Superannuation Industry (Supervision) Amendment Regulations 2001 (No. 3) (353 of 2001)

Schedule 1   Amendments

[27]   After Division 2.5

insert

Division 2.5A Information about superannuation interest subject to payment split

2.36B Application

(1) This Division applies to:

(a) a regulated superannuation fund; and

(b) an approved deposit fund.

(2) For subsections 31 (1) and 32 (1) of the Act, a requirement of this Division is a standard applicable to the operation of the fund.

2.36C Information to be provided by trustee when interest becomes subject to payment split

(1) If an interest in a fund becomes subject to a payment split, the trustee of the fund must give to the non-member spouse in relation to the interest a written notice stating the following information:

(a) the contact details for the fund;

(b) if the interest is not a percentage-only interest and the payment split is a base amount split:

(i) the base amount allocated to the non-member spouse under the relevant superannuation agreement, flag lifting agreement or splitting order; and

(ii) the method by which the base amount will be adjusted on an ongoing basis; and

(iii) whether the governing rules of the fund would allow the non-member spouse to become a member of the fund, and information about the options available to the non-member spouse in relation to the interest under Part 7A;

(c) if the interest is not a percentage-only interest and the payment split is a percentage payment split:

(i) the percentage that is to apply to all splittable payments in respect of the interest; and

(ii) whether the governing rules of the fund would allow the non-member spouse to become a member of the fund, and information about the options available to the non-member spouse in relation to the interest under Part 7A;

(d) if the interest is a percentage-only interest:

(i) the percentage specified in the relevant superannuation agreement, flag lifting agreement or splitting order; and

(ii) if the payment split is under a superannuation agreement or flag lifting agreement, whether the percentage is to apply for the purposes of subparagraph 90MJ (1) (b) (i) of the Family Law Act 1975; and

(iii) if the payment split is under a splitting order, whether the order is made under paragraph 90MT (1) (c) of the Family Law Act 1975;

(e) the circumstances in which the entitlement of the non-member spouse will become payable;

(f) the entitlement of the non-member spouse if, at the time when the notice is given, a payment were to be made in respect of the interest that would be an eligible termination payment under Subdivision AA of Division 2 of Part III of the Income Tax Assessment Act 1936, and the value that the components of the payment mentioned in paragraphs 27AA (1) (a), (aa), (b), (c), (cb), (d) and (e) of that Act would have;

(g) if the governing rules of the fund would allow the non-member spouse to become a member of the fund, information that the non-member spouse would reasonably need to understand the management and financial condition of the fund and of any relevant sub-plan (for example, the fund's product disclosure statement);

(h) details of the existence and (in outline terms) the functions of the Superannuation Complaints Tribunal;

(i) details (in summary form) of arrangements the fund has to deal with inquiries or complaints;

(j) details of any fee payable by the non-member spouse in respect of the payment split, and arrangements for the payment of any such fee.

(2) The information must be given when the trustee gives the payment split notice to the non-member spouse.

Note See regulation 7A.03 for the payment split notice requirements.

2.36D Other information to be provided by trustee

(1) This regulation applies if:

(a) an interest in a fund is subject to a base amount payment split; and

(b) the interest is not a percentage-only interest; and

(c) the interest is in the growth phase; and

(d) none of the following has occurred under Part 7A:

(i) a new interest was created for the non-member spouse;

(ii) the transferable benefits of the non-member spouse were transferred or rolled out of the fund;

(iii) the amount to which the non-member spouse is entitled under the payment split was paid, as a lump sum, to the non-member spouse.

(2) The trustee of the fund must give to the member spouse and the non-member spouse the following information for each reporting period:

(a) the value of the adjusted base amount applicable to the non-member spouse at the end of the reporting period;

(b) the amount of the adjustment in the reporting period;

(c) the method used to calculate the adjustment, including the applicable interest rate under regulation 48 of the Family Law (Superannuation) Regulations 2001.

(3) The information required under subregulation (2):

(a) must be given as soon as practicable, and in any event within 6 months, after the end of the relevant reporting period; and

(b) in the case of information that is to be given to the member spouse, may be given with the information required to be given to the member spouse under Subdivision 2.4.2.

(4) The trustee of the fund must give to the non-member spouse information about any event that may have an adverse effect on the benefits to which the non-member spouse may be entitled under the payment split.

(5) The information required under subregulation (4) must be given before, or as soon as practicable after, the occurrence of the event.

(6) In this regulation:

reporting period means a reporting period that applies under Subdivision 2.4.2.

Note A non-member spouse may also be entitled to information on request under Division 2.6.