Submissions The Committee notes that the Exposure Draft Explanatory Statement includes the following commentary on the purpose of the Amending Regulations: The purpose of the Treasury Laws Amendment Instrument 2024: Self-managed superannuation funds—legacy retirement product conversions and reserves is to relax commutation restrictions for a specified range of legacy retirement products and create. [...] However, the drafting of the Amending Regulations does not limit the operation of any of the amendments to self managed superannuation funds, and APRA regulated funds would therefore also be able to offer commutations of legacy pensions on the same basis. [...] This is consistent with the stated objectives of the Amending Regulations—ie members of APRA regulated funds should also be entitled to commute their legacy annuities and pensions on the same terms as are available to self managed superannuation funds. [...] Exclusion of defined benefit funds The proposed amendments to the Superannuation Industry Supervision Regulations 1994 (SIS Regulations) provide that a 5 year commutation option is available if the superannuation fund that purchases the relevant annuity or provides the relevant pension is not a defined benefit fund. [...] And the ability of funds to offer commutation of legacy annuities and pensions should not depend on aspects of the fund’s structure that are entirely unrelated to those products.
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Table of Contents
- 9 October 2024 Legacy retirement product conversions and reservesdraft regulations 1
- Introduction 1
- This submission has been prepared by members of the Superannuation Committee within the Legal Practice Section of the Law Council of Australia. 1
- The Superannuation Committee welcomes the opportunity to provide a submission on the Exposure Draft 1
- Treasury Laws Amendment Instrument 2024 Self-managed 1
- Amending Regulations 1
- Submissions 1
- The Committee notes that the Exposure Draft Explanatory Statement includes the following commentary on the purpose of the Amending Regulations 1
- Treasury Laws Amendment Instrument 2024 Self-managed superannuation fundslegacy retirement product conversions and reserves 1
- The Committee supports the objectives of the Amending Regulations as stated. Our comments are confined to consistency with the stated objectives. 1
- Scope of the amendments 1
- The title of the Amending Regulations is . 1
- Treasury Laws Amendment Instrument 2024 legacy retirement product conversions and reserves 1
- Self- managed superannuation funds 1
- Legacy retirement product conversions and reserves draft regulations Page 2 2
- The reference to Self managed superannuation funds in the title gives the impression that the amendments are intended to apply only to self managed superannuation funds. 2
- We therefore suggest to avoid confusion that the reference to Self managed superannuation funds be removed from the title. 2
- Exclusion of defined benefit funds 2
- Superannuation Industry Supervision Regulations 1994 2
- SIS Regulations 2
- A defined benefit fund as defined in the SIS Regulations regulation 1.03 is a fund that has at least one defined benefit member ie one member who has an entitlement to a defined benefit. 2
- We suggest that proposed sub-regulations 1.05AA2 and 1.06C2 of the SIS Regulations be removed. 2
- Yours sincerely 2
- Geoff Provis Section Chair 2
