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Parliament of Australia
Attachment 2: Retirement income policyand legislative
chronologyContents
Milestones Details Source Documents
1900 New South Wales introduced a means tested agepension of 26
a year, funded out of generalrevenue.
Victoria (1900) and Queensland (1908) followedsuit.
Old-age Pensions Act1900 (NSW)
Claims for Old-agePensions Act 1900 (Vic)
Old-Age Pensions Act1908 (Qld)
1901 The Constitution gave the Commonwealthexplicit power to
legislate for provision of oldage and invalid pensions.
S. 51(xxiii)Commonwealth ofAustralia Constitution Act1901
10 June 1908 Invalid and Old Age Pensions Act 1908 passed bythe
Deakin Government. Rate of 26 per year(10/- a week). Eligibility
was limited according tocharacter, race, age, residency and means.
Paidto eligible men and women at age 65 years.Commenced 15 April
1909. It included thereduction in the eligibility age for women to
60years by proclamation of the Governor-General.
Invalid and Old-agePensions Act 1908
1912 1908 Act amended to completely remove thefamily home from
the means test.
Invalid and Old-agePensions Act 1912
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1915 Income Tax Assessment Act 1915 provided fortax
deductibility of employer contributions madeon behalf of employees
and for the exemption ofsuperannuation fund earnings from
taxation.
Income Tax AssessmentAct 1915
1923 Bruce Government established a RoyalCommission to examine
the possibility of havinga comprehensive national insurance scheme
forretirement, sickness or disability.
Royal Commission onNational Insurance (7Sept 1923-5 Oct
1927).
1928 National Insurance Bill 1928 introduced. It lapsedin 1929
when the Government was defeated.
Second reading speech:National Insurance Bill1928
1938 National Health and Pensions Insurance Act 1938was enacted,
but its introduction was delayed,and then abandoned, because of
World War 2.
Second reading speech:National Health andPensions Insurance
Bill1938
1945 Chifley Government introduced an additional levyon personal
income tax which, along with apayroll tax from employers, was
credited to theNational Welfare Fund. There was, however, nodirect
link between contributions and benefitsand the pension. The
National Welfare Fund,whilst set up as a means of establishing a
basefrom which a national superannuation fund couldbe operated, was
in practice merely anaccounting device until its abolition in
1985.
National Welfare Fund Act1945
1946 Constitutional amendments passed to extend theCommonwealths
powers in the areas of socialsecurity and health, including widows
pensions.
Constitution Alteration(Social Services) 1946
19511953 Commonwealth Committee on Taxation (SpoonerCommittee)
undertook a number of inquiries onrequest of the Treasurer on
income tax andother taxation laws. The Committee issued aseries of
reports, including several thatexamined the taxation treatment
applied to
CommonwealthCommittee on Taxation,Parliamentary
Papers214-223/195153.
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superannuation including preservation(reference no. 2);
concessional allowances oncontributions (references 9 and 22); and
taxationof retirement payments (reference 13).
12June 1961 Superannuation funds exempt from tax if theyheld
required amounts of Commonwealth Bonds(30/20 rule). Commonwealth
control ofsuperannuation funds by use of taxation powerfirmly
established.
Income Tax and SocialServices ContributionAssessment Act
1961
17August1961
Commonwealth Committee on Taxation(Ligertwood Committee) report
tabled. Keysuperannuation recommendations included:
self-employed persons who are membersof a superannuation fund to
be allowed alimited business deduction for contributionsto a
fundconsolidation of tax arrangements foremployer contributions to
removecomplexity and anomaliescontinuation of tax-exempt status on
theincome of superannuation funds butstrengthening of tests to
guide theCommissioner of Taxation on grantingexemptions.
Report of theCommonwealthCommittee on Taxation,June1961.
CommonwealthCommittee on Taxation:Statement by theTreasurer
1965 High Court upheld Commonwealths ability tocontrol
superannuation fund investment by useof taxation power.
Fairfax v Commissionerof Taxation (1965) 114CLR 1
13November1972
As leader of the Opposition, Gough Whitlamoutlines 1972 election
policies including raisingthe Age Pension to 25per cent of
averageweekly male earnings, abolishing the AgePension means test
and establishing nationalsuperannuation arrangements after a
thoroughinquiry into overseas examples and Australianproposals for
such a scheme.
Its time for leadership,policy speech
March 1973 Whitlam Labor Government established theNational
Superannuation Committee of Inquiryunder the chairmanship of Keith
Hancock.
Statement to House ofRepresentatives by thePrime Minister.
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September1973
Means test for pensioners 75 years of age, andover,
abolished.
Social Services Act (No 4)1973
1974 Interim report of the Hancock Committee ofinquiry released.
It is essentially a discussionpaper outlining the history of
superannuation inAustralia to date and policy options.
Interim report of theNational SuperannuationCommittee of
Inquiry,June 1974.
31January1975
Final report of Taxation Review Committee(Asprey Committee)
completed. Review includedconsideration of the tax treatment
ofsuperannuation contributions, income andbenefits. Review put
forward two alternateviews on taxation arrangements supporting
thestatus quo or fundamental changes applying tonew schemes only.
The Committee was critical ofthe relatively low tax rate of 5per
cent appliedto lump sum benefits that had been in placesince
1915.
Taxation ReviewCommittee Full Report,January 1975.
May 1975 Means test removed for persons aged 70 to
74inclusive.
Social Services Act 1975
1975 Age Pension increased sufficiently to meetGovernments
objective of 25per cent ofaverage weekly earnings.
Social Services Act (No 3)1975
1976 Pensions became subject to automatic increasestwice
yearly.
Age Pension assets test abolished.
Social ServicesAmendment Act (No 3)1976
1976 The Hancock Inquiry recommended a partiallycontributory,
universal pension system with anearnings-related supplement. A
minorityrecommendation suggested a non-contributoryflat rate
universal pension, a means testedsupplement, and encouragement of
voluntarysavings through expanding occupationalsuperannuation.
National SuperannuationCommittee of Inquiry.Final Report. Part
1, April1976 and Part 2, March1977.
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20 June 1977 Fraser government decided not to establish
acontributory national superannuation scheme.
Cabinet Decision 3435 of20 July 1977 in responseto Cabinet
SubmissionNo. 1394 of 1977.
1978 Pension increases to be adjusted only once ayear (in
November). Future increases in the AgePension for those aged 70 or
over was madesubject to an income test.
Social ServicesAmendment Act 1978
12July 1979 Fraser Government rejected therecommendations of the
Hancock Inquiry. Itannounced the establishment of a task force
toconsider the role of occupational superannuationin providing for
retirement and whether therewas a need to revise or impose new
standardsfor schemes.
Media release
6September1979
Fraser Government indicated its concern thatsuperannuation
arrangements not be used forpurposes other than genuine retirement
such asthe cash payment of an employers contributionsto an employee
who chose to changeemployment after a relatively short period
ofservice. This statement came as the task force onsuperannuation
continued its work.
Media release
1979 Pensions subject to twice yearly increases, in Mayand
November.
Social ServicesAmendment Act 1979
November1981
Report of the Committee of Inquiry into theAustralian Financial
System (Campbell Inquiry)released. The Committee concluded that
existingtaxation advantages for superannuation wereinequitable when
compared with other savingsvehicles and suggested means of removing
theseinequities. Recommendations included:
income (investment income and employercontributions) should be
taxed in thesuperannuation plan at an average marginalrate
applicable to contributorsthat the 30/20 rule regarding investment
in
Australian financialsystem: final report of theCommittee of
Inquiry
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public sector entities should be abolishedall contributions,
both member andemployer, should be tax deductibleall benefits,
whether in pension or lumpsum form, should be free of income
tax.
30July 1982 Fraser Government announced that it had noplans to
neither change the taxation treatmentof lump sum superannuation
benefits nor set alimit on the level of superannuation benefit
thatmay be paid in the form of a lump sum.
Media release
1983 The Statement of Accord (Prices and IncomesAccord) between
the ALP and the ACTU wasendorsed in February, shortly before the
federalelection. Claims for wage increases were to berestricted to
movements in the CPI.
Statement of Accord
May 1983 Base pension for those aged 70 and over becamesubject
to an income test.
Social Security andRepatriation LegislationAmendment Act
1983
19May 1983 Hawke Labor Government expressed support forthe
principles of employee superannuation.Changes to tax treatment of
superannuationlump sums proposed, with certain lump sumpayments,
which were exempt from tax entirelyor subject to tax on 5 per cent
of the amountsreceived, to be generally subject to a 30 per centtax
unless converted into a pension or annuity orrolled over into
another superannuation fundwithin a short time. Other
announcementsincluded making it more attractive for life officesand
superannuation funds to sell annuities andto review arrangements
under which the returnof capital component of an annuity was
takeninto account in the age pension income test.
Economy: Ministerialstatement by theTreasurer
26May 1983 Hawke Government tabled the final report of
theCommonwealth Task Force on OccupationalSuperannuation,
commissioned by the formergovernment on 12July 1979. The main
proposalsin the report included:
Final report of theCommonwealth task forceon
occupationalsuperannuation, January1983.
