Australian Government, A Plan to Simplify Superannuation

Regulations Made

Superannuation Industry (Supervision) Amendment Regulations 2007 (No. 1)

The Regulations amend the Superannuation Industry (Supervision) Regulations 1994 to:

  • introduce new pension and annuity standards;
  • amend the acceptance and cashing rules to support the contributions caps, TFN quotation requirements, transitional arrangements and extended deductibility for employer contributions;
  • align the provisions relating to spouse contributions splitting with the new terminology introduced as part of the simplified superannuation reforms;
  • prescribe a standard portability form to be used when a member seeks to transfer superannuation benefits between funds, as well as reduce the time a superannuation fund has to action a member’s request to transfer benefits; and
  • change the operating standards relating to the disclosure of certain information by a trustee of a self managed superannuation fund.

A copy of the regulations, including the explanatory statement can be found on the Federal Register of Legislative Instruments.

Additional amendments to the Superannuation Industry (Supervision) Regulations 1994 were registered on 27 April 2007 (Superannuation Industry (Supervision) Amendment Regulations 2007 (No. 2)).

These amendments:

  • require trustees to allocate contributions to accumulation and some defined benefit members within 28 days of the end of month in which the contributions are made; and
  • prescribe additional schemes as exempt public sector superannuation schemes. 

Further details on these regulations, including the explanatory statement can be found on the Federal Register of Legislative Instruments.

Additional amendments to the Superannuation Industry (Supervision) Regulations 1994 were registered on 29 June 2007 (Superannuation Industry (Supervision) Amendment Regulations 2007 (No. 3)).

These amendments complement regulations previously registered on 2 April 2007 by broadening the scope of the pension and annuity standards, modifying to whom amounts should be returned when a member contribution is unable to be accepted and clarifying a definition which supports the spouse contributions-splitting arrangements.

The Regulations also implement the 2007-08 Budget measure to prevent public offer funds from requiring an employer to sign a participating employer agreement before accepting contributions on behalf of an existing fund member.

Further details on these regulations, including the explanatory statement can be found on the Federal Register of Legislative Instruments.

Self Managed Superannuation Funds

The Superannuation (Self Managed Superannuation Funds) Supervisory Levy Imposition Regulations 1991, specify a $45 per annum supervisory levy for self managed superannuation funds and specify an additional levy amount of $10 per month for the late lodgment of a fund’s annual regulatory return. 

The Superannuation (Self Managed Superannuation Funds) Supervisory Levy Imposition Regulations 1991 are amended to increase the amount of the annual supervisory levy to $150 and also remove the late lodgment amount.

A copy of the regulations, including the explanatory statement can be found on the Federal Register of Legislative Instruments.

The Superannuation (Self Managed Superannuation Funds) Taxation Regulations 1999, specify a penalty amount of $10 per month for the late payment of a fund’s supervisory levy. 

The Superannuation (Self Managed Superannuation Funds) Taxation Regulations 1999 are amended to remove this late payment amount. 

A copy of the regulations, including the explanatory statement can be found on the Federal Register of Legislative Instruments.

Reporting Requirements

The Tax Laws Amendment (Simplified Superannuation) Act 2007 consolidates particular superannuation provider reporting requirements from various Acts into the Taxation Administration Act 1953 and consolidates and streamlines superannuation taxation laws into the Income Tax Assessment Act 1997.

The Superannuation Guarantee (Administration) Regulations 1993 are amended to replace redundant references, and reflect the repeal of the reporting requirements in sections 78 and 78A in of the Superannuation Guarantee (Administration) Act 1992.

A copy of the regulations, including the explanatory statement can be found on the Federal Register of Legislative Instruments.

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

The Superannuation (Government Co‑contribution for Low Income Earners) Regulations 2004 are amended to update references and reflect the repeal of the reporting requirements in the Superannuation (Government Co‑contribution for Low Income Earners) Act 2003.

A copy of the regulations, including the explanatory statement can be found on the Federal Register of Legislative Instruments.

Taxation Administration Amendment Regulations 2007 (No. 1)

The regulations amend the Taxation Administration Regulations 1976 to replace references and terms now redundant, as a result of the Simplified Superannuation reforms.

A copy of the regulations, including the explanatory statement can be found on the Federal Register of Legislative Instruments.

