Federal Register of Legislation - Australian Government

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SLI 2011 No. 197 Regulations as made
These Regulations amend the Retirement Savings Accounts Regulations 1997 to provide for the Chief Executive Medicare to act as the regulator for the purpose of the early release of retirement savings accounts benefits on compassionate grounds.
Administered by: Treasury
Registered 21 Oct 2011
Tabling HistoryDate
Tabled HR31-Oct-2011
Tabled Senate31-Oct-2011
Date of repeal 09 Aug 2013
Repealed by Treasury (Spent and Redundant Instruments) Repeal Regulation 2013

EXPLANATORY STATEMENT

 

Select Legislative Instrument 2011 No. 197

Subject -              Retirement Savings Accounts Act 1997

                            Retirement Savings Accounts Amendment Regulations 2011 (No. 3)

 

Subsection 200(1) of the Retirement Savings Accounts Act 1997 (RSA Act) provides, in part, that the Governor-General may make regulations prescribing matters required or permitted by the RSA Act to be prescribed, or necessary or convenient to be prescribed, for carrying out or giving effect to the RSA Act.

The Retirement Savings Accounts Regulations 1997 (the RSA Regulations), among other things, specify the circumstances under which the benefits of a retirement savings account (RSA) holder can be paid out of their RSA.

These Regulations amend the RSA Regulations to provide for the Chief Executive Medicare to act as the regulator for the purpose of the early release of RSA benefits on compassionate grounds.  This formally transfers administration of the function to the Chief Executive Medicare.  Prior to the formal transfer, the Chief Executive Medicare administered the function under delegation from the Australian Prudential Regulation Authority (APRA).

Responsibility for the general administration of the early release of superannuation and RSA benefits on compassionate grounds previously resided with APRA (and the Commissioner of Taxation in respect of self managed superannuation funds).  The circumstances for early release of benefits on compassionate grounds are set out in regulation 6.19A of the Superannuation Industry (Supervision) Regulations 1994 (SIS Regulations) and regulation 4.22A of the RSA Regulations. 

Under the SIS and RSA Regulations, members of superannuation funds and holders of RSAs can apply to APRA for approval to access their benefits on specified compassionate grounds.  The final decision on whether a release is permitted rests with the trustees of the applicant’s fund, or the RSA provider.

These Regulations complement the Superannuation Legislation Amendment (Early Release of Superannuation) Act 2011, which effects the formal transfer of responsibility for the general administration of the early release of superannuation benefits on compassionate grounds from APRA and the Commissioner of Taxation, to the Chief Executive Medicare.

The Superannuation Legislation Amendment (Early Release of Superannuation) Act 2011 amends the RSA Act to provide that the Chief Executive Medicare has responsibility for the general administration of regulations relating to the making of determinations in respect of the release of RSA benefits on compassionate grounds.  It also amends the RSA Act to include the Chief Executive Medicare in the definition of Regulator, for the purposes of administrating the function of early release of RSA benefits on compassionate grounds. 

However, regulation 4.22A of the RSA Regulations, which sets out the criteria for the release of benefits on compassionate grounds, referred specifically to APRA.  These Regulations change all references in regulation 4.22A from ‘APRA’ to ‘the Regulator’. 

As these Regulations are consequential to legislation which simply transfers an administrative function from one government agency to another, no consultation was required.  This is consistent with paragraph 18(2)(a) of the Legislative Instruments Act 2003 which states that consultation may be unnecessary where an instrument “is of a minor or machinery nature and that does not substantially alter existing arrangements”.  The Regulations do not change the conditions of release of RSA benefits. 

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

These Regulations commence on the commencement of Schedule 1 to the Superannuation Legislation Amendment (Early Release of Superannuation) Act 2011.

Authority:  Subsection 200(1) of the
Retirement Savings
Accounts Act 1997

 

                                                                                                                                        

 


 

ATTACHMENT

 

Retirement Savings Accounts Amendment Regulations 2011 (No. 3)

 

Explanation of the amendments

Regulation 1 – specifies the name of the regulations as the Retirement Savings Accounts Amendment Regulations 2011 (No. 3).

Regulation 2 – provides that the Regulations commence on the commencement of Schedule 1 to the Superannuation Legislation Amendment (Early Release of Superannuation) Act 2011.

Regulation 3 – provides that Schedule 1 amends the Retirement Savings Accounts Regulations 1997.

Schedule 1 – Amendments

Items 1, 2, 3 and 4 amend regulation 4.22A of the Retirement Savings Accounts Regulations 1997 replacing references to ‘APRA’, with references to ‘the Regulator’ or ‘The Regulator’, depending on the context of the reference.