Explanatory Memorandum
(Circulated by authority of the Treasurer,the Hon Peter Costello, MP)11 - Schedule 8 Amendment of the Superannuation industry (Supervision) Act 1993
Items 1,2 and 5
11.1 Section 21 and section 133 refer to the trustee requirements for superannuation funds with fewer than five members. These amendments are consequential and maintain consistency between these sections and section 121A.
Items 3 and 4
11.2 Section 121A can have the unintended effect of requiring a superannuation fund that would not otherwise require an approved trustee to appoint an approved trustee while it is being wound up. This would occur if the membership of the fund falls below five members during the process of winding up. The requirements that must be met to become an approved trustee are considered too onerous in this situation.
11.3 This amendment ensures that a superannuation fund which is being wound up is not required to appoint an approved trustee in the course of winding up if membership falls below five members. The fund will have a twelve month grace period during which they will not be in breach of section 121A. APRA will have the discretion to extend the grace period.
Item 6
11.4 This amendment allows that the Commissioner of Taxation to disclose descriptions of court proceedings in relation to a breach or suspected breach of the legislation covered by section 252C. The Commissioner of Taxation may also disclose descriptions of activities in relation to such breaches or suspected breaches. The amendment ensures consistency with equivalent provisions applying to APRA in respect of its administration of superannuation (see section 56 of the APRA Act).
Commencement
11.5 These amendments will commence the day after the day on which this Act receives the Royal Assent.