Superannuation (Unclaimed Money and Lost Members) Regulations 2019
In ForceCTH
Jurisdiction
Commonwealth
Collection
legislative instrument
Plain English Summary
6/10 complexity
This instrument prescribes technical, operational rules under the Superannuation (Unclaimed Money and Lost Members) Act 1999 — definitions, required notice content, prescribed visas and public‑sector schemes, interest‑calculation formulas for unclaimed amounts, rules for transferring low‑balance and lost member accounts, and conditions for payments to New Zealand KiwiSaver accounts. It affects superannuation providers, public sector schemes, the Commissioner and members by setting who pays, how interest is computed, what must be reported, and when the Commissioner may exercise selection or payment discretion.
This instrument is the Superannuation (Unclaimed Money and Lost Members) Regulations 2019, made under the Superannuation (Unclaimed Money and Lost Members) Act 1999 (reg 1, reg 3). It operates by prescribing definitions, procedural contents of notices, eligible visas and public sector schemes, interest rules for unclaimed balances, conditions that qualify low‑balance inactive accounts for transfer to the Commissioner, priority rules for reunifying balances to active accounts, and conditions for payment of amounts to New Zealand KiwiSaver accounts. The Regulations do not create new penalties; they specify how existing Act provisions are to be applied and interpreted.
Mechanically the instrument does the following, by reference to specific provisions:
Fixes key definitions used by the Act, including the CPI number and the Treasury bond rate definitions, and imports certain Income Tax Assessment Act 1997 meanings (reg 4).
Prescribes the "eligibility age" that determines when members meet the age‑based criteria in paragraphs 10(1)(a) and (b) of the Act, specifically the greater of 65 years or any higher age stated in fund governing rules (reg 5).
Sets mandatory content for notices concerned with recovery of overpayments, requiring identification of the person for whom the Commissioner made the payment, the debtor, the excess amount, and a statutory 28‑day recovery warning (reg 6).
Lists two visa subclasses that qualify temporary residents for certain unclaimed money provisions (reg 7).
Provides two separate interest‑calculation regimes for unclaimed amounts, split by interest periods that end on 30 June 2013 (reg 8) and interest periods that start on or after 1 July 2013 (reg 9), including the precise per‑financial‑year formula and rounding rule.
Current sections
Direct links to the current provisions in Superannuation (Unclaimed Money and Lost Members) Regulations 2019.
27
Part 1
Preliminary
Part 1—Preliminary
1
Name
1 Name
This instrument is the Superannuation (Unclaimed Money and Lost Members) Regulations 2019.
3
Authority
3 Authority
This instrument is made under the Superannuation (Unclaimed Money and Lost Members) Act 1999.
4
Definitions
4 Definitions
Note: A number of expressions used in this instrument are defined in the Act, including the following:
Act means the Superannuation (Unclaimed Money and Lost Members) Act 1999.
CPI number means the All Groups Consumer Price Index number (being the weighted average of the 8 capital cities) published by the Australian Bureau of Statistics.
element untaxed in the fund has the meaning given by subsection 995‑1(1) of the Income Tax Assessment Act 1997.
superannuation benefit has the meaning given by subsection 995‑1(1) of the Income Tax Assessment Act 1997.
taxable component has the meaning given by subsection 995‑1(1) of the Income Tax Assessment Act 1997.
Treasury bond rate, for a particular day, means:
(a) if any Treasury bonds with a 10 year term were issued on that day—the annual yield on those bonds; or
(b) otherwise—the annual yield on Treasury bonds with a 10 year term, as published by the Reserve Bank of Australia for that day.
5
Eligibility age
5 Eligibility age
For the purposes of paragraphs 10(1)(a) and (b) of the Act, the prescribed age for a member of a fund is the greater of:
(a) 65 years; and
(b) if the governing rules of the fund specify that a benefit is payable to a member only at a specified age that is greater than 65 years—that age.
Part 2
Information to be included in notices
Part 2—Information to be included in notices
6
Recovery of overpayments
6 Recovery of overpayments
(1) For the purposes of paragraphs 18B(4)(a), 20L(4)(a), 20QK(4)(a), 21G(3)(a), 22E(3)(a), 24K(4)(a) and 24NAA(4)(a) of the Act, a notice must include the following information:
(a) the name of the person in respect of whom the Commissioner made the payment;
(b) the name of the debtor;
(c) the amount of the excess payment that is sought to be recovered from the debtor;
(d) a statement that the Commissioner may recover that amount from the debtor as a debt due by the debtor to the Commonwealth 28 days after the notice is given to the debtor.
(2) In this section:
debtor has the same meaning as in the section of the Act under which the notice is given.
Part 3
Prescribed visas
Part 3—Prescribed visas
7
Temporary residents—prescribed visas
7 Temporary residents—prescribed visas
For the purposes of subsection 20AA(2) and subparagraphs 20H(1)(a)(ii) and 20H(2)(b)(iii) of the Act, the following visas, as described in Schedule 2 to the Migration Regulations 1994, are prescribed:
(a) Subclass 405 (Investor Retirement) visa;
(b) Subclass 410 (Retirement) visa.
Part 4
Interest on unclaimed amounts
Part 4—Interest on unclaimed amounts
8
Interest on unclaimed amounts—interest periods ending on 30 June 2013
8 Interest on unclaimed amounts—interest periods ending on 30 June 2013
(1) For the purposes of subsection 20H(2AA) of the Act, this section applies to work out the interest on an amount (the unclaimed amount) that:
(a) the superannuation provider was, before 1 July 2013, required to pay to the Commissioner under section 20F of the Act; and
(b) the Commissioner received under section 20F of the Act before, on or after that day; and
(c) the Commissioner pays under subsection 20H(2) of the Act, on or after the day this instrument commenced, to or on behalf of a person whom the Commissioner is satisfied is (or was just before dying):
(i) an Australian citizen; or
(ii) the holder of a permanent visa under the Migration Act 1958.
The interest worked out under this section on the unclaimed amount is in addition to any interest worked out under section 9 on the unclaimed amount.
(2) However, this section does not apply to an amount:
(a) to which section 18A, 20K or 24J of the Act applies; or
(b) mentioned in subsection 65AA(2) of the Superannuation Guarantee (Administration) Act 1992.
(3) The interest is to be worked out for the period (the interest period) that:
(a) started on the later of:
(i) the day when the superannuation provider was required to pay the unclaimed amount to the Commissioner under section 20F of the Act; and
(ii) the day when the superannuation provider was required to pay the unclaimed amount to the Commissioner in accordance with a notice under subsection 255‑10(2) or (2A) in Schedule 1 to the Taxation Administration Act 1953; and
(b) ended on 30 June 2013.
(4) The interest is to be worked out by adding together the interest for each financial year during the interest period.
(5) The interest for each financial year is to be worked out using the following formula, and rounding the result to the nearest cent (with 0.5 cents being rounded up):
Start formula start fraction Amount times Days interest payable times Interest rate over Days in the financial year end fraction end formula
where:
amount means the unclaimed amount plus the interest (if any) worked out for each earlier financial year for which interest is payable.
days interest payable means the number of days in the financial year for which interest is payable.
days in the financial year means the number of days in the financial year.
interest rate, for a financial year, means:
(a) the Treasury bond rate for the last working day of the financial year immediately before the financial year for which interest is payable; or
(b) if that rate is less than 0%—0%.
