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Superannuation Legislation Amendment (Further MySuper and Transparency Measures) Bill 2012

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2010-2011-2012

 

The Parliament of the

Commonwealth of Australia

 

HOUSE OF REPRESENTATIVES

 

 

 

Superannuation Legislation Amendment (Further MySuper and Transparency Measures) Bill 2012

 

 

( 1 )     Clause  2 , page 2 (table item  1 ), omit the table item, substitute:

1.  Sections 1 to 4 and anything in this Act not elsewhere covered by this table

The day this Act receives the Royal Assent.

 

[acquisition of property]

( 2 )     Page 5 (after line 2) , after clause  3 , insert:

4   Acquisition of property

             (1)  This Act does not apply to the extent (if any) that its operation would result in an acquisition of property (within the meaning of paragraph 51(xxxi) of the Constitution) from a person otherwise than on just terms (within the meaning of that paragraph).

             (2)  The following subsections do not limit subsection (1).

             (3)  If, apart from this section, this Act would result in such an acquisition of property because, as a result of a repeal or an amendment made in a Schedule to this Act, a person would be required or permitted to use, disclose or publish information, then despite any other provision of this Act, the person is not required or permitted to use, disclose or publish the information in the circumstances that would result in such an acquisition.

             (4)  To avoid doubt, any provision that does not result in an acquisition of property continues to apply in relation to the use, disclosure and publication of information.

[acquisition of property]

(3)     Schedule 1, item 40, page 17 (line 26), after “facility”, insert “within the fund”.

[intra fund advice]

( 4 )     Schedule  2 , item  6 , page 22 (lines 12 to 15) , omit subsection 68AA(6) , substitute:

             (6)  The trustees of a regulated superannuation fund may require that MySuper members who wish to make an election in accordance with subsection (5):

                     (a)  must make the election in relation to both permanent incapacity benefit and death benefit; or

                     (b)  must make the election in relation to death benefit if they make the election in relation to permanent incapacity benefit.

[benefits for permanent incapacity and death]

( 5 )     Schedule  3 , item  44 , page 51 (lines 26 to 30) , omit subsection 348A(3) .

[acquisition of property]

( 6 )     Schedule  6 , item  4 , page 65 (lines 16 to 32) , omit subsection 20B ( 1 ), substitute:

             (1)  Subject to this section, the total amount attributed by the trustee, or the trustees, of a regulated superannuation fund to a member of the fund is an accrued default amount for the member if subsection (1A) or (1B) is satisfied.

          (1A)  This subsection is satisfied if the member has given the trustee, or the trustees, of the fund no direction on the investment option under which the asset (or assets) of the fund attributed to the member in relation to the amount (the member’s underlying asset(s) ) is to be invested.

          (1B)  This subsection is satisfied if the investment option under which the asset (or assets) of the fund attributed to the member in relation to the amount (the member’s underlying asset(s) ) is invested is one which, under the current governing rules of the fund, would be the investment option for a new member if no direction were given.

[accrued default amounts]

(7)     Schedule  6 , item  4 , page 66 (line 7) , omit “ if ”, substitute “ to the extent that ”.

[accrued default amounts]

( 8 )     Schedule  6 , item  4 , page 66 (line 19) , omit “ or ”.

[accrued default amounts]

(9)     Schedule  6 , item  4 , page 66 (after line 19) , at the end of paragraph 20B ( 3 )(c), add:

                            (iv)  an investment option under which the investment is held as cash; or

[accrued default amounts]

( 10 )   Schedule  6 , item  4 , page 66 (after line 23) , after subsection 20B ( 3 ), insert:

          (3A)  For the purposes of subsection (1A), if:

                     (a)  benefits of a person in a regulated superannuation fund (the earlier fund ) are transferred to another regulated superannuation fund (the later fund ); and

                     (b)  the person gave or (because of a previous application of this subsection) is taken to have given the trustee, or the trustees, of the earlier fund a direction on the investment option under which an asset (or assets) of the earlier fund is to be invested; and

                     (c)  an amount attributable to the person is invested under an equivalent investment option offered by the later fund (the equivalent investment option );

the person is taken to have given the trustee, or the trustees, of the later fund a direction to invest in the equivalent investment option any asset (or assets) of the later fund that is attributed to the person in relation to an amount attributed to the person.