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eligibility for tax concessions forsuperannuation funds to
depend on thevesting and preservation of retirementbenefits in
accordance with minimumprescribed standardsa requirement for the
regular disclosure ofcertain information to members
ofsuperannuation fundsthe removal of certain constraints
tofacilitate the achievement of a limitedmarket for annuities among
certain groupssuch as those using annuities for pre-retirement
purposes and some agepensioners aged 70 years or over.
30May 1983 Hawke Government clarified changes to
taxationarrangements to apply to superannuation lumpsums as
announced on 19May 1983, includingthat the change-over date for tax
arrangementsaffecting lump sums would be 30June 1983, not19May as
previously indicated.
Media release
1July 1983 Changes to superannuation tax arrangementsannounced
on 19May 1983 take effect.
Income Tax AssessmentAmendment Act (No. 3)1984
7August 1983Hawke Government further clarified changes
totaxation to apply to lump sums announced on19May 1983. Changes
include removing the 46and 60per cent rates progressive rates
thatwere proposed to apply and instead apply a flat30 per cent and
that lump sums received at age55 or later the first $50,000 would
be taxed at15per cent.
Media release
1984 Age pension assets test reintroduced. The familyhome was
excluded.
Social Security andRepatriation (BudgetMeasures and AssetsTest)
Act 1984
11September1984
Taxation LawsAmendment Act 1985
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Abolition of the 30/20 rule for investments ingovernment bonds
for life companies andsuperannuation funds.
4September1985
Renegotiation of the Accord identifiedsuperannuation as a key
issue. Key areas ofagreement included:
superannuation should be extended andimproved on an industry by
industry,occupation by occupation or, in limitedcircumstances,
company by company basis.the improvement should be offset
againstnational productivity and be based on athree per cent wage
equivalent.negotiations can proceed onsuperannuation on the above
basis providedthat the cost impact of new or improvedarrangements
except in very isolatedcircumstances will not occur before
1July1986.before the expiration of the currentparliament the
Government would legislateto establish a national safety
netsuperannuation scheme to which employerswill be required to
contribute where theyhave failed to provide cover for
theiremployees under an appropriate scheme.
Media release
1986 Labor joined with the ACTU in seeking auniversal 3 per cent
superannuation contributionby employers to be paid into an industry
fund, inlieu of a wage rise.
1986 Accord Mark II between the Government and theunions
stipulated that compensation toemployees should be 6 per cent (to
keep pacewith inflation). This was to be 3 per centemployer
superannuation contribution, a 2 percent wage rise, and tax
cuts.
Agreement endorsed by the Conciliation andArbitration Commission
February 1986.
1986
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Employer groups, including the Confederation ofAustralian
Industry, challenged the Commissionsdecision in the High Court,
claiming thatsuperannuation was not an industrial matterwithin
section 51 (xxxv) of the Constitution.
15 May 1986 High Court ruled in favour of the Conciliation
andArbitration Commission.
Superannuation Case,(1986) 160 CLR 341
June 1986 National Wage Case established guidelines torequire
new industry superannuation schemes toconform to Commonwealth
operationalstandards.
National Wage Case 1986 Reason for Decision
1987 Insurance and Superannuation Commission (ISC)was
established as an industry regulator.
Insurance andSuperannuationCommissioner Act 1987
21 December1987
Hawke Government introduced the OccupationalSuperannuation
Standards Act 1987 (OSSA).
Operating standards were prescribed for thevesting of benefits
from employer and employeecontribution; preservation of benefits
until age55; more member involvement in the control
ofsuperannuation funds; and security of membersbenefits.
OccupationalSuperannuationStandards Act 1987
25May 1988 Hawke Government statement Reform of theTaxation of
Superannuation contained measuresto bring forward payment of
superannuationtaxation liabilities by introducing a tax
oncontributions and reducing tax on benefits.Included proposal for
two major changes toreasonable benefits limit (RBL)
arrangements:
that the RBL based on a single multiplewould be replaced by RBL
based upon atapered scale so that a persons RBL tapersoff as salary
increases.that, with minor exceptions, all benefitswhich derive
from concessionally taxed
Reform of the Taxation ofSuperannuation
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sources or which are concessionally taxedthemselves would be
subject to the RBL,regardless of whether they were providedby
public or private sector sources.
Benefits previously subject to the RBL would besubject to the
new rules from 1July 1988 whilepublic sector benefits and golden
handshakeswould become subject to the RBL from 1July1990.
1July 1988 Reasonable benefit limits changes announced on25May
1988 take effect.
Insurance andSuperannuationCommission, Revisedinformation
circular no. 7,June1988.
August 1989 Hawke Governments 1989 retirement incomepolicy
statement established a policy in Australiabased on the twin
pillars of the Age Pensionand private superannuation, specifically
rejectingthe option of a National Superannuation Scheme.
Better incomes:Retirement income policyinto the next century
25July 1991 The Hon. Paul Keating MP, sitting as abackbencher,
provided an outline of hisproposed retirement income system
(NationalRetirement Income Scheme) to be based on theAge Pension
augmented by a privately fundedand employment related national
superannuationscheme.
A retirement incomespolicy
20August1991
In the Budget, Treasurer John Kerin announcedthat from 1 July
1992, under a new system to beknown as the Superannuation Guarantee
(SG),employers would be required to makesuperannuation
contributions on behalf of theiremployees.
Budget speech
2 April 1992 Keating Government introduced
SuperannuationGuarantee (Administration) Bill 1992 whichprovided
the basis for the proposedSuperannuation Guarantee.
Second reading speech:SuperannuationGuarantee(Administration)
Bill 1992
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and the SuperannuationGuarantee Charge Bill1992
June 1992 Senate Select Committee on Superannuationpresented its
first report. This SenateCommittee, in various forms, reviewed
andissued reports on various superannuation issuesup to the end of
the 40th Parliament (2004). Manyof these reports led to significant
changes in thesuperannuation system.
Safeguarding super: theregulation ofsuperannuation
(PP182/92)
1July 1992 Superannuation guarantee charge was 3per centfor
employers with a base year payroll of$1million or less and 4per
cent where theemployers base year payroll was above$1million.
SuperannuationGuarantee(Administration) Act 1992
1993 Keating Government overhauled regulation ofsuperannuation
with the introduction of theSuperannuation Industry (Supervision)
Act 1993(SIS Act). The OSSA continued in force but manyof its
provisions were repealed and transferredto the SIS Act.
Superannuation Industry(Supervision) Act 1993
1993 World Bank endorsed Australias three pillarsystem for the
provision of retirement income asworlds best practice.
Averting the Old AgeCrisis
1 January1993
Superannuation guarantee charge was 3per centfor employers with
a base year payroll of$1million or less, and 5per cent where
theemployers base year payroll was above$1million.
SuperannuationGuarantee(Administration) Act 1992
June 1993 The FitzGerald report advocated increasinghousehold
savings via superannuation butrecommended that national savings be
increasedby increasing public sector savings.Superannuations role
in increasing national
National saving: A reportto the Treasurer
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savings was no longer seen as important. Thiswas a significant
change in the policy rationalefor the superannuation system.
1994 Pension age for eligible women would be raisedto 65 years,
in a phased process between 1994and 2014.
Social Security LegislationAmendment Act (No.2)1994
9May 1995 In the 1995 budget speech, Treasurer RalphWillis
outlined plans to pay previously-announced tax cuts into
employeessuperannuation funds. Government was to makematching
contributions. The principal ofmatching government superannuation
co-contributions was established.
Budget Speech andaccompanying statement Saving for our
future.
1 July 1994 Superannuation Complaints Tribunal wasestablished to
deal with complaints aboutsuperannuation, specifically in the areas
ofregulated superannuation funds, annuities anddeferred
annuities.
Superannuation(Resolution ofComplaints) Act 1993
1 July 1994 Superannuation guarantee charge was 4per centfor
employers with a base year payroll of$1million or less, and 5per
cent where theemployers base year payroll was above$1million.
2November1995
Shadow Treasurer Peter Costello called foremployee choice and
for funds to compete forbusiness in an address to the Association
ofSuperannuation Funds of Australia.
Federal Coalitionsapproach tosuperannuation
1July 1995 Superannuation guarantee charge was 5per centfor
employers with a base year payroll of$1million or less, and 6per
cent where theemployers base year payroll was above$1million.
February 1996Coalitions 1996 election policies included:
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maintaining the Age Pension benchmark of25 per cent of average
weekly earningscontinuing the current system of twiceyearly
indexation in accordance with the CPIallowing people of pension age
to defertaking up their pension entitlement for upto five years in
return for receiving anincreased pension at a later
dateimplementing the phased increase to thepreservation age as
announced by theGovernment in 1992giving employees greater freedom
tochoose the fund into which theirsuperannuation contributions will
be paidallowing financial institutions to offerretirement savings
accounts as analternative to superannuation fundsmaintaining the
timetabled increase in thesuperannuation guarantee to 9per cent
byJuly 2002, andusing allocated funds in the 199596 Budgetto match
compulsory employeecontributions in full in a manner that isboth
efficient and equitable.
A Social Security SafetyNet, The Liberal andNational Parties'
SocialSecurity Policy(22February 1996
Super for all: Security andflexibility in retirement,The Federal
Coalitionssuperannuation andretirement incomespolicy (19February
1996)
1July 1996 Superannuation guarantee charge was 6per centof an
employers base year payroll for allemployers.
20 August1996
Superannuation surcharge for higher incomeearners was announced
by Treasurer PeterCostello in the Howard Governments firstbudget.
