I am releasing today an exposure draft of the Superannuation Legislation Amendment Bill (No.3) 1999 for public comment and industry consultation prior to its introduction into Parliament.
The Bill gives effect to the changes to the definition of a self managed superannuation fund (currently known as an excluded superannuation fund), announced by the Government in the 1998-99 Budget. A self managed superannuation fund will be a superannuation fund with fewer than five members, where all members are trustees and there are generally no other trustees. Funds with fewer than five members, but with arm’s length members, will no longer be considered self managed funds.
This measure reflects the need to ensure that all members of self managed funds are able to protect their own interests, and as a result it will allow these funds to be subject to minimal prudential regulation.
Regulation of self managed superannuation funds will be transferred to the Australian Taxation Office from 1 July 1999, while regulation of all other funds will remain with the Australian Prudential Regulation Authority. In this respect, the Bill reflects the Government’s response to the recommendations of the Financial Systems Inquiry concerning the organisational framework for the regulation of small superannuation funds.
Key industry and professional groups will be consulted on the legislation. The Government also welcomes written submissions from industry groups and individuals. A period of two weeks will be provided for written submissions to be received and where possible submissions should be made through industry and professional bodies.
A copy of the exposure draft of the Bill and an explanatory memorandum for the Bill can be accessed through the Internet at www.treasury.gov.au. Submissions should be addressed to The General Manager, Retirement and Personal Income Division, Department of Treasury, Parkes Place, Canberra 2600. The closing date for written submissions is 19 March 1999.
Draft legislation for the new superannuation investment rules, also announced in the 1998-99 Budget, is not included in the draft bill being released today. However, draft legislation dealing with these rules will be issued for public comment in the near future.
5 March 1999