9
Interest on unclaimed amounts—interest periods starting on or after 1 July 2013
9 Interest on unclaimed amounts—interest periods starting on or after 1 July 2013
(1) For the purposes of subsections 17(2AB) and (2AC), 20H(2AA), 20QF(5) and (6), 21E(5) and (6), 22B(5) and (6), 24G(3A) and (3B) and 24NA(4) of the Act, this section applies to work out the interest on an amount (the unclaimed amount) that:
(a) a superannuation provider:
(i) is required, or before the commencement of this instrument was required, to pay to the Commissioner under section 17, 20F, 20QD, 21C or 24E of the Act; or
(ii) pays to the Commissioner under section 22 of the Act; and
(b) the Commissioner receives under section 17, 20F, 20QD, 21C, 22 or 24E of the Act; and
(c) the Commissioner pays under subsection 17(2), 20H(2), 20QF(2), 21E(2), 22B(2), 24G(2) or 24NA(2) or (3) of the Act on or after the day this instrument commenced.
(2) However, this section does not apply to an amount:
(a) to which section 18A, 20K, 20QJ, 21F, 22C or 24J of the Act applies; or
(b) mentioned in subsection 65AA(2) of the Superannuation Guarantee (Administration) Act 1992.
(3) The interest is to be worked out for the period (the interest period) that:
(a) starts, or started, on the later of:
(i) 1 July 2013; and
(ii) the day when the superannuation provider was required to pay the unclaimed amount to the Commissioner under section 17, 20F, 20QD, 21C or 24E of the Act, or paid the unclaimed amount to the Commissioner under section 22 of the Act; and
(iii) the day when the superannuation provider was required to pay the unclaimed amount to the Commissioner in accordance with a notice under subsection 255‑10(2) or (2A) in Schedule 1 to the Taxation Administration Act 1953; and
(b) ends on the third day after the Commissioner last authorised the unclaimed amount to be paid under subsection 17(2), 20H(2), 20QF(2), 21E(2), 22B(2), 24G(2) or 24NA(2) or (3) of the Act.
A day mentioned in subparagraph (a)(ii) or (iii) or paragraph (b) may be the day this section commences, or any other day occurring before or after that day.
(4) The interest is to be worked out by adding together the interest for each financial year during the interest period.
(5) The interest for each financial year is to be worked out using the following formula, and rounding the result to the nearest cent (with 0.5 cents being rounded up):
Start formula start fraction Amount times Days interest payable times Interest rate over Days in the financial year end fraction end formula
where:
amount means the unclaimed amount plus the interest (if any) worked out for each earlier financial year for which interest is payable.
days interest payable means the number of days in the financial year for which interest is payable.
days in the financial year means the number of days in the financial year.
interest rate, for a financial year, means:
(a) the percentage change in the CPI number between the 2 March quarters most recently published before the first day of the financial year (rounded up to 4 decimal places); or
(b) if that percentage change is less than 0%—0%.
Part 5
Payment of low balances in inactive accounts to the Commissioner
Part 5—Payment of low balances in inactive accounts to the Commissioner
10
Inactive low‑balance accounts in regulated superannuation funds
10 Inactive low‑balance accounts in regulated superannuation funds
For the purposes of subparagraph 20QA(1)(a)(vi) of the Act, the conditions of release of benefits specified in the following items of the table in Part 1 of Schedule 1 to the Superannuation Industry (Supervision) Regulations 1994 are prescribed:
(a) item 101 (retirement);
(b) item 102 (death);
(c) item 102A (terminal medical condition);
(d) item 103 (permanent incapacity);
(e) item 106 (attaining age 65);
(f) item 110 (attaining preservation age).
11
Inactive low‑balance accounts in approved deposit funds
11 Inactive low‑balance accounts in approved deposit funds
For the purposes of subparagraph 20QA(1)(b)(iv) of the Act, the conditions of release of benefits specified in the following items of the table in Part 2 of Schedule 1 to the Superannuation Industry (Supervision) Regulations 1994 are prescribed in relation to a fund that is an approved deposit fund:
(a) item 201 (retirement);
(b) item 202 (death);
(c) item 202A (terminal medical condition);
(d) item 203 (permanent incapacity);
(e) item 206 (attaining age 65);
(f) item 208 (attaining preservation age).
12
Inactive low‑balance accounts in retirement savings accounts
12 Inactive low‑balance accounts in retirement savings accounts
For the purposes of subparagraph 20QA(1)(b)(iv) of the Act, the conditions of release of benefits specified in the following items of the table in Schedule 2 to the Retirement Savings Accounts Regulations 1997 are prescribed in relation to a fund that is an RSA:
(a) item 101 (retirement);
(b) item 102 (death);
(c) item 102A (terminal medical condition);
(d) item 103 (permanent incapacity);
(e) item 106 (attaining age 65);
(f) item 110 (attaining preservation age).
Part 6
Reunification of superannuation balances
Part 6—Reunification of superannuation balances
13
Transferring balances to an active account—eligible fund
13 Transferring balances to an active account—eligible fund
For the purposes of paragraph 24NA(2)(c) of the Act, the prescribed period is the period:
(a) beginning on the first day of the financial year immediately preceding the financial year in which the payment by the Commissioner under subsection 24NA(2) of the Act is made; and
(b) ending on the day immediately preceding the day on which the payment by the Commissioner under subsection 24NA(2) of the Act is made.
14
Transferring balances to an active account—more than one eligible fund
14 Transferring balances to an active account—more than one eligible fund
(1) For the purposes of subsection 24NA(3) of the Act, if:
(a) under subsection 24NA(1) of the Act, the Commissioner holds a superannuation amount (within the meaning of that subsection) in respect of a person; and
(b) there is more than one fund in relation to which paragraphs 24NA(2)(b), (c), (d) and (e) of the Act are satisfied in respect of the person (there is more than one eligible fund);
the Commissioner must pay the superannuation amount in respect of the person in accordance with this regulation.
(2) The Commissioner must pay the superannuation amount in respect of the person to the following eligible fund for crediting to the person:
(a) if the Commissioner has made any payment under subsection 17(2) or section 20H, 20QF, 21E, 22B, 24G or 24NA of the Act to an eligible fund for crediting to the person during the financial year in which the Commissioner pays the superannuation amount under subsection 24NA(2) of the Act:
(i) if there is only one such eligible fund—that eligible fund; or
(ii) if there is more than one such eligible fund—the eligible fund to which the Commissioner has most recently made any of those payments;
(b) if paragraph (a) does not apply—the eligible fund that most recently received an amount in respect of the person during the period consisting of:
(i) the financial year in which the Commissioner pays the superannuation amount under subsection 24NA(2) of the Act; and
(ii) the immediately preceding financial year;
(c) if paragraphs (a) and (b) do not apply—the eligible fund that holds the largest account balance for the person at the end of the last completed financial year preceding the day on which the Commissioner pays the superannuation amount under subsection 24NA(2) of the Act;
(d) if paragraphs (a), (b) and (c) do not apply—the eligible fund determined by the Commissioner.
Part 7
Prescribed public sector superannuation schemes
Part 7—Prescribed public sector superannuation schemes
15
Unclaimed money—prescribed schemes
15 Unclaimed money—prescribed schemes
For the purposes of section 18AA of the Act, each public sector superannuation scheme mentioned in the table is prescribed.
Part 8—Payment of amounts to KiwiSaver scheme provider
20
Payment of amounts to KiwiSaver scheme provider
20 Payment of amounts to KiwiSaver scheme provider
(1) For the purposes of subparagraphs 17(2)(aa)(iii), 20H(2)(ba), 20QF(2)(aa)(iii), 21E(2)(aa)(iii), 22B(2)(aa)(iii) and 24G(2)(aa)(iii) of the Act, this section prescribes the matters that must be satisfied for the Commissioner to make a payment of an amount in respect of a person to a KiwiSaver scheme provider.
