Retirement Savings Accounts Act 1997

PART 16 - MISCELLANEOUS  

SECTION 182   REGULATOR MAY DIRECT RSA INSTITUTIONS NOT TO ACCEPT EMPLOYER CONTRIBUTIONS  

182(1A)   Definition  

In this section:

regulatory provision
, in relation to an RSA institution, means:

(a) a provision of this Act or the regulations; or

(aa) a provision of the Financial Sector (Collection of Data) Act 2001 ; or

(b) any of the following provisions of the Corporations Act 2001 as applying in relation to RSAs that are provided by the RSA institution:

(i) subsection 1013K(1) or (2) ;

(ii) subsection 1016A(2) or (3) ;

(iii) subsection 1017B(1) ;

(iv) subsection 1017C(2A) , (3A) or (5) ;

(v) subsection 1017D(1) ;

(vi) subsection 1017DA(3) ;

(vii) subsection 1017E(3) or (4) ;

(viii) subsection 1020E(8) or (9) ;

(ix) subsection 1021C(1) or (3) ;

(x) subsection 1021D(1) ;

(xi) subsection 1021E(1) ;

(xii) subsection 1021O(1) or (3) ;

(xiii) section 1041E ;

(xiv) subsection 1041F(1) ;

(xv) any other provisions that are specified in regulations made for the purposes of this subparagraph.

182(1)   Directions.  

The Regulator may give an RSA institution a written notice directing the RSA institution not to accept any contributions made to RSAs by a specified employer.

182(2)   When direction may be given.  

The Regulator must not give a direction under this section to an RSA institution unless:

(a)    

the RSA institution has contravened any of the regulatory provisions on one or more occasions; and

(b)    the Regulator, after consulting with the prescribed regulatory agency, if any, is satisfied that the seriousness or frequency, or both, of the contraventions warrants the giving of the direction.

182(3)   Reasons.  

A direction under this section must be accompanied by, or included in the same document as, a statement giving the reasons for the direction.

182(4)   Revocation.  

The Regulator may revoke a direction under this section if the RSA institution satisfies the Regulator that there is, and is likely to continue to be, substantial compliance by the RSA institution with the regulatory provisions applicable to the RSA institution.

182(5)   Offence of contravening direction.  

An RSA institution must not, without reasonable excuse, contravene a direction under this section.

Penalty: 100 penalty units.

182(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 .

182(6)   Refund of contributions.  

A contravention of subsection (5) does not result in the invalidity of a transaction. However, if a contribution is accepted in contravention of that subsection, the RSA institution must refund the contribution within 28 days or such further period as the Regulator allows.

182(7)   Notification to employer.  

If an RSA institution is given a direction under this section, the RSA institution must take all reasonable steps to notify the direction to each employer specified in the direction.

182(8)   Offence of contravening subsection (6) or (7).  

A person who, without reasonable excuse, contravenes subsection (6) or (7) commits an offence punishable on conviction by a fine not exceeding 50 penalty units.

182(8A)    

Subsection (8) 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 .

182(9)   Refunded contributions to be ignored for the purposes of income tax and superannuation guarantee charge.  

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 person who made the contribution is taken never to have made the contribution.

182(10)   Superannuation guarantee charge - shortfall component to be treated as employer contribution.  

This section has effect as if the payment of a shortfall component to a fund under section 65 of the Superannuation Guarantee (Administration) Act 1992 were a contribution made to the RSA by an employer.