Retirement Income Policy and Legislative Chronology – Parliament of Australia

Parliament of Australia

Attachment 2: Retirement income policyand legislative chronologyContents

Milestones Details Source Documents

1900 New South Wales introduced a means tested agepension of 26 a year, funded out of generalrevenue.

Victoria (1900) and Queensland (1908) followedsuit.

Old-age Pensions Act1900 (NSW)

Claims for Old-agePensions Act 1900 (Vic)

Old-Age Pensions Act1908 (Qld)

1901 The Constitution gave the Commonwealthexplicit power to legislate for provision of oldage and invalid pensions.

S. 51(xxiii)Commonwealth ofAustralia Constitution Act1901

10 June 1908 Invalid and Old Age Pensions Act 1908 passed bythe Deakin Government. Rate of 26 per year(10/- a week). Eligibility was limited according tocharacter, race, age, residency and means. Paidto eligible men and women at age 65 years.Commenced 15 April 1909. It included thereduction in the eligibility age for women to 60years by proclamation of the Governor-General.

Invalid and Old-agePensions Act 1908

1912 1908 Act amended to completely remove thefamily home from the means test.

Invalid and Old-agePensions Act 1912

1915 Income Tax Assessment Act 1915 provided fortax deductibility of employer contributions madeon behalf of employees and for the exemption ofsuperannuation fund earnings from taxation.

Income Tax AssessmentAct 1915

1923 Bruce Government established a RoyalCommission to examine the possibility of havinga comprehensive national insurance scheme forretirement, sickness or disability.

Royal Commission onNational Insurance (7Sept 1923-5 Oct 1927).

1928 National Insurance Bill 1928 introduced. It lapsedin 1929 when the Government was defeated.

Second reading speech:National Insurance Bill1928

1938 National Health and Pensions Insurance Act 1938was enacted, but its introduction was delayed,and then abandoned, because of World War 2.

Second reading speech:National Health andPensions Insurance Bill1938

1945 Chifley Government introduced an additional levyon personal income tax which, along with apayroll tax from employers, was credited to theNational Welfare Fund. There was, however, nodirect link between contributions and benefitsand the pension. The National Welfare Fund,whilst set up as a means of establishing a basefrom which a national superannuation fund couldbe operated, was in practice merely anaccounting device until its abolition in 1985.

National Welfare Fund Act1945

1946 Constitutional amendments passed to extend theCommonwealths powers in the areas of socialsecurity and health, including widows pensions.

Constitution Alteration(Social Services) 1946

19511953 Commonwealth Committee on Taxation (SpoonerCommittee) undertook a number of inquiries onrequest of the Treasurer on income tax andother taxation laws. The Committee issued aseries of reports, including several thatexamined the taxation treatment applied to

CommonwealthCommittee on Taxation,Parliamentary Papers214-223/195153.

superannuation including preservation(reference no. 2); concessional allowances oncontributions (references 9 and 22); and taxationof retirement payments (reference 13).

12June 1961 Superannuation funds exempt from tax if theyheld required amounts of Commonwealth Bonds(30/20 rule). Commonwealth control ofsuperannuation funds by use of taxation powerfirmly established.

Income Tax and SocialServices ContributionAssessment Act 1961

17August1961

Commonwealth Committee on Taxation(Ligertwood Committee) report tabled. Keysuperannuation recommendations included:

self-employed persons who are membersof a superannuation fund to be allowed alimited business deduction for contributionsto a fundconsolidation of tax arrangements foremployer contributions to removecomplexity and anomaliescontinuation of tax-exempt status on theincome of superannuation funds butstrengthening of tests to guide theCommissioner of Taxation on grantingexemptions.

Report of theCommonwealthCommittee on Taxation,June1961.

CommonwealthCommittee on Taxation:Statement by theTreasurer

1965 High Court upheld Commonwealths ability tocontrol superannuation fund investment by useof taxation power.

Fairfax v Commissionerof Taxation (1965) 114CLR 1

13November1972

As leader of the Opposition, Gough Whitlamoutlines 1972 election policies including raisingthe Age Pension to 25per cent of averageweekly male earnings, abolishing the AgePension means test and establishing nationalsuperannuation arrangements after a thoroughinquiry into overseas examples and Australianproposals for such a scheme.

Its time for leadership,policy speech

March 1973 Whitlam Labor Government established theNational Superannuation Committee of Inquiryunder the chairmanship of Keith Hancock.

Statement to House ofRepresentatives by thePrime Minister.

September1973

Means test for pensioners 75 years of age, andover, abolished.

Social Services Act (No 4)1973

1974 Interim report of the Hancock Committee ofinquiry released. It is essentially a discussionpaper outlining the history of superannuation inAustralia to date and policy options.

Interim report of theNational SuperannuationCommittee of Inquiry,June 1974.

31January1975

Final report of Taxation Review Committee(Asprey Committee) completed. Review includedconsideration of the tax treatment ofsuperannuation contributions, income andbenefits. Review put forward two alternateviews on taxation arrangements supporting thestatus quo or fundamental changes applying tonew schemes only. The Committee was critical ofthe relatively low tax rate of 5per cent appliedto lump sum benefits that had been in placesince 1915.

Taxation ReviewCommittee Full Report,January 1975.

May 1975 Means test removed for persons aged 70 to 74inclusive.

Social Services Act 1975

1975 Age Pension increased sufficiently to meetGovernments objective of 25per cent ofaverage weekly earnings.

Social Services Act (No 3)1975

1976 Pensions became subject to automatic increasestwice yearly.

Age Pension assets test abolished.

Social ServicesAmendment Act (No 3)1976

1976 The Hancock Inquiry recommended a partiallycontributory, universal pension system with anearnings-related supplement. A minorityrecommendation suggested a non-contributoryflat rate universal pension, a means testedsupplement, and encouragement of voluntarysavings through expanding occupationalsuperannuation.

