Commonwealth Numbered Acts

SUPERANNUATION LEGISLATION AMENDMENT ACT 1992 No. 187, 1992 - SECT 32

32. Section 128 of the Principal Act is amended:

   (a)  by omitting subsection (1) and substituting the following subsection:

"(1) If an eligible employee has been in employment, within or outside
Australia, on the termination of which a transfer value or transfer values
became payable to or in relation to him or her under a superannuation scheme
applicable in relation to that employment and:

   (a)  the transfer value or transfer values, as the case may be, became
        payable on or after 25 May 1971; and

   (b)  the eligible employee elects by written notice given to the
        Commissioner to pay the Commissioner an amount ('the election amount')
        equal to the amount of the transfer value or, if 2 or more transfer
        values became payable, the total of the amounts of those transfer
        values:

        (i)    before the transfer value or transfer values, as the case may
               be, are paid; or

        (ii)   not later than 3 months after the day on which:

                (A)  the person becomes an eligible employee; or

                (B)  the transfer value or transfer values, as the case may
                     be, became payable; whichever is the later; or

        (iii)  within such further period as the Commissioner, in special
               circumstances allows; and

   (c)  the election amount is, before the expiration of the period referred
        to in subparagraph (b)(ii) or (iii), as the case may be, paid to the
        Commissioner; then the succeeding provisions of this section have
        effect.

   (b)  by inserting in subparagraph (2)(c)(i) "or, if the transferred amount
        does not include an amount of productivity related benefit, the
        notional
productivity amount" after "that amount";
(c) by inserting in subsection (3) "or (2A)" after "62(2)";

   (d)  by inserting in subsection (3) "(other than so much of that
        transferred
amount as is worked out under paragraph (2)(c))" after "transferred amount";

   (e)  by omitting from subsection (4) "him upon the termination of his
        previous employment" and substituting "or in respect of him on the
        termination of the employment in respect of which the transfer value
        was payable";

   (f)  by omitting from subsection (4) "that last-mentioned amount." and
        substituting the following:

"the total of:

   (a)  the amount paid into the Consolidated Revenue Fund in respect of the
        person under paragraph (2)(b); and

   (b)  the amount that would have accrued by way of interest on that amount
        if it had been paid into the Superannuation Fund on the day on which
        the amount referred to in paragraph (a) was paid into the Consolidated
        Revenue Fund.";

   (g)  by inserting after subsection (4) the following subsections:

"(4A) Subject to subsection (4B) and (4C), any benefit payable to or in
respect of a person under subsection (4) must be:

   (a)  paid, for the benefit of the person, to a preservation fund nominated
        by the person; or

   (b)  applied, on behalf of the person, for the purchase of a deferred
        annuity nominated by the person; or

   (c)  if the person does not make a nomination within 2 months after the
        benefit becomes payable - paid, for the benefit of the person, to a
        preservation fund nominated by the Commissioner.

"(4B) Subsection (4A) does not apply to a benefit payable to or in respect of
a person if:

   (a)  the person is 55 or over and has given the Commissioner a written
        statement to the effect that he or she has retired for the workforce;
        or

   (b)  the benefit becomes payable on the person's death; or

   (c)  the total of:

        (i)    the amount of the person's accumulated employer contributions
               under section 110Q; and

        (ii)   the amount that would be preserved or applied under subsection
               (4A) in relation to the person but for the operation of this
               subsection; and

        (iii)  the amount of superannuation guarantee top-up benefit paid to
               the person; is less than $500; or

   (d)  the Commissioner is satisfied that the person is departing permanently
        from Australia.

"(4C) Subsection (4A) does not apply to a benefit, or a part of a benefit,
payable to or in respect of a person if the person establishes, to the
satisfaction of the Commissioner, that the benefit or the part of the benefit,
as the case may be, need not be preserved or applied under subsection (4A) in
order to satisfy the superannuation fund conditions under the Occupational
Superannuation Standards Act 1987 as they apply in relation to that benefit.";

   (h)  by inserting in subparagraph (6)(b)(i) "or, if the transfer value
        payable to or in respect of the person does not include such an
        amount, an
amount equal to the notional productivity amount" after "Part VIA";

   (i)  by adding at the end the following subsection:

"(8) For the purposes of subparagraphs (2)(c)(i) and (6)(b)(i), the 'notional
productivity amount', in relation to a transferred amount or a transfer value,
is the amount equal to 3% of so much of a person's earnings as were relevant
for the purpose of establishing whether, in relation to the period, or
periods, of employment in respect of which the transferred amount or the
transfer value, as the case may be, was payable, the employee was an employee
in respect of whom one or more employers incurred an individual superannuation
guarantee shortfall within the meaning of the Superannuation
Guarantee (Administration) Act 1992.".