Federal Register of Legislation - Australian Government

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Other as made
This instrument amends the Superannuation (PSSAP) Trust Deed to update provisions relating to the release authorities, to provide additional flexibility for setting up and commuting Public Sector Superannuation Accumulation Plan (PSSAP) income streams, to provide for commutation of PSSAP income streams in relation to commutation authorities and to repeal and update certain references as a result of the merger of ComSuper and the Commonwealth Superannuation Corporation (CSC) that occurred on 1 July 2015.
Administered by: Finance
Exempt from sunsetting by the Legislation (Exemptions and Other Matters) Regulation 2015 s11 item 06
Registered 13 Jun 2017
Tabling HistoryDate
Tabled HR15-Jun-2017
Tabled Senate19-Jun-2017
Date of repeal 02 Jul 2017
Repealed by Division 1 of Part 3 of Chapter 3 of the Legislation Act 2003
Table of contents.

 

Superannuation (PSSAP Trust Deed) (Superannuation Reforms and Other Matters) Amendment Instrument 2017

I, Senator the Hon Mathias Hubert Paul Cormann, Minister for Finance, make the following instrument.

Dated               31 May 2017

Mathias Hubert Paul Cormann

Minister for Finance

 

  

  


Contents

1. Name.................................................................................................. 1

2. Commencement................................................................................. 1

3. Authority............................................................................................ 1

4. Schedules........................................................................................... 1

Schedule 1 - Rules under the Superannuation (PSSAP) Trust Deed                       2

Part 1 – Payments in relation to a release authority                                          2

Part 2 – Account-based pensions                                                                     3

Part 3 – Payments in relation to a commutation authority                               3

Schedule 2—Superannuation (PSSAP) Trust Deed                                                  6


1  Name

                   This is the Superannuation (PSSAP Trust Deed) (Superannuation Reforms and Other Matters) Amendment Instrument 2017.

2  Commencement

(1)   Each provision of this instrument specified in column 1 of the table commences, or is taken to have commenced, in accordance with column 2 of the table. Any other statement in column 2 has effect according to its terms.

 

Commencement information

Column 1

Column 2

Column 3

Provisions

Commencement

Date/Details

1.  Sections 1 to 4, Schedule 1, Parts 1 and 2, Schedule 2 and anything in this instrument not elsewhere covered by this table.

The day after this instrument is registered on the Federal Register of Legislation.

 

2.  Schedule 1, Part 3.

1 July 2017.

 

(2)   Any information in column 3 of this table is not part of this instrument. Information may be inserted in this column, or information in it may be edited, in any published version of this instrument.

3  Authority

                   This instrument is made under section 11 of the Superannuation Act 2005.

4  Schedules

                   Each instrument that is specified in a Schedule to this instrument is amended or repealed as set out in the applicable items in the Schedule concerned, and any other item in a Schedule to this instrument has effect according to its terms.

Schedule 1 - Rules under the Superannuation (PSSAP) Trust Deed

  

Part 1 – Payments in relation to a release authority

1 Rule 1.2.1

Repeal the existing definition of “release authority”, substitute:

release authority                   means a release authority issued under the taxation legislation for the release of an amount held in a member’s account.

2 Rule 1.2.1

After the definition of “surchargeable contributions”, insert:

 

taxation legislation                means the Taxation Administration Act 1953, the Income Tax Assessment Act 1997 or the Income Tax (Transitional Provisions) Act 1997.

3 Rule 3.1.1(f)

Repeal the Rule.

4 Rule 3.1.11A

Repeal the Rule, substitute:

3.1.11A      Where CSC receives a release authority, CSC may pay an amount, as required or permitted under the SIS Act and the taxation legislation.

 

5 Note under Rule 3.1.11A

Note: 	The amount that CSC is to pay is subject to the requirements under the SIS Act and the taxation legislation.Repeal the Note, substitute:

 

 

6 Rule 3.6.7(d)

Omit “and”.

