Draft regulations to give effect to the Government's superannuation co-contribution for low income earners measure have been released for public comment, Minister for Revenue and Assistant Treasurer, Senator Helen Coonan announced today.
"The Government wants the framework for the matched co-contribution for low income earners in place as soon as possible," Senator Coonan said.
"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.
"Workers earning up to $40,000 will also benefit from a reduced Government co-contribution."
This first instalment of draft regulations contain 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 proposals include detail about the content, form and timing of additional reporting for co-contribution 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.
A second instalment of draft regulations is currently being developed. They will deal with the content of Ministerial reports to Parliament and the payment destination rules the ATO will use to prioritise the end location for co-contribution payments where multiple accounts exist for a member.
"The first instalment of draft regulations are expected to be gazetted as early as possible in 2004," Senator Coonan said.
"This will enable the superannuation industry to start preparing and adjusting their systems in time for the first practical effect of these draft regulations on 30 June 2004."
The draft regulations can be found at www.treasury.gov.au. Comments on the draft regulations are invited from interested parties up until 20 January 2004 and can be made to superannuation@treasury.gov.au.