Statutory Rules 1994   No. 571

__________________

Superannuation Industry (Supervision) Regulations

I, The Governor-General of the Commonwealth of Australia, acting with the advice of the Federal Executive Council and under section 4 of the Acts Interpretation Act 1901, make the following Regulations under the Superannuation Industry (Supervision) Act 1993.

Dated 4 March 1994.

 BILL HAYDEN

 Governor-General

By His Excellency’s Command,

PAUL ELLIOTT

Parliamentary Secretary to the Treasurer

for the

Treasurer

____________

PART 1—PRELIMINARY

Citation

 1.01. These Regulations may be cited as the Superannuation Industry (Supervision) Regulations.

Commencement

 1.02. The following provisions of these Regulations commence on 1 July 1994:

 (a) Division 2.2;

 (b) Subdivision 2.8.2;

 (c) Regulations 3.10, 3.11 and 3.12;

 (d) Division 6.5;

 (e) Parts 9 and 10;

 (f) Regulation 11.08;

 (g) Part 12.

[NOTE:  The remaining provisions of these Regulations commence on gazettal: see Acts Interpretation Act 1901, s. 48.]

Interpretation

 1.03. (1) In these Regulations, unless the contrary intention appears:

“accumulation fund” means a regulated superannuation fund that is not a defined benefit fund;

“Act” means the Superannuation Industry (Supervision) Act 1993;

“benefit certificate” has the meaning given by section 10 of the SG(A) Act;

“contributions”, in relation to a fund:

 (a) include payments of shortfall components to the fund; but

 (b) do not include benefits that have been rolled-over or transferred to the fund;

“defined benefit fund” means a regulated superannuation fund under which:

 (a) one or more members of the fund are entitled, on retirement, to be paid a benefit defined, wholly or in part, by reference to either or both of the following:

 (i) the amount of the member’s salary:

 (A) at the date of the member’s retirement; or

 (B) at a date before retirement; or

 (C) averaged over a period of employment before retirement; or

 (ii) a specified amount; and

 (b) if the fund is not a public sector superannuation scheme—some or all of the contributions to the fund (out of which, together with earnings on those contributions, the benefits are to be paid) are not paid into a fund, or accumulated in a fund, in respect of any individual member but are paid into and accumulated in a fund in the form of an aggregate amount;

“eligible rollover fund” has the same meaning as in Part 24 of the Act;

“eligible termination payment” has the same meaning as in Subdivision AA of Division 2 of Part III of the Tax Act;

“employer contribution”, in relation to a regulated superannuation fund, means a contribution by, or on behalf of, an employer-sponsor of the fund;

“full-time”, in relation to being gainfully employed, means gainfully employed for at least 30 hours each week;

“gainfully employed” means employed or self-employed for gain or reward in any business, trade, profession, vocation, calling, occupation or employment;

“industrial authority” means:

 (a) a court, or a tribunal or other body or person, constituted under a law of the Commonwealth, a State or a Territory with power of conciliation or arbitration in relation to industrial disputes; or

 (b) a special board constituted under the law of a State relating to factories;

“member”, except in Part 2, means:

 (a) in relation to an approved deposit fund—a depositor in the fund; and

 (b) in relation to a regulated superannuation fund—a member of the fund;

[NOTE: The meaning of the term “member” in Part 2 is defined in subregulation 2.01 (2).]

“minimum requisite benefit”, in relation to a member, means the benefit certified by an actuary in a relevant benefit certificate as the minimum benefit in respect of the member;

“part-time”, in relation to being gainfully employed, means gainfully employed for at least 10 hours, and less than 30 hours, each week;

“PST” means a pooled superannuation trust;

“relevant benefit certificate”, in relation to a regulated superannuation fund, means a benefit certificate that relates to a defined benefit superannuation scheme (within the meaning of the SG(A) Act) of which the fund forms part;

“relevant entity” means:

 (a) a public offer entity; or

 (b) an approved deposit fund;

[NOTE: The expression “relevant entity” is defined in the same terms as in section 22 of the Act.]

“reserves”, in relation to a superannuation entity, means reserves maintained under section 115 of the Act;

“SG(A) Act” means the Superannuation Guarantee (Administration) Act 1992;

“shortfall component” has the same meaning as in the SG(A) Act;

“Tax Act” means the Income Tax Assessment Act 1936;

“withdrawal benefit”, in relation to a member of a superannuation entity, means the total amount of the benefits that would be payable to:

 (i) the member; and

 (ii) the trustee of another entity in respect of the member;

if the member voluntarily ceased to be a member.

 (2) In these Regulations, other than Part 2:

“fund” means:

 (a) an approved deposit fund; or

 (b) a regulated superannuation fund.

[NOTE: For the meaning of “fund” in Part 2, see subregulation 2.01 (3).]

Section 10 of the Act—prescribed matters

 1.04. (1)  The purpose of this regulation is to prescribe matters for the purposes of various definitions in section 10 of the Act.

“approved auditor”

 (2) For the purposes of the definition of “approved auditor” in section 10 of the Act, the following class of persons is specified, namely, individuals each of whom:

 (a) in the case of an auditor of an excluded superannuation fund:

 (i) is, under Division 2 of Part 9.2 of the Corporations Law, registered, or taken to be registered, as an auditor; or

 (ii) is a member of:

 (A) the Australian Society of Certified Practising Accountants; or

 (B) the Institute of Chartered Accountants; or

 (C) the National Institute of Accountants; or

 (iii) is a fellow or member of the Association of Taxation and Management Accountants; or

 (iv) is the Auditor-General of the Commonwealth, a State or a Territory; and

 (b) in the case of an auditor of a superannuation entity other than an excluded superannuation fund:

 (i) is, under Division 2 of Part 9.2 of the Corporations Law, registered, or taken to be registered, as an auditor; or

 (ii) is the Auditor-General of the Commonwealth, a State or a Territory.

“approved rules”

 (3) For the purposes of the definition of “approved rules” in section 10 of the Act, the following kinds of provisions are specified in relation to an approved deposit fund:

 (a) provisions requiring a trustee of the fund to maintain a register of members;

 (b) provisions requiring a register of members to contain the name and current residential address of each member.

“excluded approved deposit fund”

 (4) For the purposes of paragraph (b) of the definition of “excluded approved deposit fund” in section 10 of the Act, the following condition is specified, namely, that the fund must be either:

 (a) a fund established before 1 July 1994; or

 (b) a fund established on or after 1 July 1994 in which, on the establishment of the fund, the eligible termination payments of the fund’s beneficiary that are invested with the fund have an initial value of at least $400,000.

“pooled superannuation trust”

 (5) For the purposes of paragraph (b) of the definition of “pooled superannuation trust” in section 10 of the Act, the definition applies to a unit trust that is:

 (a) used only for investing the following kinds of assets:

 (i) assets of a regulated superannuation fund;

 (ii) assets of an approved deposit fund;

 (iii) assets of a PST;

 (iv) assets of a life assurance company (within the meaning of Division 8 of Part III of the Tax Act) that are assets of a tax-advantaged insurance fund (within the meaning of section 116GC of the Tax Act);

 (v) assets of a registered organisation (within the meaning of Division 8A of Part III of the Tax Act) solely for the tax-advantaged business (within the meaning of Division 8 of Part III of the Tax Act) of the organisation;

 (vi) assets of an exempt entity within the meaning of, subparagraph (a), (c) or (d) of the definition of exempt entity in section 102M of the Tax Act; and

 (b) a resident unit trust within the meaning of section 102H of the Tax Act.

[NOTE: 1. The phrase “life assurance company” is defined in subsection 110 (1) of the Tax Act;

  2. The phrase “registered organisation” is defined in subsection 116E (1) of the Tax Act.]

PART 2—INFORMATION FOR MEMBERS AND OTHERS

Division 2.1—Introductory

Interpretation

 2.01. (1)  In this Part:

“amount” includes a nil amount;

“contact details”, in relation to a superannuation entity, means:

 (a) the name of the superannuation entity and, if relevant, of the sub-plan; and

 (b) a contact address for the superannuation entity; and

 (c) a contact person and telephone number for the contact person;

“contact person”, in relation to a superannuation entity, means a named individual, or a person holding a designated office or position, who is available to receive and deal with inquiries or complaints by members or unit-holders (as the case may be);

“excluded superannuation fund”, in relation to information to be given in respect of a reporting period, means a regulated superannuation fund having fewer than 5 members on the first day of the period;

[NOTE: Except where this definition applies, “excluded superannuation fund” has the meaning given by s. 10 of the Act.]

“sub-plan”, in relation to a regulated superannuation fund, means a segment of the fund comprising a member or members of the fund, being a sub-plan that the trustee, under subregulation 2.07. (2), determines should be made.

 (2) In this Part, where the context allows, a reference to a member is taken to mean:

 (a) in relation to a superannuation entity—a person who:

 (i) is a member of the entity; or

 (ii) receives a pension from the entity; or

 (iii) has deferred his or her entitlement to receive a benefit from the entity; and

 (b) in relation to an approved deposit fund—a depositor in the fund; and

 (c) in relation to a PST—a unit-holder.

 (3) In a Division of this Part, a reference to a fund is a reference to a fund of the kind to which the Division applies.

 (4) A reference to the telephone number of a contact person includes a reference to the telephone number of a switchboard through which the person may be reached by telephone.

Scope and application of this Part

 2.02. (1)  The following Divisions of this Part deal with the duty of trustees to give information to members or other persons on specified occasions. Each of the Divisions has an application provision:

 (a) stating the types of entity to which the Division applies; and

 (b) referring to any particular provisions of the Division, or a Subdivision of the Division, that limit or restrict the application of the Division or Subdivision.

 (2) The requirements to give information are expressed in 2 forms: general requirements (which set out broad principles), and specific requirements (which set out particular provisions, and may apply in all cases or only in particular circumstances). The specific requirements are not to be taken as limiting, by implication, the scope of the general requirements.

 (3) This Division governs the other Divisions of this Part.

Duties and requirements arising under this Part

 2.03. (1) A requirement to give information under a Division of this Part must be met within the time specified in the Division as the time for compliance.

Requirements concerning information

 (2) Information given in accordance with this Part must:

 (a) be in writing; and

 (b) be worded and presented in a clear and effective manner.

 (3) Information given in accordance with this Part may be given, where appropriate, in diagrammatical form.

Where information may mislead (if incomplete, outdated, etc)

 (4) If the trustee of a superannuation entity has reason to think that information that the trustee is required to give, other than under Division 2.6, will materially mislead members, or may do so, the trustee must give with the information a statement containing further information to rectify any misleading or potentially misleading, effect.

[Example: If a change in a fund’s investment policy means that information about past earnings rates is not a reliable guide to future earnings, an appropriate explanation (including the change of policy and its likely effect on future earnings rates) must be given.]

Reasonable efforts are sufficient

 2.04. (1)  For the purposes of Divisions 2.3 to 2.7 (both inclusive) and Division 2.8 other than Subdivision 2.8.2, the trustee of a superannuation entity is taken to have satisfied a duty or requirement to give information to a person if the trustee has taken reasonable steps to give the information to the person but has been unable to do so.

Information that is unknown and not reasonably obtainable

 (2) Where information is unknown to the trustee, the trustee need not give the information under this Part if the trustee cannot obtain the information by making reasonable inquiries.

Missing members

 2.05. (1)  Subject to subregulation (2), the trustee of a superannuation entity need not give information to a member if:

 (a) the trustee has an address for the member, and:

 (i) at least 2 consecutive reports (within the meaning of paragraph 244 (3) (b) of the Act) prescribed under regulation 10.03, or 2 consecutive written communications, have been returned unclaimed from the member’s last known postal address; and

 (ii) the trustee has taken reasonable steps to locate the member but has been unable to do so; or

 (b) the trustee:

 (i) has been unable to obtain an address for the member; and

 (ii) has taken reasonable steps to locate the member, but has been unable to do so.

Entity becoming aware of member’s  address, etc

 (2) Subject to subregulation (3), where the trustee of a superannuation entity has refrained, in reliance on subregulation (1), from giving information to a member, the trustee must give information to the member if the trustee later becomes aware of the member’s address or location.

 (3) Subregulation (2) applies only in respect of information that the trustee of a superannuation entity becomes liable to give to the person after becoming aware of the member’s address or location.

Charges for information requested

 2.06. (1) Subject to this regulation, the obligation of the trustee of a superannuation entity under these Regulations to give information on request by a person arises only if the person pays the amount specified by the trustee as the charge for giving the information.

 (2) The amount of the charge must not exceed the reasonable cost to the superannuation entity of giving the information (including all reasonably related costs—for example, costs of searching for, obtaining and collating the information).

 (3) A policy committee is not liable to any charge for information given to it.

 (4) In the case of information to be supplied under Division 2.6 to a concerned person (as defined in subregulation (5)), a charge may be made only if:

 (a) the person to whom the information is to be given has requested the information; and

 (b) the person had been given the same information during the period of 12 months immediately preceding the date on which the request is made.

