Supplementary Explanatory Memorandum(Circulated by authority of the Treasurer, the Hon Peter Costello, MP)
General outline and financial impact
The amendments to the Superannuation Legislation Amendment (Choice of Superannuation Funds) Bill 2002 will:
- simplify the choice of fund process for employees and employers;
- remove the default fund rules;
- amend the penalty applied to employers that breach the choice of fund requirements;
- defer the commencement date until 1 July 2005;
- repeal section 52 of the RSA Act; and
- ensure that employers who pay to certain defined benefit funds are not required to fund additional superannuation benefits.
Date of effect: The amendments will apply from 1 July 2005. To avoid having to pay any penalty, employers will be required to provide superannuation support in compliance with the choice of fund requirements from this date on.
Proposal announced: The amendments to the default fund rules, the penalty regime and to simplify the choice process were announced by Minister Revenue and Assistant Treasurer's Press Release C40/03 of 25 May 2003. The other amendments have not been previously announced.
Financial impact: Nil.
Compliance cost impact: Nil.
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