Other superannuation-related budgetannouncements included:
increasing the general age limit forsuperannuation contributions
from 65 to 70yearsallowing banks, building societies, creditunions
and life insurance companies toprovide superannuation in the form
ofRetirement Savings Accountsoffering an income tax rebate for
peoplewho contributed to the superannuation fundor Retirement
Savings Account of a non-working or low income spouse; and
Budget speech
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allowing employees who earned between$450 and $900 per month to
have theoption of choosing between Superannuationguarantee
contributions or the equivalent inwages and salary.
The Treasurer also announced that the formerGovernments 1995-96
Budget proposals foremployee and government contributions wouldbe
reviewed and that the schedule of employerSuperannuation guarantee
contributions wouldremain unchanged. The Coalition
Governmentproposed that employees should be able to optout by
having the opportunity to receive wagesor salary instead of
Superannuation guaranteecontributions.
March 1997 Final report of the Financial System
Inquiry,established by Treasurer Costello in May 1996,advocated
superannuation choice and otherchanges to the superannuation
system.
Financial System Inquiry,Final report (Wallisreport).
13May 1997 1997-98 Budget announcements included
theestablishment of a broad-based savings taxrebate, preservation
of all benefits from 1July1999, increasing the
superannuationpreservation from 55to 60 years on a phased-inbasis
and a Deferred Pension Bonus Plan whichoffered a financial
incentive to defer retirement.
Joint statement by theTreasurer and Ministerfor Social
Security,Savings: choice andincentive
1July 1997 Maximum age for superannuation guaranteecontributions
was increased from 65 to 70 years.
Taxation LawsAmendment Act (No.3)1997
1July 1997 Retirement Savings Accounts (RSAs) wereintroduced.
RSAs were intended to provide asimple, low-cost and low-risk
savings productwhich employers could use as an alternative tomaking
contributions to superannuation funds
Retirement SavingsAccount Act 1997
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for their superannuation contributions foremployees. Individuals
could also use RSAs fortheir personal superannuation
contributions.
20September1997
Age Pension was to be formally maintained atminimum of 25per
cent of AWOTE.
Social Security andVeterans AffairsLegislation Amendment(Male
Total AverageWeekly EarningsBenchmark) Act 1997
1July 1997 Limited access to superannuation prior topreservation
age became possible oncompassionate grounds.
Superannuation Industry(Supervision) Regulations(Amendment)
1997
9 December1997
Limited access to superannuation prior topreservation age became
possible if the memberwas in severe financial hardship. This
wasdefined as being in receipt of Commonwealthincome support for a
continuous period of 26weeks or a cumulative period of 39weeks.
Superannuation Industry(Supervision) Regulations(Amendment)
1997
1998 Age Pension means test for retirement incomestreams was
revised. Pension Bonus scheme wasintroduced. A person could accrue
a pensionbonus payment by deferring claiming thepension while still
working.
Social Security andVeterans AffairsLegislation Amendment(Pension
Bonus Scheme)Act 1998
1July 1998 Australian Prudential Regulation Authority (APRA)was
established as the lead superannuationregulator. The Australian
Securities andInvestments Commission also took a significantrole in
the regulation of superannuation. TheAustralian Taxation Office
(ATO) continued tocarry out some regulatory functions andadminister
the superannuation taxationlegislation. The Insurance and
SuperannuationCommission ceased to operate on the same date.These
changes were in response to therecommendations of the Wallis
Inquiry.
Australian PrudentialRegulation Authority Act1998
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1July 1998 Superannuation guarantee charge was 7 per centof
employers base year payroll for allemployers.
1July 1999 Introduction of provisions for establishing abinding
death benefit nomination forsuperannuation fund trustees that are
not self-managed superannuation funds.
SuperannuationLegislation AmendmentAct 1999
1 July 1999 A number of changes were made to preservationrules
and there was a phased increase inpreservation age from 55years
announced in1997-98 Budget take effect according to
thefollowing:
born before 1July 196055yearsborn during the year 1July 1960 to
30June196156yearsborn during the year 1 July 1961 to 30
June196257yearsborn during the year 1 July 1962 to 30
June196358yearsborn during the year 1 July 1963 to 30
June196459yearsborn after 30 June 196460years
Superannuation Industry(Supervision) Regulations(Amendment)
1998
30July 1999 Reforms to business taxation, includingproposals to
reduce the capital gains tax (CGT)rate for super funds to 10per
cent.
Review of BusinessTaxation, Report July1999, Final
report,Chairmans introduction
21September1999
A complying superannuation entity that acquireda CGT asset and
made a capital gain from a CGTevent happening to that CGT asset was
able toreceive a 33 per cent discount on the capitalgain, providing
that the CGT asset was owned bythe taxpayer for at least 12
months.
New Business Tax System(Integrity and OtherMeasures) Act
1999
8 October1999
ATO took administrative responsibility for Self-Managed
Superannuation Funds (SMSF).
SuperannuationLegislation AmendmentAct (No.3) 1999
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1July 2000 Superannuation guarantee charge was 8per centof
employers base year payroll for allemployers.
10December2001
Productivity Commission delivered its final reportto the
government for its inquiry into theSuperannuation Industry
(Supervision) Act 1993and certain other superannuation
legislation.Major recommendations included:
the need for funds regulated by theAustralian Prudential
Regulation Authorityto prepare a risk management strategyprotection
of lost member accounts withbalances in excess of $1,000 should
beremovedPart 23 of the Superannuation Industry(Supervision) Act
1993 should be amendedto require the Minister to table
inParliament, as soon as practicable, theAustralian Prudential
Regulation Authoritysadvice and the reasons for the
Ministersdecision on whether to provide financialassistance to
funds which suffer substantialloss from theft or fraud
Review of theSuperannuation Industry(Supervision) Act 1993and
certain othersuperannuationlegislation
March 2002 Financial Services Reform Act 2001was designedto be a
single licensing and disclosure approachfor all financial services,
includingsuperannuation.
Financial Services ReformAct 2001
1July 2002 Maximum age for personal superannuationcontributions
increased from 70 to 75 years (forpeople working at least 10 hours
a week).
Superannuation Industry(Supervision) AmendmentRegulations 2002
(No. 3)
1 July 2002 Temporary residents who were permanentlydeparting
Australia could withdraw theiraccumulated superannuation benefits
beforetheir preservation age. This does not apply toNew Zealand
residents.
Superannuation Industry(Supervision) AmendmentRegulations 2002
(No. 2)
1July 2002 Superannuation guarantee charge was 9per centof
employers base year payroll for allemployers.
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28 December2002
Superannuation assets were able to be dividedbetween the parties
in a marriage breakdown.
Family Law
LegislationAmendment(Superannuation)(ConsequentialProvisions) Act
2002
1 July 2003 Superannuation government co-contributionprovided
for a matching government contributionfor eligible personal
contributions for lowincome earners (those earning less than
$27,500with a reduction of $0.08 per dollar earned up to$40,000),
with a maximum governmentcontribution of $1,000.
Superannuation(Government co-contribution for LowIncome Earners)
Act 2003
1 July 2003 Requirement for employers to make
quarterlysuperannuation guarantee payments wasintroduced.
Taxation LawsAmendment(Superannuation) Act (No.2) 2002
1 July 2003 Superannuation surcharge was reduced from 15per cent
to 14.5 per cent.
Superannuation(Surcharge RateReduction) AmendmentAct 2003
25 February2004
Treasurer released A more flexible andadaptable retirement
income system as part ofAustralias Demographic
Challengesannouncement. Amongst other things this reportproposed to
allow access to a personssuperannuation, in the form of an
incomestream, before they had left the work force (thatis,
transition to retirement pensions) and toscrap the work test for
those under age 65.
A more flexible andadaptable retirementincome system
1July 2004 Changes were made to the regulation ofsuperannuation
entities. All superannuationtrustees of large eligible funds had to
belicensed from 1 July 2004. Trustees of SMSFs didnot have to be
licensed.
Superannuation SafetyAmendment Act 2004
3 June 2004
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Superannuation regulations were changed toallow the portability
of money between differentsuperannuation accounts.
Superannuation Industry(Supervision) AmendmentRegulations 2004
(No. 3)
1July 2004 Tax free payment of superannuation benefitscould be
made to the surviving partner on aninterdependent relationship. An
interdependentrelationship can encompass same-sex couples ora
relationship where one person is financiallydependent on another
person. For example,were a son or daughter, is financially
supportinga parent.
SuperannuationLegislation Amendment(Choice ofSuperannuation
Funds)Act 2004
1 July 2004 Work test governing contributions made underage 65
ceased to operate. Work test remainedfor contributions made above
age 65.
Superannuation Industry(Supervision) AmendmentRegulations 2004
(No. 4)
1 July 2004 Superannuation surcharge was reduced from14.5 per
cent to 12.5 per cent.
Superannuation BudgetMeasures Act 2004
1 July 2004 Superannuation government co-contributionmatching
rate increased from 100per cent to150per cent up to a maximum
contribution of$1,500. Eligibility income thresholds increased
to$28,000 for full contribution with a reduction of$0.05 per dollar
earned up to $58,000.