Further amendments have been made to the Taxation Administration Regulations 1976 which were registered on 27 April 2007 (Taxation Administration Amendment Regulations 2007 (No. 2)).  These amendments and associated explanatory statement can be viewed on the Federal Register of Legislative Instruments.

Income Tax Assessment Amendment Regulations 2007 (No. 2)

The Regulations amend the Income Tax Assessment Regulations 1997 to:

  • insert supporting regulations as a consequence to the Simplified Superannuation reforms, under which superannuation taxation law was rewritten into the Income Tax Assessment Act 1997
  • insert new definitions including ‘superannuation income stream’, ‘superannuation income stream benefit’, ‘superannuation annuity’ and ‘roll over superannuation benefit’;
  • provide methods for determining the ‘value’ of a superannuation interest; and
  • outline the circumstances under which a superannuation interest can be treated as multiple interests, including direction on how particular elements and components are to be allocated across multiple interests, and ensure that the preservation rules relating to superannuation cannot be circumvented.

A copy of the regulations, including the explanatory statement can be found on the Federal Register of Legislative Instruments.

Further amendments to the Income Tax Assessment Regulations 1997 were registered on 27 April 2007 (Income Tax Assessment Amendment Regulations 2007 (No. 3)). These amendments prescribe when an allocation from a superannuation fund reserve is to be treated as a concessional contribution and set out how notional taxed contributions are calculated for a defined benefit interest.

Further details on these regulations, including the explanatory statement can be found on the Federal Register of Legislative Instruments.

Further amendments to the Income Tax Assessment Regulations 1997 were registered on 29 June 2007 (Income Tax Assessment Amendment Regulations 2007 (No. 6)).  These amendments clarify a number of the operating provisions supporting the reforms and complement regulations previously registered on 13 April 2007 and 27 April 2007. 

The Regulations:

  • clarify the calculation of notional taxed contributions;
  • amend the treatment of multiple interests;
  • ensure that existing practices can continue in regards to the valuing of a superannuation interest; and
  • clarify which amounts allocated by trustees should be included in the concessional contributions cap.

Further details on these regulations, including the explanatory statement can be found on the Federal Register of Legislative Instruments. 

Income Tax Amendment Regulations 2007 (No. 1)

The Regulations amend the Income Tax Regulations 1936 to omit regulations now made redundant as a result of the Simplified Superannuation reforms. 

A copy of the regulations, including the explanatory statement can be found on the Federal Register of Legislative Instruments.

Retirement Savings Accounts Amendment Regulations 2007 (No. 1 )

The regulations amend the Retirement Savings Accounts Regulations 1997 to:

  • allow RSA providers to cash a holder's benefits to give effect to an excess contributions tax release authority,
  • prohibit an RSA provider from accepting RSA holder contributions where a tax file number is not quoted or the amount of a contribution exceeds the non‑concessional contributions cap,
  • amend the work test for a transitional period to allow certain people to make personal contributions,
  • allow RSA providers to accept non‑mandated employer contributions for persons 70 to 74, and update the provisions relating to spouse contributions splitting to provide for the new contributions caps,
  • refer to the standard portability form to be used when a holder seeks to transfer benefits between superannuation entities, as well as reduce the time an RSA provider has to action an RSA holder’s request to transfer benefits ensuring a consistent legislative basis for portability for superannuation providers and RSA providers; and
  • prescribe new minimum pension standards.

Further details on these regulations, including the explanatory statement can be found on the Federal Register of Legislative Instruments.

Additional amendments to the Retirement Savings Account Regulations 1997 were registered on 29 June 2007 (Retirement Savings Account Amendment Regulations 2007 (No. 2)).

These amendments complement regulations registered on 27 April 2007 by modifying to whom amounts should be returned when a holder’s contribution is unable to be accepted.  

Further details on these regulations, including the explanatory statement can be found on the Federal Register of Legislative Instruments.

Corporations Amendment Regulations 2007 (No. 1)

The regulations amend the Corporations Regulations 2001 to replace redundant references and terms as a result of the rewrite of superannuation taxation law. 

Further details on these regulations, including the explanatory statement can be found on the Federal Register of Legislative Instruments.

 

Miscellaneous