Document ID: chunk:federal_register_of_legislation:C2004C01280:clause:1_90ml
Version: federal_register_of_legislation:C2004C01280
Segment Type: clause
Provision Reference: sch 1 cl 90ML
Character Range: 16418–18562

90ML  Payment flag

 (1) This section applies to a superannuation interest if:
 (a) the interest is identified in a superannuation agreement; and
 (b) the agreement provides that the interest is to be subject to a payment flag under this Part; and
 (c) the agreement is in force at the operative time; and
 (d) the interest is not an unflaggable interest.

 (2) A payment flag starts to operate on the superannuation interest at the operative time and continues to operate until either:
 (a) a court terminates the operation of the payment flag by an order mentioned in section 90MM; or
 (b) a flag lifting agreement is served on the trustee as mentioned in section 90MI in respect of the superannuation interest.

 (3) If a payment flag ceases to operate because of paragraph (2)(b), the cessation is not affected by a later termination of the flag lifting agreement.

 (4) While a payment flag is operating on a superannuation interest, the trustee must not make any splittable payment to any person in respect of the interest.

Penalty: 50 penalty units.

Note: The penalty for a body corporate is 250 penalty units. See subsection 4B(3) of the Crimes Act 1914.

 (5) If a splittable payment becomes payable in respect of a superannuation interest while a payment flag is operating, the trustee must, within 14 days after it became payable, give written notice to the member spouse and the non‑member spouse.

Penalty: 50 penalty units.

Note: The penalty for a body corporate is 250 penalty units. See subsection 4B(3) of the Crimes Act 1914.

 (6) Subsection (5) does not apply if the trustee has previously given a notice under that subsection, for an earlier splittable payment, in respect of the payment flag.

 (7) If either spouse dies while a payment flag is operating:
 (a) the payment flag nevertheless continues to operate; and
 (b) the legal personal representative of the deceased spouse has all the rights the deceased spouse would have had in respect of the payment flag.

Note: The rights of the legal personal representative under paragraph (b) include the right to enter into a flag lifting agreement under section 90MN.