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Financial Sector Reform (Amendments and Transitional Provisions) Bill (No.1) 2000
Schedule 9 Amendment of superannuation legislation relating to financial assistance to funds

   

Financial Institutions Supervisory Levies Collection Act 1998

1  Section 16 (at the end of the definition of fund )

Add “, but does not include a self managed superannuation fund (within the meaning of the Superannuation Industry (Supervision) Act 1993 )”.

Superannuation (Financial Assistance Funding) Levy Act 1993

2  Title

Omit “ any such ”, substitute “ certain ”.

3  Section 3

Omit “such”, substitute “certain”.

4  Section 5 (at the end of the definition of fund )

Add “, but does not include a self managed superannuation fund”.

Superannuation Industry (Supervision) Act 1993

5  At the end of section 227

Add “by persons directly or indirectly responsible for their administration”.

6  Section 228

Insert:

defined benefit fund means:

                     (a)  a public sector superannuation scheme that:

                              (i)  is a regulated superannuation fund; and

                             (ii)  has at least one defined benefit member; or

                     (b)  a regulated superannuation fund (other than a public sector superannuation scheme) that has at least one defined benefit member.

7  Section 228

Insert:

defined benefit member means:

                     (a)  a member entitled, on retirement or termination of his or her employment, to be paid a benefit defined, wholly or in part, by reference to one or more of the following:

                              (i)  the amount of the member’s salary at a particular date, being the date of the termination of the member’s employment or of the member’s retirement or an earlier date;

                             (ii)  the amount of the member’s salary averaged over a period before retirement;

                            (iii)  a specified amount; or

                     (b)  a member who is being paid a defined benefit pension.

8  Section 228

Insert:

defined benefit pension means a pension other than:

                     (a)  a pension wholly determined by reference to policies of life assurance purchased or obtained by the trustee of a regulated superannuation fund solely for the purposes of providing benefits to members of that fund; or

                     (b)  an allocated pension (as defined in subregulation 1.03(1) of the Superannuation Industry (Supervision) Regulations 1994 ).

9  Section 228

Insert:

eligible loss :

                     (a)  in relation to a fund that is not a defined benefit fund—means a loss suffered by the fund as a result of fraudulent conduct, or theft, by a person directly or indirectly responsible for the administration of the fund; and

                     (b)  in relation to a fund that is a defined benefit fund—means so much of a loss suffered by the fund as a result of fraudulent conduct, or theft, by a person directly or indirectly responsible for the administration of the fund, that a standard employer-sponsor of the fund:

                              (i)  is required to pay to the fund; but

                             (ii)  cannot pay to the fund while remaining able to pay all debts incurred by the standard employer-sponsor, as and when the debts become due and payable.

10  Section 228 (definition of loss )

Repeal the definition.

11  Paragraph 229(1)(a)

Repeal the paragraph, substitute:

                     (a)  a fund suffers an eligible loss after the commencement of this Part; and

12  At the end of Division 1 of Part 23

Add:

230A   APRA to advise Minister in relation to application for assistance

             (1)  The Minister must make a written request to APRA for advice in relation to the application. The request may specify:

                     (a)  particular matters that APRA is to provide advice about; and

                     (b)  a time by which the advice must be provided.

             (2)  APRA must comply with the request and may, in its advice, also address any other issues that APRA considers relevant to the determination of the application.

13  Subsection 231(1)

Omit “and any additional information given by the trustee”, substitute “, any additional information given by the trustee, and APRA’s advice under section 230A”.

14  Subsection 231(1)

Omit “loss”, substitute “an eligible loss”.

15  Section 232

Omit “loss”, substitute “eligible loss”.