Retirement Savings Accounts Amendment Regulations 2002 (No. 4)
(149 of 2002)
27 June 2002
Made under Retirement Savings Accounts Act 1997
1 Name of Regulations
These Regulations are theRetirement Savings Accounts Amendment Regulations 2002 (No. 4).
2 Commencement
These Regulations commence on 1 July 2002.
3 Amendment of Retirement Savings Accounts Regulations 1997
Schedule 1 amends the Retirement Savings Accounts Regulations 1997.
Schedule 1 Amendments
[1] Subregulation 1.03 (1), after definition of capital gains tax exempt component
insert
child account means an RSA product issued as a result of accepting child contributions.
child contributions means contributions made to an RSA institution under paragraph 5.03 (1) (d).
[2] After Part 2
insert
Part 2A Child accounts
Division 2A.1 Preliminary
2A.01 Operating standards
For subsection 38 (1) of the Act, a requirement of this Part is a standard applicable to the operation of RSAs.
2A.02 Definition for Part 2A
In this Part:
child means an individual who is under age 18.
Division 2A.2 Decisions about child accounts
2A.03 Decisions about accounts
(1) If a child account is issued in respect of a child, decisions in relation to the account must be made by:
(a) the legal personal representative of the child; or
(b) if the child does not have a legal personal representative, a parent of the child or the child's guardian;
until the child turns 18.
(2) However, a child may make decisions in relation to the account if:
(a) the child is at least 16 years old; and
(b) the fund has been notified that the child will be making decisions in relation to the account by:
(i) the child's legal personal representative; or
(ii) if the child does not have a legal personal representative, a parent of the child or the child's guardian.
Division 2A.3 Transitional arrangements
2A.04 Application of Division 3
This Division applies to a financial product that is a child account issued during the transition period for the product under section 1438 of the Corporations Act 2001.
Note Section 1438 of the Corporations Act 2001 applies to all financial products issued by a person, other than financial products in a class of products that are first issued by the person after the FSR commencement. Subsection 1438 (3) of the Corporations Act 2001 provides that the new product disclosure provisions do not apply in relation to a financial product to which that section applies during the period mentioned in that subsection (the transition period ). The new product disclosure provisions are set out in subsection 1438 (2).
2A.05 Definitions for Division 3
In this Division:
eligible application , in relation to the issue of a child account, has the meaning given in regulation 2A.06.
FSR commencement has the same meaning as in section 1410 of the Corporations Act 2001.
Note The FSR commencement is the commencement of item 1 of Schedule 1 to the Financial Services Reform Act 2001.
old RSA Act means the Act as in force immediately before the FSR commencement.
2A.06 Eligible applications
In this Division, an eligible application means an application that satisfies the following requirements:
(a) the application complies with paragraphs 51 (2) (a) and (b) of the old RSA Act;
(b) when the person making the application received the form mentioned in paragraph 51 (2) (b) of the old RSA Act, the person also received the additional information (if any) and the additional documents (if any) that would, under paragraph 51 (2) (c) of the old RSA Act, have been received by the holder of an account under that paragraph if the application was made by the person who would be the holder of the RSA before the FSR commencement;
(c) the application includes evidence that:
(i) the child's legal personal representative has consented to the opening of the child account; or
(ii) if the child does not have a legal personal representative, a parent of the child, or the child's guardian, has consented to the opening of the child account;
(d) the application includes the name and address of the legal personal representative, parent or guardian;
(e) the application includes the name, address and date of birth of the child.
2A.07 Issue of child accounts
An RSA institution must not issue a child account to a person unless the child account is issued as a result of an eligible application.
[3] Subparagraphs 4.24 (1) (a) (i) and (b) (i) and (2) (a) (i) and (b) (i)
omit
70
insert
75
[4] Paragraph 5.03 (1) (c)
omit
contributions.
insert
contributions; or
[5] After paragraph 5.03 (1) (c)
insert
(d) subject to subregulation (2A), the contributions are made in respect of a child, other than:
(i) contributions made in respect of the child by, or on behalf of, an employer of the child; and
(ii) contributions made by a child in respect of himself or herself; or
(e) the contributions are made:
(i) in respect of a person who is entitled to a first child tax offset under Subdivision 61-I of the Income Tax Assessment Act 1997; and
(ii) within 1 year after the person was notified by the Commissioner of Taxation that the person is entitled to the first child tax offset.
[6] After subregulation 5.03 (2)
insert
(2A) For paragraph (1) (d), an RSA institution must not accept contributions made in respect of a child of a total of more than $3,000 in each period of 3 years beginning on the date that the first contribution is made in respect of the child.
[7] Subregulation 5.03 (4)
substitute
(4) Subject to subregulation (5), an RSA institution may accept contributions that are made in respect of an RSA holder who has reached age 70 but not age 75 only if:
(a) the contributions are mandated employer contributions; or
(b) the contributions are made by the RSA holder in respect of the RSA holder and the RSA holder is gainfully employed on a full-time or part-time basis.
(4A) Subject to subregulation (5), an RSA institution may accept contributions that are made in respect of an RSA holder who has reached age 75 only if the contributions are mandated employer contributions.
[8] After subregulation 5.03 (5)
insert
(6) In this regulation:
child means an individual who is under age 18.