Document ID: chunk:federal_register_of_legislation:F2024C01198:body:0:p136
Version: federal_register_of_legislation:F2024C01198
Segment Type: other
Provision Reference: 
Character Range: 379892–382907

death or disability of the member of the superannuation fund, and

              (b) there is no prescribed minimum surrender value (other than that which may be provided for in the policy documentation and promotional material) or no investment component.

         For the purposes of this definition, the question of whether a policy has a prescribed minimum surrender value is to be determined in accordance with the prudential standards made under section 230A of the Life Insurance Act 1995 as in force from time to time.

Reporting entities should note that in relation to activities they undertake to comply with the AML/CTF Act, they will have obligations under the Privacy Act 1988, including the requirement to comply with the Australian Privacy Principles, even if they would otherwise be exempt from the Privacy Act. For further information about these obligations, please go to http://www.oaic.gov.au or call 1300 363 992.

CHAPTER 48 Exemption of salary packaging administration services from the AML/CTF Act

48.1 These Anti-Money Laundering and Counter-Terrorism Financing Rules  (Rules) are made under section 229 for subsection 247(3) of the Anti-              Money Laundering and Counter-Terrorism Financing Act 2006               (AML/CTF Act).

48.2 Subject to paragraph 48.3, the AML/CTF Act does not apply to a designated               service that:

         (1)  is of a kind described in items 6, 7, 31, 32 and 48 of table 1 in subsection 6(2) of the AML/CTF Act.

    48.3 The exemption in paragraph 48.2 only applies if the reporting entity:

         (1)  is carrying on a business of providing administrative services relevant to salary packaging, payroll, or superannuation clearance for an employer client, and

         (2) does not undertake transactions which involve the receipt or payment of physical currency in regard to the designated services described in items 31 and 32 of table 1 in subsection 6(2) of the AML/CTF Act.

48.4  In this Chapter:

            (1) 'payroll' refers to the payment of salary, wages, and other benefits to an employee on behalf of an employer client. It also includes making deductions and payments on behalf of the employee for matters such as superannuation contributions, taxation and professional and union membership fees.

            (2) 'salary packaging' refers to an arrangement between an employer and an employee, whereby the employee agrees to forgo part of their future entitlement to salary or wages in return for the employer providing them with benefits of a similar cost.

            (3) 'superannuation clearance' refers to the payment of superannuation contributions to an employee's nominated superannuation fund on behalf of an employer client.

Reporting entities should note that in relation to activities they undertake to comply with the AML/CTF Act, they will have obligations under the Privacy Act 1988, including the requirement to comply with the Australian Privacy Principles, even if they would