(2) The following matters are prescribed:
(a) the person has emigrated permanently to New Zealand;
(b) the person has given the Commissioner proof of residence at an address in New Zealand following the person’s emigration to New Zealand;
(c) the person has opened a KiwiSaver scheme account;
(d) the Commissioner has been given sufficient details of the KiwiSaver scheme and the account number to which the amount is to be paid;
(e) the KiwiSaver scheme provider will accept the amount;
(f) the taxable component of any superannuation benefit that is paid by the Commissioner would not consist of, or include, an amount that is an element untaxed in the fund.
Source text: opening excerpt
Sourced from the Federal Register of Legislation (legislation.gov.au), CC BY 4.0.
Part 1 Preliminary
Part 1—Preliminary
1 Name
1 Name
This instrument is the Superannuation (Unclaimed Money and Lost Members) Regulations 2019.
3 Authority
3 Authority
This instrument is made under the Superannuation (Unclaimed Money and Lost Members) Act 1999.
4 Definitions
4 Definitions
Note: A number of expressions used in this instrument are defined in the Act, including the following:
Act means the Superannuation (Unclaimed Money and Lost Members) Act 1999.
CPI number means the All Groups Consumer Price Index number (being the weighted average of the 8 capital cities) published by the Australian Bureau of Statistics.
element untaxed in the fund has the meaning given by subsection 995‑1(1) of the Income Tax Assessment Act 1997.
superannuation benefit has the meaning given by subsection 995‑1(1) of the Income Tax Assessment Act 1997.
taxable component has the meaning given by subsection 995‑1(1) of the Income Tax Assessment Act 1997.
Treasury bond rate, for a particular day, means:
(a) if any Treasury bonds with a 10 year term were issued on that day—the annual yield on those bonds; or
(b) otherwise—the annual yield on Treasury bonds with a 10 year term, as published by the Reserve Bank of Australia for that day.
5 Eligibility age
5 Eligibility age
For the purposes of paragraphs 10(1)(a) and (b) of the Act, the prescribed age for a member of a fund is the greater of:
(a) 65 years; and
(b) if the governing rules of the fund specify that a benefit is payable to a member only at a specified age that is greater than 65 years—that age.
Part 2 Information to be included in notices
Part 2—Information to be included in notices
6 Recovery of overpayments
6 Recovery of overpayments
(1) For the purposes of paragraphs 18B(4)(a), 20L(4)(a), 20QK(4)(a), 21G(3)(a), 22E(3)(a), 24K(4)(a) and 24NAA(4)(a) of the Act, a notice must include the following information:
(a) the name of the person in respect of whom the Commissioner made the payment;
(b) the name of the debtor;
(c) the amount of the excess payment that is sought to be recovered from the debtor;
(d) a statement that the Commissioner may recover that amount from the debtor as a debt due by the debtor to the Commonwealth 28 days after the notice is given to the debtor.
(2) In this section:
Prescribes which conditions of release count for identifying inactive low‑balance accounts across regulated superannuation funds, approved deposit funds and retirement savings accounts (regs 10-12).
Prescribes the length of the period relevant to transferring balances to an active account for reunification purposes (reg 13), and sets a multi‑tier priority rule the Commissioner must follow when there is more than one eligible fund (reg 14).
Lists the public sector superannuation schemes that are treated as "prescribed" for multiple Act provisions (regs 15-18A), and prescribes the same or similar lists of schemes for voluntary payments (reg 17A) and lost member accounts (reg 18).
Specifies the matters the Commissioner must be satisfied about before paying amounts to a KiwiSaver scheme provider, including residence evidence, account details, acceptance by the provider and a tax‑component test excluding "element untaxed in the fund" (reg 20).
The Regulations therefore operate primarily as a technical, interpretive and procedural companion to the primary Act. They determine how monetary flows are handled (interest calculations, transfers, payments to overseas schemes), what must be communicated to debtors, which visas and public sector schemes are in scope, and how the Commissioner chooses a recipient fund when multiple eligible funds exist. Each operational point is grounded in the Act by cross‑reference in the relevant regulation, for example reg 9 applying "for the purposes of" the listed subsections of the Act.
Main concepts
The instrument uses a set of recurring concepts and technical mechanisms to operationalise the Act. Those concepts are:
Unclaimed amount, Commissioner receipts and payments: The Regulations repeatedly refer to "an unclaimed amount" that a superannuation provider was required to pay to the Commissioner under various sections of the Act, the Commissioner receiving those amounts, and later the Commissioner paying them to persons or funds under specified Act subsections (regs 8(1), 9(1)). The Regulations therefore regulate the life cycle from provider remittance to Commissioner receipt to Commissioner re‑payment.
Interest on unclaimed amounts: Two separate regimes are established. Reg 8 addresses interest for interest periods that end on 30 June 2013, calculating interest per financial year using a Treasury bond‑based "interest rate" (the Treasury bond rate definition is in reg 4). Reg 9 applies to interest periods starting on or after 1 July 2013, calculating per‑financial‑year interest where the interest rate is the percentage change in the CPI number between two March quarters most recently published before the first day of the financial year, rounded up to four decimal places (reg 9(5)). Both regs require summing annual interest components and rounding results to the nearest cent with .5 cents rounded up (regs 8(4)-(5), 9(4)-(5)).
Rounding and flooring rules: Interest computations require rounding to the nearest cent with 0.5 cents rounded up (regs 8(5), 9(5)). Both regimes provide a floor of 0% for the interest rate if the calculated Treasury bond rate or CPI change is negative (reg 8(5), reg 9(5)(b)).
Prescribed age for eligibility criteria: Reg 5 prescribes the age used to determine whether a member satisfies the Act’s age‑based criteria, specifically using whichever is greater, 65 years or any higher specified age in the fund’s governing rules. That links statutory eligibility to fund‑level rules.
Content‑mandated notices for recovery of overpayments: Reg 6 prescribes the contents required in notices served under several Act sections to recover overpayments, including a specific 28‑day creditor warning. The "debtor" is defined as having the meaning in the Act provision under which the notice is given (reg 6(2)).
Prescribed visas: Reg 7 lists Subclass 405 (Investor Retirement) and Subclass 410 (Retirement) visas from Schedule 2 to the Migration Regulations 1994 as prescribed for certain Act subsections. That defines which temporary residents are within scope of specific Act relief or rules.
Inactive low‑balance accounts and conditions of release: Regs 10-12 cross‑refer to particular items in the tables of the Superannuation Industry (Supervision) Regulations 1994 and the Retirement Savings Accounts Regulations 1997 and declare those conditions of release to be the prescribed ones for determining whether an account is an inactive low‑balance account for the Act’s purposes. The items listed include retirement, death, terminal medical condition, permanent incapacity, attaining age 65 and attaining preservation age (regs 10-12).
Reunification mechanics and priority: Reg 13 prescribes the "period" relevant for paragraph 24NA(2)(c) of the Act, namely the financial year immediately preceding the financial year in which the Commissioner pays under subsection 24NA(2), up to the day before the payment. Reg 14 prescribes a hierarchical rule for paying a superannuation amount when multiple eligible funds exist, using recent payments, most recent receipts in a two‑year window, largest account balance at the end of the last completed financial year, and finally Commissioner determination (reg 14(2)(a)-(d)).
Prescribed public sector schemes lists: Regs 15-18A provide tables listing public sector superannuation schemes and the statutory instruments or trust deeds under which those schemes are established, prescribing them for different Act sections (s 18AA, s 20JA, s 20QH, s 22D, s 24HA). The same or similar lists appear across those provisions with some jurisdictional and naming detail.