Superannuation(Government Co-contribution for LowIncome Earners)
Act 2003
10 May 2005 Treasurer Costello announced in the Budget
theabolition of the superannuation surcharge.Changes made were
intended to take effect from1 July 2005.
Budget speech
1 July 2005 Transition to Retirement (Superannuation)pensions
became available. A member couldcommence to receive a transition to
retirementpension without having to leave the workforce
orretire.
Superannuation Industry(Supervision) AmendmentRegulations 2005
(No. 2)
1July 2005 Choice of superannuation fund wasimplemented. This
required employers toprovide their employees with a choice of
fundinto which superannuation guarantee paymentsmade for them could
be paid. The choice of fund
SuperannuationLegislation Amendment(Choice ofSuperannuation
Funds)Act 2004
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proposals were first announced in the 1997-98Budget. In 1998,
the Superannuation LegislationAmendment (Choice of Superannuation
Funds)Bill 1998 was the first bill introduced toimplement the
measure, however the Bill lapsedwith the election in 2001. The
SuperannuationLegislation Amendment (Choice ofSuperannuation Funds)
Bill 2002 was thenintroduced in 2002 and this was
subsequentlyrenamed as a 2003 Bill. The 2003 Bill wasamended in
2003 and 2004 before finally beingpassed by the Parliament.
1 July 2005 Superannuation surcharge abolition took effect.
Superannuation LawAmendment (Abolition ofSurcharge) Act 2005
1 Jan 2006 Contributions splitting took effect. A
memberssuperannuation guarantee and othercontributions could be
split with their spouse.
Superannuation Industry(Supervision) AmendmentRegulations 2005
(No. 8)
9 May 2006 In the Budget, Treasurer Costello announcedplans to
simplify superannuation. Simpler Superincluded:
exemption from tax on end benefits forAustralians aged 60 years
or over from 1July 2007no tax on a lump sumno tax on a
superannuation pensionreasonable benefit limits to be
abolishedtransferring super between funds madeeasier.
Implementation date was 1 July 2007.
Budget speech
Continuing tax reform:Ministerial statement bythe Treasurer
1 July 2007 Most simplified superannuation amendmentstook
effect. Bulk of operating superannuation taxlaw was now in the
Income Tax Assessment Act1997. Prudential and operational aspects
werelargely in the SIS Act. Residual parts ofsuperannuation law
remained in the Income TaxAssessment Act 1936.
Tax Laws Amendment(SimplifiedSuperannuation) Act 2007
-
1 July 2007 Minister for Revenue and Assistant
Treasurerannounced that tax free benefits were able to bepaid to
those with a terminal illness.
Media release
Tax Laws Amendment(2008 Measures No. 1)Act 2008
31 December2007
Employees ability to recover unpaidsuperannuation amounts from
employers thathave ceased operating was enhanced.
Corporations Amendment(Insolvency) Act 2007
16 February2008
Superannuation fund members with a diagnosedterminal medical
condition were able to accesstheir accrued superannuation
entitlements.
Superannuation Industry(Supervision) AmendmentRegulations 2008
(No. 1)
3 March 2008 Minister for Superannuation and Corporate Law,Nick
Sherry, announced the establishment of aSuperannuation Advisory
Group to advise onmatters relevant to current or
prospectivesuperannuation legislation and on Governmentpolicy
proposals which have significant impactfor the superannuation
industry.
Media release
5 May 2008 Minister Sherry announced consultation on ameasure
introduced by the Coalition Governmentwhich required future
superannuationcontributions and existing balances fortemporary
residents to be transferred to theATO. If these were unclaimed
after 5 years, theamounts would be confiscated. Extra revenue ofup
to $1 billion a year was predicted.
Media release
13 May 2008 Labors first Budget contained details of a reviewof
taxationAustralias future tax system, to bechaired by Treasury
Secretary Dr Ken Henry.Terms of reference included the
governmentscommitment to preserve tax-freesuperannuation payments
for the over 60s.
Superannuation budget initiatives included:
expanded definitions of income to includecertain salary
sacrificed contributions to
Australias future taxsystem and terms ofreference
Budget paper no. 2:200809
-
superannuationaccess to tax free lump sums for personswith a
terminal medical conditionpayment of temporary
residentssuperannuation to the AustralianGovernmentestablishment of
a Superannuation ClearingHouse Facilityreduction in funding for
choice ofsuperannuation fundnot to proceed with
SimplifiedSuperannuationadvertising campaign.
19 May 2008 In a speech to the Institute of Actuaries
FinancialServices Forum Minister Sherry announced thatuniversal
forecasting of superannuation end-benefits could be introduced to
enable betterunderstanding of retirement savings.
The Governmentspriorities insuperannuation andfinancial
services
28 May 2008 Attorney-General Robert McClelland introducedthe
first of a range of amendments to removesame-sex discrimination
from acts governingCommonwealth superannuation schemes. Thisensured
that same-sex couples were not deniedthe payment of death benefits
fromsuperannuation schemes or the tax concessionson death benefits
that were made available toopposite-sex couples.
Same-Sex Relationships(Equal Treatment inCommonwealth
LawsSuperannuation) Bill 2008
June 2008 ASIC began to provide advice on long
termsuperannuation returns.
Media release
17 Jun 2008 The Same-Sex Relationships (Equal Treatment
inCommonwealth LawsSuperannuation) Bill 2008was sent to a committee
inquiry without areporting date.
Referral of Bills toCommittee
24 June 2008 Legislation providing further relief for
employerswho made a late superannuation guaranteecontribution
received Royal Assent.
Media release
Tax Laws Amendment(2008 Measures No.2) Act2008
-
26 June 2008 Minister Sherry announced a review of
pensionindexation arrangements for AustralianGovernment civilian
and military superannuationschemes. The review commenced in July
2008and was expected to conclude by the end of2008.
Media release
December2008
Review of Australian government pensionindexation (Matthews
Review) was completed.However the Report was not released to
thepublic until 21August 2009.
Pension IndexationReview website
18 December2008
Temporary residents superannuation benefitswere required to be
paid to the ATO, if notclaimed within six months of departing
Australia.
Media release
Temporary Residents'SuperannuationLegislation AmendmentAct
2008
4 December2008
Royal Assent to the Same-Sex Relationships(Equal Treatment in
Commonwealth LawsSuperannuation) Act 2008
1 April 2009 Higher tax rate of temporary
residentssuperannuation benefits were applied.
Media release
Superannuation(Departing AustraliaSuperannuation PaymentsTax)
Amendment Act2008
28 April 2009 Minister Sherry announced a review into
thegovernance, efficiency, structure and operationof Australias
superannuation system.
Media release
4 May 2009 Release of the Report on strategic issues for
theretirement income systemas part of theAustralias future tax
system inquiry (HenryReview). Amongst other things it
recommendedthat the superannuation guarantee contributionrate
remain at 9 per cent of ordinary time
Report on strategic issuesfor the retirementincome system
-
earnings and retained the $450 per monthminimum wage threshold
for superannuationguarantee purposes.
12May 2009 200910 budget announcements included:
extension of capital loss roll-over forcomplying superannuation
fund mergersdrawdown relief for retirees for 2008-09further
drawdown relief for retireesamendments to the general
unclaimedmoney regime and other amendmentsresulting from the
temporary residentssuperannuation measurereducing the concessional
contributions capto $25,000 (indexed) from 200910payment of small
and insoluble lostaccounts to unclaimed moniestrans-Tasman
retirement savings portabilityscheme.
Budget paper no. 2:200910
29 May 2009 Minister Sherry announced the terms ofreference and
makeup of the review into thegovernance, efficiency, structure and
operationof Australias superannuation system.
Media release
1 July 2009 Rate at which government superannuation
co-contribution is paid was reduced temporarilybetween 1 July 2009
and 30 June 2014. Thematching rate was to be 100per cent for
2009-10, 2010-11 and 2011-12 (with a maximum of$1,000), 125per cent
for 2012-13 and 2013-14(with a maximum of $1,250). Matching
ratereturns to $1.50 for every $1 contribution(subject to income
test threshold) on 1 July 2014(with a maximum of $1,500).
Tax Laws Amendment(2009 Budget MeasuresNo 1) Act 2009
1 July 2009 Limit on concessional contributions (formallyknown
as tax deductible contributions) reducedfrom $50,000 per annum to
$25,000 per annumfor 200910 and later years. This limit wasindexed
to changes in AWOTE (if those changeswere sufficiently large
enough). Transitionalmeasures remained in place for those over
50years of age to 20112012. Annual limits on
Tax Laws Amendment(2009 Budget MeasuresNo 1) Act 2009
-
non-concessional contributions (that is, after taxcontributions)
are six times the limit onconcessional contributions for those
under 50years of age (that is, six times $25,000 or$150,000 per
annum for the 200910 year).
1 July 2009 Income for government superannuation co-contribution
purposes to include a personsreportable employer
superannuationcontributions. That is, the amount that theemployer
puts into superannuation on theemployees behalf that exceeds
thesuperannuation guarantee requirements.
Tax Laws Amendment(2009 Measures No 1) Act2009
1 July 2009 Expanded definition of ordinary time earningsfor
superannuation guarantee purposes tookeffect. Ordinary time
earnings included over-award payments, shift loadings, allowances
andpiece rates paid in relation to a persons ordinaryhours of work.
It did not include overtimepayments.
