The Government has gazetted Regulations to complete the regulatory framework for RSAs.
The Government has now delivered on a major superannuation policy election promise.
RSAs will be allowed to be offered by banks, building societies, credit unions and life offices from 1 July 1997, as announced in last year's Budget.
RSAs will inject substantial competition into the superannuation industry. RSAs will place downward pressure on fees and charges and expand the range of products available to consumers, particularly those with low risk preferences.
Prospective RSA providers will be able to apply to the Insurance and Superannuation Commission from early June for approval to offer RSAs.
The package of Regulations included amendments to the Superannuation Industry (Supervision) Regulations to facilitate the provision of 'RSA look-alikes' by public offer superannuation funds.
The Government has maintained equity between RSA providers and traditional retail superannuation funds.
The RSA Regulations and the amendments to the SIS Regulations also give effect to the 1996-97 Budget announcement that the age limit for making superannuation contributions will be increased from 65 to 70 years where the person maintains a link with the workforce.
CANBERRA
30 May 1997
Contact:
Richard King (Assistant Treasurer's office): (0419) 683 586
John Larkin (ISC): (06) 267 6892