117Guarantee by the Commonwealth

117 Guarantee by the Commonwealth

(1) The Commonwealth guarantees the due payment of the following amounts: (a) any amount that is payable by the Commonwealth Bank before the cut‑off time in respect of a demand deposit made with the bank; (b) any amount that is payable by the Commonwealth Bank at any time in respect of a term deposit made with the bank before the cut‑off time; (c) any amount that: (i) is not in respect of a demand deposit or term deposit; and (ii) is payable by the Commonwealth Bank under a contract that was entered into, or any other instrument that was executed, issued, endorsed or accepted, before the commencement of this section by the Commonwealth Bank or the Corporation. (2) The Commonwealth guarantees the due payment by the Development Bank of any amount that is payable by the Development Bank to a person other than the Commonwealth. (3) The Commonwealth guarantees the due payment of any amount that is payable to or from the superannuation fund, by the Corporation or by the Commonwealth Bank, in respect of a person who was a member, retired member or beneficiary of the fund immediately before the commencement of this section. (3A) If: (a) immediately before the day (the commencement day) that Schedule 1 to the Treasury Laws Amendment (2023 Measures No. 2) Act 2023 commences a person holds an interest in the superannuation fund; and (b) immediately before the commencement day the Commonwealth guarantees under subsection (3) the due payment of any amount in respect of the person; and (c) on or after the commencement day: (i) the interest is transferred from the superannuation fund to a successor fund (within the meaning of the Income Tax Assessment Act 1997); and (ii) the successor fund is a regulated superannuation fund; then, so long as the person continues to hold an interest in the successor fund, the Commonwealth guarantees the due payment of any amount that is payable to or from the successor fund, by the trustee of the successor fund or by the Commonwealth Bank, in respect of the person. (3B) Disregard subsection (3) when determining whether a regulated superannuation fund confers on a person equivalent rights in respect of an interest to the rights they had under another regulated superannuation fund in respect of the interest for the purposes of any law of the Commonwealth dealing with successor funds. (4) In this section:

cut‑off time means the end of the day that is the third anniversary of the date of commencement of this section.

demand deposit means any deposit that is not a term deposit.

regulated superannuation fund has the same meaning as in the Superannuation Industry (Supervision) Act 1993.

superannuation fund means the superannuation fund referred to in section 110.