Taxation Laws Amendment (Superannuation) Act 1993 (7 of 1993)

PART 5   AMENDMENT OF THE SUPERANNUATION GUARANTEE (ADMINISTRATION) ACT 1992

Division 2   Amendments relating to defined benefit superannuation schemes

58  

After section 6 of the Principal Act the following sections are inserted:

"6A. Interpretation: defined benefit superannuation scheme

(1) Subject to subsection (2), a defined benefit superannuation scheme is a scheme under which:

(a) one or more members of the scheme are entitled, on retirement, to be paid a benefit defined, wholly or in part, by reference to either or both of the following:

(i) the amount of the member's annual salary:

(A) at the date of the member's retirement; or

(B) at a date before retirement; or

(C) averaged over a period of employment before retirement;

(ii) a specified amount; and

(b) if the scheme is not a public sector scheme-some or all of the contributions under the scheme (out of which, together with earnings on those contributions, the benefits are to be paid) are not paid into a fund, or accumulated in a fund, in respect of any individual member but are paid into and accumulated in a fund in the form of an aggregate amount.

"(2) A scheme embodied in the governing rules of a superannuation fund (other than a scheme of the kind referred to in subsection (1)) is a defined benefit superannuation scheme if a conversion notice has effect in relation to the fund.

"(3) If the conversion notice is expressed to take effect on a day before the day on which the notice is given, the scheme in question is taken to have been a defined benefit superannuation scheme from the day on which the notice is expressed to take effect.

"(4) Subsection (3) has effect regardless of the making of any assessment, or the payment of any superannuation guarantee charge, in respect of a contribution period that ended after the conversion notice took effect.

"6B. Interpretation: conversion notice

(1) A conversion notice is a written notice by the trustee of a superannuation fund given to the Commissioner of Insurance and Superannuation stating that the fund is to be treated as a defined benefit superannuation scheme for the purposes of this Act.

"(2) Subject to subsection (4), a conversion notice takes effect in relation to the fund on the day specified in the notice. Subject to subsection (4), the trustee may, by written notice ('revocation notice') given to the Commissioner of Insurance and Superannuation, revoke the conversion notice.

"(3) A conversion notice may be expressed to take effect on a day (whether before or after the commencement of section 1 of the Taxation Laws Amendment (Superannuation) Act 1993) that is not earlier than:

(a) the first day of the year in which the notice is given; or

(b) if the notice is given before 15 August in that year-the first day of the preceding year.

"(4) A conversion notice or a revocation notice will not be effective unless, before it is given, the trustee gives all employers contributing to the fund for the benefit of employees written notice of:

(a) the trustee's intention to give the notice; and

(b) the proposed date of effect of the notice.

"(5) If an employer begins contributing to a superannuation fund for the benefit of employees at a time when a conversion notice has effect in relation to the fund, the trustee must give the employer written notice of:

(a) the giving of the conversion notice; and

(b) the date of effect of the notice;

within 30 days of the receipt by the trustee of the employer's first contribution.

"(6) A notice under this section may be given by post.".