48Establishment of compulsory preservation accounts

48 Establishment of compulsory preservation accounts

(1)  The Commission –

(a) is to establish a compulsory preservation account in the name of the relevant contributor for each benefit entitlement which is to be compulsorily preserved under regulation 40 ; and

(b) is to credit to that account any benefit entitlement which under that regulation is to be transferred to that account.

(2)  The benefit entitlements preserved under this regulation include all benefit entitlements, or proportions of benefit entitlements, which are to be preserved in accordance with regulation 40 .

(3)  The benefit entitlements compulsorily preserved in an account established under this regulation are to be indexed at a rate declared by the Commission as being equal to whichever is the greater of –

(a) movements in the AWOTE; or

(b) movements in the Consumer Price Index.

(4)  For the purpose of subregulation (3) , the indexation rate declared by the Commission is to be reviewed as at 1 March and 1 September in each year in accordance with the AWOTE or Consumer Price Index figure most recently published before that review.

(5)  Except as provided by subregulation (6) , regulation 52 or 96 , if a contributor in whose name a compulsory preservation account has been established reaches his or her preservation age, the balance of that account is to be transferred, after deduction of any tax liability –

(a) to an account, in the name of the contributor, in a complying superannuation scheme elected by the contributor; or

(b) [Regulation 48 Subregulation (5) amended by S.R. 2022, No. 11, Applied:31 Mar 2022] if an election is not made under paragraph (a) within a reasonable period determined by the Commission – to the Taxation Commissioner to be dealt with under the Superannuation (Unclaimed Money and Lost Members) Act 1999 of the Commonwealth.