1Short title
This Act may be cited as the Small Superannuation Accounts Act 1995.
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This Act may be cited as the Small Superannuation Accounts Act 1995.
This Act commences on 1 July 1995.
The following is a simplified explanation of this Act:
• The Australian Taxation Office administers a special account. Notional accounts are kept within the special account.
• The account offers employees with small balances an opportunity to avoid the erosion of those balances by fees.
• Employees may request that account balances be transferred to a nominated superannuation fund or RSA.
• Except in special cases, employees will not have direct access to their account balances.
• Interest will be calculated on the daily balance of the account and credited to the account on a quarterly basis.
• Interest is exempt from income tax.
• If an account balance exceeds $1,200, interest will only be credited on the first $1,200 of the balance. This is an incentive for employees to request that balances of more than $1,200 be transferred to a superannuation fund.
• Under the Income Tax Assessment Act 1936, employers may get income tax deductions for deposits. There is an annual deduction limit of $1,200 per employee.
• Under the Superannuation Guarantee (Administration) Act 1992, deposits made by an employer will be treated as superannuation contributions.
• The accounts may also be credited with Government co‑contributions payable under the Superannuation (Government Co‑contribution for Low Income Earners) Act 2003. The rules for these deposits differ in some respects from those that apply to other deposits.
In this Act, unless the contrary intention appears:
account means a notional account kept in accordance with section 12.
child, of a person, means a child of the person within the meaning of the Superannuation Industry (Supervision) Act 1993.
complying superannuation fund has the same meaning as in the Income Tax Assessment Act 1997.
The Income Tax Assessment Act 1997 defines complying superannuation fund by reference to section 45 of the Superannuation Industry (Supervision) Act 1993.
dependant, in relation to an individual, includes the spouse and any child of the person.
This expression is only used in the definition of superannuation contribution.
deposit means a payment under section 25.
deposit form means a statement under section 26.
depositor means a person who makes a payment under section 25.
employee has the meaning given by the Schedule.
The Schedule extends the ordinary meaning of employee.
employer has the meaning given by the Schedule.
The Schedule extends the ordinary meaning of employer.
employment has a meaning corresponding to employee and employer.
Finance Department means the Department administered by the Finance Minister.
Finance Minister means the Minister administering the Public Governance, Performance and Accountability Act 2013.
Government co‑contribution in respect of an individual means a Government co‑contribution payable in respect of the individual under the Superannuation (Government Co‑contribution for Low Income Earners) Act 2003.
leave Australia has the same meaning as in the Migration Act 1958.
person has a meaning affected by sections 87 and 90.
Under section 87, partnerships are treated as persons.
Under section 90, unincorporated associations are treated as persons.
PPL superannuation contribution for an individual has the same meaning as in the Paid Parental Leave Act 2010.
provider, in relation to an RSA, has the same meaning as in the Retirement Savings Accounts Act 1997.
quarter means a period of 3 months beginning on 1 July, 1 October, 1 January or 1 April in:
the financial year beginning on 1 July 1995; or
any later financial year.
RSA has the same meaning as in the Retirement Savings Accounts Act 1997.
RSA provider has the same meaning as in the Retirement Savings Accounts Act 1997.
Special Account means the Superannuation Holding Accounts Special Account continued in existence by section 8.
spouse of a person includes:
another person (whether of the same sex or a different sex) with whom the person is in a relationship that is registered under a law of a State or Territory prescribed for the purposes of section 2E of the Acts Interpretation Act 1901 as a kind of relationship prescribed for the purposes of that section; and
another person who, although not legally married to the person, lives with the person on a genuine domestic basis in a relationship as a couple.
This expression is only used in the definition of dependant.
superannuation accounts law means:
this Act; and
the regulations; and
Part III of the Taxation Administration Act 1953, in so far as that Part relates to this Act or the regulations.
superannuation contribution, in relation to an individual, means a contribution made to a superannuation fund, an RSA or a superannuation scheme for the purpose of making provision for superannuation benefits for, or for dependants of, the individual.
superannuation fund means a provident, benefit, superannuation or retirement fund.
superannuation scheme means a scheme for the payment of superannuation, retirement or death benefits.
tax file number has the meaning given by section 202A of the Income Tax Assessment Act 1936.
Unallocated Interest Pool means the Unallocated Interest Pool kept in accordance with section 42.
This Act binds the Crown in right of the Commonwealth, of each of the States, of the Australian Capital Territory and of the Northern Territory.
The Commissioner of Taxation has the general administration of this Act.
An effect of this provision is that people who acquire information under this Act are subject to the confidentiality obligations and exceptions in Division 355 in Schedule 1 to the Taxation Administration Act 1953.
The following is a simplified outline of this Part:
• The Superannuation Holding Accounts Special Account is continued in existence.
• The Special Account is not a superannuation fund.
The Superannuation Holding Accounts Account is continued in existence as the Superannuation Holding Accounts Special Account.
The Superannuation Holding Accounts Account was established by subsection 5(3) of the Financial Management Legislation Amendment Act 1999.
The Account is a special account for the purposes of the Public Governance, Performance and Accountability Act 2013.
Special Account is not a superannuation fund
For the purposes of a law of the Commonwealth:
the Special Account is taken not to be a superannuation fund; and
the scheme embodied in this Act is taken not to be a superannuation scheme.
Avoidance of doubt
Subsection (1) is enacted to avoid doubt.
The following is a simplified outline of this Part:
• Notional accounts are to be kept within the Special Account in the names of particular individuals.
• Section 13 outlines credits to accounts.
• Section 14 outlines debits to accounts.
• The Commissioner of Taxation may open or close an account.
• Accounts may have a nil balance.
• An individual may only have one account.
• Account balances are not held on trust.
• An individual’s account balance will be notified to the individual in certain circumstances.
Accounts to be kept
Separate notional accounts are to be kept within the Special Account in the names of particular individuals.
Individual’s account
An account kept in the name of an individual is to be known as the individual’s account.
Section 4 provides that account means a notional account kept in accordance with this section.
The following is a simplified outline of the types of credits that may be made to an individual’s account.
Deposits by employers
• Under section 25, the individual’s employer or former employer may make a deposit in respect of the individual. The employer or former employer will make the deposit instead of making a superannuation contribution in respect of the individual. The deposit will result in a credit to the individual’s account.
Superannuation guarantee shortfalls
• Under section 65 of the Superannuation Guarantee (Administration) Act 1992, if there is a shortfall component of a payment of superannuation guarantee charge in relation to the individual, the Commissioner of Taxation may credit the shortfall component to the individual’s account.
Interest
• Under Part 6, interest may be credited to the individual’s account.
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