Superannuation Legislation Amendment Bill (No. 3) 1999 - Passed by the Senate

The Superannuation Legislation Amendment Bill (No. 3) 1999 was passed through the Senate yesterday.

The Bill reflects the Government’s response to the recommendations of the Financial System (Wallis) Inquiry that the regulation of self managed funds be transferred to the Australian Taxation Office and that all members be trustees of these funds.

It will ensure that all members of self managed funds are able to protect their own interests, and allow these funds to be subject to minimal prudential regulation.

The Government will be accepting two Senate amendments to the Bill.

The first amendment defers the Bill's date of commencement from 1 July 1999 to when it receives Royal Assent.

The second amendment removes a requirement in the Bill for all the members of a self managed fund to have a family or business relationship, while preventing employees from being a member of their employer's self managed superannuation fund, except where they are relatives.

The Government intends to consult with industry and other relevant bodies to determine whether any amendments to the superannuation regulations are necessary to facilitate the smooth operation of this amendment.

CANBERRA
21 September 1999