 (5) In subregulation (4):

“concerned person” means a person who:

 (a) is, or was within the preceding 12 months, a member of the superannuation entity to which the request is made; or

 (b) is a beneficiary of the superannuation entity to which the request is being made.

Trustee may make a sub-plan

 2.07. (1)  The trustee of a regulated superannuation fund may make a determination, in accordance with subregulation (2), as to whether a sub-plan should be made for the purposes of this Part.

 (2) In making a determination under subregulation (1), the trustee must have regard to all relevant matters, including each of the following:

 (a) whether there is a common factor in a segment of the fund (for example, whether a group of members of the fund have the same employer);

 (b) whether the governing rules of the fund provide for a particular segment to be a sub-plan.

Division 2.2—Information for prospective members and employer-sponsors of  public offer superannuation funds and certain approved deposit funds

Application

 2.08. (1) This Division applies only to a fund, other than an eligible rollover fund, that is:

 (a) a public offer superannuation fund; or

 (b) an approved deposit fund that is not an excluded approved deposit fund.

 (2) Despite subregulation (1), this Division does not apply to information to be given by the trustee before the issuing of an interest by the trustee to a person who would, as a result of the issuing of that interest, become a standard employer-sponsored member.

[NOTES:

 1. For corresponding provisions concerning pooled superannuation trusts, see  Subdivision 2.8.2 (regulation 2.53.).

 2. Time for compliance:   The purpose of the ‘information’ provisions in relation to approved deposit funds (other than excluded approved deposit funds) and public offer superannuation funds, is to prescribe information that, under Subdivision 3A of Part 19 of the Act, must be given before a public offer entity does certain acts; see  sections 157 and 158.

 3. The disclosure requirements for public offer superannuation funds in relation to standard employer-sponsored members are prescribed in Division 2.3; see also  subsection 157 (3) of the Act.]

Subdivision 3A of Part 19 of the Act

 2.09. The provisions of this Division are made:

 (a) under subsection 159 (1) of the Act; and

 (b) for the purposes of sections 157 and 158 of the Act.

Information to prospective members

 2.10. (1) The information that the trustee of a fund must be satisfied has been received by a person before the trustee issues a superannuation interest in the fund to the person is:

 (a) in every case—the information specified in subregulation (2); and

 (b) additionally, in the case of a fund other than an excluded fund—the information specified in subregulation (3).

 (2) The information referred to in paragraph (1) (a) (applicable to all funds) is all information that the trustee reasonably believes that a person would reasonably need for the purpose of:

 (a) understanding the main features of the relevant sub-plan or, if none, of the fund; and

 (b) making an informed judgment about the management and financial condition of the fund and of the relevant sub-plan (if any); and

 (c) making an informed judgment about the investment performance of the relevant sub-plan or, if none, of the fund.

 (3) The additional information referred to in paragraph (1) (b) (applicable to funds other than excluded funds) comprises each of the following items of information:

 (a) the contact details of the fund;

 (b) the name of the trustee;

 (c) a summary of the main features of the relevant sub-plan or, if none, of the fund;

 (d) a statement of significant benefits (as defined in subregulation (4)) to which the person becomes, or may become, entitled on joining the fund;

 (e) the circumstances in which those benefits would be payable;

 (f) the method of working out those benefits;

 (g) details (in summary form) of arrangements that the fund has to deal with inquiries or complaints;

 (h) details of the existence and (in outline terms) the functions of the Superannuation Complaints Tribunal;

 (i) if Division 6 of Part 19 of the Act (cooling-off—redemption of interests) applies to the fund—a summary of any right of an applicant to have an interest that has been issued to him or her redeemed in accordance with a provision specified in that Division;

 (j) a copy, or an updated version, of the information required to be given under Subdivision 2.4.3, that was most recently given to members of the relevant sub-plan or, if none, of the fund;

 (k) in respect of the relevant sub-plan or, if none, of the fund—a statement (in outline terms) of:

 (i) how fees, charges, expenses and administrative or other operational costs are attributed (either directly or indirectly) to members (including details of the points at which, or occasions on which, they are levied or deducted); and

 (ii) where the fees, charges, expenses and administrative or other operational costs are pre-determined fixed amounts or percentages—those amounts or percentages; and

 (iii) where subparagraph (ii) does not apply—a general statement as to the manner in which the fees, charges, expenses and administrative or other operational costs are determined.

 (4) In this regulation, “significant benefit” means a financial benefit that the trustee reasonably believes a member would reasonably expect to be told about.

Information by public offer superannuation funds to prospective standard employer-sponsors

 2.11. (1) The information that the trustee of a public offer superannuation fund must be satisfied has been received by a person before the trustee permits the person to become a standard employer-sponsor of the fund is:

 (a) in every case—the information specified in subregulation (2); and

 (b) additionally, in the case of a fund other than an excluded fund—the information specified in subregulation (3).

 (2) The information referred to in paragraph (1) (a) (applicable to all funds) is all information that the trustee reasonably believes that a person would reasonably need for the purpose of:

 (a) understanding the main features of the relevant sub-plan or, if none, of the fund; and

 (b) making an informed judgment about the management and financial condition of the fund and of the relevant sub-plan (if any); and

 (c) making an informed judgment about the investment performance of the relevant sub-plan or, if none, of the fund.

 (3) The additional information referred to in paragraph (1) (b) (applicable to funds other than excluded funds), comprises each of the following items of information:

 (a) the contact details of the fund;

 (b) the name of the trustee;

 (c) a summary of the main features of the relevant sub-plan or, if none, of the fund;

 (d) a statement of significant benefits to which the person’s employees become, or may become, entitled on joining the fund;

 (e) the circumstances in which those benefits would be payable;

 (f) the method of working out those benefits;

 (g) details (in summary form) of arrangements that the fund has to deal with inquiries or complaints;

 (h) details of the existence and (in outline terms) the functions of the Superannuation Complaints Tribunal;

 (i) a copy, or an updated version, of the information required to be given under Subdivision 2.4.3, that was most recently given to members of the relevant sub-plan, or, if none, of the fund;

 (j) in respect of the relevant sub-plan or, if none, of the fund—a statement (in outline terms) of:

 (i) how fees, charges, expenses and administrative or other operational costs are attributed (either directly or indirectly) to members (including details of the points at which, or occasions on which, they are levied or deducted); and

 (ii) where the fees, charges, expenses and administrative or other operational costs are pre-determined fixed amounts or percentages—those amounts or percentages; and

 (iii) where subparagraph (ii) does not apply—a general statement as to the manner in which the fees, charges, expenses and administrative or other operational costs are determined.

 (4) In this regulation, “significant benefit” means a financial benefit that the trustee reasonably believes a person in the position of the person mentioned in subregulation (1) would reasonably expect to be told about.

Division  2.3—Information for new members of certain  regulated superannuation funds

Application

 2.12. (1) This Division applies:

 (a) to a regulated superannuation fund that is not a public offer superannuation fund or an eligible rollover fund; and

 (b) to a public offer superannuation fund that is not an eligible rollover fund, but only in respect of standard employer-sponsored members of the fund.

 (2) For the purposes of subsection 31 (1) of the Act, a requirement of this Division is a standard applicable to the operation of a regulated superannuation fund to which this Division applies.

Time for compliance

 2.13. The trustee of a fund must give information under this Division to a person as soon as practicable, and in any event within 3 months, after the person becomes a member of the fund.

Requirement taken to have been met

 2.14. (1)  If the trustee of a fund is required by this Division to give information to each person who becomes a member of the fund, and the trustee or the trustee of another fund has given that information (whether under this Division or not) to the person before the person became a member, the first-mentioned trustee does not have to give the information to the person again.

 (2) This exception applies only if the information that was previously given to the person is correct in all material respects when the person becomes a member.

General requirement

 2.15. The trustee of a fund must give to each person who becomes a  member of the fund all information that the trustee reasonably believes that a member would reasonably need for the purpose of understanding:

 (a) the main features of the relevant sub-plan or, if none, of the fund; and

 (b) the management and financial condition of the fund and of the relevant sub-plan (if any); and

 (c) the investment performance of the relevant sub-plan or, if none, of the fund.

Specific requirements in all cases

 2.16. (1)  The trustee of a fund (other than an excluded superannuation fund) must give to each person who becomes a member of the fund each of the following items of information:

 (a) the contact details of the fund;

 (b) a summary of the main features of the relevant sub-plan or, if none, of the fund;

 (c) a statement of significant benefits (as defined in subregulation (2)) to which the member becomes, or may become, entitled;

 (d) the circumstances in which those benefits would become payable;

 (e) the method of working out those benefits;

 (f) details (in summary form) of arrangements that the fund has to deal with inquiries or complaints;

 (g) details of the existence and (in outline terms) the functions of the Superannuation Complaints Tribunal;

 (h) a copy:

 (i) if the member has joined a sub-plan—of the information required to be given under Subdivision 2.4.3 that was most recently given to members of that sub-plan; or

 (ii) in any other case—of the information required to be given under Subdivision 2.4.3 that was most recently given to members of the fund;

 (i) in respect of the relevant sub-plan or, if none, of the fund—a statement (in outline terms) of:

 (i) how fees, charges, expenses and administrative or other operational costs are attributed (either directly or indirectly) to members (including details of the points at which, or occasions on which, they are levied or deducted); and

 (ii) where the fees, charges, expenses and administrative or other operational costs are pre-determined fixed amounts or percentages—those amounts or percentages; and

 (iii) where subparagraph (ii) does not apply—a general statement as to the manner in which the fees, charges, expenses and administrative or other operational costs are determined.

 (2) In this regulation, “significant benefit” means a financial benefit that the trustee reasonably believes a member would reasonably expect to be told about.

Division  2.4—Information to be given for each reporting period

Subdivision 2.4.1—Preliminary

Interpretation

 2.17. In this Division:

“fund information” means information required to be given under Subdivision 2.4.3;

“fund reporting period” means a reporting period that applies under Subdivision 2.4.3;

“member information” means information required to be given under Subdivision 2.4.2;

“member reporting period” means a reporting period that applies under Subdivision 2.4.2.

Application

 2.18. (1) This Division applies to:

 (a) a regulated superannuation fund that is not an eligible rollover fund; and

 (b) an approved deposit fund that is not an eligible rollover fund.

 (2) This Division applies subject to the following limitations or exceptions:

 (a) Subdivision 2.4.2 is subject to:

 (i) the exception concerning pensioners that is stated in regulation 2.25; and

 (ii) the exception in the case of certain members leaving a fund that is stated in regulation 2.26; and

 (b) Subdivision 2.4.3 is subject to the limitation in relation to excluded funds that is stated in regulation 2.30; and

 (c) in relation to funds under which benefits are determined by life policies, Subdivision 2.4.3 is subject to the limitation  that is stated in regulation 2.31.

 (3) For the purposes of subsections 31 (1) and 32 (1) of the Act, a requirement of this Division is a standard applicable to the operation of a fund to which this Division applies.

Reporting periods

 2.19. (1) Member information must be given in respect of consecutive member reporting periods.

 (2) Fund information must be given in respect of consecutive fund reporting periods.

 (3) A reporting period that is a member reporting period or a fund reporting period must not exceed 12 months or, if the Commissioner on the application of an entity fixes a longer period for the fund in a particular case, that longer period.

 (4) In relation to a particular member, all member information must be given in respect of the same member reporting period.

[Example: A fund cannot report, to the same member, the information in  paragraph 2.24 (1) (a) in respect of the period from 1 January to 30 June and report all other member information in respect of the period from 1 March to 30 September.]

 (5) In relation to a particular member, all fund information need not be given in respect of the same fund reporting period.

[Example: A fund may choose to report:

 (a) some ‘fund information’ in respect of a 6-month period; and

 (b) further ‘fund information’, and all ‘member information’, in respect of a 9-month period; and

 (c) the remaining ‘fund information’ in respect of a 12-month period.

 (6) In relation to a particular member, the first member reporting period must begin:

 (a) if the member was a member at the start of the fund’s 1994-1995 year of income—either:

 (i) on a date not later than the date of commencement of that year of income; or

 (ii) if the member has been given, in accordance with regulation 13.03, information of the kind referred to in regulation 18G of the Occupational Superannuation Standards Regulations in relation to a period that includes that date of commencement, on the date immediately following the last day of that period; or

 (b) in any other case—on a date not later than the date on which the member became a member.

 (7) In relation to a particular member, the first fund reporting period must begin:

 (a) if the member was a member at the start of the fund’s 1994-1995 year of income—on the date of commencement of that year of income; or

 (b) in any other case—on a date not later than the date on which the member became a member.

 (8) A subsequent reporting period must commence immediately after the end of the preceding reporting period.

