Retirement Savings Accounts Regulations (Amendment) 1997 (308 of 1997)

8.   New regulations 3.06A and 3.06B

8.1 After regulation 3.06, insert:

Priority in deducting surcharge or instalment

" 3.06A.(1) This regulation applies if an RSA provider has decided to reduce an RSA holder's benefits in an RSA in connection with payment of a superannuation contributions surcharge or an advance instalment of surcharge.

" (2) In reducing the RSA holder's benefits, the RSA provider must:

(a) if possible - deduct an amount equal to the whole of the amount of the reduction from the preserved benefits; and

(b) if the required deduction cannot be met under paragraph (a) - deduct the balance from the restricted non-preserved benefits; and

(c) if the required deduction cannot be met under paragraphs (a) and (b) - deduct the balance from the unrestricted non-preserved benefits.

Refund of costs

" 3.06B. The RSA provider may refund to an RSA costs charged against the RSA holder's benefits in the RSA.".