Explanatory Memorandum(Circulated by authority of the Treasurer, the Hon Peter Costello, MP)
Chapter 3 - Transitional and application provisions
3.1 Part 3 of this Bill sets out the transitional and application provisions of the Superannuation (Unclaimed Money and Lost Members) Consequential and Transitional Act 1999 (the Act). [Clauses 4 to 9]
3.2 The purpose of the provisions is to deal with the transition from the administration of unclaimed money and lost members under the Superannuation Industry (Supervision) Act 1993 (the SIS Act) and the Retirement Savings Accounts Act 1997 (the RSA Act) to the Superannuation (Unclaimed Money and Lost Members) Act 1999 (the New Act).
3.3 Unless the contrary intention appears, the expressions used in Part 3 of this Bill have the same meaning as those used in the New Act. The term New Act means the Superannuation (Unclaimed Money and Lost Members) Act 1999 . [Clause 4]
3.4 Currently, a precondition for State and Territory unclaimed money registers receiving unclaimed money is that the relevant State or Territory legislation must satisfy the requirements of subsections 225(9), (9A) and (9B) of the SIS Act and subsections 84(1), (2) and (3) of the RSA Act. Similar requirements are contained in section 18 of the New Act.
3.5 If State and Territory unclaimed money legislation does not satisfy the requirements of section 18 of the New Act on commencement of the New Act, the legislation will despite that non-satisfaction, continue to apply to unclaimed money until the end of a transitional period of 2 years or the State or Territory unclaimed money legislation satisfies the requirements, whichever is the earlier. [Clause 5]
3.6 As section 18 of the New Act is in similar terms to existing subsections 225(9), (9A) and (9B) of the SIS Act and subsections 84(1), (2) and (3) of the RSA Act, existing State and Territory unclaimed money legislation may satisfy the requirements.
3.7 If the unclaimed money legislation of a State or Territory does not satisfy the requirements of section 18 of the New Act, the 2 year transitional period will provide the State or Territory with an opportunity to amend the legislation to make it satisfy the requirements.
3.8 Unclaimed money and information in respect of unclaimed money and lost members given under the RSA Act and the SIS Act are taken to have been given under the New Act [clauses 6 and 7] . This ensures that where a superannuation provider has reported and paid unclaimed money or the details of lost members under the RSA Act or the SIS Act the provider does not have to provide the particulars or pay the unclaimed money to the relevant authorities again.
3.9 Existing provisions in the Income Tax Assessment Act 1936 (ITAA 1936), the RSA Act, the Small Superannuation Accounts Act 1995 and the SIS Act which apply in relation to the reporting and payment of unclaimed money on a half-yearly cycle (eg. Part 8 of the RSA Act and Part 22 of the SIS Act) will cease to have that effect as a result of the consequential amendments made by items 8, 10, 12, 13, 14, 34, 35, 39, 44, 45, 46, 47, 48, 49 and 73 of Schedule 1 to this Bill. These amendments are necessary because there will be new provisions applying in relation to the reporting and payment of unclaimed money in the New Act. However, as the New Act applies prospectively from the next half-year after Royal Assent of the New Act (section 3 of the New Act), to ensure a seamless transition, the existing provisions will continue to apply up to and including the half-year in which Royal Assent of the New Act occurs. [Clauses 2 and 8]