Explanatory Memorandum
(Circulated by authority of the Treasurer, the Hon Peter Costello, MP)Chapter 4 - Lost Members
Overview
4.1 Part4 of this Bill contains provisions which set out the basic framework of how a scheme, to be established by regulations, may deal with lost members of funds for the purpose of reuniting members with their superannuation benefits. [Clauses 21to24]
4.2 The purpose of the provisions is to provide:
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- for regulations to establish a scheme for information regarding lost members to be provided to the Commissioner of Taxation (the Commissioner) (the required information may be set out by the Commissioner in an approved form); and
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- greater co-operation between the Commonwealth lost members register and State and Territory unclaimed money registers.
4.3 The object of Part 4 of this Bill is to set up a scheme, to be established under the regulations, for dealing with lost members of funds. [Clause 21]
4.4 A member is treated as a lost member if he or she is a lost retirement savings account holder within the meaning of the Retirement Savings AccountsRegulations or a lost member within the meaning of the Superannuation Industry (Supervision)Regulations. [Clause 22]
Regulations may establish a scheme
4.5 The regulations may set up a scheme in which superannuation providers are to give statements, in the approved form, to the Commissioner containing information relating to:
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- each lost member of the superannuation provider;
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- each lost members benefits in the funds managed or provided by the superannuation provider;
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- each member of the superannuation provider who is no longer a lost member of the provider and their benefits;
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- matters that the Commissioner reasonably believes may assist the lost members register.
[subclause 23(1)]
4.6 The scheme must provide for the Commissioner to keep a register that contains the information given by the superannuation providers under the scheme. [Paragraph 23(2)(a)]
4.7 The scheme may provide for the Commissioner to keep a register that contains:
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- other information given to the Commissioner that is of the type contained in the register (this will allow the register to be updated with other relevant information given to the Commissioner, for example, from members of the public); and
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- information relating to lost members of regulated exempt public sector superannuation schemes.
[Paragraph 23(2)(b) and subclauses23(3) and(4)]
4.8 A superannuation provider that does not comply with a requirement of the scheme is liable to a fine of up to 100 penalty units. [subclause 23(5)]
Commissioner may provide information to State and Territory authorities
4.9 The Commissioner may give lost member information to State or Territory unclaimed money registers for the purposes of the Superannuation (Unclaimed Money and Lost Members) Act 1999 (eg. for the purpose of identifying multiple entries for a person on Commonwealth lost members register and State and Territory unclaimed money registers). [Clause 24]