SuperannuationGuarantee Ruling (SGR)2009/2
Later regulationspecifically exemptedparenting payments
fromdefinition of ordinarytime earnings forsuperannuationguarantee
purposes.
9 July 2009 Superannuation funds were able to offer
limitedfinancial advice to their members.
Media release
21 August2009
Release of the Matthews Report recommendedthat government
superannuation pensionscontinue to be adjusted by increases in
theConsumer Price Index (CPI). Government fullysupported this
recommendation.
Matthews Report
20 September2009
The rate of the Age Pension was raised by $30per week for single
people. Existing pensionsupplements were consolidated into one
pensionsupplement and increased by $2.49 per week forsingle people
and $10.14 per week for couples.
The 25per cent of male total average weeklyearnings (MTAWE)
adequacy benchmark wasadjusted to 27.7per cent for single people
and
Social Security And OtherLegislation Amendment(Pension Reform
andOther 2009 BudgetMeasures) Act 2009
-
41.76per cent for couples. A new pricesmeasure called the
Pensioner and BeneficiaryLiving Cost Index (PBLCI) was added to
thepension indexation process. Where the increasein the PBLCI was
greater than that for the CPI itwould be used instead of the CPI in
theindexation process.
The pension income test taper rate wasincreased from 40 per cent
to 50 per cent. Awork bonus was introduced that exempted halfof any
income from employment up to $500 perfortnight from consideration
under the incometest.
The Pension Bonus Scheme was abolished.
14 December2009
Clearer super choices, the Phase onepreliminary report of the
review into thegovernance, efficiency, structure and operationof
Australias superannuation system (CooperReview) on superannuation
fund governance wasreleased.
Clearer super choices:matching governancesolutions, Phase
onepreliminary report
January 2010 There was to be formal inclusion of
specificsuperannuation funds (usually industry funds) inindustrial
awards. This change did not restrict anemployees right to have
contributions made to asuperannuation fund of their choice.
Fair Work Act 2009,paragraph 139(1)(i)
20 April 2010 MySuper, the second Phase onepreliminaryreport of
the Cooper Review was released.
MySuper: optimisingAustraliansuperannuation, SecondPhase
onepreliminaryreport
29 April 2010 Self-managed super solutions, the Phase
threepreliminary report of the Cooper Review wasreleased.
Self-managed supersolutions, Phase threepreliminary report
2 May 2010 Government response to Australias future taxsystem
review (Henry Review) was released. TheGovernment agreed to the
following:
Superannuation guarantee rate to be raised
Media release
-
to 12 per cent between 201314 and 201920Superannuation guarantee
age limit to beincreased to 75 from 1July 2013an annual
superannuation contribution ofup to $500 provided for those
receivingadjusted taxable income of up to $37,000per annum andthe
concessional contribution cap for thoseover age 50, with less than
$500,000 intotal superannuation benefits to bepermanently raised
from $25,000 to$50,000 per annum.
The proposed measures were repeated inbudget papers released on
11 May 2010 (seebelow).
11 May 2010 2010-11 Budget announcements included:
changes to co-contributions scheme.Income thresholds applying
for 200910were to continue for a further two years andthe
government co-contribution rate was tobe set permanently at $1 for
every $1 ofpersonal contributions made by thosereceiving an
adjusted annual income lessthan $31,920 per annumnew low income
government contributionfor those on adjusted taxable incomes of
upto $37,000. This was to commence from2012-13higher concessional
contributions caps forindividuals aged over 50 withsuperannuation
balances below $500,000progressively increase the
superannuationguarantee rate from 9 per cent to 12 percent by
2019-20raise the superannuation guarantee agelimit from 70 to 75
years.
Budget paper no. 2:20102011
1 July 2010 Small business employees were able to fulfiltheir
superannuation guarantee requirements bymaking payment to an
approved clearing house.
Tax Laws Amendment(2010 Measures No. 1)Act 2010
-
1 July 2010 Implementation of 201011 Budgetannouncements
relating to pausing of incomethresholds for the Government
co-contributionand permanent reduction in co-contribution rateat $1
for every $1 of personal contributions.
Tax Laws Amendment(2010 Measures No. 3)Act 2010
5 July 2010 Final report of the Cooper Review was released.It
includes 177 recommendations covering tenbroad areas of reform:
MySuper (a simplified low-cost defaultsuperannuation product)
and choice offund/default fund arrangementstrustee
governanceinvestment governancetransparency of fund
operationsinsurance arrangements and feesprudential
requirementsretirement products and adviceself-managed
superannuation fundsbackoffice industry arrangements,
andregulation.
Final Report
16 December2010
Government formally accepted the bulk ofCooper Reviews
recommendations (StrongerSuper), including implementation of low
costsuperannuation funds (MySuper), streamlinedback office
procedures (Super Stream),strengthening the oversight of
self-managedsuperannuation funds, strengthening APRAsprudential
supervision of the superannuationindustry and increasing prudential
requirementsof trustees.
Media release
1 February2011
Government announced that the establishmentof a consultation
panel to advise on theimplementation of the Cooper
Reviewrecommendations.
Media release
13 April 2011 Government announced its decision to provide
agrant of approximately $55 million in financialassistance to
benefit the members of four
Media release
-
superannuation funds that were formerly underthe trusteeship of
Trio.
10May 2011 Government announced a range of measuresincluding
some linked to implementing theCooper Review recommendations:
allowing superannuation fund trustees touse of tax file numbers
(TFNs) from 1July2011 to locate multiple member accounts toassist
in account consolidationrefund of excess concessional
contributionsemployees were to receive information ontheir payslips
about the amount ofsuperannuation actually paid into theiraccount
from 1July 2012concessional superannuation contributioncap of
$50,000 for those aged over 50 yearswith a total superannuation
balance of lessthan $500,000extending the pause to the indexation
ofthe income threshold for thesuperannuation co-contributionpayment
of $55million to compensatemembers of four superannuation
funds,formerly under the trusteeship of TrioCapital Limited, which
suffered losses dueto fraudulent conduct.
Budget paper no. 2:201112
10May 2011 Access removed to the trading stock exception tothe
capital gains tax primary code rule forcertain assets (primarily
shares, units in a trustand land) owned by a complying
superannuationentity.
Tax Laws Amendment(2012 Measures No. 1)Act 2012
1 July 2011 Implementation of greater use of TFNs to
locatemultiple member accounts to assist in
accountconsolidation.
Tax Laws Amendment(2011 Measures No. 2)Act 2011
1July 2011 Implementation of a limited refund of
excessconcessional contributions for taxpayers thatbreach the limit
by $10,000 or less if they do nothave excess concessional
contributions for anearlier financial year commencing on or after
1July 2011.
Tax and SuperannuationLaws Amendment (2012Measures No. 1) Act
2012
-
1July 2011 Regulations would be able to be made imposingrules on
SMSF investment in collectables orpersonal use assets.
Tax Laws Amendment(2011 Measures No. 2)Act 2011
21September2011
Government announced its decisions on the keydesign aspects of
its accepted recommendationsfrom the Cooper review including:
MySuper products to have a singleinvestment strategy and a
standard set offees except in certain circumstancesemployers must
make contributions foremployees who have not chosen their fund,to a
fund offering a MySuper product inorder to satisfy superannuation
guaranteeobligations from 1 October 2013by 1 July 2017, funds would
need to transferthe existing default balances of members toa
MySuper productnew processes for locating andconsolidating multiple
member accounts sothat inactive accounts with balances under$1,000,
and accounts in eligible rolloverfunds are automatically
consolidated intothe members current active account (unlessthe
member opts out), andrequirements for employers to disclose
onpayslips when superannuation contributionsare due to be paid.
Media release
Stronger super:Information pack
Stronger super:Outcomes of consultationprocess
1October2011
Merging superannuation funds could choose totake up capital
gains tax loss relief where thetransferring entity transfers assets
to thereceiving entity on or after 1 October 2011 andbefore 2July
2017.
Superannuation LawsAmendment (CapitalGains Tax Relief andOther
EfficiencyMeasures) Act 2012
29November2011
Government announced a number of changes tosuperannuation
arrangements as part of theMid-Year Economic and Fiscal Outlook
including:
individuals who receive less than 10 percent of their income
through employment
Media release
-
or business would not be eligible for thegovernment low income
superannuationcontribution (consistent with therequirements for the
low incomeGovernment superannuation co-contribution)matching rate
for the Governmentsuperannuation co-contribution to bereduced from
$1 to $0.50, with themaximum benefit also to be reduced
from$1,000to $500. The maximum incomethreshold was also proposed to
fall from$61,920 to $46,920indexation of concessional
contributioncaps was proposed to be paused for oneyear in 2013-14
at $25,000 for individualsunder the age of 50 and $50,000
forindividuals aged 50and overextension of draw-down relief for
account-based pensions to 2012-13 year, with a 25per cent reduction
in the minimum paymentamount.
20 January2012
Government formally announced a review ofdefault superannuation
funds arrangements bythe Productivity Commission (PC) to
designcriteria for the selection and ongoingassessment of
superannuation funds eligible fornomination as default funds in
modern awards byFair Work Australia.
Media release
21March2012
Superannuation fund members would be able toelectronically
request the consolidation of theirsuperannuation benefits through
the ATO.