Application in relation to reporting period

 2.20. In relation to a reporting period:

 (a) Subdivision 2.4.2 applies only in respect of persons who are members of the fund on the last day of the member reporting period; and

 (b) information required to be given under Subdivision 2.4.3 need only be given to persons who are members of the fund on the day on which the report containing that information is completed.

Time for compliance

 2.21. (1)  The duties and requirements imposed by Subdivision 2.4.2 apply in respect of each member reporting period of a fund.

 (2) The duties and requirements imposed by Subdivision 2.4.3 apply in respect of each fund reporting period of a fund.

 (3) The trustee of a fund must discharge each of those duties, and satisfy each of those requirements, as soon as practicable, and in any event within 6 months, after the end of the relevant reporting period.

Subdivision 2.4.2—Member information

General requirement

 2.22. The trustee of a fund must give to each member all information that the trustee reasonably believes a member reasonably needs for the purpose of understanding his or her benefit entitlements in the fund.

Specific requirements in all cases

 2.23. The trustee of a fund (other than an excluded fund) must give to each member all of the following items of information:

 (a) the contact details of the fund;

 (b) the amount of the member’s withdrawal benefit at the start of the reporting period;

 (c) the amount of the member’s withdrawal benefit at the end of the reporting period and the method by which that amount was worked out;

 (d) the amount of the member’s withdrawal benefit at the end of the reporting period that must be preserved.

Specific requirements in particular cases

 2.24. (1)  Subject to subregulation (2), the trustee of a fund (other than an excluded fund) must give to each member details of the following matters in respect of the member so far as they are applicable:

 (a) the amount of the member’s contributions during the reporting period;

 (b) the amount of benefits rolled-over or otherwise transferred into the fund during the reporting period;

 (c) the amount of withdrawals during the reporting period;

 (d) the amounts of fees, charges and other expenses deducted by the fund during the reporting period from amounts held in any accounts in respect of the member;

 (e) the amount of any allotment of employer contributions during the reporting period;

 (f) the amount of any allotment of net earnings during the reporting period;

 (g) the rate of any allotment of net earnings during the reporting period;

 (h) the amount of bonuses that have accrued at the end of the reporting period;

 (i) the amount of the sum assured;

 (j) the amount payable in the event of the member’s death:

 (i) at the end of the reporting period; or

 (ii) on the first day of the next reporting period;

  or the method by which that amount is worked out;

 (k) details, including the amount or method of working out, of other significant benefits (as defined in subregulation (3)), including, in particular, disability benefits;

 (l) if the trustee is aware of contributions that are due and payable during the reporting period but have not been paid to the fund at, or shortly before, the date of issue of the report, details of the amount of those contributions and of action that the trustee has taken, or proposes to take, to have the contributions paid.

 (2) A nil amount need not be disclosed.

 (3) In this regulation, “significant benefits” means financial benefits that the trustee reasonably believes a member would reasonably expect to be told about.

Exception—pensioners

 2.25. The trustee of a fund need not give information under this Subdivision to a member:

 (a) in relation to any period during which the member is a life pensioner of the fund; or

 (b) if the member is a pensioner of the fund and has requested that that information not be provided.

Exception—certain cases of members leaving fund

 2.26. If:

 (a) a person ceases to be a member of a fund before information required to be given to the person under this Subdivision, and in respect of a particular reporting period (the “relevant period”), is given; and

 (b) either:

 (i) the trustee of the fund gives, or intends to give, information to the person under Division 2.7 in respect of a reporting period that is the same as, or includes the whole of, the relevant period; or

 (ii) where the person ceases to be a member of a fund by reason of death—the trustee complies in relation to the person with the relevant requirements of Division 2.7;

the trustee need not give information under this Subdivision, in respect of the relevant period, to or in relation to the person.

Subdivision 2.4.3—Fund information

General requirement

 2.27. The trustee of a fund must give to each member of the fund all information that the trustee reasonably believes a member would reasonably need for the purpose of:

 (a) understanding the management and financial condition of the fund and of the relevant sub-plan (if any); and

 (b) understanding the investment performance of the relevant sub-plan or, if none, of the fund.

Specific requirements in all cases

 2.28. The trustee of a fund must give to each member of the fund all of the following items of information:

 (a) the contact details of the fund;

 (b) in respect of the relevant sub-plan or, if none, of the fund—a description of:

 (i) the investment strategy of the fund trustee, having regard to the requirements of paragraph 52 (2) (f) of the Act; and

 (ii) the investment objectives;

 (c) a statement to the effect that other information is available on request;

 (d) details (in summary form) of arrangements that the fund has to deal with inquiries or complaints;

 (e) details of the existence and (in outline terms) the functions of the Superannuation Complaints Tribunal.

Specific requirements in particular cases

 2.29. (1)  Subject to subregulations (2) and (3), the trustee of a fund must give to each member of the fund the following items of information and documents, so far as they are applicable:

 (a) in respect of the relevant sub-plan or, if none, of the fund—the names of investment managers appointed by the trustee;

 (b) in the case of a standard employer-sponsored fund that is not a public offer superannuation fund and does not have a trustee approved under subsection 92 (10) of the Act:

 (i) if the trustee of the fund is a body corporate, the name of that body corporate and the names of all its directors during the whole or any part of the reporting period and, in respect of each of those directors, details of how and by whom they were appointed;

 (ii) if the trustees of the fund are individuals, the names of the trustees of the fund during the whole or any part of the relevant reporting period and, in respect of each of those trustees, details of how and by whom they were appointed;

 (c) in the case of a fund other than a fund mentioned in paragraph (b):

 (i) the name of each corporate trustee of the fund during the relevant reporting period; and

 (ii) in respect of the relevant policy committee (if any), details of the committee (including the names of the committee members as at the end of that reporting period and, in respect of each of the members, details of how and by whom they were appointed);

 (d) a statement as to whether any indemnity insurance has been taken out by the trustee;

 (e) either:

 (i) the audited fund accounts, the auditor’s report and, if there is a relevant sub-plan, abridged financial information relating to that sub-plan; or

 (ii) each of the following:

 (A) abridged financial information relating to the relevant sub-plan or, if none, to the fund;

 (B) information as to when the audited fund accounts and the auditor’s report will be sent to members or will be available to members on request, as the case may be;

 (f) in respect of the relevant sub-plan or, if none, of the fund—a statement of assets as at the end of:

 (i) the relevant reporting period; and

 (ii) the immediately preceding reporting period;

  that includes all information that the trustee reasonably believes a member would reasonably need to understand the asset allocation at those times;

 (g) details of:

 (i) each investment that has a value in excess of 5% of the total assets of the relevant sub-plan or, if none, of the fund; and

 (ii) each combination of investments that the trustee knows or ought reasonably to know are invested in, directly or indirectly, a single enterprise or single group of associated enterprises and that have a combined value in excess of 5% of the total assets of the relevant sub-plan or, if none, of the fund;

 (h) in respect of the relevant sub-plan or, if none, of the fund—the actual or notional rate of net earnings in the most recent reporting periods that, in total, constitute a period of at least 3 years;

 (i) if the fund is an accumulation fund or an approved deposit fund and the fund maintains reserves—then in respect of the relevant sub-plan or, if none, of the fund, details of movements of reserves during the most recent reporting periods that, in total, constitute at least 3 years; and

 (j) if the net earnings of the fund are allotted to members’ accounts—in respect of the relevant sub-plan or, if none, of the fund, the manner in which the allotment is made; and

 (k) if the fund maintains reserves—in respect of the relevant sub-plan or, if none, of the fund, a description of the management strategy of the fund trustee in relation to the reserves, having regard to the requirements of paragraph 52 (2) (g) of the Act;

 (l) in respect of the relevant sub-plan or, if none, of the fund—a statement (in outline terms) of:

 (i) how fees, charges, expenses and administrative or other operational costs are attributed (either directly or indirectly) to members (including details of the points at which, or occasions on which, they are levied or deducted); and

 (ii) where the fees, charges, expenses and administrative or other operational costs are pre-determined fixed amounts or percentages—those amounts or percentages; and

 (iii) where subparagraph (ii) does not apply—a general statement as to the manner in which the fees, charges, expenses and administrative or other operational costs are determined;

 (m) details of any penalties imposed under the Act on the trustee;

 (n) if the fund is:

 (i) a defined benefit fund; and

 (ii) the contributions paid by the employer-sponsor in the reporting period are less than the amount that an actuary has approved as sufficient contributions in that period; and

 (iii) the difference is material;

  in respect of the relevant sub-plan or, if none, of the fund—a statement to the effect that the matters stated in subparagraphs (ii) and (iii) apply, and statements of

 (iv) the consequences for the fund of the shortfall; and             

 (v) any action that the trustee has taken, or proposes to take, in relation to the matter.

 (2) A nil amount need not be disclosed.

 (3) For the purposes of subparagraph (1) (g) (ii), investments in a trust are taken not to be invested in the trustee of the trust.

 (4) In this regulation:

“abridged financial information”, in relation to a reporting period of a fund or a sub-plan, means information derived from the fund’s accounts or records that gives a reasonable summary of either:

 (a) both:

 (i) changes in the financial position of the fund or sub-plan during the reporting period; and

 (ii) the financial position of the fund or sub-plan at the end of the reporting period; or

 (b) both:

 (i) changes in the net assets of the fund or sub-plan during the reporting period; and

 (ii) the net assets of the fund or the sub-plan at the end of the reporting period.

Excluded funds—special provision

 2.30. An excluded fund does not have to give information to a member under this Subdivision.

Exception—benefits determined by life policies

 2.31. Paragraphs 2.29 (1) (e), (f) and (g) do not apply to funds from which the benefits paid to each individual member are wholly determined by reference to policies of life assurance.

Division 2.5—Information concerning significant events

Application

 2.32. (1)  This Division applies to:

 (a) a regulated superannuation fund that is not an eligible rollover fund; and

 (b) an approved deposit fund that is not an eligible rollover fund.

 (2) Information under this Division concerning an event is information that the trustee reasonably believes a member would reasonably need:

 (a) where there is a nature or purpose to the event—to understand the nature or purpose; and

 (b) to make an informed judgment about the effect (generally and in respect of the member’s current and future entitlements) of the event.

 (3) For the purposes of subsections 31 (1) and 32 (1) of the Act, a requirement of this Division is a standard applicable to the operation of a fund that is a regulated superannuation fund or an approved deposit fund.

Time for compliance

Meaning of “event” in subregulations (2) and (3)

 2.33. (1) For the purposes of subregulations (2) and (3), “event” means:

 (a) an event referred to in regulation 2.35; or

 (b) a change in the governing rules of a kind referred to in subregulation 2.36 (1); or

 (c) a transfer of a member referred to in subregulation 2.36 (3); or

 (d) the receipt of a notice of non-compliance referred to in subregulation 2.36 (4).

General rule

 (2) The time within which the trustee of a fund must give information under this Division about an event to a member or class of members is:

 (a) before the expected occurrence, or as soon as practicable after the occurrence, of the event; and

 (b) in any case, within 3 months after the occurrence of the event.

Where event not adverse, etc.

 (3) Despite subregulation (2), the information may be given more than 3 months after the occurrence of the event if:

 (a) the trustee reasonably believes that the event is not adverse to the member’s interests and accordingly the member would not be expected to be concerned about the delay in giving the information; and

 (b) the information is given no later than 12 months after the occurrence of the event.

Meaning of “event” in subregulation (5)

 (4) For the purposes of subregulation (5), “event” means:

 (a) a decision of the trustee; or

 (b) the winding-up or termination of the fund;

whichever is applicable.

Where a member would expect to be informed before the event

 (5) Where a member would reasonably expect to be informed of an event before it occurs, the trustee must give the information to the member as soon as practicable after it becomes reasonable for the trustee to expect that the event will happen (except that the information need not be given more than 3 months before the expected date of the event).

[Examples:

 1. On 1 December 1996 it is proposed to wind up the fund with effect from 30 June 1997.  Generally the information must be given as soon as practicable after 1 December 1996.  However it may be delayed to 31 March 1997.

 2. On 1 December 1996 it is proposed to wind up the fund with effect from 31 December 1996. The information must be given  without delay.]

Contact details to accompany information

 2.34. Where the trustee of a fund gives information under this Division the trustee must give with the information a statement of the contact details of the fund.

General requirement

 2.35. The trustee of a fund must give information to a member concerning any event in relation to the fund that the trustee reasonably believes the member would reasonably expect to be informed of.

Specific requirements

 2.36. (1)  If the governing rules of a fund are changed and the change is of a kind stated in subregulation (2), the trustee of the fund must give information concerning the change to each member affected by the change.

 (2) The kinds of changes are those that:

 (a) have an adverse effect on a member’s accrued benefits; or

 (b) have an adverse effect on the benefits to which a member may become entitled; or

 (c) have an adverse effect for the member on the circumstances in which those benefits would become payable; or

 (d) have an adverse effect for the member on the manner in which those benefits would be worked out; or

 (e) have an adverse effect on the security of the member’s benefits.

