Commonwealth Numbered Acts

RETIREMENT SAVINGS ACCOUNTS ACT 1997 No. 61, 1997 - SECT 89

When section applies

(1) This section applies at a particular time if the conditions specified in
the regulations are satisfied.

Application to eligible rollover fund

(2) The RSA provider may apply to the trustee of an eligible rollover fund, on
behalf of the holder of an RSA, for the issue to the holder of a
superannuation interest in the eligible rollover fund.

Consideration for issue

(3) The application is to be made on the basis that:

   (a)  the consideration for the issue is to be paid, on behalf of the
        holder, by the RSA provider; and

   (b)  the amount of the consideration is equal to the amount ascertained in
        accordance with the regulations; and

   (c)  the RSA provider is not entitled to recover the consideration from the
        holder (except as a result of the operation of subsection (5)).

Authorisation by holder

(4) The holder is taken to have authorised the RSA provider:

   (a)  to make the application; and

   (b)  to pay the consideration. This rule has effect despite any direction
        to the contrary by the holder.

RSA holder ceases to have rights against RSA provider etc.

(5) If the superannuation interest is issued in accordance with the
application:

   (a)  the holder ceases to have rights against the RSA provider; and

   (b)  if:

        (i)    immediately before the interest was issued in accordance with
               the application, another person had a contingent right against
               the RSA provider to a death or disability benefit; and

        (ii)   the contingent right was derived from the holder's capacity as
               the holder of an RSA provided by the RSA provider; the other
               person ceases to have the contingent right against the RSA
               provider. Note: To avoid doubt, a reference in paragraph (a) to
               a right against the RSA provider includes a reference to a
               contingent right to a death or disability benefit.

Terms and conditions overridden

(6) This section has effect despite anything in the terms and conditions of
the RSA.