7 Rule 3.6.7

After paragraph (d), insert:

(da)      any amount paid by CSC in respect of the PSSAP pensioner under Rule 3.1.11A; and

8 Rule 5.1.6(h)

Omit “.”, substitute “;”.

9 Rule 5.1.6

After paragraph (h), insert:

(i)                 any amount paid in respect of the PSSAP member under Rule 3.1.11A.

10 Rule 7.2.1B

Payments made under a release authorityAfter Rule 7.2.1B, insert the following new Heading and Rule:

 

7.2.1C             There must be debited from a non-member spouse interest account any amount paid by CSC under Rule 3.1.11A in respect of the non-member spouse.

Part 2 – Account-based pensions

11 Rule 2.4.1D

After “PSSAP member”, insert “or PSSAP pensioner”.

12 Rule 3.1.1(g)

After “PSSAP member”, insert “or PSSAP pensioner”.

13 Rule 3.1.1(h)

After “PSSAP pensioner”, insert “, non-member spouse”.

14 Rule 3.6.1

After “PSSAP member”, insert “or PSSAP pensioner”.

15 Rule 3.6.8

After paragraph (e), insert:

(f)        if the application is from a former non-member spouse with no personal accumulation account or non-member spouse interest account, create a non-member spouse interest account for the person, and credit that non-member spouse interest account;

Part 3 – Payments in relation to a commutation authority

16 Rule 1.2.1

After the definition of “cashed”, insert:

 

commutation authority                     means a commutation authority issued by the Commissioner of Taxation for the commutation of a superannuation income stream.

17 Rule 3.6.3

Paragraph (g), omit “and”.

18 Rule 3.6.3

Paragraph (h), omit “.”, substitute “; and”.

19 Rule 3.6.3

After paragraph (h), insert:

(i)                 the pension must be commuted in whole or part to a lump sum where CSC receives a commutation authority issued under the Taxation Administration Act 1953 and the SIS Act permits the commutation.

20 Rule 3.6.7

Paragraph (d), insert before “Rule 3.6.8”, “Rule 3.6.3(i) or”.

21 Rule 3.6.8

After Rule 3.6.8, insert the following new Rule:

3.6.8A             Where the pension is commuted because of Rule 3.6.3(i), CSC may, subject to the SIS Act:

(a)        rollover or transfer to a superannuation entity;

(b)        pay to the person (as a lump sum);

(c)        credit the person’s personal accumulation account;

(d)       credit the person’s non-member spouse interest account;

(e)        if the person is a PSSAP member with no personal accumulation account, create a personal accumulation account for the person, and credit that personal accumulation account;

(f)        if the person is a non-member spouse with no personal accumulation account or non-member spouse interest account, create a non-member spouse interest account and credit that non-member spouse interest account;

all or part of the commutation amount.

22 Note under Rule 3.6.8A

Omit paragraph 2 in the Note, substitute:

2          Generally a superannuation income stream in the retirement phase needs to be commuted in part or in full where the balance of a person’s transfer balance account exceeds their transfer balance cap. For this purpose, the Commissioner of Taxation is able to issue a commutation authority to a superannuation income stream provider to commute some or all of a superannuation income stream.

 

Schedule 2—Superannuation (PSSAP) Trust Deed

1        Paragraph 8.1(a)

Omit “member”, substitute “director”.

2        Paragraph 8.1(b)

Repeal the paragraph.

3        Paragraph 8.1(c)

Repeal the paragraph, substitute:

(c) a member of the staff of CSC; or

4        Paragraph 8.3(a)

Omit “member”, substitute “director”.

5        Subparagraph 8.3(a)(i)

Omit “member”, substitute “director”.

6        Subparagraph 8.3(a)(ii)

Omit “paragraph 8.1(b), (c),” substitute “paragraph 8.1(c),”.

7        Paragraph 8.3(b)

Repeal the paragraph.

8        Subclause 9.1

Repeal paragraph (c), substitute:

            (c)        a director of CSC; or

            (d)        a member of the staff of CSC.