Supplementary Explanatory Memorandum(Circulated by authority of the Assistant Treasurer, the Hon Stuart Robert MP)
Chapter 3 Inactive low balance accounts and consolidation into active accounts (Schedule 3)
Outline of chapter
3.1 Amendment 5 amends Schedule 3 to the Bill requiring the Commissioner of Taxation to use all best endeavours to unite inactive account balances transferred to the ATO with an active superannuation account of the member within 28 days.
3.2 Amendment 6 amends Schedule 3 to the Bill to correct a reference error in the Application and Transitional provisions of the Schedule.
Detailed explanation of the amendment
ATO consolidation into active accounts
3.3 To support the timely consolidation of inactive amounts held by the Commissioner for a person with an active account, Amendment 5 places an obligation on the Commissioner to use all best endeavours to transfer amounts into an active superannuation account for the person within 28 days of receiving an inactive low balance account amount for a member.
3.4 Amendment 6 corrects a referencing error in item 38 to Schedule 3.
3.5 Paragraph 20QA(1)(a) of the SUMLM Act is inserted by item 30 of Schedule 3. Item 38 of the Bill incorrectly states that it is inserted by item 8. Amendment 6 corrects the reference.