Tax Laws Amendment(2011 Measures No. 9)Act 2012
8May 2012 2012-13 Budget announced a number
ofsuperannuation-related measures including:
reduction in superannuation contributionstax concession from
30per cent to 15percent for very high income earners (thosewith
income greater than $300,000) from1July 2012capital gains tax
relief for mergers ofcomplying superannuation funds from1June 2012
to 1 July 2017
Budget paper no. 2:2012-13
-
deferral of the 2010-11 Budget measure toincrease the
concessional contributions capfor individuals over 50with
asuperannuation balance of less than$500,000 from 1July 2012 to
1July 2014special industry levy on APRA-regulatedsuperannuation
funds to raise$467.1million over 2012-13 to 2017-18 toimplement
SuperStream reforms.
27June 2012 ATO was permitted to disclose details of
anindividuals superannuation interests andsuperannuation benefits
to specified classes offunds to enable the ATO to provide
informationabout a members superannuation interests,including
amounts held by the ATO. Thisinformation would enable funds to
assist theirmembers to find and consolidate theirsuperannuation
interests.
Tax and SuperannuationLaws Amendment (2012Measures No. 1) Act
2012
29June 2012 Implementation of a framework to support
theintroduction of superannuation data and paymentregulations and
standards that would apply tospecified superannuation
transactionsundertaken by superannuation entities,retirement
savings account providers (RSAproviders) and employers. Application
of thestandards would be staggered according to thefollowing
schedule:
RSA providers and trustees of asuperannuation entity 1July
2013medium to large employer on 1 July 2014 inrelation to conduct
that occurs on or after 1July 2014small employer on 1 July 2014 in
relation toconduct that occurs on or after 1 July 2015,unless the
regulations prescribe analternate application date after 1 July
2015.
SuperannuationLegislation Amendment(Stronger Super) Act 2012
29June 2012 Productivity Commission (PC) released draftreport on
review of default superannuationarrangements. PCs preferred options
were for abody that is either part of, or separate to, the
-
Fair Work Authority to undertake assessmentsabout the selection
of default superannuationfunds. Final report was to be submitted to
theGovernment in October 2012.
1July 2012 Government low income superannuationcontribution came
into effect, providing for agovernment contribution of 15per cent
ofeligible contributions up to a maximum of $500for eligible
individuals on adjusted taxableincomes of up to $37,000 (not
indexed).
Tax Laws Amendment(Stronger, Fairer, Simplerand Other Measures)
Act2012
1July 2012 Implementation of arrangements for thetemporary levy
on APRA-regulated funds tosupport the costs of SuperStream
measures.
SuperannuationSupervisory LevyImposition AmendmentAct 2012
Tax Laws Amendment(Stronger, Fairer, Simplerand Other Measures)
Act2012
1July 2012 Superannuation providers were required toprovide
statements for all members who held aninterest in the
superannuation plan at any timeduring a reporting period, not just
those forwhom contributions were received. Theamendments apply to
the 2012-13 financial year,for which the first member statements
were dueby October 2013.
Superannuation LawsAmendment (CapitalGains Tax Relief andOther
EfficiencyMeasures) Act 2012
1July 2012 Key thresholds changed for the
superannuationco-contribution scheme to apply for the 201213income
year onwards:
reducing rate of payment for thesuperannuation co-contribution
from 100per cent to 50 per centdecreasing the maximum amount
payablefrom $1,000 to $500extending the freeze on the indexation
ofthe lower income threshold for the 2012-13income year andsetting
the higher income threshold at$15,000 above the lower income
threshold
Tax and SuperannuationLaws Amendment (2013Measures No. 2) Act
2013
-
(down from $30,000).
1July 2012 Reduced tax concession for individuals withincome
above $300,000 receive on theirconcessional superannuation
contributions from30 per cent to 15 per cent for the 2012-13income
year. Special rules for working out thetax for:
individuals with defined benefit interestsState higher level
office holders withsuperannuation contributions toconstitutionally
protected fundsCommonwealth justices and judges inrespect of
contributions for a definedbenefit interest in a superannuation
fundestablished under the Judges Pensions Act1968.
Former temporary residents who received adeparting Australia
superannuation payment towhich withholding tax applied would be
eligiblefor a refund of the amount tax paid and releasefrom
liability for tax, as they effectively do notreceive any
concessional tax treatment on theircontributions to
superannuation.
Tax and SuperannuationLaws Amendment(Increased
ConcessionalContributions Cap andOther Measures) Act 2013
Superannuation(Sustaining theSuperannuationContribution
Concession)Imposition Act 2013
22August2012
Government submission to the PC review ofdefault superannuation
arrangements proposedthat funds seeking to be listed as default
fundsin modern awards should have the opportunity toput an
Expression of Interest to the expert panelwithin Fair Work
Australia, which would assessthe funds against legislated criteria
proposed bythe PC.
Media release
9September2012
APRA was granted the power to make prudentialstandards for
regulated superannuation funds.
SuperannuationLegislation Amendment(Trustee Obligations
andPrudential Standards) Act2012
12October2012
Productivity Commission report on defaultsuperannuation
arrangements was released. Thereport recommended that decisions on
the
Default superannuationfunds in modern awards
-
listing of default products should be made by anew Default
Superannuation Panel within FairWork Australia, with the APRA
MySuper productauthorisation framework providing a first filterfor
the selection of products and a set of non-prescriptive factors
(such as investmentobjectives, performance, fees and costs) as
asecond stage quality filter when selectingdefault products for
modern award.
22October2012
Government announced revised arrangementsrelating to lost and
unclaimed moneys. Inrelation to superannuation:
the account balance threshold below whichinactive accounts, and
accounts ofuncontactable members, are required to betransferred to
the ATO are proposed to beincreased from $200 to $2,000the period
of inactivity before an account ofan unidentifiable member is
required to betransferred to the ATO would be reducedfrom five
years to 12 months.interest at a rate equivalent to ConsumerPrice
Index (CPI) inflation from 1 July 2013on all reclaimed
superannuation accounts.
Additional measures announced relating tosuperannuation
included:
increases to SMSF levy and changes topayment
arrangementsallowing the tax exemption for earnings onassets
supporting superannuation pensionsto continue following the death
of a fundmember in the pension phase until thedeceased members
benefits have beenpaid out of the fundproviding $10 million over
three years as acontribution to a non-governmentinvestment fund,
the earnings of which willbe used to fund the ongoing costs of a
newSuperannuation Consumer Centre (SCC)reducing the SuperStream
component ofthe Superannuation Supervisory levy beingcollected from
APRA-regulatedsuperannuation funds designed to recover
201213 Mid-YearEconomic and FiscalOutlook
-
the Governments costs of implementingSuperStream.
29November2012
In a speech to the 2012 National Conference ofthe Association of
Superannuation Funds ofAustralia (ASFA), Paul Keating considered
that acontribution of 12per cent of wages was notsufficient for
retirement because of increasedlongevity. Proposed policies to
address theincrease in longevity included compulsorydeferred
annuities or to increase contributionsto 15per cent via employer
contributions orthrough a government pooled insurance fund.
Extract from openingaddress to ASFAconference
2012 NationalConference of ASFA[Keating, speaking notes]
December2012
Legislation allowing individuals to transfer theirretirement
savings between an Australiancomplying superannuation fund and a
NewZealand KiwiSaver scheme received Royal Assent.Commencement was
scheduled for 1July 2013.
SuperannuationLegislation Amendment(New ZealandArrangement) Act
2012
30December2012
The balance threshold below which small lostaccounts were
required to be transferred to theCommissioner increased from $200
to $2,000.The period of inactivity before inactive accountsof
unidentifiable members would be required tobe transferred to the
Commissioner decreasedfrom five years to 12 months.
Treasury LegislationAmendment (UnclaimedMoney and OtherMeasures)
Act 2012
1January2013
Funds would be able to lodge MySuperapplications. Key features
of a MySuper productinclude:
there is a single diversified or lifecycleinvestment strategyall
members have access to the sameoptions and facilitiesthe MySuper
product is only for the pre-retirement phaseonly permitted fees can
be deducted frommember accounts and the permitted feesare the same
for all members in theMySuper product, with the exception of
theadministration fee.
SuperannuationLegislation Amendment(MySuper Core Provisions)Act
2012
SuperannuationLegislation Amendment(Service Providers andOther
GovernanceMeasures) Act 2013
-
Trustees able to have a single cap on percentagebased
administration fees. The amount of theadministration fee can be
capped at a specifiedamount, and must be the same for all membersof
that MySuper product.
1January2013
Various additional rules about fees withinMySuper were enacted
including not charging afee that relates to the payment of
conflictedremuneration to a financial services
licensee,arrangements for intra-fund advice, prohibitionof entry
fees and limiting exit fees, switchingfees and buy-sell spreads to
being charged on acost-recovery basis.
SuperannuationLegislation Amendment(Further MySuper
andTransparency Measures)Act 2012
1January2013
Registrable superannuation entity (RSE) licenseesmust be
authorised by APRA to operate aneligible rollover fund (ERF). New
enhancedtrustee obligations would apply to a trustee of anRSE that
has been authorised by APRA to offer anERF as members fully rely on
the trustee to makejudgments about managing theirsuperannuation.
These enhanced trusteeobligations required trustees to comply with
aduty to promote the financial interests ofmembers of the fund.
