Retirement Savings Accounts Act 1997

PART 3 - APPROVAL OF RSA INSTITUTIONS  

SECTION 34   CONSEQUENCES OF SUSPENSION OR REVOCATION  

34(1)    
If the approval of an RSA institution is suspended or revoked:

(a) the RSA provider must, within the prescribed period, notify the holder of each RSA, and any employer who makes contributions to those RSAs, that the approval has been suspended or revoked; and

(b) the RSA provider must not accept any additional contributions to existing RSAs unless, and until, the suspension is lifted or the RSA provider is later approved as an RSA institution.

Note:

It is not possible for the entity to allow any person to become the holder of a new RSA because it ceases to be an RSA institution. See paragraph 8(b) and subsection 11(1) .

34(2)    
Despite the suspension or revocation of an approval, RSAs that were being provided by that entity immediately before the suspension or revocation continue to be RSAs.

Note:

Many provisions of this Act apply to an entity that was formerly an RSA institution, despite the suspension or revocation of an approval.

34(3)   Offence of contravening subsection (1).  

An RSA provider must not, without reasonable excuse, contravene subsection (1).

Penalty: 250 penalty units.

34(3A)    

Subsection (3) is an offence of strict liability.

Note 1:

Chapter 2 of the Criminal Code sets out the general principles of criminal responsibility.

Note 2:

For strict liability , see section 6.1 of the Criminal Code .

Note 3:

A defendant bears an evidential burden in relation to the matter in paragraph (1)(b) (see subsection 13.3(3) of the Criminal Code ).

34(4)   Refund of contributions.  

Accepting a contribution in contravention of subsection (1) does not result in the invalidity of a transaction. However, the RSA provider must refund the contribution within 28 days or such further period as APRA allows.

34(5)   Offence of contravening subsection (4).  

A person who, without reasonable excuse, contravenes subsection (4) commits an offence punishable on conviction by a fine not exceeding 50 penalty units.

34(5A)    

Subsection (5) is an offence of strict liability.

Note 1:

Chapter 2 of the Criminal Code sets out the general principles of criminal responsibility.

Note 2:

For strict liability , see section 6.1 of the Criminal Code .

34(6)    
For the purposes of the Income Tax Assessment Act and the Superannuation Guarantee (Administration) Act 1992 , if a contribution is refunded under this section, the contribution is taken never to have been made.