 (3) If a member of a fund is transferred to a different category of membership or to a different fund, the trustee of the first-mentioned fund must give information to that member concerning the transfer.

 (4) If the trustee of a fund receives a notice of non-compliance, the trustee must give to each member:

 (a) a statement of the circumstances (including details of the non-compliance) that gave rise to the issue of the notice; and

 (b) a statement of the effect on the fund of the issue of the notice (including details of the effect on the fund’s taxation position); and

 (c) details of action that the trustee has taken, or proposes to take, to have the fund become a complying fund; and

 (d) any information concerning the non-compliance that the Commissioner requires to be given for the purposes of this paragraph.

 (5) For the purposes of subregulation (4), a notice of non-compliance means a notice issued under section 40 of the Act to the trustee of a fund stating that the fund is not a complying fund.

 (6) This regulation does not apply to an excluded fund.

Division  2.6—Information on request

Application

 2.37. (1) This Division applies to a superannuation entity.

 (2) For the purposes of subsections 31 (1), 32 (1) and 33 (1) of the Act, a requirement of this Division is a standard applicable to the operation of a superannuation entity.

Documents may be made available for inspection

 2.38. It is sufficient compliance with a requirement under this Division to give information, or to give a copy of a document, to a person if:

 (a) a document containing the information; or

 (b) a copy of the document;

as the case requires, is made available for inspection by the person:

 (c) at a suitable place (having adequate facilities for the person to inspect and photocopy the document); and

 (d) during normal business hours;

or as otherwise agreed between the trustee of a superannuation entity who is required to give the information to the person, and the person.

Time for compliance

 2.39. The trustee of a superannuation entity must comply with a request to give information, or a copy of a document, as soon as practicable, and in any event the trustee must make reasonable efforts to comply with the request within 1 month of receiving the request.

General requirement

 2.40. (1)  Subject to subregulation (2), the trustee of a superannuation entity must give to a person, on request by the person, information that the person reasonably requires, as follows:

 (a) if the person is a concerned person (as defined in subregulation (3))—for the purposes of:

 (i) understanding any benefit entitlements that the person may have, has or used to have; and

 (ii) understanding the main features of the relevant sub-plan or, if none, of the entity; and

 (iii) making an informed judgment about the management and financial condition of the entity and of the relevant sub-plan (if any); and

 (iv) making an informed judgment about the investment performance of the relevant sub-plan or, if none, of the entity; and

 (v) understanding the particular investments of the relevant sub-plan and the entity; or

 (b) if the person is an employer-sponsor—for the purposes of:

 (i) understanding the kinds of benefits to which the person’s employees are entitled or will or may become entitled, and the main features of the relevant sub-plan or, if none, the entity; and

 (ii) making an informed judgment about the management and financial condition of the entity and of the relevant sub-plan (if any); and

 (iii) making an informed judgment about the investment performance of the relevant sub-plan or, if none, of the entity; and

 (iv) a matter related to the SG (A) Act.

 (2) This regulation does not require (or, by implication, authorise) the disclosure of:

 (a) internal working documents of the entity; or

 (b) information or documents that would disclose, or tend to disclose:

 (i) personal information of another person if, in the circumstances, the disclosure would be unreasonable; or

 (ii) trade secrets or other information having a commercial value that would be reduced or destroyed by the disclosure; or

 (c) information or documents in relation to which the entity owes to another person a duty of non-disclosure.

 (3) In this regulation and regulation 2.41:

“concerned person” means a person who:

 (a) is, or was within the preceding 12 months, a member of the superannuation entity to which the request is made; or

 (b) is a beneficiary of the superannuation entity to which the request is made.

Specific requirements

 2.41. (1)  Subject to subregulation (2), the trustee of a superannuation entity (other than an excluded fund) must give to a person, on request in writing by the person, a copy of any of the following documents (to the extent the trustee has access to the documents) specified in the request:

 (a) the governing rules of the superannuation entity;

 (b) audited accounts of the superannuation entity, together with (whether or not specifically requested) the auditor’s report in relation to the accounts;

 (c) the most recent actuarial report (as referred to in regulation 9.30) on the entity, and any subsequent written advice by an actuary to the trustee, to the extent that those documents are relevant to:

 (i) the overall financial condition of the entity; or

 (ii) the entitlements of the person;

 (d) in the case of a regulated superannuation fund or approved deposit fund—a copy of information given under Subdivision 2.4.3 that was most recently given to the members;

 (e) in the case of a PST—a copy of the information required to be given under paragraph 2.59 (b), regulation 2.60 (other than under paragraph 2.60 (a)) and regulation 2.61 that was most recently given to the members.

 (2) If the person requesting the information is not a concerned person (as defined in subregulation 2.40 (3)), the trustee need not give to the person the documents referred to in paragraphs (1) (a) and (c).

 Division 2.7—Information when a member leaves a fund

Application

 2.42. (1) This Division applies to:

 (a) a regulated superannuation fund that is not an eligible rollover fund; and

 (b) an approved deposit fund that is not an eligible rollover fund.

 (2) This Division is subject to the exception concerning an exit reporting period, in the case of certain members who cease to be members of a fund, that is stated in regulation 2.48.

 (3) For the purposes of subsections 31 (1) and 32 (1) of the Act, a requirement of this Division is a standard applicable to the operation of a fund that is a regulated superannuation fund or an approved deposit fund.

Time for compliance

 2.43. (1)  The trustee of a fund must give information under this Division to a person as soon as practicable after the trustee becomes aware that the person has ceased to be a member of the fund, and in particular the trustee must make reasonable efforts to give the information within 1 month after becoming aware that the person has ceased to be a member of the fund.

 (2) The trustee of a fund must make all reasonable efforts to give information about a continuation option in good time before the option lapses.

Exit reporting period

 2.44. In this Division, “exit reporting period”, in relation to a person who ceases to be a member of a fund, means the period:

 (a) beginning on the first day of the member reporting period in which the person ceases to be a member of the fund; and

 (b) ending at the end of the day on which the person ceases to be a member of the fund.

General requirement

 2.45. If a person ceases to be a member of a fund, the trustee of the fund must give all information to:

 (a) if the person is alive—the person ; or

 (b) if the person is deceased—each person receiving a benefit as a result of the first-mentioned person’s death;

that the trustee reasonably believes such a person would reasonably need for the purpose of understanding his or her benefit entitlements.

Specific requirements in all cases

 2.46. (1)  The trustee of a fund (other than an excluded fund) must give to a person who ceases, otherwise than by death, to be a member of the fund, the following information:

 (a) the contact details of the fund;

 (b) the amount of the person’s withdrawal benefit at the start of the exit reporting period;

 (c) the amount of the person’s benefit at the end of the exit reporting period and the method by which that amount was worked out;

 (d) the amount of the person’s benefit at the end of the exit reporting period that must be preserved, unless there is no preservation of the benefits;

 (e) in the case of a death benefit that ceases or reduces, or will cease or reduce, because the person has left the fund:

 (i) either:

 (A) the amount of the death benefit immediately before the person left the fund or at the end of the last member reporting period; or

 (B) the method of working out the death benefit; and

 (ii) whether a continuation option is available to the person and, if it is, details of the option, a contact person who is available to discuss the option and a telephone number for the contact person;

 (f) details (in summary form) of arrangements that the fund has to deal with inquiries or complaints;

 (g) details of the existence and (in outline terms) the functions of the Superannuation Complaints Tribunal.

 (2) If a person ceases by death to be a member of a fund (other than an excluded fund), the trustee of the fund must give to each person receiving a benefit from the fund as a result of the death of the person:

 (a) a statement setting out:

 (i) details (in summary form) of arrangements that the fund has to deal with inquiries or complaints; and

 (ii) details of the existence and (in outline terms) the functions of the Superannuation Complaints Tribunal; or

 (b) a statement that those kinds of details are available on request.

Specific requirements in particular cases

 2.47. (1)  The trustee of a fund (other than an excluded fund) must give to each person who ceases, otherwise than by death, to be a member of the fund details of the following matters in respect of the member so far as they are applicable:

 (a) the amount of the person’s contributions during the exit reporting period;

 (b) the amount of benefits rolled-over or otherwise transferred into the fund during the exit reporting period;

 (c) the amount of withdrawals during the exit reporting period;

 (d) the amounts of fees, charges and other expenses deducted by the fund during the exit reporting period from amounts held in any accounts in respect of the member;

 (e) the amount of any allotment of employer contributions during the exit reporting period;

 (f) the amount of any allotment of net earnings during the exit reporting period;

 (g) the rate of any allotment of net earnings during the exit reporting period;

 (h) the amount of bonuses that have accrued at the end of the exit reporting period;

 (i) the amount of the sum assured;

 (j) if the trustee is aware of contributions that are due and payable during the reporting period but have not been paid to the fund, details of the amount of those contributions and of action that the trustee has taken, or proposes to take, to have the contributions paid.

 (2) A nil amount need not be disclosed.

Exceptions to “exit reporting period” provisions

 2.48. (1)  Subject to subregulation (2), if a person ceases to be a member of a fund:

 (a) after the end of a completed member reporting period (the “completed period”); and

 (b) before member information is issued for that period;

the information required by this Division to be given to or in relation to the person may be given in respect of the period consisting of:

 (c) the completed period; and

 (d) the period from the end of that period to the end of the day on which the person ceased to be a member of the fund;

instead of in respect of the person’s exit reporting period.

 (2) If the period mentioned in paragraph (1) (d) exceeds 6 months in a particular case, subregulation (1) does not apply in respect of that case.

 (3) The trustee of a fund need not give information under this Division to a member who is transferring to another fund if:

 (a) the member has received sufficient information under subregulation 2.36 (3) to enable the member to understand the effect of the transfer; and

 (b) the trustee reasonably believes that the member does not need the information because the member has received or will receive, from the trustee of the fund to which the member is being transferred, information under Subdivision 2.4.2 in respect of the member’s exit reporting period.

Division  2.8—Pooled superannuation trusts

Subdivision 2.8.1—Preliminary

Application

 2.49. This Division applies to a PST.

Operating standards

 2.50. For the purposes of subsection 33 (1) of the Act, a requirement of this Division, other than Subdivision 2.8.2, is a standard applicable to the operation of a PST.

.Statement of particulars must accompany information

 2.51. Where the trustee of a PST gives information in accordance with this Division, it must give, with the information, a statement of the contact details  of the PST.

Subdivision 2.8.2—Information for prospective unit-holders

Subdivision 3A of Part 19 of the Act

 2.52. The provisions of this Subdivision are made:

 (a) under subsection 159 (1) of the Act; and

 (b) for the purposes of sections 157 and 158 of the Act.

Information by a trustee of a PST for prospective unit-holders

 2.53. The information that the trustee of a PST must be satisfied has been received by a person before the trustee issues an interest in the PST to the person is all information the trustee reasonably believes a person reasonably needs for the purpose of:

 (a) understanding the main features of the PST; and

 (b) making an informed judgment about the management, investment performance and financial condition of the PST.

Subdivision 2.8.3—Information in respect of reporting periods

Interpretation

 2.54. In this Subdivision:

“PST information” means information required to be given under paragraph 2.59 (b), regulation 2.60 (other than paragraph 2.60 (a)) and regulation 2.61;

“PST reporting period” means a reporting period that applies to PST information;

“unit-holder information” means information required to be given under paragraphs 2.59 (a) and regulation 2.60 (a);

“unit-holder reporting period” means a reporting period that applies to unit-holder information.

Reporting periods

 2.55. (1) Unit-holder information must be given in respect of consecutive unit-holder reporting periods.

 (2) PST information must be given in respect of consecutive PST reporting periods.

 (3) A reporting period that is a unit-holder reporting period or a PST reporting period must not exceed 12 months or, if the Commissioner on the application of an entity fixes a longer period for the PST in a particular case, that longer period.

 (4) In relation to a particular unit-holder, all unit-holder information must be given in respect of the same unit-holder reporting period.

[NOTE:  For an example, see  subregulation 2.19 (4).]

 (5) In relation to a particular unit-holder, all PST information need not be given in respect of the same PST reporting period.

[NOTE:  For a comparable example, see to subregulation 2.19 (5).]

 (6) In relation to a particular unit-holder, the first unit-holder reporting period must begin:

 (a) if the unit-holder was a unit-holder at the start of the PST’s 1994-1995 year of income, during that year of income; or

 (b) in any other case—on a date not later than the date on which the unit-holder became a unit-holder.

 (7) In relation to a particular unit-holder, the first PST reporting period must begin:

 (a) if the unit-holder was a unit-holder at the start of the PST’s 1994-1995 year of income, during that year of income; or

 (b) in any other case—on a date not later than the date on which the unit-holder became a unit-holder.

 (8) A subsequent reporting period must commence immediately after the end of the preceding reporting period.

