3(2) of the Principal Act.

SUPERANNUATION INDUSTRY (SUPERVISION) LEGISLATION AMENDMENT ACT 1994 No. 140, 1994 - SECT 51
Interpretation

51. Section 3 of the Principal Act is amended by inserting "subject matter" after "means" in the definition of "excluded subject matter" in subsection (2).

SUPERANNUATION INDUSTRY (SUPERVISION) LEGISLATION AMENDMENT ACT 1994 No. 140, 1994 - DIVISION 3
Division 3-Amendments relating to exempt public sector superannuation schemes

SUPERANNUATION INDUSTRY (SUPERVISION) LEGISLATION AMENDMENT ACT 1994 No. 140, 1994 - SECT 52
Objects

52. The objects of this Division are:
(a) to enable regulations to be made subjecting exempt public sector superannuation schemes to the Principal Act; and
(b) to allow the Superannuation Complaints Tribunal to perform functions conferred on it by a law of a State or Territory, where the functions relate to exempt public sector superannuation schemes.

SUPERANNUATION INDUSTRY (SUPERVISION) LEGISLATION AMENDMENT ACT 1994 No. 140, 1994 - SECT 53
Insertion of new section

53. After section 4 of the Principal Act the following section is inserted:
Act applies to certain exempt public sector superannuation schemes
"4A. The regulations may provide that a specified exempt public sector superannuation scheme is taken to be a regulated superannuation fund for the purposes of this Act. The scheme must be:
(a) a superannuation fund that complies with subsections 19(2) and (3) of the Supervision Act; or
(b) a scheme established:
(i) by or under a law of the Commonwealth; or
(ii) under the authority of the Commonwealth.".

SUPERANNUATION INDUSTRY (SUPERVISION) LEGISLATION AMENDMENT ACT 1994 No. 140, 1994 - SECT 54
Functions

54. Section 12 of the Principal Act is amended by adding at the end the following subsection:
"(2) In addition to the functions conferred on the Tribunal by a law of the Commonwealth, the Tribunal may perform functions conferred on the Tribunal by a law of a State or Territory, where:
(a) the functions relate to one or more exempt public sector superannuation schemes; and
(b) the schemes are not specified in regulations made for the purposes of section 4A.".