Issued by authority of the Minister for Revenue
and Assistant Treasurer

Superannuation (Government Co-contribution for Low Income Earners) Act 2003

Superannuation (Government Co-contribution for Low Income Earners) Amendment Regulations 2007 (No. 1)

The Tax Laws Amendment (Simplified Superannuation) Act 2007 and related Acts give effect to the Simplified Superannuation reforms, announced in the Government’s 5 September 2006 statement A Plan to Simplify and Streamline Superannuation – Outcomes of Consultation. The reforms make superannuation easier to understand, improve incentives to work and save, and provide greater flexibility over how superannuation savings can be drawn down in retirement.

In particular, the Tax Laws Amendment (Simplified Superannuation) Act 2007 consolidates certain superannuation provider reporting requirements from various Acts into the Taxation Administration Act 1953.

Section 55 of the Superannuation (Government Co-contribution for Low Income Earners) Act 2003 (Co-contribution Act) provides that the Governor-General may make regulations prescribing matters required or permitted by the Co-contribution Act to be prescribed, or necessary or convenient to be prescribed, for carrying out or giving effect to the Co-contribution Act.

The purpose of the Regulations is to amend the Superannuation (Government Co‑contribution for Low Income Earners) Regulations 2004 to update references and reflect the repeal of the reporting requirements in the Co‑contribution Act by the Tax Laws Amendment (Simplified Superannuation) Act 2007.

Details of the Regulations are set out in the Attachment A.

The Co-contribution Act specifies no conditions that need to be met before the power to make the Regulations may be exercised.

The Regulations commence on 1 July 2007.

The Regulations are legislative instruments for the purposes of the Legislative Instruments Act 2003.

ATTACHMENT A

Details of the Superannuation (Government Co-contribution for Low Income Earners) Amendment Regulations 2007 (No. 1)

Regulation 1 specifies the name of the Regulations as the Superannuation (Government Co-contribution for Low Income Earners) Amendment Regulations 2007 (No. 1)

Regulation 2 provides that the Regulations commence on 1 July 2007.

Subregulation 3(1) provides that Schedule 1 amends the Superannuation (Government Co-contribution for Low Income Earners) Regulations 2004 (Co‑contribution Regulations).

Subregulation 3(2) provides that the amendments apply to financial years commencing on or after 1 July 2007.

Schedule 1 – Amendments relating to contribution and transfer statements

The Tax Laws Amendment (Simplified Superannuation) Act 2007 consolidates superannuation entity reporting provisions in Division 390 of Schedule 1 to the Taxation Administration Act 1953. Consequently, it also repeals the current reporting provisions in sections 26 to 29 of the Co-contribution Act.

Where to pay a co-contribution

Item 1

Item 1 replaces every reference to “section 26 of the Act” in item 4 of subregulation 5(1) with “section 390-5 of Schedule 1 to the Taxation Administration Act 1953”.

This has application for financial years that begin on or after 1 July 2007, consistent with the application of the new reporting provisions in the Taxation Administration Act 1953.

Contribution and transfer statements

Items 2 and 5

Division 2.4 of the Co-contribution Regulations prescribes the information to be included in statements to the Commissioner of Taxation and the financial year from which statements are required. This Division supports section 26 and 27 of the Co‑contribution Act.

Item 2 omits Division 2.4 of the Co‑contribution Regulations with application for financial years that begin on or after 1 July 2007, consistent with the repeal of sections 26 and 27 of the Co-contribution Act under the Simplified Superannuation reforms. The new reporting provisions in the Taxation Administration Act 1953 apply for financial years that start on or after 1 July 2007.

Schedules 4 and 5 to the Co-contribution Regulations outline the information to be provided in contribution statements and transfer statements. Item 5 omits Schedules 4 and 5 to the effect that they do not apply for financial years that begin on or after 1 July 2007. For these financial years, the new Taxation Administration Act 1953 reporting provisions would allow the Commissioner of Taxation to obtain the required information in approved forms.

Form of information to be given to the Commissioner

Item 3

Regulation 12 of the Co-contribution Regulations prescribes the form in which information must be given to the Commissioner of Taxation. Item 3 replaces the reference in subregulation 12(1) to “section 26 or 27 of the Act” by “Division 390 of Schedule 1 to Taxation Administration Act 1953”, consistent with the Simplified Superannuation reforms. This has application for financial years that begin on or after 1 July 2007.

Tax file number statements

Item 4

Schedule 4 of the Co-contribution Regulations also outlines the information requirements for the purposes of regulation 18 of the Co-contribution Regulations. As Schedule 4 is being omitted, item 4 amends subregulation 18(1) so that a provider must give a tax file number statement to the Commissioner of Taxation in the approved form. The approved form may require the statement to contain information about the member and their tax file number.