Application in relation to reporting period

 2.56. In relation to a reporting period:

 (a) unit-holder information need only be given in respect of persons who are unit-holders of the PST on the last day of the unit-holder reporting period; and

 (b) PST information need only be given to persons who are unit-holders of the PST on the day on which the report containing that information is completed.

Time for Compliance

 2.57. (1)  Paragraphs 2.59 (a), 2.60 (a) apply in respect of each unit-holder reporting period.

[NOTE:  See subregulation 2.55 (1).]

 (2) Paragraph 2.59 (b), regulation 2.60 (other than paragraph 2.60 (a)) and regulation 2.61 apply in respect of each PST reporting period.

[NOTE:  See subregulation 2.55 (2).]

 (3) The trustee of a PST must comply with a requirement of this regulation as soon as practicable, and in any event within 6 months, after the end of the relevant reporting period.

Exemption from giving information

 2.58. If:

 (a) a person ceases to be a unit-holder of a PST before unit-holder information required to be given to that person in respect of a particular unit-holder reporting period (the “relevant period”) is given; and

 (b) the trustee of the PST gives, or intends to give, information to that person under Subdivision 2.8.5 in respect of a reporting period that is the same as, or includes the whole of, the relevant period;

the trustee need not give that unit-holder information, in respect of the relevant period, to or in relation to the person.

General requirement

 2.59. The trustee of a PST must give to each unit-holder all information the trustee reasonably believes a unit-holder reasonably needs for the purpose of:

 (a) understanding the unit-holder’s interest in the PST; and

 (b) making an informed judgment about the management, investment performance and financial condition of the PST.

Specific requirements in all cases

 2.60. The trustee of a PST must give to each unit-holder all information on the following matters:

 (a) in respect of the particular unit-holder:

 (i) the unit-holder’s opening and closing balances for the relevant reporting period; and

 (ii) a reconciliation of those balances;

 (b) in respect of the PST—a description of the investment strategy of the PST trustee, having regard to

 (i) the requirements of paragraph 52 (2) (f) of the Act; and

 (ii) the investment objectives of the PST;

 (c) a statement to the effect that other information is available on request.

Specific requirements in particular cases

 2.61 (1)  Subject to subregulations (2) and (3), the trustee of a PST must give to each unit-holder the following items of information and documents, so far as they are applicable:

 (a) in respect of the PST—the names of investment managers appointed by the trustee;

 (b) the name of each approved trustee of the PST during the relevant reporting period;

 (c) either:

 (i) the audited accounts of the PST and the auditor’s report; or

 (ii) each of the following:

 (A) abridged financial information (as defined in subregulation (4)) relating to the PST;

 (B) information as to when the audited accounts of the PST and the auditor’s report will be sent to unit-holders or will be available to unit-holders on request, as the case may be;

 (d) in respect of the PST—a statement of assets as at the end of:

 (i) the relevant reporting period; and

 (ii) the immediately preceding reporting period;

  that includes sufficient information to enable unit-holders to understand the asset allocation at those times;

 (e) details of:

 (i) each investment that has a value in excess of 5% of the total assets of the PST; and

 (ii) details of each combination of investments that the trustee knows or ought reasonably to know are invested, directly or indirectly, in a single enterprise or single group of associated enterprises and that have a combined value in excess of 5% of the total assets of the PST;

 (f) in respect of the PST—the actual or notional rate of net earnings of the PST in the most recent reporting periods that, in total, constitute a period of at least 3 years;

 (g) a statement (in outline terms) of:

 (i) how fees, charges, expenses and administrative or other operational costs are attributed (either directly or indirectly) to unit-holders (including details of the points at which, or occasions on which, they are levied or deducted); and

 (ii) where the fees, charges, expenses and administrative or other operational costs are pre-determined fixed amounts or percentages—those amounts or percentages; and

 (iii) where subparagraph (ii) does not apply—the general manner in which the fees, charges, expenses and administrative or other operational costs are determined;

 (h) details of any penalties imposed under the Act on the trustee.

 (2) A nil amount need not be disclosed.

 (3) For the purposes of subparagraph (1) (e) (ii), investments in a trust are taken not to be invested in the trustee of the trust.

 (4) In this regulation:

“abridged financial information”, in relation to a reporting period of a PST, means information derived from the PST’s accounts that gives a reasonable summary of:

 (a) changes in the PST’s financial position during the reporting period; and

 (b) the PST’s financial position at the end of the reporting period.

Subdivision 2.8.4—Significant events

Time for compliance

Meaning of “event” in subregulations (2) and (3)

 2.62. (1) For the purposes of subregulations (2) and (3), “event” means:

 (a) an event referred to in subregulation 2.63 (1); or

 (b) the receipt of a notice of non-compliance referred to in regulation 2.64;

whichever is applicable.

Significant event information—general rule

  (2)  The time within which the trustee of a PST must give information under this Subdivision about an event to a unit-holder or class of unit-holders is:

 (a) before the expected occurrence, or as soon as practicable after the occurrence, of the event; or

 (b) in any case, within 3 months after the occurrence of the event.

Significant event information—event not adverse

 (3) Despite subregulation (2), the information may be given more than 3 months after the occurrence of the event if:

 (a) the trustee reasonably believes that the event is not adverse to the unit-holder’s interests and accordingly the unit-holder would not be expected to be concerned about the delay in giving the information; and

 (b) the information is given no later than 12 months after the occurrence of the event.

Meaning of “event” in subregulation (5)

 (4) For the purposes of subregulation (5), “event” means:

 (a) a decision of the trustee; or

 (b) the winding-up or termination of the PST;

whichever is applicable.

Significant event information—unit-holder expects to be informed before event

 (5) Where a unit-holder would reasonably expect to be informed of an event before it occurs, the trustee of a PST must give the information to the unit-holder as soon as practicable after it becomes reasonable for the trustee to expect that the event will happen (except that the information need not be given more than 3 months before the expected date of the event).

Information concerning significant events

 2.63. (1)  The trustee of a PST must give to each unit-holder information concerning any event in relation to the PST that the trustee reasonably believes the unit-holder would reasonably expect to be informed of.

[NOTE:  For examples, see under regulation 2.33.]

 (2) Information under this regulation concerning an event is information that the trustee reasonably believes a unit-holder would reasonably need:

 (a) where there is a nature or purpose to the event—to understand the nature or purpose; and

 (b) to make an informed judgment about the effect (generally and in respect of the unit-holder’s current and future entitlements) of the event.

Information concerning notice of non-compliance

 2.64. If the trustee of a PST receives a notice of non-compliance, the trustee must give to each unit-holder:

 (a) a statement of the circumstances (including details of the non-compliance) that gave rise to the issue of the notice; and

 (b) a statement of the effect on the PST of the issue of the notice (including details of the effect on the PST’s taxation position); and

 (c) details of action that the trustee has taken, or proposes to take, to have the PST become a PST for the purposes of Division 2 of Part 5 of the Act; and

 (d) any information concerning the non-compliance that the Commissioner requires to be given for the purposes of this paragraph.

[NOTE: For the purposes of this regulation, a notice of non-compliance is a notice issued under section 40 of the Act stating that the entity is not a PST.]

c.Subdivision 2.8.5—Information on leaving

Information when a person ceases to be a unit-holder

 2.65. The trustee of a PST must give information under regulation 2.66 to a person as soon as practicable after the trustee becomes aware that the person has ceased to be a unit-holder of the PST, and in particular the trustee must make reasonable efforts to give the information within 1 month after becoming aware that the person has ceased to be a unit-holder of the PST.

Persons ceasing to be unit-holders

 2.66. (1)  Subject to regulation 2.67, the trustee of a PST must give to a person who ceases to be a unit-holder all information the trustee reasonably believes a person reasonably needs for the purpose of understanding their interest in the PST on the day on which the person ceased to be a unit-holder.

 (2) In particular, the trustee of a PST must give the person:

 (a) information concerning the person’s opening and closing balances for the period:

 (i) beginning on the first day of the unit-holder reporting period in which the person ceases to be a unit-holder of the PST; and

 (ii) ending at the end of the day on which the person ceases to be a unit-holder of the PST; and

 (b) a reconciliation of those balances.

Exceptions to reporting requirement where person ceases to be unit-holder

 2.67. (1)  Subject to subregulation (2), if a person ceases to be a unit-holder of a PST:

 (a) after the end of a completed unit-holder reporting period (the “completed period”); and

 (b) before a unit-holder report is issued for that period;

the information required by regulation 2.66 to be given to or in relation to the person may be given in respect of the period consisting of:

 (c) the completed period; and

 (d) the period from the end of that period to the end of the day on which the person ceased to be a unit-holder of the PST;

instead of in respect of the period stated in paragraph 2.66 (2) (a).

 (2) If the period mentioned in paragraph (1) (d) exceeds 6 months in a particular case, subregulation (1) does not apply in respect of that case.

PART 3—MATTERS PRESCRIBED OR SPECIFIED IN RELATION TO PUBLIC OFFER ENTITIES

Public offer superannuation fund—prescribed persons

 3.01. For the purposes of sub-subparagraph 18 (1) (a) (ii) (B) of the Act, a prescribed class consists of  former standard employer-sponsored members of the fund who, since ceasing to be standard employer-sponsored members of the fund, either:

 (a) have not made any contributions to the fund; or

 (b) have made contributions to the fund in the 2-year period commencing on the day following the day on which they ceased to be such members, but have not made any contributions after the end of that period.

Application for approval of trustees

 3.02. For the purposes of paragraph 23 (2) (c) of the Act, the prescribed amount of an application fee is $500.

Deciding an application for approval

 3.03. For the purposes of subparagraphs 26 (1) (b) (i) and (ii) of the Act, the amount of $5,000,000 is prescribed.

Section 54 of the Act—prescribed percentages

 3.04. For the purposes of section 54  of the Act (prerequisites to variation of repayment period), the following percentages are prescribed:

 (a) in the case of paragraph (1) (c) of the section—25%; and

 (b) in the case of paragraph (1) (d) of the section—at least 75%.

Policy committees—sections 91, 92 and 93 of the Act

Pre-1 July 1995—funds with 200 or more members (paragraph 91 (3) (b) of the Act)

 3.05. (1) For the purposes of paragraph 91 (3) (b) of the Act, subject to subregulation (4), a public offer superannuation fund to which section 91 of the Act applies is subject to the following rule, namely, that the trustee of the fund must take all reasonable steps to ensure that, if there are at least 200 of its members (a “group”), each of whom:

 (a) is a standard employer-sponsored member; and

 (b) has a standard employer-sponsor who is the, or is an associate of a, standard employer-sponsor of each other member of that group;

there is at least 1 policy committee established for that group.

Post-30 June 1995—funds with more than 4, but fewer than 50, members (paragraph 92 (3) (b) of the Act)

 (2) For the purposes of paragraph 92 (3) (b) of the Act, subject to subregulation (4), a public offer superannuation fund to which section 92 of the Act applies is subject to the following rule, namely, that the trustee of the fund must take all reasonable steps to ensure that if:

 (a) there are at least 5 of its members (a “group”) each of whom:

 (i) is a standard employer-sponsored member; and

 (ii) has a standard employer-sponsor who is the, or is an associate of a, standard employer-sponsor of each other member of that group; and

 (b) a written request is made to the trustee on behalf of at least 5 members of the group to establish a policy committee;

there is at least 1 policy committee established for that group.

Post-30 June 1995—funds with more than 49 members (paragraph 93  (3) (b) of the Act)

 (3) For the purposes of paragraph 93 (3)(b) of the Act, subject to subregulation (4), a public offer superannuation fund to which section 93 of the Act applies is subject to the following rules, namely:

 (a) the trustee of the fund must take all reasonable steps to ensure that, if there are more than 49 of its members (a “group”), each of whom:

 (i) is a standard employer-sponsored member; and

 (ii) has a standard employer-sponsor who is the, or is an associate of a, standard employer-sponsor of each other member of that group;

  there is at least 1 policy committee established for that group; and

 (b) the trustee of the fund must take all reasonable steps to ensure that, if:

 (i) there are at least 5 but fewer than 50 of its members (a “group”), each of whom:

 (A) is a standard employer-sponsored member; and

 (B) has a standard employer-sponsor who is the, or is an associate of a, standard employer-sponsor of each other member of that group; and

 (ii) a written request is made to the trustee on behalf of at least 5 members of that group to establish a policy committee;

  there is at least 1 policy committee established for that group.

Rules do not apply to certain funds

 (4) If a public offer superannuation fund complies with the basic equal representation rules stated in section 89 of the Act, the fund is not subject to the rules set out in subregulations (1), (2) and (3).

