Commonwealth Consolidated Acts

TAX AND SUPERANNUATION LAWS AMENDMENT (2013 MEASURES NO. 2) ACT 2013 - SCHEDULE 5

Superannuation Industry (Supervision) Act 1993

1   Subsection   10(1)

Insert:

"buy-sell spread" has the meaning given by subsection   29V(4).

2   Subsection   10(1)

Insert:

"superannuation account" has the meaning given by subsection   108A(3).

3   Before subsection   29E(7)

Insert:

Complying with rules relating to merging multiple accounts in a superannuation entity

  (6E)   The following additional condition is imposed on each RSE licence that relates to a superannuation entity for which the RSE licensee has obligations under section   108A. The condition is that the RSE licensee must ensure that the rules that that section requires in relation to the superannuation entity are complied with.

4   After section   108

Insert:

108A   Trustee's duty to identify etc. multiple superannuation accounts of members

  (1)   Each trustee of a superannuation entity (other than the trustee of a pooled superannuation trust or a self managed superannuation fund) must ensure that rules are established, which:

  (a)   set out a procedure for identifying when a member of the superannuation entity has more than one superannuation account in the superannuation entity; and

  (b)   require the trustee to carry out the procedure to identify such members at least once each financial year; and

  (c)   if the member has 2 or more superannuation accounts in the superannuation entity--require the trustee to merge the accounts so that the member has only one account balance in respect of those accounts, if the trustee reasonably believes that it is in the best interests of the member to do so; and

  (d)   provide that fees are not payable (other than a buy - sell spread) for any merger of superannuation accounts that occurs as a result of paragraphs   ( a) to (c).

  (2)   The requirement in paragraph   ( 1)(c) does not apply if:

  (a)   it is not practicable in the circumstances to merge the member's superannuation accounts; or

  (b)   one or more of the superannuation accounts is a defined benefit interest or income stream.

  (3)   A superannuation account is a record of the member's benefits, in relation to a superannuation entity in which the member has an interest, which is recorded separately:

  (a)   from other benefits of the member in relation to the entity (if any); and

  (b)   from other benefits of any other member in relation to the entity.

To avoid doubt, an FHSA (within the meaning of the First Home Saver Accounts Act 2008 ) is not a superannuation account.

Note:   FHSA is short for first home saver account

  (4)   In determining, for the purpose of paragraph   ( 1)(c), whether it is in the best interests of a member to merge his or her superannuation accounts, the trustee must consider the total amount of fees and charges payable by the member in respect of all of his or her accounts in the superannuation entity (including any fees and charges payable by the member for insurance provided in respect of all of his or her accounts).

  (5)   A trustee commits an offence if the trustee contravenes subsection   ( 1). This is an offence of strict liability.

Penalty:   50 penalty units.

Note 1:   Chapter   2 of the Criminal Code sets out the general principles of criminal responsibility.

Note 2:   For strict liability, see section   6.1 of the Criminal Code .

5   Application of amendments

The amendments made by this Schedule apply from 1   July 2013.