KiwiSaver transfer conditions: Reg 20 sets a six‑point checklist the Commissioner must be satisfied about before making payments to a KiwiSaver scheme provider, including permanent emigration to New Zealand, proof of New Zealand residence, existence of a KiwiSaver account, provision of account details, acceptance by the KiwiSaver provider, and that the taxable component does not include an element untaxed in the fund (reg 20(2)(a)-(f)).
Cross‑references to other statutes and data sources: The Regulations rely on external numerical inputs and legal definitions, for example the CPI number as published by the Australian Bureau of Statistics and Treasury bond yields as published by the Reserve Bank of Australia (reg 4), and definitions imported from the Income Tax Assessment Act 1997 for "element untaxed in the fund" and "taxable component" (reg 4).
These concepts are operational: they produce calculable flows (interest), document requirements (notice content), eligibility tests (age, visa, release condition), and exercise points of administrative discretion (Commissioner selection when multiple funds exist, acceptance of KiwiSaver payments). Each main concept ties back to one or more specific regulations which are quoted as the source.
Who it affects
This instrument affects several distinct groups and decision‑makers, and it allocates costs, responsibilities and decision rights among them.
Superannuation providers and funds: The Regulations affect any superannuation provider and fund that may be required to identify unclaimed money, low‑balance inactive accounts, lost members, or make payments to the Commissioner under the Act. Regs 8 and 9 apply to unclaimed amounts that "a superannuation provider was, before 1 July 2013, required to pay" (reg 8(1)) and that a superannuation provider "is required, or before the commencement of this instrument was required, to pay" (reg 9(1)). Regs 10-12 specify the conditions of release that make accounts inactive low‑balance accounts for the purposes of subparagraph 20QA(1) , this requires funds to map their accounts to the listed SIS/RESA items and then identify and process transfers to the Commissioner when the Act requires.
The Commissioner: The Commissioner of Taxation (as defined in the Act and referenced throughout) is the primary administrative actor. The Commissioner receives remittances, computes and applies interest under the prescribed formulas (regs 8 and 9), issues recovery notices with prescribed content (reg 6), makes decisions about payment destinations for reunification when multiple eligible funds exist (reg 14(2)(d)), and decides whether to make payments to KiwiSaver providers after being satisfied of the six matters in reg 20(2).
Members and former members: Individuals whose superannuation becomes unclaimed, who hold low‑balance inactive accounts, who are temporary residents moving to New Zealand, or who are listed as lost members are directly affected. For example reg 9 governs calculations the Commissioner will use when returning unclaimed amounts to persons, and reg 20 sets conditions a former temporary resident must satisfy to have an amount paid to a KiwiSaver account.
Debtors to the Commonwealth: Where the Commissioner has made a payment in error, a "debtor" (as defined for the relevant Act section) will receive a notice whose content is prescribed in reg 6. The notice must state the amount sought to be recovered and that the Commissioner may recover it as a debt 28 days after notice (reg 6(1)(c)-(d)).
Public sector scheme managers and state treasuries: The numerous public sector superannuation schemes listed in regs 15-18A are brought into the Act’s scope for different purposes. Managers of those schemes must comply where the Act applies to them because the Regulations have prescribed those schemes for defined provisions. The tables specify the scheme names and the Acts or trust deeds under which they are established.
KiwiSaver scheme providers (New Zealand): Reg 20 requires the KiwiSaver provider to accept the amount and for the Commissioner to be satisfied of acceptance and account details (reg 20(2)(d)-(e)). That brings KiwiSaver providers into the administrative chain for emigrating members.
Who pays and who bears the cost:
Superannuation providers pay unclaimed amounts to the Commissioner as required by the Act; the Regulations impose rules on the Commissioner’s handling of such amounts, but the initial obligation and associated compliance costs rest with providers (see regs 8-9 which apply to amounts providers were required to pay under the Act).
Where the Commissioner returns money to a person or transfers to funds, the Commissioner bears administrative costs of interest calculation, payment and Commissioner's decision‑making under the prescribed rules (regs 8, 9, 13, 14).
Members and former members bear potential costs in the form of delays and any mismatch between account selection and their preferences; reg 14 sets the priority order when multiple eligible funds exist and can result in a person’s reunified balance being paid to a fund selected by the Commissioner under the rules.
Who decides:
The Commissioner makes several factual determinations: interest authorised for payment (reg 9(3)(b) referring to third day after Commissioner authorised payment), selection of recipient fund where multiple exist (reg 14(2)(d)), and satisfaction of requirements for payment to KiwiSaver (reg 20(1) and (2)). Funds determine whether accounts meet the prescribed conditions of release listed in regs 10-12.
Behavioural implications:
Funds must map their internal conditions of release to the listed SIS/RESA items and identify accounts that meet inactivity and low‑balance thresholds in order to remit to the Commissioner, increasing record‑keeping and reassessment workloads.
Providers must track dates and compute interest for periods potentially spanning the pre‑ and post‑1 July 2013 regimes, and may need to supply data to the Commissioner to allow correct computation and redistribution under regs 8-9.
Members emigrating to New Zealand need to provide proof of New Zealand residence and KiwiSaver account details if they want amounts directed to KiwiSaver (reg 20(2)(a)-(d)).
All of these effects and allocations of responsibility are directly traceable to the cited regulations within the instrument.
Key duties and rights
This instrument primarily prescribes duties for administrative participants and sets conditions that confer rights to receive or reclaim money. The duties and rights fall broadly into notification, calculation, transfer and selection obligations.
Duties , funds and superannuation providers:
Identify and remit unclaimed money to the Commissioner as required by the Act; when that occurs, the Regulations dictate how the Commissioner must calculate and pay interest back to persons or funds (regs 8, 9). The Regulations themselves do not impose a new remittance duty but apply where the Act requires payment by a provider.
Determine which accounts are "inactive low‑balance accounts" by reference to the prescribed conditions of release set out in regs 10-12. Funds must use the items listed (e.g., item 101 retirement, 102 death, 106 attaining age 65, etc.) from the Superannuation Industry (Supervision) Regulations 1994 or the RSA Regulations and treat accounts accordingly for remittance under s 20QA of the Act.
When the Commissioner issues a notice to recover an overpayment under the identified Act sections, a duty is implied on the debtor to respond to the notice; reg 6 prescribes the required contents of that notice, which creates a clear statutory starting point for any recovery action. The notice must identify the person on whose behalf the payment was made, the debtor, the amount, and state that the Commissioner may recover the amount as a debt 28 days after the notice is given (reg 6(1)(a)-(d)).
Duties , the Commissioner:
Compute interest on unclaimed amounts using the annual per‑financial‑year formula and rounding rules in regs 8 and 9 when paying those amounts to persons or funds. Reg 8 applies to interest periods ending on 30 June 2013 and uses Treasury bond yields; reg 9 applies to interest periods starting on or after 1 July 2013 and uses a CPI percentage change method.
Apply the prescribed priority order when paying a superannuation amount where more than one eligible fund exists, following the four steps in reg 14(2)(a)-(d). That imposes a binding sequence the Commissioner "must" follow.
Be satisfied of the six matters in reg 20(2) before making a payment to a KiwiSaver scheme provider, including that the taxable component would not include an "element untaxed in the fund" (reg 20(2)(f)).
Rights , members and recipients:
A person who is found to be entitled to an unclaimed amount has a right to receive that amount and interest computed under the prescribed formulas when the Commissioner pays under the relevant Act subsections (regs 8-9). The Act grants the right; the Regulations specify interest calculation.
