SPR 2016/2 - Explanatory statement

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COMMONWEALTH OF AUSTRALIA

Retirement Savings Accounts Act 1997

Explanatory Statement

General Outline of Instrument

1. This Standard is made under subsection 45B(3) of the Retirement Savings Accounts Act 1997 (RSA Act).

2. This Standard amends clause 5 of the RSA Data and Payment Standards 2013.

3. This Standard is a legislative instrument for the purposes of the Legislation Act 2003 (LA).

Date of effect

4. This Standard commences on the day after its registration on the Federal Register of Legislative Instruments.

Application

5. This Standard applies to RSA providers who are required to comply with the requirements of the RSA Data and Payment Standards 2013 (the Standard).

What does this Standard do?

6. This Standard extends the application of the RSA Data and Payment Standards 2013 to rollover superannuation benefits and contribution payments made between the Commissioner of Taxation and RSA providers.

Background

7. The Commissioner of Taxation administers a range of taxation laws that require the Commissioner to make rollover superannuation benefits and contribution payments to superannuation entities in certain circumstances.

8. Payments of unclaimed superannuation money by the Commissioner to a superannuation entity are rollover superannuation benefits for the purposes of the Income Tax Assessment Act 1997 (ITAA 1997)^[1].

9. Contribution payments made by the Commissioner to superannuation entities may include payments made under the following Acts:

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Superannuation Guarantee (Administration) Act 1992

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Small Superannuation Accounts Act 1995

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Superannuation (Unclaimed Money and Lost Members) Act 1999

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Superannuation (Government Co-Contribution for Low Income Earners) Act 2003

10. The Commissioner will adopt the Standard as the channel by which these rollover superannuation benefits and contribution payments will be made to, and received from, RSA providers.

11. This will contribute towards the underlying object of establishing the Standard which is to enhance beneficiaries' superannuation interests by increasing efficiency in relation to core transactions such as rollovers and contributions across the superannuation industry.

12. Rollover superannuation benefits and contribution payments that cannot be allocated for the benefit of a particular member must be returned to the Commissioner using the Payment Variation Advice (PVA).

13. The existing approved form requirements for the PVA will integrate the Standard to ensure that any payments, and associated information that must be given to the Commissioner, can be provided in a manner that is consistent with the Standard.

Consultation

14. Section 17 of the LA requires consultation to be undertaken before the making of a legislative instrument if it is appropriate and reasonably practical to do so.

15. This Standard was developed in consultation with APRA^[2] and key industry stakeholders via consultative forums including the SuperStream Reference Group, Super Industry Relationship Network, Super Administrative Stakeholder Group, SuperStream Standard Technical Committee, Gateway Operators Group, Rollover Implementation Working Group, Software Developer Technical Working Group, and SuperStream Business Engagement Forum. Opinions were canvassed at multiple industry representative consultation meetings. Extending the SuperStream data and payment Standard to rollover and contribution payments made and received by the Commissioner of Taxation is supported by key industry stakeholders.

Exemption from disallowance and sunsetting regime

16. Section 42 of the LA provides for the disallowance of legislative instruments. However, paragraph 44(2)(b) of the LA provides that section 42 does not apply to legislative instruments prescribed by regulation. Section 9 of the Legislation (Exemptions and Other Matters) Regulation 2015 (EOMR) provides a list of instruments that are not subject to disallowance. Item 4 of the table in section 9 of the EOMR lists instruments (other than regulations) relating to superannuation. As a result, this instrument is not a disallowable legislative instrument under section 42 of the LA.

17. Part 4 of the LA provides for the sunsetting of legislative instruments. However, paragraph 54(2)(b) of the LA provides that Part 4 of the LA does not apply if the legislative instrument is prescribed by regulation. Section 11 of the EOMR provides a list of instruments that are not subject to sunsetting. Item 6 of the table in section 11 of the EOMR lists instruments (other than regulations) relating to superannuation. As a result, Part 4 of the LA does not apply to this instrument.

What is the effect of this Standard

18. An assessment of the compliance cost impact indicates that the impact will be minor for both implementation and on-going compliance costs. The new Standard is of a minor or machinery nature.

Statement of compatibility with Human Rights

19. As section 42 of the LA does not apply to this instrument, a Statement of compatibility with Human Rights in respect of this instrument is not required under section 9 of the Human Rights (Parliamentary Scrutiny) Act 2011.

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Dated 18 October 2016

James O'Halloran
Deputy Commissioner of Taxation

SPR 2016/2 - Legislative Instrument

Legislative References:
Retirement Savings Account Act 1997
The Act

Legislative Instruments Act 2003 (formerly known as Legislation Act 2003)
The Act

Income Tax Assessment Act 1997
The Act

Superannuation Guarantee (Administration) Act 1992
The Act

Small Superannuation Accounts Act 1995
The Act

Superannuation (Unclaimed Money and Lost Members) Act 1999
The Act

Superannuation (Government Co-Contribution for Low Income Earners) Act 2003
The Act

Human Rights (Parliamentary Scrutiny) Act 2011
The Act