Retirement Savings Accounts Amendment Regulations 2002 (No. 5) (352 of 2002)

Schedule 1   Amendments

18   Regulation 4.20

substitute

4.20 Restriction on payment

(1) The benefits of an RSA holder:

(a) may be paid only by:

(i) being cashed under Division 4.3 or Part 4A; or

(ii) being rolled over or transferred under Division 4.4 or Part 4A; and

(b) must not be paid except when, and to the extent that, the RSA provider is required or permitted under this Part or Part 4A to pay them; and

(c) must be paid when, and to the extent that, the RSA provider is required under this Part or Part 4A to pay them.

(2) If an RSA provider does not make a payment in accordance with the standard set out in subregulation (1) because the RSA provider is prevented from doing so:

(a) under subsection 90ML (4) of the Family Law Act 1975; or

(b) by an order made under subsection 90MU (1) of the Family Law Act 1975;

the RSA provider is not in breach of the standard.

Note Subsection 90ML (4) of the Family Law Act 1975 provides that while a payment flag is operating on a superannuation interest, the RSA provider must not make any splittable payment to any person in respect of the interest. Subsection 90MU (1) of the Family Law Act 1975 provides that a court may make an order in relation to a superannuation interest directing the RSA provider not to make a splittable payment without the leave of the court.