Superannuation Industry (Supervision) Regulations 1994

For the purposes of implementing the Arrangement, Part 5 of these Regulations, as affected by subregulations (2) to (4), applies in relation to:

a New Zealand‑sourced amount received by a complying superannuation fund; and

the treatment of a New Zealand‑sourced amount in a complying superannuation fund.

In order to implement the Arrangement, it is appropriate to treat a New Zealand‑sourced amount as an amount that is subject to Australia’s benefit protection standards, apart from any differences required by the Arrangement.

The application of Part 5 is modified to the extent necessary to ensure that, if the trustee of a complying superannuation fund is required to reduce a member’s benefits in the complying superannuation fund by a particular amount, the trustee must:

first charge the amount to the member’s benefits that are not New Zealand‑sourced amounts; and

if the full amount cannot be charged under paragraph (a)—then charge the remainder to the member’s New Zealand‑sourced amounts to the extent possible.

In accordance with the Arrangement, the intention is that any decrements to retirement savings balances would first be applied to host country retirement savings before being applied to retirement savings transferred from the source country.

The application of Part 5 is modified to the extent necessary to ensure that the trustee of a complying superannuation fund is, at all times, required to administer a member’s interest in the complying superannuation fund in a way that allows any New Zealand‑sourced amount in the fund to be identified separately.

The application of Part 5 is modified to the extent necessary to ensure that a New Zealand‑sourced amount in a complying superannuation fund is treated as a minimum benefit in the same way as other amounts in the fund would be treated as minimum benefits.