A person who has emigrated permanently to New Zealand, meets the items in reg 20(2) and whose taxable component passes the element‑untaxed test has a right to have the Commissioner pay the amount to their KiwiSaver account, provided the Commissioner is satisfied of the conditions (reg 20).
Procedural constraints and formalities:
Notices for recovery of overpayments must include the four specific items in reg 6(1). The Regulations tie the timing of recovery to 28 days after the notice is given (reg 6(1)(d)), which establishes a statutory procedural protection for the debtor and a timing marker for the Commissioner’s recovery right.
Administrative standards and numerical inputs:
The interest rate inputs are standardised: reg 4 defines the CPI number as the ABS "All Groups Consumer Price Index number" (weighted average of the eight capital cities) and defines the Treasury bond rate as the annual yield on 10‑year Treasury bonds issued on that day, or otherwise the yield published by the Reserve Bank for that day. Regs 8 and 9 then ground the annual interest calculation in those external, regularly published series.
Each duty and right is anchored to a specific regulation. The Regulations do not allocate new monetary penalties; they operationalise timing, calculation and selection rights and duties that flow from the Act.
Penalties and enforcement
The text of this instrument contains no standalone penalty provisions. Its role is to provide technical, definitional and procedural detail that supports the enforcement mechanisms and penalty frameworks within the Superannuation (Unclaimed Money and Lost Members) Act 1999. The Regulations therefore influence enforcement indirectly by specifying how the Commissioner and superannuation providers must handle money, notices and selections. The following enforcement‑relevant mechanisms are present in the Regulation text.
Notice‑triggered recovery right:
Reg 6 prescribes the content of a notice for recovering an overpayment under a range of Act sections, and sets the 28‑day countdown before the Commissioner may treat the stated excess payment as a debt due to the Commonwealth (reg 6(1)(d)). That 28‑day delay is an enforcement timing rule; the Commissioner’s power to recover as a Commonwealth debt will be exercised after that period as permitted by the Act. The Regulation therefore standardises the notice content that triggers the statutory recovery right.
Commissioner discretion and objective criteria:
The Commissioner is required to select an eligible fund according to the priority rules in reg 14 when more than one eligible fund exists for the person. That rule reduces arbitrary selection risk by imposing an ordered set of objective tiebreakers, but it also preserves residual discretion at reg 14(2)(d) where earlier tiers do not produce a result. The discretion is thus constrained but not eliminated.
Interest computation and rounding:
Regs 8 and 9 prescribe the exact formula, rounding method, and interest‑rate source to be used where amounts are paid out by the Commissioner under the Act. Correct calculation and adherence to the rounding rules are thus effectively enforceable bookkeeping standards on the Commissioner. Incorrect calculations could give rise to administrative review or correction procedures under broader statutory schemes, though those mechanisms are outside the text provided.
Cross‑statute references relevant to enforcement:
The Regulations refer to notices under subsection 255‑10(2) or (2A) in Schedule 1 to the Taxation Administration Act 1953 when describing the start of certain interest periods (regs 8(3)(a)(ii), 9(3)(a)(iii)). That cross‑reference integrates the timing of other tax notices with the Act’s recovery and interest mechanisms, which matters for enforcement timing.
No penalties set in the instrument:
The instrument contains no monetary penalties, infringement notices, or criminal provisions. It therefore relies on the enforcement and penalty powers located in the Act and in other relevant statutes to which it cross‑refers. The immediate enforcement implications are procedural: the regimentation of notice content, timing, interest calculation standards, and recipient selection reduces interpretive uncertainty and creates predictable triggers for statutory recovery and payment processes.
Implementation and compliance enforcement risks:
Because the Regulations place precise demands on computational inputs (ABS CPI figures, RBA Treasury bond yields) and rounding, operational errors by the Commissioner, funds or providers could lead to incorrect payment amounts. The Regulations’ detailed prescriptions enable auditability , mistakes are discoverable , but they also impose the need for technical competence in agencies and funds that implement the rules.
In short, the Regulations shape enforcement by prescribing the administrative steps and numeric standards that enable statutory recovery and payment rights to be exercised. The instrument itself does not create new offences or penalties, but it standardises the mechanics that underpin enforcement under the primary Act.
How it interacts with other laws
This instrument is intended to operate as a subordinate instrument to the Superannuation (Unclaimed Money and Lost Members) Act 1999 and deliberately cross‑references several other statutes and official data series. The interactions are explicit in the text and function as follows.
Primary Act relationship:
The Regulations are made under the Act and repeatedly apply "for the purposes of" specific Act subsections. Examples include reg 6 applying to paragraphs 18B(4)(a), 20L(4)(a) and other sections, reg 8 applying to subsection 20H(2AA), and reg 9 applying to subsections 17(2AB), 20H(2AA), 21E(5), and the list in reg 9(1). Those cross‑references mean the Regulations only fill detail gaps or set standards within the Act’s framework; they do not change substantive rights or penalties conferred by the Act itself.
Income Tax Assessment Act 1997:
Reg 4 imports the meanings of "element untaxed in the fund", "superannuation benefit" and "taxable component" from subsection 995‑1(1) of the Income Tax Assessment Act 1997. That import is material for reg 20(2)(f), where the Commissioner must be satisfied that the taxable component to be paid would not consist of an amount that is "an element untaxed in the fund". The interplay therefore ties tax concepts and tax‑treatment classifications to the permissibility of transfers to KiwiSaver providers and to other tax‑sensitive payment decisions.
Superannuation Industry (Supervision) Regulations 1994 and Retirement Savings Accounts Regulations 1997:
Regs 10-12 reference particular items in Schedule 1 of the SIS Regulations and Schedule 2 of the RSA Regulations to prescribe which conditions of release qualify as the relevant conditions of release for inactive low‑balance accounts. Funds must therefore interpret their eligibility and release rules with respect to those other regulatory instruments.
Migration Regulations 1994:
Reg 7 prescribes certain visas , Subclass 405 and Subclass 410 , as those described in Schedule 2 to the Migration Regulations 1994, to qualify for purposes of the Act subsections listed. That explicitly imports immigration instrument classifications into the superannuation unclaimed money regime.
Taxation Administration Act 1953:
Regs 8(3)(a)(ii) and 9(3)(a)(iii) reference notices under subsection 255‑10(2) or (2A) in Schedule 1 to the Taxation Administration Act 1953 as dates that may start an interest period, meaning that tax notice timing can affect the computation of interest on unclaimed amounts.
Regs 8(2) and 9(2) exclude certain amounts mentioned in subsection 65AA(2) of the SGAA 1992 from the application of the Regs’ interest calculations. The text therefore carves out SGAA‑identified amounts from the interest regimes in regs 8 and 9.
Official data sources , ABS and RBA:
Reg 4 defines the CPI number to be the All Groups CPI (weighted average of the eight capital cities) published by the Australian Bureau of Statistics, and defines the Treasury bond rate as yields published by the Reserve Bank of Australia. Reg 9(5)(a) requires using the percentage change in that CPI number "between the 2 March quarters most recently published before the first day of the financial year" and rounding up to four decimal places. The interest calculation therefore depends on published ABS and RBA time series, linking statistical release calendars to legal computation outcomes.
New Zealand KiwiSaver scheme rules:
Reg 20 contemplates payments to KiwiSaver scheme providers, but it does not itself define KiwiSaver law or tax treatment in New Zealand. It does require proof of residence in New Zealand and that the KiwiSaver provider will accept the amount. The Commissioner must therefore interact with New Zealand providers and consider cross‑jurisdictional transfer procedures.
