A range of new superannuation measures will apply from tomorrow, after Parliament passed the Government's Taxation Laws Amendment (Superannuation) Bill (No. 2) 2002 last week, Minister for Revenue and Assistant Treasurer Helen Coonan said today.
Senator Coonan said the legislation delivered on a significant portion of the Government's pre-election commitments to making superannuation more attractive and accessible and more secure.
"With the passage of this Bill, and associated amendments to be made through the Superannuation Industry (Supervision) Regulations and Retirement Savings Account Regulations, the Government will have delivered on a significant proportion of its 2001 superannuation election commitments," Senator Coonan said.
"These changes, outlined in the Coalition's election policy statement are designed to enhance the overall attractiveness, accessibility and security of superannuation.
"This legislation provides for the introduction of quarterly superannuation guarantee arrangements, as well as a number of enhancements to the superannuation guarantee law.
"While these provisions will not commence until 1 July 2003, the Government brought forward the legislation now so that business will have ample time to assess and provide for the changes."
Other measures contained in the legislation will generally commence from 1 July 2002. These include amendments to make superannuation more attractive and support retirement incomes policy by:
- allowing a working person to make personal undeducted contributions to a superannuation fund until age 75;
- allowing contributions to be made (by third parties) on behalf of children who are under the age of 18 who otherwise do not receive superannuation support; and
- increasing the fully deductible amount available to the self-employed for personal superannuation contributions made to complying superannuation funds or retirement savings accounts.
"This legislation demonstrates the Government's commitment to superannuation and our commitment to implementing the policies we took to the last election," Senator Coonan said.
On Thursday, the Government also introduced legislation into the Parliament to give effect to its commitment to introduce superannuation choice.
Choice has been on the Government's agenda since 1997, and the commitment to choice was reaffirmed by the Government in its 2001 election platform.
"There is widespread support for giving workers choice in their superannuation funds," Senator Coonan said.
"Choice of funds will create greater competition in the industry, leading to greater efficiency, better returns and downward pressure on fees."
Senator Coonan said the Government had also introduced a Bill to Parliament encompassing the Government's superannuation co-contribution for low income earners and the phased reduction of the superannuation surcharge.
"The Government's package of superannuation reforms is designed to help those with the financial capacity to save for their own retirement as well as those who have less capacity to do so," Senator Coonan said.
"Under the co-contribution for low income earners, the Government will pay up to $1000 a year directly into the superannuation accounts of low income earners to help improve their retirement savings," Senator Coonan said.
"Not only will this measure improve the level of savings for low income earners but it will provide greater incentives for Australians to save for their retirements when they are able.
"At the same time, as promised, the Government is moving to reduce the superannuation and termination payments surcharge rate from 15 per cent to 10.5 per cent over the next three years.
"This measure will encourage those who are financially able to make voluntary contributions to their superannuation savings and become more self-reliant in retirement.