Explanatory Memorandum
(Circulated by the authority of the Minister for Finance and Administration, Senator the Hon Nick Minchin)Schedule 4 - Amendment of the Superannuation Benefits (Supervisory Mechanisms) Act 1990
20. This schedule amends Supervisory Mechanisms Act as a consequence of the establishment of the PSSAP as a separate accumulation superannuation scheme and the provision for employers to offer choice of fund arrangements under the SG Act.
21. The amendments made by this schedule will ensure that the Supervisory Mechanisms Act does not prohibit employers from contributing to the PSSAP. They also prohibit the application of any prescribed requirements under that Act that would prevent an employer offering choice of fund arrangements in compliance with the Supervisory Mechanisms Act.
22. Item 1 amends the definition of "relevant body" in subsection 3(1) of the interpretation section of the Supervisory Mechanisms Act to include an approved authority under the 2005 Bill for the purposes of complying with the Supervisory Mechanisms Act.
23. Item 2 amends the definition of "relevant subsidiary" in subsection 3(1) to include in subparagraph 3(1)(a)(i) authorities, body corporates, companies and other bodies that could be an approved authority under the 2005 Bill.
24. Item 3 amends the definition of superannuation benefits in subsection 3(1) to include benefits provided under the 2005 Bill.
25. Item 4 inserts subsection 6(1A) which provides that any prescribed requirements under section 6 that would create a liability or notional liability under the SG Act have no effect. The purpose of this subsection is to ensure that employers may offer choice to employees as required and allowed by the SG Act while continuing to comply with the Supervisory Mechanisms Act
26. Item 5 amends subsection 6(6) to clarify that the use of the term "employer" in subsection 6(1A) uses the meaning of employer as defined in the SG Act. The term "employer" as defined by subsection 6(6) continues to apply to the rest of section 6.
27. Item 7 amends paragraphs 8(a) and 8(b) of the Supervisory Mechanisms Act to limit the Minister's delegation powers by specifically excluding the 2005 Bill from the application of that section.