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This Digest was prepared for debate. It reflects the legislation as
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CONTENTS
Passage History
Purpose
Background
Main Provisions
Contact Officer & Copyright Details
Superannuation (Unclaimed Money and
Lost Members) Consequential and Transitional Bill
1999
Date Introduced: 30 June 1999
House: House of Representatives
Portfolio: Treasury
Commencement: The substantive provisions dealt
with in this Digest have effect from the commencement of the
Superannuation (Unclaimed Money and Lost Members) Bill
1999.
To allow 2 years
for the States/Territories to adapt their laws to meet the
requirements of the Superannuation (Unclaimed Money and Lost
Members) Bill 1999 relating to State/Territory authorities
receiving unclaimed money and reporting standards for unclaimed
money and lost members. The Bill will also amend a number of Acts
to reflect title and other minor changes due to the proposed
passage of the Superannuation (Unclaimed Money and Lost Members)
Bill 1999.
Refer to the Digest for the Superannuation
(Unclaimed Money and Lost Members) Bill 1999.
Clause 5 will effectively give the
States/Territories 2 years to bring their laws regarding unclaimed
money into line with the requirements of the Superannuation
(Unclaimed Money and Lost Members) Bill 1999. It provides that if,
before the commencement of the Superannuation (Unclaimed Money and
Lost Members) Bill 1999, the State/Territory had a law in effect
that required a superannuation provider to provide details and pay
unclaimed money to a State/Territory authority and also satisfied
the SIS and RSA legislation requirements regarding such a law, the
superannuation provider is to continue reporting and paying to such
an authority. The provision will cease to have effect from the
first half-year after the end of the transition period, which is 2
years after the commencement of the Superannuation (Unclaimed Money
and Lost Members) Bill 1999.
Details and payments of unclaimed money, and
details of lost members, which have been provided to the
Commissioner or a State/Territory authority in accordance with the
SIS or RSA legislation, will be deemed to have been provided, or
the money paid, in accordance with the Superannuation (Unclaimed
Money and Lost Members) Bill 1999 (clauses 6 and
7).
Sub-section 27A(3C) of the Income Tax
Assessment Act 1936 (ITAA) includes in the definition of
eligible termination payment (ETP) unclaimed money returned to a
claimant under SIS. This results in concessional tax treatment of
the money. The reference to SIS will be replaced by a reference to
the proposed Superannuation (Unclaimed Money and Lost Members) Act
1999. When calculating an ETP, account is taken of benefits accrued
during the 'relevant service period', which can include the period
while a person was a member of a fund. (item 3 of Schedule
1).
Item 4 will insert a new
sub-section 27A(3D) into the ITAA which will make it clear that for
the calculation of a relevant service period the time between money
being paid as unclaimed money and later paid to the member will not
be included.
The remaining provisions of the Bill deal with
changes in references to reflect the passage of the proposed
Superannuation (Unclaimed Money and Lost Members) Act 1999 and
other proposed Acts.
Chris Field
30 July 1999
Bills Digest Service
Information and Research Services
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ISSN 1328-8091
© Commonwealth of Australia 1999
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Published by the Department of the Parliamentary Library,
1999.
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