New South Wales Bills Explanatory Notes New South Wales Bills Explanatory Notes[Index] [Search] [Download] [Bill] [Help]
Explanatory note
This explanatory note relates to this Bill as introduced into Parliament.
Outline of provisions
Clause 1 sets out the name (also called the short title) of the proposed Act.
Clause 2 provides for the commencement of the proposed Act on 30 June
1997.
Clause 3 is a formal provision giving effect to the amendments to the
Unclaimed Money
1995 set out in Schedule 1.
Unclaimed superannuation benefits
Schedule 1 [6] inserts proposed Part 3A (Unclaimed superannuation
benefits) into the Principal Act. The proposed Part applies to private and
public superannuation funds, and approved deposit funds, in New South
Wales and is enacted for the purposes of section 225 of the Superannuation
Industry (Supervision) Act 1993 of the Commonwealth. That provision
enables State legislation to be enacted to provide for the payment of
unclaimed superannuation benefits. Proposed Division
(proposed section
13A) defines expressions used in the proposed Part. Proposed Division 2
relates to the unclaimed Superannuation benefits. A trustee of a
superannuation fund is required to lodge a return with the Chief
Commissioner of State Revenue for each half-year setting out unclaimed
superannuation benefits, not later than 30 April and 31 October, respectively
(proposed section 13B). The amount of the benefits (less the amount of any
benefits paid after the end of the half-year and before the return is lodged)
must be paid when the return is lodged. Trustees are required to keep copies
of returns (proposed section 13C). The Chief Commissioner must publish in
the Government Gazette the details of each sum of unclaimed superannuation
benefits that is over $50 (proposed section 13D). The Chief Commissioner is
required to pay unclaimed superannuation benefits to a person if the Chief
Commissioner determines that the person would have been entitled to be paid
the benefits by the trustee of the relevant fund (proposed section 13E). The
Chief Commissioner must also repay to trustees any excess superannuation
benefits paid by the trustees to the Chief Commissioner and any other
amounts that should not have been paid (proposed section 13F). The
Consolidated Fund is appropriated for the purpose of the proposed
repayments (proposed section 13G). The Chief Commissioner is also to keep
a register of unclaimed superannuation benefits containing particulars of
unclaimed superannuation benefits paid by a trustee of a superannuation fund
and of members in respect of whom the benefits were payable (proposed
section 13H).
Explanatory note page 2
A trustee who pays an amount to the Chief Commissioner is discharged from
further liability (proposed section 131) and nothing done by a trustee under
the proposed Part is to constitute a breach of trust (proposed section
Proposed Division 3 (sections 13K and 13L) applies the proposed Part to
public sector superannuation funds and, in the case of private funds, to a
private fund if the fund's trustee is a company incorporated or having its
registered office in New South Wales or, if the trustee or one of the trustees is
not a company, the principal place where the trustee carries on business as a
trustee is in New South Wales. Proposed section 13L is inserted for the
purpose only of making it clear that the scheme envisaged by the proposed
Part does operate in relation to trustees, assets and other matters outside New
South Wales (as well as within New South Wales), once a relevant
connection with New South Wales has been established for the purposes of
the scheme. The proposed section therefore supports the intended operation
of proposed section 13K.
Schedule 1 [2] and [4] make consequential amendments.
Returns for unclaimed money
Schedule 1 [5] extends from 2 months to 4 months the period within which
returns as to unclaimed money must be lodged. This makes the time allowed
the same as that for the lodging of returns for unclaimed superannuation
benefits.
Administrative changes
Schedule 1
inserts proposed section 27 that enables administrative
provisions of the Taxation
Act 1996 to be read with the
Principal Act and repeals provisions in the Principal Act which cover the
same
The following provisions of the Taxation Administration Act
1996 will apply to unclaimed money and unclaimed superannuation benefits:
(a)
Part 5 (relating to interest and penalties in respect of outstanding
money),
(b)
Part 7 (relating to the collection and payment of money),
(c)
Part 8 (relating to record keeping),
(d)
Part 9 (relating to administration, officers and investigation powers),
Explanatory note page 3
(e)
Part 10 (relating to objections and appeals),
(f)
various miscellaneous provisions, including provisions relating to
means of payment, service of documents, evidentiary provisions and
proceedings for offences.
Currently, the Principal Act establishes the office of Chief Commissioner of
Unclaimed Money and the Chief Commissioner has the general
administration of the Act. This position is to be abolished and the person who
will have the general administration of the Act will be the Chief
Commissioner of State Revenue, by operation of proposed section 27.
Schedule 1 [ l ] makes a consequential amendment.
The Chief Commissioner is to be given a new power to assess the amount of
unclaimed money or unclaimed superannuation benefits payable where a
return is not lodged or the Chief Commissioner is of the opinion that an
incorrect return has been lodged (Schedule 1 [8], proposed section 28). There
is to be a right to object and a subsequent right of appeal to the Supreme
Court against an assessment, by operation of proposed section 27.
The amendment also re-enacts provisions currently in the Principal Act
(proposed sections 29 and 30).
Schedule 1 [3] and [7] make consequential amendments.
Savings and transitional provisions
Savings and transitional regulations may be made as a consequence of the
proposed Act (Schedule 1 [9]). The provisions allowing an assessment of a
return or liability to pay money under the Act are not to apply to a return
lodged or required to be lodged before the applicable provisions of the
proposed Act commence (Schedule
[10]).
Explanatory note page 4