Equal representation of employers and members on policy committees—effect of vacancy

 (5) If a vacancy occurs in the membership of a policy committee of a public offer superannuation fund the policy committee is taken to consist of equal numbers of employer representatives and member representatives during the period of the vacancy, in accordance with paragraph 91 (3) (c), 92 (3) (c) or 93 (3) (c) of the Act (whichever is applicable) if:

 (a) immediately before the vacancy occurred, the policy committee consisted of equal numbers of employer representatives and member representatives; and

 (b) the vacancy is filled within 90 days after it occurred; and

 (c) immediately after the vacancy is filled, the policy committee consists of equal numbers of employer representatives and member representatives.

Policy committees—functions (paragraphs 91 (3) (b), 92 (3) (b) and 93 (3)(b) of the Act)

 3.06. (1)  For the purposes of paragraphs 91 (3) (b), 92 (3) (b) and 93 (3) (b) of the Act, a public offer superannuation fund to which section 91, 92 or 93 of the Act applies is subject to the following rule, namely, that the functions that a policy committee of a fund may undertake include the following:

 (a) providing an avenue:

 (i) for members of the fund to inquire about the investment strategy and performance of the fund; and

 (ii) for the trustee of the fund to obtain the views of members of the fund concerning that strategy and performance;

 (b) providing an avenue for members of the fund to inquire about the fund’s operation or performance;

 (c) providing an avenue for the trustee of the fund to obtain the views of members of the fund concerning the fund’s operation or performance;

 (d) providing an avenue for the trustee of the fund to obtain the views of members of the fund on their information needs;

 (e) assisting the trustee of the fund in dealing with complaints or inquiries about the operation or management of the fund.

 (2) Subregulation (1) is not to be taken as limiting by implication the functions and responsibilities of the trustee.

Definition of policy committee in section 10 of the Act—matters specified for purposes of paragraph (a)

 3.07. Issues relating to the fund that a member of the fund, or the employer-sponsor of a member of the fund, has raised with the committee as a matter of concern, are specified for the purposes of paragraph (a) of the definition of policy committee in section 10 of the Act.

Policy committees—duties of trustee

 3.08. (1)  In relation to each policy committee of a public offer superannuation fund, the trustee of the fund must:

 (a) ensure, so far as practicable, that the committee meets at least once in any 12-month period; and

 (b) provide facilities that are reasonably necessary to enable the committee to meet and to function effectively.

 (2) A meeting may be held wholly or in part by means of a telephone conference connection among the committee members and, if a representative of the trustee is to attend, the representative.

 (3) The trustee must arrange for a representative of the trustee to attend each meeting of the committee that the committee requests the trustee to do so.

 (4) The trustee may recoup from the fund:

 (a) the costs of providing facilities for the committee to meet; and

 (b) the costs incurred by the trustee in attending a meeting of the committee; and

 (c) the costs incurred by the trustee in providing information to the committee.

[Note: The amount of costs recouped is determined in accordance with regulation 5.02]

Dissolution of policy committees

 3.09. (1)  A policy committee of a public offer superannuation fund may dissolve itself, and if it does so the trustee of the fund is taken to have complied with the trustee’s duties under regulation 3.05.

 (2) If a policy committee dissolves itself and at least 5 members of the fund, being members in respect of whom the committee functioned, request the trustee of the fund in writing to form a replacement committee, the trustee must take all reasonable steps to do so.

 (3) The provisions of regulations 3.06, 3.07 and 3.08, and this regulation, apply to a replacement committee.

Commission and brokerage

 3.10. (1)  For the purposes of subsection 154 (1) of the Act, the requirements set out in this regulation apply in relation to a payment by the trustee of a public offer entity of commission or brokerage of a kind mentioned in that subsection.

 (2) The trustee of a public offer entity may make a payment of commission or brokerage to a person in consideration of the person:

 (a) applying or agreeing to apply for the issue of an interest in the entity; or

 (b) procuring or agreeing to procure applications for the issue of an interest in the entity;

if, and only if:

 (c) the payment is not prohibited by the entity’s trust deed; and

 (d) the amount of the proposed payment, or the proposed rate of payment, is disclosed in a regulated document in relation to the entity.

 (3) The trustee of a public offer entity must not make a payment of commission or brokerage to a person in respect of issuing an interest in the entity unless the person is:

 (a) the holder of a dealers licence granted under Part 7.3 of the Corporations Law or under a corresponding law of a State or Territory; or

 (b) the holder of a proper authority within the meaning of the Corporations Law; or

 (c) an exempt dealer within the meaning of the Corporations Law; or

 (d) any of the following:

 (i) the holder of an investment advisers licence granted under Part 7.3 of the Corporations Law or under a corresponding law of a State or Territory;

 (ii) an accountant or solicitor whose principal business or profession is not the giving of advice about securities;

 (iii) an employee of an accountant or solicitor whose principal business or profession is not the giving of advice about securities; or

 (iv) a company providing accountancy or legal services whose principal business is not the giving of advice about securities;

 (v) a director or employee of a company of that kind;

  if the person has told the trustee in writing that the total amount of the commission or brokerage will be rebated to the applicant for the issue; or

 (e) a registered insurance broker within the meaning of the Insurance (Agents and Brokers) Act 1984; or

 (f) a life insurance company.

 (4) A reference in subregulation (3) to a solicitor or accountant includes a reference to a firm of solicitors or accountants, or to a partner in such a firm, as the case requires.

 (5) The trustee of an entity must keep an account of amounts of commission and brokerage paid by the entity.

Statements by experts—keeping of written consents

 3.11. (1)  For the purposes of subsection 163 (2) of the Act the period for which the trustee of a public offer entity must keep a consent or copy is 10 years from the date on which the entity receives the consent.

 (2) A copy of a consent may be kept:

 (a) in its physical form; or

 (b) in an electronic form that is capable of being reproduced in paper form.

Requirements concerning application money held on trust

 3.12. For the purposes of section 169 of the Act, the trustee of a public offer entity must:

 (a) pay money referred to in the section into a trust account (that need not be interest bearing) in the name of the applicant from whom the entity received the money; and

 (b) retain the money in a trust account of that kind until:

 (i) the relevant superannuation interest is issued to the applicant; or

 (ii) the money is refunded to the applicant.

PART 4—MANAGEMENT AND TRUSTEESHIP OF SUPERANNUATION ENTITIES

Division 4.1—Prescribed matters

Covenants in governing rules of a superannuation entity—prescribed information and documents

 4.01. For the purposes of paragraph 52 (2) (h) of the Act, the information and documents that are available to a concerned person under Division 2.6 are prescribed.

Covenants in governing rules of a superannuation entity—beneficiary investment choice

 4.02 (1)  For the purposes of paragraph 52 (4) (b) of the Act, the circumstances in which a direction of the kind referred to in that paragraph (other than a subsequent direction of that kind) may be given are:

 (a) in the case of a direction by a specified beneficiary who is, or a class of specified beneficiaries each of whom is, a standard employer-sponsored member—the circumstances stated in subregulations (2) and (3); and

 (b) in any other case—the circumstances stated in subregulation (2).

 (2) For the purposes of paragraphs (1) (a) and (b), the following circumstances are stated, namely that:

 (a) the trustee gives to the beneficiary, or to each member of the class of beneficiaries, a choice of 2 or more investment strategies from which the beneficiary, or class of beneficiaries, may choose a strategy or combination of strategies; and

 (b) the beneficiary, or each member of the class of beneficiaries, is given:

 (i) the investment objectives of each of the strategies mentioned in paragraph (a); and

 (ii) all information the trustee reasonably believes a person would reasonably need for the purpose of understanding the effect of, and any risk involved in, each of those strategies; and

 (c) the beneficiary, or each member of the class of beneficiaries, is fully informed of the range of directions that can be given and the circumstances in which they can be changed; and

 (d) the direction is given after compliance with the above paragraphs, and the direction specifies:

 (i) which of the strategies or which combination of strategies referred to in paragraph (a) is to be followed in relation to investments of the beneficiary’s, or class of beneficiaries’, interest in the fund; and

 (ii) where applicable, matters related to the choice referred to in that paragraph.

[Example: A strategy could allow the beneficiary, or class of beneficiaries, a choice in exposure to certain classes of asset .  The beneficiary may choose 60%in fixed interest loans and 40% in shares and the choice of the level of exposure to the class of assets would be a “matter” mentioned in subparagraph (ii).]

 (3) For the purposes of paragraph (1) (a), the following circumstance is stated, namely that the trustee clearly identifies to the beneficiary, or to each member of the class of beneficiaries, when giving to him, her or them a choice of 2 or more investment strategies in accordance with paragraph (2) (a), the strategy the trustee will adopt if no direction is given.

 (4) Subregulation (3) does not apply in relation to a beneficiary or a member of a class of beneficiaries if it is a condition of membership for the beneficiary to choose a strategy or combination of strategies.

 (5) For the purposes of paragraph 52 (4) (b) of the Act, the circumstances in which a direction of the kind referred to in that paragraph, if it is a subsequent direction of that kind, may be given are that:

 (a) the beneficiary, or each member of the class of beneficiaries, is given all information the trustee reasonably believes a person would reasonably need for the purpose of understanding the effect of, and any risk involved in, the subsequent direction; and

 (b) the subsequent direction is given after compliance with paragraph (a), and relates to the strategy to be followed in relation to the investment of the interest in the fund of the beneficiary or class of beneficiaries.

Trustee of employer-sponsored fund—prescribed direction by employer-sponsor

 4.03. (1)  For the purposes of paragraph 58 (2) (e) of the Act, the circumstances in which the governing rules of a superannuation entity may permit an employer-sponsor or an associate of an employer-sponsor to give a direction to the trustee of an employer-sponsored fund are:

 (a) where, after the implementation of  the direction:

 (i) the fund (if a defined benefit fund) would not become technically insolvent within the meaning of subregulation 9.06 (3); or

 (ii) the fund (if an accumulation fund) would not become technically insolvent within the meaning of subregulation 9.35 (3); and

 (b) where members’ rights to accrued benefits in the fund are not adversely affected by the direction; and

 (c) the direction qualifies under subregulation (2).

 (2) A direction qualifies if:

 (a) the contributions of the employer-sponsor to the fund include contributions that are not mandated employer contributions (within the meaning of Part 5) and the direction relates solely to either or both of the following:

 (i) those non-mandated employer contributions; or

 (ii) benefits related to those non-mandated employer contributions; or

 (b) whether or not paragraph (a) applies—the direction relates solely to one or more of the following:

 (i) the admission of new members to the fund; or

 (ii) the category of members into which a new member or existing member is to be placed; or

 (iii) allowing a person to become an employer-sponsor of the fund; or

 (iv) the termination of the fund; or

 (v) the appointment of a trustee to an entity that does not have a trustee.

Governing rules of a superannuation entity—prescribed exercise of discretion by non-trustee

 4.04 For the purposes of subparagraph 59 (1) (b) (iii) of the Act, the circumstances in which a discretion under the governing rules of a superannuation entity other than an excluded fund may be exercised by a person other than the trustee are:

 (a) where, after the exercise of the discretion:

 (i) the fund (if a defined benefit fund) would not become technically insolvent within the meaning of subregulation 9.06 (3); or

 (ii) the fund (if an accumulation fund) would not become technically insolvent within the meaning of subregulation 9.35 (3); and

 (b) where members’ rights to accrued benefits in the fund are not adversely affected by the exercise of the discretion; and

 (c) the discretion qualifies under subregulation (2).

 (2) A discretion qualifies if:

 (a) the contributions of the employer-sponsor to the fund include contributions that are not mandated employer contributions (within the meaning of Part 5) and the discretion relates solely to either or both of the following:

 (i) those non-mandated employer contributions; or

 (ii) benefits related to those non-mandated employer contributions; or

 (b) whether or not paragraph (a) applies—the discretion relates solely to one or more of the following:

 (i) the admission of new members to the fund; or

 (ii) the category of members into which a new member or existing member is to be placed; or

 (iii) allowing a person to become an employer-sponsor of the fund; or

 (iv) the termination of the fund; or

 (v) the appointment of a trustee to an entity that does not have a trustee.

Governing rules of a superannuation entity—prescribed circumstances of amendment

 4.05. (1) For the purposes of subparagraph 60 (1) (b) (iii) of the Act, the circumstances in which the governing rules of a superannuation entity other than an excluded fund may be amended are:

 (a) where, after the making of the amendment:

 (i) the fund (if a defined benefit fund) would not become technically insolvent within the meaning of subregulation 9.06 (3); or

 (ii) the fund (if an accumulation fund) would not become technically insolvent within the meaning of subregulation 9.35 (3); and

 (b) where members’ rights to accrued benefits in the fund are not adversely affected by the amendment; and

 (c) the amendment qualifies under subregulation (2).