Practical interface consequences:
Administrative staff must be competent in locating ABS and RBA publications and applying specified rounding and floored rates in regs 8-9. Funds must map SIS/RSA release conditions to those listed items in regs 10-12. Migration statuses determined under Schedule 2 to the Migration Regulations 1994 affect eligibility under reg 7. Tax classification under the Income Tax Assessment Act 1997 affects whether the Commissioner will pay to a KiwiSaver account (reg 20(2)(f)).
Each of these interactions is explicit in the Regulations. The instrument therefore functions as an integrator of multiple statutory and statistical inputs, requiring procedures that operate across legal and data sources.
Amendment history
The instrument identifies itself as the Superannuation (Unclaimed Money and Lost Members) Regulations 2019 (reg 1) and states it is made under the Superannuation (Unclaimed Money and Lost Members) Act 1999 (reg 3). The Regulations include transitional‑style provisions that distinguish treatment of interest for periods ending 30 June 2013 and those starting on or after 1 July 2013 (regs 8 and 9). That bifurcation implies an earlier change in policy or method, reflected in the Regulations by expressly prescribing two regimes for interest computation.
Documented features that indicate temporal layering:
Reg 8 is expressly tailored to "interest periods ending on 30 June 2013" and applies to amounts the superannuation provider was, before 1 July 2013, required to pay to the Commissioner under s 20F (reg 8(1)-(3)). It then prescribes an annual interest rate based on Treasury bond yields for the last working day of the prior financial year (reg 8(5)).
Reg 9 treats "interest periods starting on or after 1 July 2013" and applies to amounts a provider is or was required to pay under a list of sections including s 17, s 20F, s 20QD and others (reg 9(1)-(3)). It prescribes a CPI‑based interest rate method (reg 9(5)(a)) and a rounding/flooring regime.
The Regulations therefore embody a reform point or administrative shift that took effect on or around 1 July 2013, demarcating old and new interest calculation rules. The instrument itself does not set out the policy reasons for that switch beyond the mechanics, but the presence of two regimes and clear temporal boundaries is an explicit feature of the text.
No further amendment dates, repeal dates, or schedules of prior versions are included in the text provided. The instrument cross‑references other instruments and schedules (for visas, SIS and RSA items), but it does not list its own amendment history beyond its title year and the transitional interest rules that reference 1 July 2013. For a full legislative amendment history a reader would need to consult the Federal Register of Legislation record and the parent Act’s amendment track, which are not contained in the text presented here.
Litigation history
The Regulations themselves do not cite any cases and contain no summaries of judicial decisions. The text provides no litigation history or references to judicial interpretation of the provisions. Where litigation issues might arise in practice , for example, disputes about interest calculations, the Commissioner’s choice of recipient fund under reg 14, or the Commissioner’s satisfaction of the reg 20(2) KiwiSaver conditions , such cases would be litigated under the Act and relevant administrative law frameworks, but no decisions are recorded within this instrument.
Because the instrument prescribes precise formulas and ordered administrative rules, potential legal disputes in the future could centre on:
Interpretation and application of the interest formulas and the correct ABS/RBA data points to use for each financial year (regs 8 and 9).
Whether a fund’s internal account meets the prescribed conditions of release mapped to the SIS/RSA item numbers listed in regs 10-12.
Whether the Commissioner properly applied the priority order in reg 14 when multiple eligible funds existed for a person, including whether the Commissioner’s exercise of the final residual discretion in reg 14(2)(d) was lawful.
Whether a person emigrating to New Zealand satisfied the reg 20(2) matters and whether the Commissioner correctly determined that the taxable component did not include an "element untaxed in the fund" as defined in the Income Tax Assessment Act 1997.
None of the above disputes appear in this instrument as past litigation. The Regulations therefore are silent on litigation history; they define technical standards that would be adjudicated under general administrative, tax and superannuation law if contested.
Gotchas
Practical pitfalls and implementation traps are concentrated in numerical inputs, cross‑instrument mappings and Commissioner discretion. The text contains several detail‑sensitive provisions likely to create operational risk if misread or implemented incorrectly.
Interest regime bifurcation and rate sources:
Two separate interest regimes apply depending on whether an interest period ends on 30 June 2013 (reg 8) or starts on or after 1 July 2013 (reg 9). Funds and the Commissioner must correctly allocate interest periods across that dividing date. An account spanning the changeover requires careful splitting of the interest period into pre‑ and post‑1 July 2013 segments (regs 8(3), 9(3)).
Reg 8 uses the "Treasury bond rate" for the last working day of the financial year immediately before the financial year for which interest is payable (reg 8(5)). Reg 9 uses the percentage change in the CPI number between two March quarters "most recently published before the first day of the financial year" (reg 9(5)(a)). Users must ensure they select the correct published data point, which depends on ABS and RBA publication schedules and the definition of "last working day" in reg 4.
Rounding and floor rules:
Both regs 8 and 9 require rounding the per‑financial‑year calculation to the nearest cent with 0.5 cents rounded up (regs 8(5), 9(5)). They also set a floor of 0% if the calculated interest rate is negative (reg 8(5)(b), reg 9(5)(b)). Practitioners must ensure consistent rounding and flooring across years, and apply the rule that "amount" in the annual formula includes earlier years' interest, which can generate cumulative rounding surprises.
Mapping conditions of release:
Regs 10-12 prescribe particular items from the SIS/ RSA Regulations as the relevant conditions of release. Funds must map their in‑house labels to those item numbers. Mis‑mapping an account’s condition of release can lead to incorrect classification as inactive low‑balance and unlawful transfer to the Commissioner.
Eligibility age nuance:
Reg 5 prescribes the member age for paragraphs 10(1)(a) and (b) of the Act as the greater of 65 years and any higher specified age in the fund’s governing rules. Where a fund’s rules state a higher specified age, that higher age becomes the eligibility test. Practitioners should not assume 65 is always the threshold.
Commissioner selection priority sequence:
Reg 14 sets an ordered list (recent Commissioner payments in the financial year, most recent receipt in a two‑year window, largest account at the end of last completed financial year, Commissioner determination). Clients should note the Commissioner must apply these tiers in order; however, reg 14(2)(d) preserves residual discretion if no earlier step applies, which means outcomes may be unpredictable in edge cases.
Tax‑component restriction for KiwiSaver transfers:
Reg 20(2)(f) requires that any taxable component the Commissioner pays "would not consist of, or include, an amount that is an element untaxed in the fund" as defined in the Income Tax Assessment Act 1997. This requires funds and advisers to examine tax classification of benefit components. If an "element untaxed in the fund" exists, the Commissioner cannot pay that taxable component to KiwiSaver, potentially frustrating emigrating members' expectations.
Notice form and recovery timing:
Reg 6 requires notices to state that the Commissioner may recover the excess payment "28 days after the notice is given to the debtor" (reg 6(1)(d)). Failure to include the required elements could affect the validity of recovery and the start of the 28‑day period, so administrative units must ensure notice templates include the text and particulars prescribed.
Cross‑instrument dependency:
The Regulations’ reliance on external instruments (SIS, RSA, Migration Regulations, TA Act, ITAA 1997) and ABS/RBA data means that implementation requires accurate cross‑checking. Mistakes in cross‑referencing item numbers or data series are practical risks.
Prescribed schemes lists:
The three or four separate tables listing public sector schemes (regs 15-18A) are similar but not necessarily identical in item numbering and naming across provisions. Practitioners working across multiple provisions should confirm the precise list that applies to each Act section rather than assuming a universal list applies to all contexts.
