RETIREMENT SAVINGS ACCOUNTS REGULATIONS 1997

PART 5 - CONTRIBUTION STANDARDS  

Division 5.1 - Operating standards  

REGULATION 5.03   ACCEPTANCE OF CONTRIBUTIONS  

5.03(1)  


An RSA institution may accept contributions only in accordance with the following table and subregulations (2), (4) and (6).


Item If the RSA holder ... the RSA institution may accept [mldr ]
1 is under 65 contributions that are made in respect of the RSA holder
2 is not under 65, but is under 70 contributions that are made in respect of the RSA holder that are:
(a) mandated employer contributions; or
(b) if the RSA holder has been gainfully employed on at least a part-time basis during the financial year in which the contributions are made:
(i) employer contributions (except mandated employer contributions); or
(ii) RSA holder contributions; or
(c) downsizer contributions; or
(d) if the RSA holder has not been gainfully employed, either on a full-time or a part-time basis, during the financial year in which the contributions are made, but all of the requirements mentioned in subregulation (1A) are satisfied for the RSA holder:
(i) employer contributions (except mandated employer contributions); or
(ii) RSA holder contributions
3 is not under 70, but is under 75 contributions that are made in respect of the RSA holder that are:
(a) mandated employer contributions; or
(b) if the RSA holder has been gainfully employed on at least a part-time basis during the financial year in which the contributions are made - contributions received on or before the day that is 28 days after the end of the month in which the RSA holder turns 75 that are:
(i) employer contributions (except mandated employer contributions); or
(ii) RSA holder contributions made by the RSA holder; or
(c) downsizer contributions; or
(d) if the RSA holder has not been gainfully employed, either on a full-time or a part-time basis, during the financial year in which the contributions are made, but all of the requirements mentioned in subregulation (1A) are satisfied for the RSA holder - contributions received on or before the day that is 28 days after the end of the month on which the RSA holder turns 75 that are:
(i) employer contributions (except mandated employer contributions); or
(ii) RSA holder contributions made by the RSA holder
4 is not under 75 mandated employer contributions or downsizer contributions

5.03(1A)  


For the purposes of paragraph (d) of item 2 or 3 of the table in subregulation (1), the requirements are the following:


(a) the RSA holder has been gainfully employed on at least a part-time basis during the financial year (the previous financial year ) ending before the financial year in which the contributions are made;


(b) the RSA holder has a total superannuation balance (within the meaning of section 307-230 of the 1997 Tax Act) of less than $300,000 at the end of the previous financial year;


(c) no contributions have been accepted by an RSA institution in respect of the RSA holder, in the previous financial year or any earlier financial year, because of the operation of paragraph (d) of item 2 or 3 of the table in subregulation (1);


(d) no contributions have been accepted by a regulated superannuation fund in respect of the RSA holder, in the previous financial year or any earlier financial year, because of the operation of paragraph (d) of item 2 or 3 of the table in subregulation 7.04(1) of the Superannuation Industry (Supervision) Regulations 1994 .

5.03(2)  


In addition to subregulation (1), the RSA institution must not accept any RSA holder contributions if the RSA holder ' s tax file number has not been quoted (for superannuation purposes) to the RSA provider.

5.03(3)  
(Repealed by FRLI No F2017L00321)

5.03(4)  


If an RSA institution receives an amount in a manner that is inconsistent with subregulation (1) or (2):


(a) the RSA institution must return the amount to the entity or person that paid the amount within 30 days of becoming aware that the amount was received in a manner that is inconsistent with subregulation (1) or (2), unless:


(i) the amount was received in a manner that is inconsistent with subregulation (2); and

(ii) the RSA holder ' s tax file number is quoted (for superannuation purposes) within 30 days of the amount being received by the RSA institution; and


(b) the RSA institution is also authorised to take any of the following action to the extent that the rules of the RSA institution allow:


(i) if the price at which the interest could have been acquired on the day on which the amount is returned is less than the price on the day on which the interest was acquired, the amount that would otherwise be returned to the entity or person that paid the amount may be reduced by the amount of the difference between the prices;

(ii) if the price at which the interest could have been acquired on the day of return of the amount is greater than the price on the day on which the interest was acquired, the amount that would otherwise be returned to the entity or person that paid the amount may be increased by the amount of the difference between the prices;

(iii) if the price at which the interest could be acquired cannot be determined in accordance with the contract or legal relationship on the day on which the amount is returned, the price is to be determined:

(A) on the basis of the most recent day on which a price was calculated in accordance with the contract or legal relationship; or

(B) if there is no day of that kind - as soon as practicable after the decision is made to return the amount;

(iv) in addition to subparagraph (i), the amount that would, but for this subparagraph, be returned to the entity or person that paid the amount may be reduced to account for reasonable administration costs and transaction costs, incurred by the RSA institution, that:

(A) are reasonably related to the acquisition of the interest and the return of the amount; and

(B) do not exceed the true cost of an arm ' s length transaction;
other than costs related to commissions or similar benefits;

(v) if:

(A) the interest is a risk insurance interest, or the part of an interest that is a risk insurance interest; and

(B) the interest has been issued for a specific period, or the premium for the interest has been paid in relation to cover for a specific period; and

(C) a proportion of the specific period has already passed when the decision is made to return the amount to the entity or person that paid the amount;
the amount that would otherwise be returned to the entity or person that paid the amount may be reduced by the sum of:

(D) that part of any amount received in a manner inconsistent with subregulation (1) or (2) as has been paid by the RSA institution to any person in connection with the risk insurance product and which is not recoverable by the RSA institution from that person; and

(E) the proportion equal to the proportion of the period that has passed of the difference between the amount that would otherwise be returned and the amount referred to in paragraph (a).

5.03(5)  


If an RSA institution acts under subregulation (4), the RSA institution is taken not to have contravened the Act or these Regulations in relation to the acceptance of the amount or in relation to the return of the amount to the entity or person that paid the amount.

5.03(6)  


An RSA institution may accept contributions in respect of an RSA holder if the RSA institution is reasonably satisfied that the contribution is in respect of a period during which, under an item in the table in subregulation (1), the RSA institution may accept the contribution in respect of that RSA holder, even though the contribution is actually made after that period.

5.03(7)  


In this regulation:

administration costs
has the same meaning as in subregulation 5.01(1) .

downsizer contribution
means a contribution covered under section 292-102 of the 1997 Tax Act.

employer contribution
has the same meaning as in subregulation 1.03(1) .

FHSA
(Repealed by SLI No 91 of 2015)

mandated employer contributions
has the same meaning as in subregulation 1.03(1) .

non-concessional contributions cap
(Repealed by FRLI No F2017L00321)

quoted (for superannuation purposes)
has the same meaning as in section 295-615 of the 1997 Tax Act.

RSA-capped contributions
(Repealed by FRLI No F2017L00321)

RSA holder contributions
has the same meaning as in subregulation 1.03(1) .

tax file number
has the meaning given by section 16 of the Act.

transaction costs
means any of the following:


(a) brokerage paid because of an investment transaction;


(b) a cost arising from maintenance of a property investment;


(c) stamp duty on an investment transaction.





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