The Australian Government today cemented its commitment to a superannuation co-contribution for low-income earners with the gazettal of the first instalment of regulations to give the measure effect.
Minister for Revenue and Assistant Treasurer, Senator Helen Coonan, said the move was good news for low-income earners who have until the end of the financial year to make a superannuation contribution and have it matched by the Government.
“Under the co-contribution measure workers earning up to $27,500, who make eligible personal superannuation contributions on or after 1 July 2003, will have those contributions matched dollar for dollar to a maximum of $1,000 annually,” Senator Coonan said.
“Workers earning up to $40,000 will also benefit from a reduced Government co contribution.”
This first instalment of regulations contains amendments to the Corporations Regulations 2001, Superannuation Industry Supervision Regulations 1994, and Retirement Savings Account Regulations 1997 as well as new regulations Superannuation (Government Co-contribution for Low Income Earners) Regulations 2004.
The regulations detail the content, form and timing of additional reporting for co contributions purposes by superannuation providers to the Australian Taxation Office (ATO) and one another; payment dates and interest rates that apply to late payments by the ATO; information to be reported by the ATO and superannuation providers when payments are made and overpayment recoveries are sought; information to be reported by superannuation providers to their members about co contribution payments; acceptance and treatment of co-contribution payments by superannuation providers; and, information required when repayment of overpaid amounts to the ATO are necessary.
The amendments to the Corporations Regulations 2001 take effect from 1 July 2004. The Superannuation Government Co-contribution for Low Income Earners Regulations 2004 and the amendments to the Retirement Savings Account Regulations 1997, Superannuation Industry Supervision Regulations 1994 take effect from gazettal.
A copy of the regulations will shortly be available at http://scaleplus.law.gov.au.
For more information on the Government’s co-contribution or to check
if you are eligible please call the ATO superannuation hotline on 13 10 20.