Commonwealth Numbered Acts

SUPERANNUATION INDUSTRY (SUPERVISION) CONSEQUENTIAL AMENDMENTS ACT 1993 No. 82, 1993 - SECT 7

7. Section 116 of the Principal Act is amended:

   (a)  by omitting paragraphs (2)(d), (e), (f) and (fa) and substituting the
        following paragraph:

"(d) subject to subsection (5):

        (i)    policies of life assurance or endowment assurance in respect of
               the life of the bankrupt or the spouse of the bankrupt;

        (ii)   the proceeds of such policies received on or after the date of
               the bankruptcy;

        (iii)  the interest of the bankrupt in:

                (A)  a regulated superannuation fund (within the meaning of
                     the Superannuation Industry (Supervision) Act 1993); or

                (B)  an approved deposit fund (within the meaning of that
                     Act);

        (iv)   a payment to the bankrupt from such a fund received on or after
               the date of the bankruptcy, if the payment is not a pension
               within the meaning of the Superannuation Industry (Supervision)
               Act 1993;";

   (b)  by adding "or" at the end of paragraph (2A)(a);

   (c)  by omitting "or" from the end of paragraph (2A)(b);

   (d)  by omitting paragraph (2A)(c);
(e) by omitting paragraph (a) of the definition of "exempt money" in
subsection (2D) and substituting the following paragraph:

"(a) an amount to which subsection (1) does not extend because of subparagraph
(2)(d)(ii) or (iv);";

   (f)  by adding at the end the following subsections:

"(5) The following provisions apply in working out how subsection (1) extends
to property covered by paragraph (2)(d):

   (a)  if the total value of the property does not exceed the bankrupt's
        pension RBL (worked out under section 140ZD of the
        Income Tax Assessment Act 1936) for the year of income in which the
        date of the bankruptcy occurred-subsection (1) does not extend to any
        of that property;

   (b)  if the total value of the property exceeds that pension RBL-subsection
        (1) does not extend to so much of that total value as equals that
        pension RBL.

"(6) The rules may set out a method for determining how one or more items of
property are to be apportioned for the purposes of paragraph (5)(b). For
example, if the bankrupt's pension RBL is $800,000 and the bankrupt has 2
items of paragraph (2)(d) property each with a value of $500,000, the rules
could provide that subsection (1):

   (a)  does not extend to the first item; and

   (b)  does not extend to so much of the value of the second item as equals
        $300,000.

"(7) The rules may provide for a special method of working out the value of a
specified kind of property for the purposes of subsection (5).

"(8) The rules may provide for the trustee of:

   (a)  a regulated superannuation fund within the meaning of the
        Superannuation Industry (Supervision) Act 1993; or

   (b)  an approved deposit fund within the meaning of that Act; to issue a
        written evidentiary certificate about the value of the interest of the
        bankrupt in the fund. The rules may provide that, in proceedings under
        this Act, the certificate is prima facie evidence of the value of the
        interest for the purposes of subsection (5).

"(9) In subsections (5) to (8) (inclusive):
'value' includes amount.".