Superannuation Industry (Supervision) Act 1993
No.78, 1993 as amended
Compilation start date: 18March 2014
Includes amendments up to: Act No.11, 2014
About this compilation
This compilation
This is a compilation of the Superannuation Industry (Supervision) Act 1993 as in force on 18March 2014. It includes any commenced amendment affecting the legislation to that date.
This compilation was prepared on 24March 2014.
The notes at the end of this compilation (the endnotes) include information about amending laws and the amendment history of each amended provision.
Uncommenced amendments
The effect of uncommenced amendments is not reflected in the text of the compiled law but the text of the amendments is included in the endnotes.
Application, saving and transitional provisions for provisions and amendments
If the operation of a provision or amendment is affected by an application, saving or transitional provision that is not included in this compilation, details are included in the endnotes.
Modifications
If a provision of the compiled law is affected by a modification that is in force, details are included in the endnotes.
Provisions ceasing to have effect
If a provision of the compiled law has expired or otherwise ceased to have effect in accordance with a provision of the law, details are included in the endnotes.
Contents
Part1—Preliminary 1
Division1—Preliminary 1
1 Short title 1
2 Commencement 1
3 Object of Act 1
4 Summary of provisions 2
6 General administration of Act 4
7 Application of Act not to be excluded or modified 9
8 Act extends to external Territories 9
9 Crown to be bound 9
9A Application of the Criminal Code 9
Division2—Interpretation 10
10 Definitions 10
10A Interdependency relationship 36
11 Approvals, determinations etc. by Regulator 37
11A Approved forms 37
11B Electronic lodgment of approved forms 38
11C Declaration required if approved form lodged electronically on trustee’s behalf 39
11D Electronic lodgment—documents other than approved forms 40
11E Approved guarantees 40
12 Associates 41
13 Single trustees 41
13A RSE licensees that are groups of individual trustees 41
14 Indefinitely continuing fund—application of rules against perpetuities 43
15 Approved deposit funds—payments by trustees 43
15A Definitions of employee and employer 44
15B Modified meaning of member 45
16 Definitions associated with employersponsorship 45
17A Definition of self managed superannuation fund 47
17B Definition of self managed superannuation fund—remuneration of trustees etc. 51
18 Public offer superannuation fund 52
19 Regulated superannuation fund 55
20 Related bodies corporate 57
20A Resident approved deposit funds 57
20B Accrued default amounts 58
Part2A—Licensing of trustees and groups of individual trustees 61
Division1—Object of this Part 61
29A Object of this Part and the relationship of this Part to other provisions 61
Division2—Classes of RSE licences 63
29B Classes of RSE licences 63
Division3—Applying for RSE licences 65
29C Applications for RSE licences 65
29CA APRA may request further information 66
29CB Period etc. for deciding applications from existing trustees in licensing transition period 67
29CC Period for deciding other applications 68
Division4—Grant of RSE licences 70
29D Grant of RSE licences 70
29DB Notice of class of licence 71
29DC Documents required to bear ABNs 71
29DD Licence period 72
29DE APRA to give notice of refusal of applications 72
Division5—Conditions on RSE licences 73
29E Conditions imposed on all licences and on groups of licences 73
29EA Additional conditions imposed on individual licences by APRA 77
29EB Directions to comply with licence conditions 78
Division6—Varying RSE licences 79
29F Applications for variation of RSE licences 79
29FA APRA may request further information 79
29FB Period for deciding applications 80
29FC APRA may vary RSE licences in accordance with applications 80
29FD APRA may vary or revoke licence conditions on its own initiative 81
29FE Notification of APRA’s decisions under this Division 82
29FF When variations or revocations come into force etc. 83
Division7—Cancelling RSE licences 84
29G Cancellation of RSE licences 84
29GA Cancellation of RSE licences of financial services licensees 84
29GB APRA may allow RSE licence to continue in effect 85
Division9—Offences and selfincrimination 86
29J Being trustee of a registrable superannuation entity while unlicensed etc. 86
29JA Failing to notify breach of licence condition 87
29JB Not complying with direction to comply with licence conditions 88
29JCA False representation about status as RSE licensee 88
29JD Breach does not affect validity of issue of superannuation interests etc. 89
Part2B—Registrable superannuation entities 90
Division1—Object of this Part 90
29K Object etc. of this Part 90
Division2—Applying for registration 91
29L Applications for registration 91
29LA APRA may request further information 92
29LB Period for deciding applications for registration 93
Division3—Registration 94
29M Registration of registrable superannuation entity 94