Overall, the "gotchas" are not doctrinal ambiguities so much as implementation details: selecting correct data points, applying rounding and flooring rules, mapping condition‑of‑release items accurately, understanding the consequence of fund rules that set ages higher than 65, and recognising the Commissioner’s residual discretion in certain selection circumstances.
How to comply
Practical compliance requires administrative, actuarial and record‑keeping steps for superannuation providers, trustees, the Commissioner and advisers. Below are actionable steps and checks, mapped to the specific regulations, that will reduce legal and operational risk.
Review and update governance documents and procedures
Funds should update internal procedures to reflect the prescribed conditions of release in regs 10-12. Map each internal "reason for payment" code to the corresponding SIS or RSA item number listed in the Regulations, and document that mapping in governance records so classification decisions are auditable.
Interest calculation systems and data feeds
Implement or update computational routines to apply the per‑financial‑year formula in regs 8(5) and 9(5). Key steps:
For interest periods ending 30 June 2013, implement the Treasury bond rate source specified in reg 4 (RBA published 10‑year bond yield on the last working day of the previous financial year) and apply the formula in reg 8(5).
For interest periods starting on or after 1 July 2013, implement an ABS CPI feed for the "All Groups Consumer Price Index number (weighted average of the 8 capital cities)" and calculate the percentage change between the two March quarters most recently published before the first day of the financial year, rounding the percentage up to four decimal places as required by reg 9(5)(a).
Apply the 0% floor if the calculated rate is negative (regs 8(5)(b), 9(5)(b)).
Compound interest year by year as required, where "amount" for each year includes earlier years' interest (regs 8(5), 9(5)).
Apply the rounding rule to the nearest cent, with 0.5 cents rounded up (regs 8(5), 9(5)).
Ensure staff understand the different start/end triggers for interest periods, including that reg 9(3)(b) ends on "the third day after the Commissioner last authorised the unclaimed amount to be paid".
Notices and recovery processes
Standardise notice templates to include the four items required under reg 6(1): name of the person in respect of whom the Commissioner made the payment, name of the debtor, the amount of the excess payment sought, and the statement that the Commissioner may recover the amount as a Commonwealth debt 28 days after notice is given. Keep template versions keyed to the particular Act subsection under which the notice is issued, and log the date the notice is given to start the 28‑day clock.
Reunification and priority order procedures
For payments under subsection 24NA(2) where multiple eligible funds exist, implement the tiered selection logic in reg 14(2):
Check whether the Commissioner made any payments to an eligible fund for crediting to the person during the financial year in which payment will be made. If exactly one, select it; if multiple, select the most recent.
If none, identify the eligible fund that most recently received an amount in respect of the person during the current and immediately preceding financial year.
If still none, choose the eligible fund holding the largest account balance for the person at the end of the last completed financial year preceding the payment.
If none of the above apply, document the Commissioner’s determination process under reg 14(2)(d).
Maintain transaction logs and time stamps to demonstrate how the selection criteria were applied.
KiwiSaver payments
For any person seeking payment to a KiwiSaver account, require certified proof of permanent emigration to New Zealand, evidence of residence at a New Zealand address after emigration, and the KiwiSaver scheme account number (reg 20(2)(a)-(d)). Obtain a formal statement or confirmation from the KiwiSaver provider that it will accept the amount (reg 20(2)(e)). Conduct a tax‑component assessment to ensure the taxable component to be paid would not include an "element untaxed in the fund" according to subsection 995‑1(1) of the ITAA 1997 (reg 20(2)(f)). Maintain retention of these documents and the Commissioner’s satisfaction decision.
Visa status and eligibility checks
For matters that hinge on prescribed visas (reg 7), implement a process to verify visa subclass using Schedule 2 to the Migration Regulations 1994, specifically Subclass 405 and 410. Record the verification and date of confirmation for auditability.
Data quality and reconciliation
Keep reconciliations between fund records and Commissioner receipts. Where the Commissioner returns funds to eligible funds or persons, reconcile the amounts and the interest calculation steps with your internal records to detect discrepancies early.
Audit trails and record retention
Maintain clear, timestamped audit trails for: notices given and their content (reg 6), dates relevant for interest calculations (including dates cited under the Taxation Administration Act notices cross‑referenced in regs 8 and 9), decisions on selection of recipient funds under reg 14, and Commissioner satisfactions for KiwiSaver transfers (reg 20). Ensure retention periods meet whatever statutory or administrative retention requirements apply under the Act and related tax laws.
Staff training and cross‑department coordination
Train staff teams in trustee, payments and compliance areas on the specific requirements of the Regulations, particularly interest formulas, rounding rules, and the mapping to SIS/RSA items. Establish channels with the Commissioner’s office to clarify payment timing, interest authorisation dates and any required supporting information.
Legal and tax advice for complex cases
For cases involving possible "element untaxed in the fund" issues or ambiguous tax component treatment, obtain tax law advice referencing the Income Tax Assessment Act 1997 definition imported by reg 4. For cases involving ambiguity as to whether an account meets the prescribed condition of release, seek trustee counsel to ensure legal conformity before remitting an amount to the Commissioner.
Following these steps will address the majority of compliance obligations that the Regulations prescribe. The central compliance risks arise from incorrect mapping of release conditions, incorrect selection of data points for interest rate calculations, failures to include mandatory notice content, and inadequate documentation of Commissioner determination steps. Each of those is directly addressable by the procedural controls outlined above.
debtor has the same meaning as in the section of the Act under which the notice is given.
Part 3 Prescribed visas
Part 3—Prescribed visas
7 Temporary residents—prescribed visas
7 Temporary residents—prescribed visas
For the purposes of subsection 20AA(2) and subparagraphs 20H(1)(a)(ii) and 20H(2)(b)(iii) of the Act, the following visas, as described in Schedule 2 to the Migration Regulations 1994, are prescribed:
(a) Subclass 405 (Investor Retirement) visa;
(b) Subclass 410 (Retirement) visa.
Part 4 Interest on unclaimed amounts
Part 4—Interest on unclaimed amounts
8 Interest on unclaimed amounts—interest periods ending on 30 June 2013
8 Interest on unclaimed amounts—interest periods ending on 30 June 2013
(1) For the purposes of subsection 20H(2AA) of the Act, this section applies to work out the interest on an amount (the unclaimed amount) that:
(a) the superannuation provider was, before 1 July 2013, required to pay to the Commissioner under section 20F of the Act; and
(b) the Commissioner received under section 20F of the Act before, on or after that day; and
(c) the Commissioner pays under subsection 20H(2) of the Act, on or after the day this instrument commenced, to or on behalf of a person whom the Commissioner is satisfied is (or was just before dying):
(i) an Australian citizen; or
(ii) the holder of a permanent visa under the Migration Act 1958.
The interest worked out under this section on the unclaimed amount is in addition to any interest worked out under section 9 on the unclaimed amount.
(2) However, this section does not apply to an amount:
(a) to which section 18A, 20K or 24J of the Act applies; or
(b) mentioned in subsection 65AA(2) of the Superannuation Guarantee (Administration) Act 1992.
(3) The interest is to be worked out for the period (the interest period) that:
(a) started on the later of:
(i) the day when the superannuation provider was required to pay the unclaimed amount to the Commissioner under section 20F of the Act; and
(ii) the day when the superannuation provider was required to pay the unclaimed amount to the Commissioner in accordance with a notice under subsection 255‑10(2) or (2A) in Schedule 1 to the Taxation Administration Act 1953; and
(b) ended on 30 June 2013.
(4) The interest is to be worked out by adding together the interest for each financial year during the interest period.
