Commonwealth Numbered Acts

RETIREMENT SAVINGS ACCOUNTS ACT 1997 No. 61, 1997 - SECT 52

(1) This section sets out the procedures that an employer must go through:

   (a)  if the employer gives an application form for an RSA to an employee;
        or

   (b)  before an employer makes an application for an RSA on behalf of an
        employee.

(2) An employer who gives an application form for an RSA to an employee must,
at the same time, give the employee:

   (a)  any prescribed information about that RSA; and

   (b)  if the employee is paid by means of electronic funds transfer to a
        financial institution that is an RSA institution-an application form
        for an RSA provided by that RSA institution; and

   (c)  if there is an industry-based regulated superannuation fund that the
        employee is eligible to join-an application form for that industry
        fund; and

   (d)  if there is no industry-based regulated superannuation fund that the
        employee is eligible to join-an application form for a regulated
        superannuation fund; and

   (e)  a written notice stating that, unless the employer is currently making
        contributions for the benefit of the employee to another RSA or to a
        regulated superannuation fund, the employer may make an application
        for the RSA on behalf of the employee if the employee does not, within
        28 days:

        (i)    make an application for the RSA, for another RSA, or to become
               a member of a regulated superannuation fund; or

        (ii)   give the employer a written notice electing to become the
               holder of the RSA, the holder of another RSA or a member of a
               specified regulated superannuation fund.

(3) An employer must not make an application, on behalf of any particular
employee, for an RSA unless the conditions in subsection (4) or (5) are
satisfied.

(4) The conditions in this subsection for an employer to be able to make an
application, on behalf of any particular employee, for an RSA are that:

   (a)  the employer has given the employee an application form for the RSA
        together with the other documents specified in subsection (2); and

   (b)  the 28 day period referred to in paragraph (2)(e) has ended; and

   (c)  the employee has not made an application for the RSA, for another RSA,
        or to become a member of a regulated superannuation fund; and

   (d)  the employee has not given the employer a written notice electing to
        become the holder of the RSA, the holder of another RSA or a member of
        a specified regulated superannuation fund; and

   (e)  the employer is not making contributions for the benefit of the
        employee to another RSA or to a regulated superannuation fund.

(5) The conditions in this subsection for an employer to be able to make an
application, on behalf of any particular employee, for an RSA (the nominated
RSA) are that:

   (a)  the employer has given the employee an application form for an RSA
        (which may be the nominated RSA or another RSA) together with the
        other documents specified in subsection (2); and

   (b)  the employee has given the employer a written notice electing to
        become the holder of the nominated RSA.

(6) An employer who intentionally or recklessly contravenes subsection (2) or
(3) is guilty of an offence punishable on conviction by a fine not exceeding
10 penalty units.

(7) Where an employee has become the holder of an RSA as a result of:

   (a)  an application that was made using an application form provided by the
        employee's employer in contravention of subsection (2); or

   (b)  as a result of an application that was made by the employee's employer
        in contravention of subsection (3); the RSA provider must, at the
        request of the employee, transfer the balance in the RSA to another
        RSA, or a superannuation entity, specified by the employee. The
        request must be made within 6 months of the RSA being opened. The
        balance must be transferred as soon as is practicable. No exit fees
        may be imposed.

(8) An RSA provider who intentionally or recklessly contravenes subsection (7)
is guilty of an offence punishable on conviction by a fine not exceeding 10
penalty units.