Explanatory Memorandum(Circulated by authority of the Treasurer, the Hon Peter Costello, MP)
General outline and financial impact
This measure will reduce the superannuation surcharge rates by 1/10th of their current levels each year over a 3 year period.
Date of effect: This measure will take effect from 1 July 2002.
Proposal announced: This measure was foreshadowed in the Government's election policy statement A Better Superannuation System released on 5 November 2001. In line with this statement, the implementation of this measure was announced in the 2002-2003 Federal Budget.
Financial impact: This measure is expected to result in a revenue cost of $65 million in 2003-2004, $170 million in 2004-2005 and $290 million in 2005-2006.
Compliance cost impact: Some public sector superannuation schemes may have additional reporting obligations as a result of the surcharge rate reduction.