The following is a simplified explanation of this Act:
The Australian Taxation Office administers a special account. Notional
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
to a nominated
Except in special cases, employees will not have direct access to their account balances.
will be calculated on the daily balance of the account and credited to the account on a quarterly basis.
exempt from income tax
If an account balance exceeds $1,200, interest will
be credited on the
of the balance. This is an incentive for employees to request that balances of more than $1,200 be transferred to a superannuation fund.
Income Tax Assessment Act 1936
, employers may get
income tax deductions
for deposits. There is an annual deduction limit of $1,200 per employee.
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.
S 3 amended by No 62 of 2014, s 3 and Sch 12 item 125, by substituting the first item, effective 1 July 2014. The first item formerly read:
The Australian Taxation Office administers a Special Account. Notional
are kept within the Special Account.
money for their
instead of making superannuation contributions. These deposits are credited to the notional accounts.
S 3 (simplified explanation) amended by No 8 of 2005, s 3 and Sch 1 items 318 and 319, by substituting the first item and
also be credited with
also be used to hold
in the final item, effective 22 February 2005.
The first item formerly read:
The Australian Taxation Office has
money for their
instead of making superannuation contributions.
Act No 8 of 2005, s 4, contained the following savings provision for amendments (including this amendment) in Part 2 of its first Schedule:
Saving of matters in Part 2 of Schedule 1
a decision or action is taken or another thing is made, given or done; and
the thing is taken, made, given or done under a provision of a Part 2 Act that had effect immediately before the commencement of this Act;
then the thing has the corresponding effect, for the purposes of the Part 2 Act as amended by this Act, as if it had been taken, made, given or done under the Part 2 Act as so amended.
(2) In this section:
Part 2 Act means an Act that is amended by an item in Part 2 of Schedule 1.
S 3 amended by No 111 of 2003, s 3 and Sch 1 item 10, by inserting the list item beginning with
The accounts may also be used
at the end, applicable in relation to contributions made to complying superannuation funds and RSAs on or after 1 July 2003.
S 3 amended by No 62 of 1997.
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