Explanatory Memorandum
(Circulated by authority of the Parliamentary Secretary to Treasurer, Senator the Hon Ian Campbell)Schedule 1 - Amendment of the Retirement Savings Accounts Act 1997
4. The Retirement Savings Accounts Act 1997 (the RSA Act) allows banks, building societies, credit unions and life insurance companies to provide superannuation without a trust structure in the form of a Retirement Savings Account (RSA).
5. Section 41 provides that a charge over, or in relation to, an RSA has no effect and that benefits provided under an RSA cannot be assigned. Under subsections 41(3) and 41(4) of the RSA Act it is an offence for an RSA provider to recognise, or in any way encourage or sanction, a charge over an RSA or an assignment of benefits provided under an RSA.
6. Items 1 and 2 amend section 41 to ensure that an RSA provider can comply with regulations which will allow an RSA interest to be split and a separate interest to be created in the name of the RSA holder's former spouse. The regulations will facilitate implementation of the Government's superannuation and family law reforms contained in Part VIIIB of the Family Law Act 1975 , inserted by the Family Law Legislation Amendment (Superannuation) Act 2001 .
7. The amendment will commence immediately after the commencement of the Family Law Legislation Amendment (Superannuation) Act 2001 .