SuperannuationLegislation Amendment(Further MySuper
andTransparency Measures)Act 2012
31January2013
Registration regime for SMSF auditorscommenced. Auditors would
be required tomeet initial and ongoing requirements relatingto
their qualifications, competency andindependence. ASIC is
responsible for theregistration of SMSF auditors, settingcompetency
standards and taking enforcementaction against auditors who have
not met theirongoing obligations.
Superannuation LawsAmendment (CapitalGains Tax Relief andOther
EfficiencyMeasures) Act 2012
Superannuation AuditorRegistration ImpositionAct 2012
5April 2013 Government announced changes to improve thefairness,
sustainability and efficiency of thesuperannuation system. Changes
included:
Media release
-
capping the tax exemption for earnings onsuperannuation assets
supporting incomestreams at $100,000 from 1July 2014, witha
concessional tax rate of 15 per centapplying thereafter, and
applying the sametreatment to defined benefit fundsproviding for a
uniform $35,000concessional contributions cap for thoseaged 60years
or over from 1July 2013 andfrom 1July 2014 for those aged 50 years
oroverchanging the treatment of concessionalcontributions in excess
of the annual capfrom 1July 2013 to allow individuals towithdraw
excess contributions and to taxthese contributions at the
individual'smarginal tax rate, plus an interest chargeextending the
normal deeming rules from1July 2015 to superannuation account-based
income streamsextending concessional tax treatment todeferred
lifetime annuities from 1July 2014increasing threshold of $2,000 to
$2,500from 31December 2015 and then$3,000from 31December 2016 for
thetransfer of superannuation account balancesto the ATO for
inactive accounts andaccounts of uncontactable members.
The Government also announced establishmentof a Council of
Superannuation Custodians toensure that future changes are
consistent withan agreed Charter of Superannuation Adequacyand
Sustainability.
9May 2013 Government appointed a Charter Group toconduct
consultations on the Charter ofSuperannuation Adequacy and
Sustainability. Thisincluded developing and recommending aCharter
of Superannuation Adequacy andSustainability which embodies the
principles ofcertainty, adequacy, fairness and sustainability.
Discussion paper was released to assist in theconsultation
process.
Media release
Discussion Paper: Charterof SuperannuationAdequacy
andSustainability and Councilof SuperannuationCustodians
-
14May 2013 The 201314 Budget included a restatement ofthe
policies announced in April 2013 along withseveral other measures
including:
amending parameters of the 201213Budget measure to reduce the
contributionstax concession for those earning more
than$300,000further grants of financial assistance tocompensate
members of foursuperannuation funds, formerly undertrusteeship of
Trio Capital Limited (Trio),that suffered losses due to
fraudulentconductadditional funding for the
SuperannuationComplaints Tribunalamending the eligibility criteria
for the lowincome superannuation contribution to payindividuals
with an entitlement below $20(cost $15 million over four
years).
Budget paper no. 2:201314
1 July 2013 Superannuation guarantee charge was increasedfrom
9per cent to 9.25per cent.
SuperannuationGuarantee(Administration)Amendment Act 2012
1July 2013 Maximum age limit for superannuationguarantee charge
(70years) was abolished.
SuperannuationGuarantee(Administration)Amendment Act 2012
1July 2013 Suspension of the indexation of the
concessionalcontributions cap as announced in November2011. This
also resulted in a pause in theindexation of the concessional
contributions capfor individuals aged 50 years and over and
thenon-concessional contributions cap. Indexationis to resume from
1July 2014 when the cap isexpected to rise to $25,000.
Tax and SuperannuationLaws Amendment (2012Measures No. 1) Act
2012
1July 2013 Proposed commencement date forimplementation of
requirements for employersto report on payslips information related
to thepayment of superannuation contributions.
Tax and SuperannuationLaws Amendment (2012Measures No. 1) Act
2012
-
1July 2013 Commencement of enhancements tosuperannuation trustee
obligations includingrequiring a trustee to put the interests
ofmembers of funds first at all times and clearlyidentifying the
duties that apply to directors ofsuperannuation funds, including to
act honestlyand in the best interests of members.
SuperannuationLegislation Amendment(Trustee Obligations
andPrudential Standards) Act2012
1July 2013 Superannuation funds able to offer and
paysuperannuation contributions into MySuperproducts from this
date.
SuperannuationLegislation Amendment(MySuper Core Provisions)Act
2012
1July 2013 A trustee of a superannuation fund must
provideMySuper members with benefits by way ofinsurance that are
for death and benefits that areconsistent with the definition of
permanentincapacity in the regulations. A relevant membermust have
the option to opt-out of life and totalpermanent disability
insurance unless the fundmeets conditions prescribed in the
regulations.
SuperannuationLegislation Amendment(Further MySuper
andTransparency Measures)Act 2012
SuperannuationLegislation AmendmentRegulation 2013 (No. 1)
1July 2013 A number of additional data collection andreporting
requirements were imposed on APRAand specified funds including:
expanded powers to collect more accurateand complete data on the
investments andcosts of superannuation entitiesrequirements for
APRA to publishinformation on the returns, fees and costsof all
MySuper products quarterly. Thisrequirement does not limit APRA
frompublishing other information regardingMySuper or other
superannuation productsRSE licensees will be required to publish
aproduct dashboard for each of the fundsMySuper and choice products
on a part oftheir website that is accessible to the publicat all
timesFunds will also have to disclose theremuneration of directors
and executiveofficers. Regulations will specify other
SuperannuationLegislation Amendment(Further MySuper
andTransparency Measures)Act 2012
-
documents to be published on a fundswebsite to promote
transparencyRSE licensees will be required to publishinformation
regarding their portfolioholdings on their website. The RSE
licenseemust publish portfolio holdings as at thereporting day,
which will occur once everysix months on 30 June and 31
December,within 90 days after each reporting day.
1July 2013 Increase in the maximum levy payable by anSMSF and
change to the timing of the paymentfor 201314 financial year and
later years.
SuperannuationLegislation Amendment(Reform of Self
ManagedSuperannuation FundsSupervisory LevyArrangements) Act
2013
Superannuation (SelfManaged SuperannuationFunds) Supervisory
LevyImposition AmendmentRegulation 2013 (No. 1)
1 July 2013 Interest would be payable on all
unclaimedsuperannuation money payments in respect
ofindividuals.
Treasury LegislationAmendment (UnclaimedMoney and OtherMeasures)
Act 2012
1July 2013 Any provisions in a funds governing rules thatrequire
the trustee to use a specified serviceprovider, investment entity
or financial productwould be overridden except where
thearrangements is specified by law.
SuperannuationLegislation Amendment(Service Providers andOther
GovernanceMeasures) Act 2013
1July 2013 APRA would be able to issue infringementnotices for
minor and straight-forward breachesof the SIS Act.
SuperannuationLegislation Amendment(Service Providers andOther
GovernanceMeasures) Act 2013
1July 2013 Superannuation trustees required to provideeligible
persons, generally on request, with thereasons for decisions made
in relation to acomplaint.
SuperannuationLegislation Amendment(Service Providers and
-
Increase in the time limits to lodge complaintswith the
Superannuation Complaints Tribunalregarding total and permanent
disability (TPD)claims.
Other GovernanceMeasures) Act 2013
1July 2013 Information in each MySuper product dashboardabout
fees and other costs would need to beupdated within 14 days after
the end of a periodprescribed in regulations. Key information to
beincluded in the product dashboard is identified ingeneral terms,
with detail of the requirementsable to be prescribed in
regulations. Therequirement to include a statement about
theliquidity of a members investments has beenremoved.
Requirement to make portfolio holdings publicwould apply in
relation to the 30 June 2014reporting day and later reporting
days.
SuperannuationLegislation Amendment(Service Providers andOther
GovernanceMeasures) Act 2013
1July 2013 Interest paid by the Commonwealth on paymentsof
unclaimed superannuation from 1 July 2013,other than interest paid
to former temporaryresidents, would be a tax free component of
asuperannuation benefit.
Interest paid on the return of unclaimedsuperannuation to former
temporary residentsafter 1 July 2013 would be subject to
DepartingAustralia Superannuation Payment (DASP) tax at arate of 45
per cent. Interest paid to currentresidents of Australia in respect
of unclaimedsuperannuation is not subject to DASP tax.
Tax and SuperannuationLaws Amendment (2013Measures No. 1) Act
2013
1July 2013 Duties of superannuation trustees expanded torequire
the establishment and implementation ofprocedures by 30June 2014 to
identify and,where appropriate, merge multiple accounts of
amember.
Tax and SuperannuationLaws Amendment (2013Measures No. 2) Act
2013
1July 2013 Member protection standards were repealed.These
standards provided that a member with anaccount balance of less
than $1,000 could not
Superannuation Industry(Supervision) AmendmentRegulation 2013
(No. 2)
-
have their balance reduced by administrativefees that are
greater than the earnings accruingto their account. However,
trustees could deductadministrative fees in years with a
negativeinvestment return despite a members balancebeing less than
$1,000.
1July 2013 Concessional contributions cap was increased
to$35,000 (not indexed) for the 201314 financialyear for
individuals aged 60 years and over.
