Document ID: chunk:federal_register_of_legislation:F2023C00836:reg:4:p2
Version: federal_register_of_legislation:F2023C00836
Segment Type: reg
Provision Reference: reg 4 (pt 2/4)
Character Range: 16317–19390

website:
                     (i) explaining the effect of allowing hardship withdrawals; and
                     (ii) in a way that it is likely to come to the attention of a person looking for information about the scheme on the website.
           Responsible entity to notify ASIC if scheme ceases to be a frozen scheme
              (3) If the responsible entity has given notice to ASIC under paragraph (2)(a), the responsible entity must give written notice to ASIC that the scheme has ceased to be a frozen scheme as soon as practicable after the scheme ceases to be frozen.
              Other restrictions on hardship withdrawals
              (4) The responsible entity must not allow a hardship withdrawal in relation to a member, beneficiary or instructor (as applicable) unless the responsible entity is satisfied that:
(a)  there are reasonable grounds to consider that following the withdrawal the scheme property would include adequate cash over the following 6 months to meet likely future hardship withdrawals and for the day-to-day operation of the scheme; and

                  (b) allowing the hardship withdrawal:
(i) would not result in more than 4 hardship withdrawals for the member, beneficiary or instructor in any calendar year; and
(ii) would not result in the total amount of hardship withdrawals for the member, beneficiary or instructor in any calendar year exceeding $100,000; and
                  (c) in the case of a withdrawal in relation to a beneficiary—any amount paid on withdrawal to an executor or administrator of the estate will be paid to the beneficiary after deduction of any fees and charges payable to the executor or administrator; and
                  (d) in the case of a withdrawal in relation to an instructor—any amount paid on withdrawal to an operator will be paid to the instructor after deduction of any fees and charges payable to the operator.
                     Note: In making any payment to an instructor, an operator must comply with any obligations under the terms of the relevant trust or arrangement under which it acts and other applicable laws. For example, the responsible entity of a registered scheme must comply with Part 5C.6 and the trustee of a superannuation entity or self-managed superannuation fund must comply with requirements under the Superannuation Industry (Supervision) Act 1993.
           601KEC Hardship withdrawals—record keeping and reporting
              (1)          Subsections (2) and (3) apply to a responsible entity if the scheme's constitution includes a provision permitting the responsible entity to allow hardship withdrawals.
           Record keeping for hardship withdrawal requests
              (2) The responsible entity must ensure that the records which it keeps under section 988A document how and why a decision to allow or refuse a hardship withdrawal request was made, including in relation to any discretion:
                  (a) to allow or refuse the hardship withdrawal request; or
                  (b) to allow the hardship withdrawal request