Commonwealth legislation

Superannuation (Leave of Absence Without Pay) Regulations

In ForceCTH

Jurisdiction

Commonwealth

Act Number

246 of 1988

Collection

legislative instrument

Plain English Summary

6/10 complexity

These regulations let people on unpaid leave with preserved employment rights under section 51 elect to treat transfer values or certain member-funded lump sums they receive during that leave as if those amounts were paid into the superannuation system when they resume contributing. The person must notify and pay the Commissioner within 3 months (or a longer period if the Commissioner allows) (130AC–130AD). The Commissioner has limited discretion to extend time; funds and administrators must apply sections 128 and 129 as if the amounts had been paid earlier.

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Current sections

Direct links to the current provisions in Superannuation (Leave of Absence Without Pay) Regulations.

‘Division 2A Persons to whom section 51

‘Division 2A Persons to whom section 51 applies with Preserved Rights from Employment during Period of Leave

130AA In this Division, unless the contrary intention appears, leave means leave of absence without pay in respect of which section 51 applies to a person means leave of absence without pay in respect of which section 51 applies to a person.

130AC (1) Where:

(a) a person to whom section 51 applies, and who is a person referred to in regulation 5, 9 or 11 of the Superannuation (Transfer Arrangements) Regulations, has, at any time during a period of leave, been in employment, within or outside Australia, on the termination of which a transfer value or transfer values (within the meaning of section 127) became payable to or in respect of the person under a superannuation scheme applicable in relation to that employment;

(b) upon the termination of the period of leave, the person again becomes required to make contributions on contribution days;

(c) before, or not later than 3 months after, the day on which the person again becomes required to make contributions on contribution days, or within such further period as the Commissioner in special circumstances allows, the person elects, by notice in writing to the Commissioner, to pay to the Commissioner an amount equal to the amount of that transfer value or, if 2 or more transfer values became payable, the sum of the amounts of those transfer values; and

(d) that amount is, before the expiration of that period of 3 months or that further period, as the case may be, paid to the Commissioner;

then, subject to this section, the provisions of section 128 (other than subsection 128 (1)) apply, for the purposes of this Division, to and in relation to that person as if the amount referred to in paragraph (d) had been paid to the Commissioner under subsection 128 (1).

(2) If:

(a) a person to whom section 51 applies engages in employment during a period of leave; and

(b) a transfer value becomes payable to or in respect of that person in relation to that employment;

subsection 128 (5) applies to that employee as if “(not being a period greater than the period of leave)” were inserted in that subsection after “such period”.

130AD (1) Where:

(a) a person to whom section 51 applies has, at any time during a period of leave, been in employment, within or outside Australia;

(b) upon the termination of that employment, a lump sum became payable to or in respect of that person under a superannuation scheme applicable in relation to that employment;

(c) that lump sum, or a part of that lump sum, is an amount that is based on contributions by the member and, if subsection 130AC (1) applies to the person, does not form part of the transfer value referred to in that subsection; and

(d) upon the termination of the period of leave, the person again becomes required to make contributions on contribution days;

then, subject to subsection (2), the provisions of section 129 apply, for the purposes of this Division, to and in relation to that person as if:

(e) he or she were a person referred to in subsection 129 (1); and

(f) the lump sum or the part of the lump sum referred to in paragraph (c) were a lump sum or the part of a lump sum referred to in paragraph 129 (1) (c).

(2) For the purposes of the application of subsection (1), subsection 129 (1) has effect in relation to a person to whom section 51 applies as if the reference in that subsection to a period of 3 months after the date on which a person becomes an eligible employee were a reference to a period of 3 months after the date on which the person again becomes required to make contributions on contribution days.’.

Section

157 After ‘128,’ insert in paragraph (3) (a) ‘130AC,’.

Source text

Sourced from the Federal Register of Legislation (legislation.gov.au), CC BY 4.0.

‘Division 2A Persons to whom section 51 ‘Division 2A Persons to whom section 51 applies with Preserved Rights from Employment during Period of Leave