 (2) An amendment qualifies if:

 (a) the contributions of the employer-sponsor to the fund include contributions that are not mandated employer contributions (within the meaning of Part 5) and the amendment relates solely to either or both of the following:

 (i) those non-mandated employer contributions; or

 (ii) benefits related to those non-mandated employer contributions; or

 (b) whether or not paragraph (a) applies—the amendment relates solely to one or more of the following:

 (i) the admission of new members to the fund; or

 (ii) the category of members into which a new member or existing member is to be placed; or

 (iii) allowing a person to become an employer-sponsor of the fund; or

 (iv) the termination of the fund; or

 (v) the appointment of a trustee to an entity that does not have a trustee.

Removal of member representatives—prescribed circumstances

 4.06. (1)  For the purposes of sub-subparagraph 107 (2) (a) (ii) (G) of the Act, the circumstances stated in subregulation (2) are prescribed as circumstances in which member representatives referred to in subparagraph 107 (2) (a) (ii) of the Act can be removed other than by the same procedure by which they were appointed.

 (2) The circumstances referred to in subregulation (1) are:

 (a) if the member representative resigns from the position of trustee, director of the trustee or representative on a policy committee; or

 (b) if the member representative’s tenure of that position expires; or

 (c) if the member representative ceases to be a member of the fund; or

 (d) if the member representative ceases to satisfy a condition that the member representative was required to satisfy to be eligible for appointment.

Removal of independent trustee or independent member—prescribed circumstances

 4.07. (1)  For the purposes of subparagraph 108 (2) (a) (v) of the Act, the circumstances stated in subregulation (2) are prescribed as circumstances in which an additional independent trustee or additional independent director (the “office-holder”) referred to in paragraph 108 (2) (a) of the Act can be removed other than by the same procedure by which they were appointed.

 (2) The circumstances referred to in subregulation (1) are:

 (a) if the office-holder resigns from office; or

 (b) if the office-holder’s tenure of office expires; or

 (c) if the office-holder ceases to be:

 (i) in the case of an additional independent trustee—an independent trustee; or

 (ii) in the case of an additional independent director—an independent director; or

 (d) if the office-holder ceases to satisfy a condition that the office-holder was required to satisfy to be eligible for appointment.

Division 4.2—Operating standards

Operating standard—voting rule where equal representation applies

 4.08. (1)  For the purposes of subsection 31 (1) of the Act, the standard stated in subregulation (3) is applicable to the operation of standard employer-sponsored funds that must comply:

 (a) under subsection 91 (4) or 93 (4) of the Act—with the basic equal representation rules; or

 (b) under subsection 90 (3) of the Act—with either:

 (i) the basic equal representation rules; or

 (ii) the alternative agreed representation rule set out in subsection 90 (4) of the Act; or

 (c) under subsection 92 (4) of the Act—with either:

 (i) the basic equal representation rules; or

 (ii) the alternative agreed representation rule set out in subsection 92 (5) of the Act.

 (2) In spite of subregulation (1), the standard stated in subregulation (3) is not applicable to the operation of standard employer-sponsored funds that comply with the alternative agreed representation rule set out in subsection 90 (4) or 92 (5) of the Act.

 (3) A decision of:

 (a) the individual trustees of a fund; or

 (b) the board of directors of the corporate trustee of a fund;

must be taken not to have been made, or to be of no effect, if fewer than two-thirds of the total number of the trustees or directors, as the case requires, voted for it.

Operating standard—investment strategy

 4.09. (1)  For the purposes of subsections 31 (1), 32 (1) and 33 (1) of the Act, the standard stated in subregulation (2) is applicable to the operation of superannuation entities that are not excluded funds.

 (2) The trustee of the entity must formulate and give effect to an investment strategy that has regard to all the circumstances of the entity, including in particular:

 (a) the risk involved in making, holding and realising, and the likely return from, the entity’s investments, having regard to its objectives and expected cash flow requirements;

 (b) the composition of the entity’s investments as a whole, including the extent to which they are diverse or involve exposure of the entity to risks from inadequate diversification;

 (c) the liquidity of the entity’s investments, having regard to its expected cash flow requirements;

 (d) the ability of the entity to discharge its existing and prospective liabilities.

 (3) An investment strategy is taken to be in accordance with subregulation (2) even if it provides for a specified beneficiary or class of beneficiaries to give directions to the trustee where the directions:

 (a) relate to the strategy to be followed by the trustee in relation to the investment of a particular asset or assets of the entity; and

 (b) are given in given in the circumstances covered by regulation 4.02.

Operating standard—investment by non-complying superannuation funds

 4.10. For the purposes of subsection 31 (1) of the Act, it is a standard applicable to the operation of regulated superannuation funds that, if the Commissioner gives a notice to the trustee of an entity stating that the entity is not a complying superannuation fund, the trustee must take all reasonable steps to immediately dispose of any units held by the trustee in a PST, unless the Commissioner otherwise directs.

Operating standard—investment by non-complying approved deposit funds

 4.11. For the purposes of subsection 32 (1) of the Act, it is a standard applicable to  the operation of approved deposit funds that, if the Commissioner gives a notice to the trustee of an entity stating that the entity is not a complying approved deposit fund, the trustee must take all reasonable steps to immediately dispose of any units held by the trustee in a PST, unless the Commissioner otherwise directs.

PART 5—MINIMUM BENEFITS STANDARDS

Division 5.1—Preliminary

Interpretation of this Part

 5.01. (1) In this Part, unless the contrary intention appears:

“accumulated deposit”, in relation to a member of an approved deposit fund as at a particular time, means the total of the following amounts:

 (a) amounts deposited in the fund for the member down to that time; and

 (b) investment earnings on those amounts down to that time;

less:

 (c) the costs applicable to those amounts down to that time;

“cashed” means cashed in accordance with Division 6.3;

“costs”, in relation to a member’s benefits in a regulated superannuation fund or an approved deposit fund as at any time, means the total costs determined under regulation 5.02 in relation to those benefits and charged to those benefits in accordance with that regulation down to that time;

“deferred annuity” means an annuity:

 (a) that is not payable on purchase; and

 (b) whose terms ensure:

 (i) that payment of benefits under the annuity is commenced at a time at which Part 6 permits or requires the benefits to be paid from an approved deposit fund; and

 (ii) that, except as permitted in relation to approved deposit funds by the Act or these Regulations, the provider of the annuity does not recognise, or in any way encourage or sanction:

 (A) an assignment of an interest under the annuity; or

 (B) the giving of a charge over, or in relation to, a preserved benefit (within the meaning of Part 6);

“investment earnings”, in relation to a member’s benefits (or a members’ benefits of a particular kind) in a regulated superannuation fund or an approved deposit fund as at any time, means the total of the amounts credited, less the total of the amounts debited, to the member’s account by way of investment return down to that time in respect of those benefits;

“investment return”, in relation to a member’s benefits (or a member’s benefits of a particular kind) in a regulated superannuation fund or an approved deposit fund over a particular period means:

 (a) in the case of an approved deposit fund or an accumulation fund in which the trustee does not maintain reserves—the proportion of the return to the fund on investments over that period that is attributable to those benefits; or

 (b) in the case of an approved deposit fund or an accumulation fund in which the trustee maintains reserves—the return determined by the trustee in accordance with regulation 5.03 for that period; or

 (c) in the case of a defined benefit fund:

 (i) the proportion of the return to the fund on investments over that period that is attributable to those benefits; or

 (ii) the return on the benefits over that period that is fair and reasonable to all members of the fund, being a return based either on the actual return earned on the investments of the fund or on a commercially available rate of interest; or

 (iii) the return on the benefits that is derived by increasing the benefits in proportion with the increase in the salary of the member over that period;

“mandated employer contributions”, in relation to a member of a regulated superannuation fund, means contributions by, or on behalf of, an employer that are equal to the sum of:

 (a) the contributions made by, or on behalf of, the employer to the fund in relation to the member, that:

 (i) reduce the employer’s potential liability for the superannuation guarantee charge imposed by section 5 of the Superannuation Guarantee Charge Act 1992 ; or

 (ii) are payments of shortfall components; and

 (b) the contributions (other than contributions of the kind specified in paragraph (a)) made by, or on behalf of, the employer to the fund in relation to the member in or towards satisfaction of the employer’s obligation to make contributions for the member, being an obligation under an agreement certified, or an award made, on or after 1 July 1986 by an industrial authority;

“mandated employer-financed benefits”, in relation to a member of a regulated superannuation fund as at any time, means benefits equal to the sum of:

 (a) the amount of the mandated employer contributions made to the fund in relation to the member down to that time; and

 (b) the amount of the investment earnings on those contributions down to that time;

less the costs applicable to the amounts down to that time;

“member contributions”, in relation to a member of a regulated superannuation fund, means contributions by, or on behalf of, the member to the fund, but does not include employer contributions made in respect of the member;

“member-financed benefits”, in relation to a member of a regulated superannuation fund as at any time, means benefits equal to the sum of:

 (a) the amount of the member contributions made to the fund in relation to the member down to that time; and

 (b) the amount of the investment earnings on those contributions down to that time;

less the costs applicable to those amounts down to that time;

“OSS Laws” means the Occupational Superannuation Standards Act 1987 and the Occupational Superannuation Standards Regulations;

“rolled over” means paid as an eligible termination payment (other than by way of being transferred) within the superannuation system;

“superannuation system” means the system comprising:

 (a) regulated superannuation funds; and

 (b) approved deposit funds; and

 (c) the Commissioner in the Commissioner’s role as the recipient of unclaimed money that is paid to the Commissioner under subsection 225 (5) of the Act; and

 (d) deferred annuities;

“transferred”, in relation to a member’s benefits in a regulated superannuation fund, means paid from that fund to another regulated superannuation fund otherwise than upon the satisfaction by the member of a condition of release (within the meaning of Part 6) in respect of all of those benefits.

Determination of costs

 5.02. (1) The trustee of a regulated superannuation fund or an approved deposit fund must determine the costs to be charged from time to time against a member’s benefits in the fund.

 (2) In determining the costs to be charged against a member’s benefits, the trustee may include:

 (a) the direct costs of establishing, operating and terminating the fund; and

 (b) any administrative, insurance and taxation costs relating to the establishment, operation and termination of the fund.

 (3) In determining the costs to be charged against a member’s benefits, the trustee must ensure that the costs of the fund are distributed in a fair and reasonable manner as between:

 (a) all the members of the fund; and

 (b) the various kinds of benefits of each member of the fund.

Investment return—funds which maintain reserves

 5.03. (1) The trustee of an accumulation fund or an approved deposit fund that maintains reserves must determine the investment return to be credited or debited from time to time to a member’s benefit (or benefits of a particular kind) in the fund, having regard to:

 (a) the return to the fund on investments; and

 (b) the extent to which the costs of the fund exceed (or fall below) the aggregate of the costs charged to member’s benefits under regulation 5.02; and

 (c) the level of the reserves of the entity.

 (2) The trustee’s determination of the investment return to be credited or debited to a member’s benefits (or benefits of a particular kind) must be fair and reasonable as between:

 (a) all the members of the fund; and

 (b) the various kinds of benefits of each member of the fund.

Division  5.2—Minimum benefits

Minimum benefits—regulated superannuation funds

 5.04. (1)  Subject to regulations 5.05 and 5.06, a member’s minimum benefits in a regulated superannuation fund are as set out in this regulation.

 (2) If the fund is an accumulation fund, the member’s minimum benefits are:

 (a) the member’s member-financed benefits; and

 (b) the member’s mandated employer-financed benefits.

 (3) If the fund is a defined benefit fund, the member’s minimum benefits are as follows:

 (a) if the member belongs to a class of employees in relation to which a relevant benefit certificate applies, the amount of the member’s minimum requisite benefit; or

 (b) in any other case:

 (i) the member’s member-financed benefits; and

 (ii) the member’s mandated employer-financed benefits.

Mandated employer contributions—regulated superannuation funds

 5.05. (1) Subject to this regulation, contributions to a regulated superannuation fund are taken to be mandated employer contributions.

 (2) If:

 (a) at least 1 year has elapsed since the fund received the contributions; and

 (b) the trustee:

 (i) is satisfied that the contributions are not in fact mandated employer contributions; and

 (ii) decides not to continue to treat the contributions  as mandated employer contributions;

subregulation (1) ceases to apply to the contributions.

 (3) If:

 (a) less than 1 year has elapsed since the fund received the contributions; and

 (b) the trustee is satisfied that the contributions are not in fact mandated employer contributions;

subregulation (1) ceases to apply to the contributions.

 (4) The trustee has power to make a decision of the kind mentioned in subparagraph 2 (b) (ii) despite anything in the governing rules of the fund.

[EXAMPLE OF THE APPLICATION OF THIS REGULATION:

A trustee of a fund may receive a non-mandated employer contribution from an employer-sponsor of the fund that the trustee does not know is a non-mandated employer contribution (i.e. a contribution not made in satisfaction of the employer-sponsor’s superannuation guarantee or award obligation).

Upon acceptance, the contribution will be taken to be a mandated employer contribution and therefore subject to the minimum benefits standards.