29MA Notice of registration 94
29MB Documents required to bear ABNs 94
29MC APRA to give notice of refusal of applications 95
Division4—Cancelling registration 96
29N Cancelling registration 96
Part2C—MySuper 97
Division1—Object of this Part 97
29R Object of this Part 97
Division2—Applying for authority 98
29S Application for authority to offer a MySuper product 98
29SAA Election to transfer accrued default amounts 100
29SAB Election to transfer assets attributed to a MySuper product if authorisation cancelled 101
29SAC Election not to charge MySuper members for payment of conflicted remuneration 102
29SA APRA may request further information 103
29SB Period for deciding applications for authority 103
Division3—Authority 105
29T Authority to offer a MySuper product 105
29TA Product in another fund in which there is already material goodwill 106
29TB MySuper products for large employers 107
29TC Characteristics of a MySuper product 108
29TD Notice of authority 111
29TE APRA to give notice of refusal of authority 111
Division4—Cancelling authority 112
29U Cancelling authority to offer MySuper product 112
29UA Cancellation of authority of an RSE licensee that is also a financial services licensee 114
29UB APRA may allow authority to continue in effect 115
Division5—Fees rules for MySuper products 116
29V Fees that may be charged in relation to a MySuper product 116
29VA Charging rules 118
29VB Administration fee exemption for employees of an employersponsor 122
29VC Activity fees and insurance fees to be charged on a cost recovery basis 124
29VD Performancebased fees 124
29VE Percentagebased administration fees may be capped 126
Division6—Trustee obligations relating to MySuper 127
29VN Additional obligations of a trustee in relation to a MySuper product 127
29VO Additional obligations of a director of a corporate trustee in relation to a MySuper product 128
29VP Contravention of section29VN 128
29VPA Contravention of section29VO 129
29VQ Governing rules void to the extent that they are inconsistent with obligations under section29VN or 29VO 129
Division7—Offences 130
29W Offering a product as a MySuper product when not authorised to do so 130
29WA Contributions in relation to which no election is made are to be paid into MySuper product 130
29WB Contributions by large employer in relation to which no election is made to be paid into large employer MySuper product 132
Division8—Other matters 135
29X Prudential standards dealing with accrued default amounts 135
29XA Prudential standards dealing with assets attributed to former MySuper products 135
29XB No liability for certain transfers 136
29XC Public sector superannuation scheme ceases to be exempt 136
Part3—Operating standards 137
Division1—Object of Part 137
30 Object of Part 137
Division2—Operating standards 138
31 Operating standards for regulated superannuation funds 138
32 Operating standards for approved deposit funds 139
33 Operating standards for pooled superannuation trusts 140
33A Relationship between operating standards, this Act and the regulations 141
34 Prescribed operating standards must be complied with 142
Division3—Portability forms 143
34A Portability forms 143
Part3A—Prudential standards 144
34B Object of this Part 144
34C APRA may determine prudential standards 144
34D Relationship between prudential standards, this Act and the regulations 147
34E Notice of determination, variation or revocation of certain prudential standards 147
34F APRA to monitor prudential matters 148
Part3B—Superannuation data and payment regulations and standards 149
Division1—Superannuation data and payment regulations and standards 149
34H Object of Part 149
34J Alternative constitutional basis 149
34K Superannuation data and payment regulations and standards 149
34L Relationship between standards and other law 151
Division2—Compliance with superannuation data and payment regulations and standards 152
34M Compliance requirement—trustees of eligible superannuation entities 152
34N Compliance requirement—employers 152
34P Regulator’s power to give directions in certain circumstances—trustees of eligible superannuation entities 153
34Q Regulator’s power to give directions in certain circumstances—employers 154
Division3—Infringement notices 157
34R When an infringement notice may be given 157
34S Matters to be included in notice 157
34T Extension of time to pay amount 158
34U Withdrawal of an infringement notice 159
34V Effect of payment of amount 160
34W Effect of this Division 161
Division4—Information 162
Subdivision A—Correction and rectification of information 162
34X Correction and rectification of information 162
Subdivision B—Register of information about certain funds and schemes 162
34Y Register of information about certain funds and schemes 162
34Z Trustees to provide information for inclusion in register 163
Part4—Accounts, audit and reporting obligations for superannuation entities 164
Division1—Objects 164
35 Objects of Part 164