(5) The interest for each financial year is to be worked out using the following formula, and rounding the result to the nearest cent (with 0.5 cents being rounded up):
where:
amount means the unclaimed amount plus the interest (if any) worked out for each earlier financial year for which interest is payable.
days interest payable means the number of days in the financial year for which interest is payable.
days in the financial year means the number of days in the financial year.
interest rate, for a financial year, means:
(a) the Treasury bond rate for the last working day of the financial year immediately before the financial year for which interest is payable; or
(b) if that rate is less than 0%—0%.
9 Interest on unclaimed amounts—interest periods starting on or after 1 July 2013
9 Interest on unclaimed amounts—interest periods starting on or after 1 July 2013
(1) For the purposes of subsections 17(2AB) and (2AC), 20H(2AA), 20QF(5) and (6), 21E(5) and (6), 22B(5) and (6), 24G(3A) and (3B) and 24NA(4) of the Act, this section applies to work out the interest on an amount (the unclaimed amount) that:
(a) a superannuation provider:
(i) is required, or before the commencement of this instrument was required, to pay to the Commissioner under section 17, 20F, 20QD, 21C or 24E of the Act; or
(ii) pays to the Commissioner under section 22 of the Act; and
(b) the Commissioner receives under section 17, 20F, 20QD, 21C, 22 or 24E of the Act; and
(c) the Commissioner pays under subsection 17(2), 20H(2), 20QF(2), 21E(2), 22B(2), 24G(2) or 24NA(2) or (3) of the Act on or after the day this instrument commenced.
(2) However, this section does not apply to an amount:
(a) to which section 18A, 20K, 20QJ, 21F, 22C or 24J of the Act applies; or
(b) mentioned in subsection 65AA(2) of the Superannuation Guarantee (Administration) Act 1992.
(3) The interest is to be worked out for the period (the interest period) that:
(a) starts, or started, on the later of:
(i) 1 July 2013; and
(ii) the day when the superannuation provider was required to pay the unclaimed amount to the Commissioner under section 17, 20F, 20QD, 21C or 24E of the Act, or paid the unclaimed amount to the Commissioner under section 22 of the Act; and
(iii) the day when the superannuation provider was required to pay the unclaimed amount to the Commissioner in accordance with a notice under subsection 255‑10(2) or (2A) in Schedule 1 to the Taxation Administration Act 1953; and
(b) ends on the third day after the Commissioner last authorised the unclaimed amount to be paid under subsection 17(2), 20H(2), 20QF(2), 21E(2), 22B(2), 24G(2) or 24NA(2) or (3) of the Act.
A day mentioned in subparagraph (a)(ii) or (iii) or paragraph (b) may be the day this section commences, or any other day occurring before or after that day.
(4) The interest is to be worked out by adding together the interest for each financial year during the interest period.
(5) The interest for each financial year is to be worked out using the following formula, and rounding the result to the nearest cent (with 0.5 cents being rounded up):
where:
amount means the unclaimed amount plus the interest (if any) worked out for each earlier financial year for which interest is payable.
days interest payable means the number of days in the financial year for which interest is payable.
days in the financial year means the number of days in the financial year.
interest rate, for a financial year, means:
(a) the percentage change in the CPI number between the 2 March quarters most recently published before the first day of the financial year (rounded up to 4 decimal places); or
(b) if that percentage change is less than 0%—0%.
Part 5 Payment of low balances in inactive accounts to the Commissioner
Part 5—Payment of low balances in inactive accounts to the Commissioner
10 Inactive low‑balance accounts in regulated superannuation funds
10 Inactive low‑balance accounts in regulated superannuation funds
For the purposes of subparagraph 20QA(1)(a)(vi) of the Act, the conditions of release of benefits specified in the following items of the table in Part 1 of Schedule 1 to the Superannuation Industry (Supervision) Regulations 1994 are prescribed:
(a) item 101 (retirement);
(b) item 102 (death);
(c) item 102A (terminal medical condition);
(d) item 103 (permanent incapacity);
(e) item 106 (attaining age 65);
(f) item 110 (attaining preservation age).
11 Inactive low‑balance accounts in approved deposit funds
11 Inactive low‑balance accounts in approved deposit funds
For the purposes of subparagraph 20QA(1)(b)(iv) of the Act, the conditions of release of benefits specified in the following items of the table in Part 2 of Schedule 1 to the Superannuation Industry (Supervision) Regulations 1994 are prescribed in relation to a fund that is an approved deposit fund:
(a) item 201 (retirement);
(b) item 202 (death);
(c) item 202A (terminal medical condition);
(d) item 203 (permanent incapacity);
(e) item 206 (attaining age 65);
(f) item 208 (attaining preservation age).
12 Inactive low‑balance accounts in retirement savings accounts
12 Inactive low‑balance accounts in retirement savings accounts
For the purposes of subparagraph 20QA(1)(b)(iv) of the Act, the conditions of release of benefits specified in the following items of the table in Schedule 2 to the Retirement Savings Accounts Regulations 1997 are prescribed in relation to a fund that is an RSA:
(a) item 101 (retirement);
(b) item 102 (death);
(c) item 102A (terminal medical condition);
(d) item 103 (permanent incapacity);
(e) item 106 (attaining age 65);
(f) item 110 (attaining preservation age).
Part 6 Reunification of superannuation balances
Part 6—Reunification of superannuation balances
13 Transferring balances to an active account—eligible fund
13 Transferring balances to an active account—eligible fund
For the purposes of paragraph 24NA(2)(c) of the Act, the prescribed period is the period:
(a) beginning on the first day of the financial year immediately preceding the financial year in which the payment by the Commissioner under subsection 24NA(2) of the Act is made; and
(b) ending on the day immediately preceding the day on which the payment by the Commissioner under subsection 24NA(2) of the Act is made.
14 Transferring balances to an active account—more than one eligible fund
14 Transferring balances to an active account—more than one eligible fund
(1) For the purposes of subsection 24NA(3) of the Act, if:
(a) under subsection 24NA(1) of the Act, the Commissioner holds a superannuation amount (within the meaning of that subsection) in respect of a person; and
(b) there is more than one fund in relation to which paragraphs 24NA(2)(b), (c), (d) and (e) of the Act are satisfied in respect of the person (there is more than one eligible fund);
the Commissioner must pay the superannuation amount in respect of the person in accordance with this regulation.
(2) The Commissioner must pay the superannuation amount in respect of the person to the following eligible fund for crediting to the person:
(a) if the Commissioner has made any payment under subsection 17(2) or section 20H, 20QF, 21E, 22B, 24G or 24NA of the Act to an eligible fund for crediting to the person during the financial year in which the Commissioner pays the superannuation amount under subsection 24NA(2) of the Act:
(i) if there is only one such eligible fund—that eligible fund; or
(ii) if there is more than one such eligible fund—the eligible fund to which the Commissioner has most recently made any of those payments;
(b) if paragraph (a) does not apply—the eligible fund that most recently received an amount in respect of the person during the period consisting of:
(i) the financial year in which the Commissioner pays the superannuation amount under subsection 24NA(2) of the Act; and
(ii) the immediately preceding financial year;
(c) if paragraphs (a) and (b) do not apply—the eligible fund that holds the largest account balance for the person at the end of the last completed financial year preceding the day on which the Commissioner pays the superannuation amount under subsection 24NA(2) of the Act;
(d) if paragraphs (a), (b) and (c) do not apply—the eligible fund determined by the Commissioner.
Part 7 Prescribed public sector superannuation schemes
Part 7—Prescribed public sector superannuation schemes
15 Unclaimed money—prescribed schemes
15 Unclaimed money—prescribed schemes
For the purposes of section 18AA of the Act, each public sector superannuation scheme mentioned in the table is prescribed.