From this point, one of three circumstances may apply:

 (a) the trustee may become aware in the first year after the contribution was received that the contribution is a non-mandated employer contribution, and, if this is the case, the trustee must treat the contribution as a non-mandated employer contribution; or

 (b) the trustee may become aware more than a year after the contribution was received that the contribution is a non-mandated employer contribution, and, if this is the case, the trustee may continue to treat the contribution as a mandated employer contribution instead of making corrections to reflect the change; or

 (c) the trustee may never become aware that the contribution is a non-mandated employer contribution, and, if this is the case, the contribution will always be taken to be a mandated employer contribution.]

Certain benefits rolled over or transferred to regulated superannuation funds taken to be minimum benefits

 5.06. (1) Subject to this regulation, benefits rolled over or transferred to a regulated superannuation fund are taken to be minimum benefits in the regulated superannuation fund.

 (2) If:

 (a) at least 1 year has elapsed since the fund received the benefits; and

 (b) the trustee:

 (i) is satisfied that the benefits are not in fact minimum benefits; and

 (ii) decides not to continue to treat the benefits as minimum benefits;

subregulation (1) ceases to apply to the benefits.

 (3) If:

 (a) less than 1 year has elapsed since the fund received the benefits; and

 (b) the trustee is satisfied that the benefits are not in fact minimum benefits;

subregulation (1) ceases to apply to the benefits.

 (4) If benefits that have been rolled over or transferred to a regulated superannuation fund are taken under this regulation to be minimum benefits, the amount of the minimum benefits as at any time is the sum of:

 (a) the benefits rolled over or transferred to the fund; and

 (b) the investment earnings on those benefits down to that time;

less the costs applicable to those benefits down to that time.

 (5) The trustee has power to make a decision of the kind mentioned in subparagraph (2) (b) (ii) despite anything in the governing rules of the fund.

Minimum benefits—approved deposit funds

 5.07. A member’s minimum benefits in an approved deposit fund are the amount of the member’s accumulated deposit in that fund.

Division  5.3—Treatment of minimum benefits

How  minimum benefits are to be treated

 5.08. For the purposes of subsections 31 (1) and 32 (1) of the Act, it is a standard applicable to the operation of regulated superannuation funds and approved deposit funds that the trustee of a fund must ensure that a member’s minimum benefits in the fund are maintained in the fund until the benefits are:

 (a) cashed as benefits of the member, other than for the purpose of the member’s temporary incapacity; or

 (b) rolled over or transferred as benefits of the member.

PART 6—PAYMENT STANDARDS

Division 6.1—Introductory

Subdivision 6.1.1—General interpretation

Interpretation

 6.01. (1)  Subject to subregulation (2), expressions used in this Part that are defined for the purposes of Part 5 have the same meanings respectively as in that Part.

 (2) In this Part and in Schedule 1, unless the contrary intention appears:

“changeover day”, in relation to a member of a regulated superannuation fund, means:

 (a)  the day in the 1996 calendar year that the trustee of the fund decides, in accordance with subregulations (3) and (4), is the changeover day for the purposes of this Part in relation to that member; or

 (b) if, before 1 July 1996, the trustee makes no such decision in relation to that member, 1 July 1996;

“commencement day” means:

 (a) in relation to a regulated superannuation fund, the later of:

 (i) the first day of the 1994-95 year of income of the fund; or

 (ii) the day on which the trustee or trustees of the fund make an election under section 19 of the Act; and

 (b) in relation to an approved deposit fund:

 (i) if the first day of the 1994-95 year of income of the fund is on or after 1 July 1994—the first day of that year of income; or

 (ii) if the first day of that year of income is before 1 July 1994—the earlier of:

 (A) 1 July 1994; or

 (B) the day on which the fund became an approved deposit fund;

“condition of release” means a condition of release specified in Column 2 of Schedule 1, and a member of a fund is taken to have satisfied a condition of release if the event specified in that condition has occurred in relation to the member;

“financial hardship” has the meaning given by subregulation (5);

“indexed”, in relation to a benefit, means indexed in accordance with section 159SG of the Tax Act modified so that subsection (1) reads as follows:

 “(1) The benefit as indexed for each year of income is:

 (a) in relation to the year of income in which occurs the day on which a benefit was required to have been calculated or was received by the fund—the amount of the benefit that was calculated or received; or

 (b) in relation to a later year of income—the amount calculated by multiplying the benefit for the immediately preceding year of income by the indexation factor worked out in accordance with subsection (2) for the later year of income.”;

“non-commutable income stream” means a benefit that:

 (a) cannot be commuted; and

 (b) is paid at least monthly; and

 (c) does not have a residual capital value; and

 (d) is such that the total amount paid each month is fixed or varies only:

 (i) for the purpose of complying with the Act and these Regulations; and

 (ii) during any period of 12 months by a rate not exceeding either:

 (A) 5% per annum; or

 (B) the rate of increase in the last Consumer Price Index (All Capital Cities) for a quarter to be published by the Australian Statistician before the end of that period of 12 months compared with the Consumer  Price Index (All Capital Cities) published for the same quarter in the preceding year;

“permanent departure from Australia”, in relation to a member, means a departure by the member from Australia where the trustee is reasonably satisfied that it is for the purpose of permanent residence outside Australia;

“permanent incapacity”, in relation to a member who has ceased to be gainfully employed, means ill-health (whether physical or mental), where the trustee is reasonably satisfied that the member is unlikely, because of the ill-health, ever again to engage in gainful employment for which the member is reasonably qualified by education, training or experience;

“restricted non-preserved contributions” means undeducted contributions (within the meaning of subregulation (6)) of a member other than contributions that were preserved in satisfaction of requirements of the Tax Act, the OSS Laws or the Superannuation Industry (Supervision) (Transitional Provisions) Regulations leading to income tax concessions;

“retirement” has the meaning given by subregulation (7);

“successor fund”, in relation to a transfer of benefits of a member from a fund (called the ‘original fund’), means a fund which satisfies the following conditions:

 (a) the fund confers on the member equivalent rights to the rights that the member had under the original fund in respect of the benefits;

 (b) before the transfer, the trustee of the fund has agreed with the trustee of the original fund that the fund will confer on the member equivalent rights to the rights that the member had under the original fund in respect of the benefits;

“temporary incapacity”, in relation to a member who has ceased to be gainfully employed (including a member who has ceased temporarily to receive any gain or reward under a continuing arrangement for the member to be gainfully employed), means ill-health (whether physical or mental) that caused the member to cease to be gainfully employed but does not constitute permanent incapacity.

 (3) In deciding the changeover day in relation to a member, the trustee of the fund:

 (a) is not bound by the governing rules of the fund; and

 (b) must take reasonable steps to ensure that the changeover day is as early as convenient; and

 (c) must be recorded in writing by the trustee.

 (4) Nothing in this Part is to be taken as:

 (a) requiring a decision as to the changeover day in relation to a member to be made in terms specific to that member; or

 (b) prohibiting such a decision from being made prospectively in relation to future members.

 (5) For the purposes of Schedule 1, a person is taken to be in financial hardship if the Commissioner has made a determination in writing that the person is in financial hardship.

 (6) For the purposes of the definition of “restricted non-preserved contributions” in subregulation (1), amounts to the credit of a member in a fund are undeducted contributions if:

 (a) in relation to amounts which formed the whole or part of an eligible termination payment—those amounts are undeducted contributions within the meaning given by subsection 27A (1) and (7) of the Tax Act for the purposes of Subdivision AA of Division 2 of Part III of that Act; or

 (b) in relation to any other amounts—those amounts comprise:

 (i) member contributions made after 30 June 1983 in order to obtain superannuation benefits (within the meaning of the Tax Act); and

 (ii) in respect of which no deduction is allowable or has been allowed to the member under the Tax Act.

 (7) For the purposes of Schedule 1, the retirement of a person is taken to occur:

 (a) in the case of a person who has attained age 55 —if:

 (i) an arrangement under which the member was gainfully employed has come to an end; and

 (ii) the trustee is reasonably satisfied that the person intends never to again become gainfully employed, either on a full-time or a part-time basis; or

 (b) in the case of a person who has attained age 60—an arrangement under which the member was gainfully employed has come to an end on or after the member attained that age.

Subdivision 6.1.2—Preserved benefits

Preserved benefits in regulated superannuation funds—before the changeover day

 6.02. (1)   Subject to regulations 6.04 and 6.12 and to Subdivision 6.1.5, the amount of a member’s preserved benefits in a regulated superannuation fund at any time during the period commencing on the commencement day and ending immediately before the changeover day is the amount required to be preserved under the OSS laws as applied in accordance with subregulation (2).

 (2) For the purposes of subregulation (1), despite the repeal of sections of the Occupational Superannuation Standards Act 1987  by the Occupational Superannuation Standards Amendment Act 1993, the OSS laws are taken to have continued in force on and after the commencement day, subject to the modifications set out in Schedule 2, in relation to regulated superannuation funds as if the references in the OSS laws (as so modified) to superannuation funds were references to regulated superannuation funds within the meaning of these Regulations.

Preserved benefits in regulated superannuation funds—on and after the changeover day

 6.03. Subject to regulation 6.12 and to Subdivision 6.1.5, the amount of a member’s preserved benefits in a regulated superannuation fund at any time on or after the changeover day is the amount of the member’s total benefits in the fund less the sum of:

 (a) the amount of the member’s restricted non-preserved benefits in the fund as defined by regulation 6.08; and

 (b) the amount of the member’s unrestricted non-preserved benefits in the fund as defined by regulation 6.10.

Preserved benefits in regulated superannuation funds—rollover or transfer between funds during 1996

 6.04. (1) If:

 (a) on a day during the 1996 calendar year that is, or is after, the day that is the changeover day in relation to a member of a regulated superannuation fund, benefits of that member are rolled over or transferred into another regulated superannuation fund (in this regulation called “the receiving fund”); and

 (b) the trustee of the receiving fund does not decide, on or before the day on which it receives those benefits, that day is the changeover day in respect of that member;

then, despite subregulation 6.02 (1), the portion of those benefits that is to be taken to be preserved benefits in the receiving fund is the same as the portion of those benefits that comprised preserved benefits immediately before the rollover or transfer.

 (2) Nothing in this regulation is to be taken as:

 (a) derogating from regulation 6.06 or 6.12 or Subdivision 6.1.5; or

 (b) affecting the operation of regulation 6.02 in relation to:

 (i) contributions made to the receiving fund; or

 (ii) benefits rolled over or transferred to the receiving fund from other regulated superannuation funds in relation to which a changeover day has not been decided in respect of the member whose benefits are rolled over or transferred.

Preserved benefits in approved deposit funds

 6.05. The amount of a member’s preserved benefits in an approved deposit fund on or after the commencement day is the amount of the member’s total benefits in the fund less the amount of the member’s unrestricted non-preserved benefits in the fund as defined by regulation 6.11.

Effect of rollover or transfer on preserved benefits

 6.06. Subject to regulation 6.12, a member’s benefits in a regulated superannuation fund or an approved deposit fund (“the transferee fund”) that:

 (a) were rolled over or transferred from another regulated superannuation fund or from an approved deposit fund; and

 (b) were preserved benefits in that other fund;

continue to be preserved benefits in the transferee fund.

Subdivision 6.1.3—Restricted non-preserved benefits

[NOTE: Approved deposit funds do not have restricted non-preserved benefits.]

Restricted non-preserved benefits in regulated superannuation funds—before the changeover day

 6.07. Subject to regulations 6.09 and 6.12 and to Subdivision 6.1.5, the amount of a member’s restricted non-preserved benefits in a regulated superannuation fund at any time during the period commencing on the commencement day and ending immediately before the changeover day is the amount of the member’s total benefits in the fund, less the sum of:

 (a) the amount of the member’s preserved benefits in the fund as defined by regulation 6.02; and

 (b) the amount of the member’s unrestricted non-preserved benefits in the fund as defined by regulation 6.10.

Restricted non-preserved benefits in regulated superannuation funds—on and after the changeover day

 6.08. (1)  Subject to regulation 6.12 and to Subdivision 6.1.5, the amount of a member’s restricted non-preserved benefits in a regulated superannuation fund at any time on or after the changeover day, is the greatest of the following amounts:

 (a) the total of:

 (i) the indexed amount of the member’s restricted non-preserved benefits (as defined by regulation 6.07) in the fund that would be payable to the member on the changeover day if the member resigned from employment on that day; and

 (ii) the indexed amount of the member’s restricted non-preserved benefits received by the fund from another regulated superannuation fund on or after the changeover day that are subject to indexation in the fund;

 (b) the total of:

 (i) the indexed amount of the member’s restricted non-preserved benefits (as defined by regulation 6.07) in the fund on the changeover day that would be payable to the member if the member were retrenched from employment that day; and

 (ii) the indexed amount of the member’s restricted non-preserved benefits received by the fund from another regulated superannuation fund on or after the changeover day that are subject to indexation in that other fund;