Division2—Obligations for registrable superannuation entities 165
35A Accounting records 165
35AB Auditor requests for documents 167
35AC Appointed auditor’s functions and duties 167
35AD Appointed actuary’s functions and duties 168
Division3—Obligations for self managed superannuation funds 170
35AE Accounting records 170
35B Accounts and statements 171
35C Audit of accounts and statements 172
35D Trustee to lodge annual returns 173
Part5—Notices about complying fund status 175
Division1—Objects and interpretation 175
37 Objects of Part 175
38 Meaning of entity 175
Division2—The Regulator may give notices about complying fund status 176
38A Meaning of regulatory provision 176
39 Meaning of contravention 177
40 Notices by the Regulator to trustee 177
41 When the Regulator obliged to give notice of compliance 179
42 Complying superannuation fund 180
42A Complying superannuation fund—fund that has been a self managed superannuation fund at any time during a year 185
43 Complying approved deposit fund 190
44 Pooled superannuation trust 191
Division3—Complying fund status for tax purposes 193
45 Complying superannuation fund 193
46 Complying superannuation scheme—superannuation guarantee charge 194
47 Complying approved deposit fund 194
48 Pooled superannuation trust 195
49 Transitional—notices under the repealed provisions of the Occupational Superannuation Standards Act 1987 196
50 Transitional—late lodgment of elections by trustees of superannuation funds 199
Part6—Provisions relating to governing rules of superannuation entities 202
51 Object of Part 202
51A Covenants are cumulative 202
52 Covenants to be included in governing rules—registrable superannuation entities 202
52A Covenants relating to directors to be included in governing rules—registrable superannuation entities 206
52B Covenants to be included in governing rules—self managed superannuation funds 208
52C Covenant relating to directors to be included in governing rules—self managed superannuation funds 210
53 Covenants to repay amounts to beneficiaries in approved deposit funds 211
54 Prerequisites to variation of repayment period 212
54A Regulations may prescribe other covenants 213
55 Consequences of contravention of covenant 214
55A Rules about cashing benefits after death of members 215
55B Governing rules do not prevent giving effect to certain elections 216
55C Governing rules do not prevent transfer from preMySuper default option to MySuper product 216
56 Indemnification of trustee from assets of entity 217
57 Indemnification of directors of trustee from assets of entity 218
58 Trustee not to be subject to direction 219
58A Service providers and investments cannot be limited to particular persons or associates 220
58B Service providers and investments 221
59 Exercise of discretion by person other than trustee 221
60 Amendment of governing rules 222
60A Dismissal of trustee of public offer entity 223
Part7—Provisions applying only to regulated superannuation funds 224
61 Object of Part 224
62 Sole purpose test 224
62A Self managed superannuation funds—investment in collectables and personal use assets 226
63 Certain regulated superannuation funds not to accept employer contributions in certain circumstances 227
64 Superannuation contributions—deductions from salary or wages to be remitted promptly 231
64A Compliance with determinations of the Superannuation Complaints Tribunal 232
65 Lending to members of regulated superannuation fund prohibited 233
66 Acquisitions of certain assets from members of regulated superannuation funds prohibited 234
67 Borrowing 238
67A Limited recourse borrowing arrangements 241
67B Limited recourse borrowing arrangements—replacement assets 243
68 Victimisation of trustees etc. 245
68AA Benefits for permanent incapacity and death—MySuper members 248
68A Conduct relating to fund membership 250
68B Promotion of illegal early release schemes 251
68C Voting by a director of a corporate trustee—governing rules 252
68D Voting by an individual trustee—governing rules 252
Part8—Inhouse asset rules applying to regulated superannuation funds 254
Division1—Object and interpretation 254
Subdivision A—General 254
69 Object of Part 254
69A Subfunds to be treated as funds 254
70A The Regulator may determine a person to be a standard employersponsor 254
Subdivision B—Part8 associates 255
70B Part8 associates of individuals 255
70C Part8 associates of companies 255
70D Part8 associates of partnerships 256
70E Meanings of terms used in sections70B, 70C and 70D 257
Subdivision C—Inhouse assets 258
71 Meaning of inhouse asset 258
Subdivision D—Transitional arrangements in relation to inhouse assets 262
71A Exceptions—pre11August 1999 investments and loans 262
71B Exceptions—pre11August 1999 leases and lease arrangements 264
71C Exceptions—transition period 265
71D Exception—reinvestments 266
71E Exception—certain geared investments 267
71EA Relationship breakdowns 269
71F Meaning of certain terms used in Subdivision D 271
Subdivision E—Other provisions in relation to inhouse assets 272