ATO Interpretative Decision
ATO ID 2001/147 (Withdrawn)
Superannuation
Assignment of superannuation interestsFOI status: may be released
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This ATO ID does not accurately reflect the ATO view due to changes in legislation and has been withdrawn.This document incorporates revisions made since original publication. View its history and amending notices, if applicable.
This ATOID provides you with the following level of protection:
If you reasonably apply this decision in good faith to your own circumstances (which are not materially different from those described in the decision), and the decision is later found to be incorrect you will not be liable to pay any penalty or interest. However, you will be required to pay any underpaid tax (or repay any over-claimed credit, grant or benefit), provided the time limits under the law allow it. If you do intend to apply this decision to your own circumstances, you will need to ensure that the relevant provisions referred to in the decision have not been amended or repealed. You may wish to obtain further advice from the Tax Office or from a professional adviser.
Issue
Whether the member of the regulated superannuation fund can assign their interest in the fund to another member.
Decision
The benefits of the member cannot be assigned to another member under regulation 13.12 of the Superannuation Industry (Supervision) Regulations 1994 (SIS Regulations).
Facts
A regulated superannuation fund has two members who are husband and wife. However, the husband and wife are currently in the process of a divorce.
Under an order of the Family Court, the wife's benefits must be retained in the fund until she is entitled to receive the benefits, at which time they are to be paid to the husband.
The wife is not presently entitled to the proceeds of the funds. However, the wife agrees to transfer her share of the fund to her former husband.
Reasons for Decision
Regulation 13.12 (SIS Regulations) provides the operating standards for regulated superannuation funds for the purposes of section 31 of the Superannuation Industry (Supervision) Act 1993 (SIS Act). Regulation 13.12 (SIS Regulations) provides that 'the trustee of a fund must not recognise, or in any way encourage or sanction, an assignment of a superannuation interest of a member or beneficiary'.
Accordingly, the trustee cannot recognise any agreement to transfer the wife's benefits in the fund to the husband.
Date of decision: 30 March 2000
Legislative References:
Superannuation Industry (Supervision) Act 1993
section 31
regulation 13.12
Keywords
Superannuation
Superannuation funds
Regulated superannuation funds
Retirement income entities
ISSN: 1445-2782
| Date: | Version: | |
| 30 March 2000 | Original statement | |
| You are here | 31 March 2006 | Archived |