[accrued default amounts]

( 11 )   Schedule  6 , page 69 (after line 12) , after item  8 , insert:

8A  Paragraph 29TC(1)(b)

After “facilities”, insert “except to the extent that a benefit is provided by taking out risk insurance”.

[insurance]

(12)   Schedule  6 , item  9 , page 70 (lines 15 to 19) , omit section  29XB , substitute:

29XB   No liability for certain transfers

                   A trustee of a regulated superannuation fund is not subject to any liability to a member of the fund:

                     (a)  for an action taken to give effect to an election made in accordance with section 29SAA or 29SAB; or

                     (b)  for an action of the kind mentioned in subsection 55C(1).

[accrued default amounts]

(13)   Schedule  6 , item  10 , page 70 (after line 33) , after section  55B , insert:

55C   Governing rules do not prevent transfer from pre-MySuper default option to MySuper product

             (1)  A provision of the governing rules of a regulated superannuation fund is void to the extent that it would prevent a trustee or trustees of the fund from attributing an amount to a MySuper product for a member, instead of attributing the amount to a pre-MySuper default option.

             (2)  A pre-MySuper default option , in relation to an amount attributed to a member of a regulated superannuation fund, is an investment option under which an asset (or assets) of the fund attributed to the member in relation to the amount would be invested, under the governing rules of the fund, if the member gave no direction in relation to the amount.

[accrued default amounts]

(14)   Schedule  6 , page 71 (after line 9) , after item  12 , insert:

12A  After section 349A

Insert:

349B   Acquisition of property

             (1)  This Act does not apply to the extent (if any) that its operation would result in an acquisition of property (within the meaning of paragraph 51(xxxi) of the Constitution) from a person otherwise than on just terms (within the meaning of that paragraph).

             (2)  The following subsections do not limit subsection (1).

             (3)  If, apart from this section, this Act would result in such an acquisition of property because:

                     (a)  it would require a person to take action in relation to an accrued default amount; or

                     (b)  it would require a person to take action in relation to an asset of the kind mentioned in subparagraph 29SAB(a)(i);

then despite any other provision of this Act, the person is not required to take that action.

             (4)  If, apart from this section, this Act would result in such an acquisition of property because it would prevent the charging of a fee of a kind mentioned in paragraph 29SAC(1)(a), then despite any other provision of this Act, the person is not prevented from charging that fee.

             (5)  If, apart from this section, this Act would result in such an acquisition of property because it would require or permit a person to use, disclose or publish information, then despite any other provision of this Act, the person is not required or permitted to use, disclose or publish the information in the circumstances that would result in such an acquisition.

             (6)  If, apart from this section, this Act would result in such an acquisition of property because it excuses a person from liability, then despite any other provision of this Act, the person is not excused from the liability.

             (7)  To avoid doubt, any provision that does not result in an acquisition of property continues to apply in relation to:

                     (a)  action in relation to accrued default amounts; and

                     (b)  action in relation to an asset of the kind mentioned in subparagraph 29SAB(a)(i); and

                     (c)  the charging of a fee of a kind mentioned in paragraph 29SAC(1)(a); and

                     (d)  the use, disclosure and publication of information; and

                     (e)  a liability.

[acquisition of property]

(15)   Schedule  6 , item  13 , page 73 (lines 13 to 16) , omit subsection 388(3) .

[acquisition of property]

( 16 )   Schedule  7 , page 87 (after line 8) , after item  16 , insert:

16A  After paragraph 349B(3)(b)

Insert:

                 or (c)  it would require a person to take action in relation to an amount held in an entity that is or was an eligible rollover fund;

16B  Subsection 349B(4)

After “paragraph 29SAC(1)(a)”, insert “or 242C(1)(a)”.

16C  After paragraph 349B(7)(b)

Insert:

                   (ba)  action in relation to an amount held in an entity that is or was an eligible rollover fund; and

16D  Paragraph 349B(7)(c)

After “paragraph 29SAC(1)(a)”, insert “or 242C(1)(a)”.

[acquisition of property]

(17)   Schedule  7 , item  17 , page 88 (lines 30 to 33) , omit subsection 394(4) .

[acquisition of property]