Commonwealth Consolidated Acts Commonwealth Consolidated Acts(1) This section applies to a superannuation interest if:
(a) the interest is identified in a superannuation agreement; and
(b) the agreement provides that the interest is to be subject to a payment flag under this Part; and
(c) the agreement is in force at the operative time; and
(d) the interest is not an unflaggable interest.
(2) A payment flag starts to operate on the superannuation interest at the operative time and continues to operate until either:
(a) a court terminates the operation of the payment flag by an order mentioned in section 90XM; or
(b) a flag lifting agreement is served on the trustee as mentioned in section 90XI in respect of the superannuation interest.
(3) If a payment flag ceases to operate because of paragraph (2)(b), the cessation is not affected by a later termination of the flag lifting agreement.
(4) While a payment flag is operating on a superannuation interest, the trustee must not make any splittable payment to any person in respect of the interest.
Note: The penalty for a body corporate is 250 penalty units. See subsection 4B(3) of the Crimes Act 1914 .
(4A) Subsection (4) does not apply if the splittable payment is made in circumstances in which section 90XLA applies.
Note: A defendant bears an evidential burden in relation to the matter in subsection (4A) (see subsection 13.3(3) of the Criminal Code ).
(5) If a splittable payment becomes payable in respect of a superannuation interest while a payment flag is operating, the trustee must, within 14 days after it became payable, give written notice to the member spouse and the non - member spouse.
Note: The penalty for a body corporate is 250 penalty units. See subsection 4B(3) of the Crimes Act 1914 .
(6) Subsection (5) does not apply if the trustee has previously given a notice under that subsection, for an earlier splittable payment, in respect of the payment flag.
(7) If either spouse dies while a payment flag is operating:
(a) the payment flag nevertheless continues to operate; and
(b) the legal personal representative of the deceased spouse has all the rights the deceased spouse would have had in respect of the payment flag.
Note: The rights of the legal personal representative under paragraph (b) include the right to enter into a flag lifting agreement under section 90XN.