Tax and SuperannuationLaws Amendment(Increased
ConcessionalContributions Cap andOther Measures) Act 2013
1July 2013 A number of technical changes to the low
incomesuperannuation contribution (LISC) appliedincluding:
introducing an estimations process thatallows the Commissioner
for Taxation todetermine a persons eligibility for the LISCensuring
that all concessional contributionsfor a year attract LISC,
including allocationsfrom reserves and notional
taxedcontributionsreplacing the existing minimum paymentrule so
that any individual that is entitled toless than $10 of LISC will
have theirentitlement rounded up to $10enabling the Commissioner to
not rectifysmall overpayments and underpayments ofthe LISC that are
less than $10 andrequiring tabling of quarterly and
annualParliamentary reports on the LISC withdetails to be specified
in the regulations.
Tax and SuperannuationLaws Amendment(Increased
ConcessionalContributions Cap andOther Measures) Act 2013
1July 2013 Income tax relief applied to superannuationfunds
where there is a mandatory transfer ofdefault members account
balances to a MySuperproduct in another superannuation fund
between1July 2013 and 1July 2017.
Superannuation LawsAmendment (MySuperCapital Gains Tax Reliefand
Other Measures) Act2013
1July 2013 Changed arrangements for the taxation ofexcess
concessional contributions for the 2013-14 income year and later
income years so that:
Tax Laws Amendment(Fairer Taxation of ExcessConcessional
-
individuals can elect to release an amountof these excess
concessional contributionsfrom their superannuation. Any
releasedamounts proportionately reduce their non-concessional
contributionsa charge is imposed so that taxpayers whohave
concessional contributions in excess oftheir annual cap are taxed
at their marginalrate rather than at the highest marginalrate.
Contributions) Act 2013
Superannuation (ExcessConcessionalContributions Charge)
Act2013
5July 2013 Report of the Charter Group appointed on 9 May2013 to
develop and recommend a Charter ofSuperannuation Adequacy and
Sustainability andto develop and recommend an appropriatestructure
for a Council of SuperannuationCustodians. Key recommendations
included:
that there should be legislation establishinga Super Council
that would administer aSuper Charterthat the Council perform an
advisoryfunction only and that it have no regulatorypowers, but
that it does have the power toinitiate its own inquiries into
mattersconnected with the Charter principles.that the Council be
independent ofgovernment and that its members be
calledguardians.
A Super Charter: fewerchanges, better outcomes
31July 2013 Government announced that it would make nomajor
changes to superannuation tax policy forfive-year periods.
The Government also announced that it wouldbring forward
legislation to establish the SuperCouncil to ensure any future
changes tosuperannuation are consistent with an agreedCharter of
Superannuation Adequacy andSustainability. The Charter would
include thecommitment to a five-year moratorium onchanges to
superannuation tax policy.
Media release
-
2August 2013Government announced that the threshold belowwhich
small inactive superannuation accounts,including inactive accounts
of uncontactablemembers, are required to be transferred to theATO
would be increased from $4,000 to $6,000from 31 December 2016. This
builds on anearlier announcement to increase the thresholdfrom
$2,000 to $4,000 from 31December 2015.
Economic Statement
Media release
August andSeptember2013
Coalition release pre-election policy onsuperannuation. Key
proposals include:
not making any unexpected detrimentalchanges to
superannuationsuperannuation guarantee to increase from9per cent to
12per cent but gradualincrease delayed by two yearsrevisit
concessional contributions caps andincentives, such as
co-contributions, forlower income earners once the Budget isback in
strong surplusalign corporate governance insuperannuation more
closely withgovernance principles applicable to ASXlisted
companiesconduct a review of minimum withdrawalamounts from
account-basedsuperannuation pensionsallow small businesses to
remitsuperannuation guarantee payments to theATO as part of regular
tax payments, withthe ATO to distribute amounts to
individualaccounts, anddiscontinuing the low incomesuperannuation
contribution.
The Coalitions policy forsuperannuation
The Coalitions policy forsmall business
Fiscal budget impact ofFederal Coalition policies
31October2013
Obligation of RSEs to disclose executive officerremuneration and
other information wasdeferred from 1July 2013 to commence
from31October 2013.
ASIC Class Order [CO13/830] - RSE licenseesof
registrablesuperannuation entities
6November2013
Government announces decisions and furtherconsultation on a
range of previously announcedbut not legislatedtax and
superannuationmeasures. Measures which would not
proceedincluded:
Media release
-
capping the tax exemption for earnings onsuperannuation assets
supporting incomestreams at $100,000 from 1July 2014Council of
Superannuation Guardians andCharter of Superannuation Adequacy
andSustainability
Measures that would proceed includedincreasing the threshold
below which lostaccounts are required to be transferred to theATO
from $2,000 to $4,000, and then to $6,000.
A further 64measures would be the subject offurther
consultation.
28November2013
Government releases consultation paper ongovernance,
transparency and defaultsuperannuation in modern awards.
Better regulation andgovernance, enhancedtransparency
andimproved competition insuperannuation
Media release
14December2013
Government announces final decision onwhether to proceed with
64tax andsuperannuation measures that were subject tofurther
consultation after its 6November 2013announcements. Measures which
theGovernment indicated would proceed included:
the introduction of penalties for promotingillegal early release
of superannuation, andproviding the ATO with penalty options
forbreaches by SMSFs.Measures which the Government indicatedwould
not proceed included:encouraging the take-up of deferredlifetime
annuities (this was to be consideredas part of a proposed
review)inter-fund consolidation of accounts lessthan
$1,000prescribing additional rules for theacquisition and disposal
of certain assetsbetween SMSFs and related parties.
Media release
-
17December2013
Government releases 201314 MidYear Fiscaland Economic Outlook.
In addition to previouslyannounced measures, the statement
included:
the transfer of the Small BusinessSuperannuation Clearing House
to the ATOfrom April 2014minor savings to superannuation
advertisingand other consumer activities.
201314 MidYear Fiscaland Economic Outlook
1January2014
Default funds listed in modern awards (otherthan exempt public
sector superannuationschemes) must be authorised to offer a
MySuperproduct. The Fair Work Commission (formerlyFair Work
Australia) is required to conduct aone-off process to ensure, as
far as possible,that on 1 January 2014 modern awards do notpurport
to nominate any default funds that donot comply with MySuper
requirements. A termof an enterprise agreement will be an
unlawfulterm and of no effect to the extent that itnominates a
default fund that does not complywith this requirement.
SuperannuationLegislation Amendment(Further MySuper
andTransparency Measures)Act 2012
1January2014
Expert panel to be created within the Fair WorkCommission to
conduct four-yearly reviews ofdefault fund arrangements in modern
awardsand to list eligible MySuper products that are tobe used as
default funds where an employeedoes not nominate a superannuation
fund. Inmaking its assessment, the Fair WorkCommission is required
to consider a range offactors including:
the appropriateness of the MySuperproducts long term investment
returntarget and risk profilethe superannuation funds expected
abilityto deliver on the MySuper products longterm investment
return target, given its riskprofile andthe appropriateness of any
insuranceoffered in relation to the MySuper product.
Fair Work Amendment Act2012
-
1January2014
Employers must make superannuation guaranteecontributions for
employees who have not madea choice of fund to a fund that offers a
MySuperproduct.
SuperannuationLegislation Amendment(MySuper Core Provisions)Act
2012
1 July 2014 Superannuation guarantee charge to increasefrom
9.25per cent to 9.5per cent.
SuperannuationGuarantee(Administration)Amendment Act 2012
1July 2014 Concessional contributions cap to increase to$35,000
(not indexed) for the 201415 financialyear for individuals aged 50
years and over.
Tax and SuperannuationLaws Amendment(Increased
ConcessionalContributions Cap andOther Measures) Act 2013
1January2015
Corporate fund MySuper offerings andcustomised employer MySuper
offerings fromretail funds will be able to be listed in
modernawards, provided they satisfy a selection process.
Superannuation LawsAmendment (MySuperCapital Gains Tax Reliefand
Other Measures) Act2013
1 July 2015 Superannuation guarantee charge to increasefrom
9.5per cent to 10per cent.
SuperannuationGuarantee(Administration)Amendment Act 2012
1 July 2016 Superannuation guarantee charge to increasefrom
10per cent to 10.5per cent.
SuperannuationGuarantee(Administration)Amendment Act 2012
1July 2017 Superannuation guarantee charge to increasefrom
10.5per cent to 11per cent.
SuperannuationGuarantee(Administration)Amendment Act 2012
1July 2017 All RSE licensees generally have until 1 July 2017to
transfer all accrued default amounts to aMySuper product unless the
member opts-out inwriting.
SuperannuationLegislation Amendment(Further MySuper
andTransparency Measures)Act 2012
-
Mandatory transfers of account balances cantransfer losses and
defer income tax liability.
Superannuation LawsAmendment (CapitalGains Tax Relief andOther
EfficiencyMeasures) Act 2012
July 2017 The qualifying age for the Age Pension willincrease by
six months every two years until itreaches 67 years of age on
1January 2024.
Social Security And OtherLegislation Amendment(Pension Reform
andOther 2009 BudgetMeasures) Act 2009
1July 2018 Superannuation guarantee charge to increasefrom 11per
cent to 11.5per cent.
SuperannuationGuarantee(Administration)Amendment Act 2012
1July 2019 Superannuation guarantee charge to increasefrom
11.5per cent to 12per cent.
SuperannuationGuarantee(Administration)Amendment Act 2012
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