National SuperannuationCommittee of Inquiry.Final Report. Part 1, April1976 and Part 2, March1977.

20 June 1977 Fraser government decided not to establish acontributory national superannuation scheme.

Cabinet Decision 3435 of20 July 1977 in responseto Cabinet SubmissionNo. 1394 of 1977.

1978 Pension increases to be adjusted only once ayear (in November). Future increases in the AgePension for those aged 70 or over was madesubject to an income test.

Social ServicesAmendment Act 1978

12July 1979 Fraser Government rejected therecommendations of the Hancock Inquiry. Itannounced the establishment of a task force toconsider the role of occupational superannuationin providing for retirement and whether therewas a need to revise or impose new standardsfor schemes.

Media release

6September1979

Fraser Government indicated its concern thatsuperannuation arrangements not be used forpurposes other than genuine retirement such asthe cash payment of an employers contributionsto an employee who chose to changeemployment after a relatively short period ofservice. This statement came as the task force onsuperannuation continued its work.

Media release

1979 Pensions subject to twice yearly increases, in Mayand November.

Social ServicesAmendment Act 1979

November1981

Report of the Committee of Inquiry into theAustralian Financial System (Campbell Inquiry)released. The Committee concluded that existingtaxation advantages for superannuation wereinequitable when compared with other savingsvehicles and suggested means of removing theseinequities. Recommendations included:

income (investment income and employercontributions) should be taxed in thesuperannuation plan at an average marginalrate applicable to contributorsthat the 30/20 rule regarding investment in

Australian financialsystem: final report of theCommittee of Inquiry

public sector entities should be abolishedall contributions, both member andemployer, should be tax deductibleall benefits, whether in pension or lumpsum form, should be free of income tax.

30July 1982 Fraser Government announced that it had noplans to neither change the taxation treatmentof lump sum superannuation benefits nor set alimit on the level of superannuation benefit thatmay be paid in the form of a lump sum.

Media release

1983 The Statement of Accord (Prices and IncomesAccord) between the ALP and the ACTU wasendorsed in February, shortly before the federalelection. Claims for wage increases were to berestricted to movements in the CPI.

Statement of Accord

May 1983 Base pension for those aged 70 and over becamesubject to an income test.

Social Security andRepatriation LegislationAmendment Act 1983

19May 1983 Hawke Labor Government expressed support forthe principles of employee superannuation.Changes to tax treatment of superannuationlump sums proposed, with certain lump sumpayments, which were exempt from tax entirelyor subject to tax on 5 per cent of the amountsreceived, to be generally subject to a 30 per centtax unless converted into a pension or annuity orrolled over into another superannuation fundwithin a short time. Other announcementsincluded making it more attractive for life officesand superannuation funds to sell annuities andto review arrangements under which the returnof capital component of an annuity was takeninto account in the age pension income test.

Economy: Ministerialstatement by theTreasurer

26May 1983 Hawke Government tabled the final report of theCommonwealth Task Force on OccupationalSuperannuation, commissioned by the formergovernment on 12July 1979. The main proposalsin the report included:

Final report of theCommonwealth task forceon occupationalsuperannuation, January1983.

eligibility for tax concessions forsuperannuation funds to depend on thevesting and preservation of retirementbenefits in accordance with minimumprescribed standardsa requirement for the regular disclosure ofcertain information to members ofsuperannuation fundsthe removal of certain constraints tofacilitate the achievement of a limitedmarket for annuities among certain groupssuch as those using annuities for pre-retirement purposes and some agepensioners aged 70 years or over.

30May 1983 Hawke Government clarified changes to taxationarrangements to apply to superannuation lumpsums as announced on 19May 1983, includingthat the change-over date for tax arrangementsaffecting lump sums would be 30June 1983, not19May as previously indicated.

Media release

1July 1983 Changes to superannuation tax arrangementsannounced on 19May 1983 take effect.

Income Tax AssessmentAmendment Act (No. 3)1984

7August 1983Hawke Government further clarified changes totaxation to apply to lump sums announced on19May 1983. Changes include removing the 46and 60per cent rates progressive rates thatwere proposed to apply and instead apply a flat30 per cent and that lump sums received at age55 or later the first $50,000 would be taxed at15per cent.

Media release

1984 Age pension assets test reintroduced. The familyhome was excluded.

Social Security andRepatriation (BudgetMeasures and AssetsTest) Act 1984

11September1984

Taxation LawsAmendment Act 1985

Abolition of the 30/20 rule for investments ingovernment bonds for life companies andsuperannuation funds.

4September1985

Renegotiation of the Accord identifiedsuperannuation as a key issue. Key areas ofagreement included:

superannuation should be extended andimproved on an industry by industry,occupation by occupation or, in limitedcircumstances, company by company basis.the improvement should be offset againstnational productivity and be based on athree per cent wage equivalent.negotiations can proceed onsuperannuation on the above basis providedthat the cost impact of new or improvedarrangements except in very isolatedcircumstances will not occur before 1July1986.before the expiration of the currentparliament the Government would legislateto establish a national safety netsuperannuation scheme to which employerswill be required to contribute where theyhave failed to provide cover for theiremployees under an appropriate scheme.

Media release

1986 Labor joined with the ACTU in seeking auniversal 3 per cent superannuation contributionby employers to be paid into an industry fund, inlieu of a wage rise.

1986 Accord Mark II between the Government and theunions stipulated that compensation toemployees should be 6 per cent (to keep pacewith inflation). This was to be 3 per centemployer superannuation contribution, a 2 percent wage rise, and tax cuts.

Agreement endorsed by the Conciliation andArbitration Commission February 1986.

1986

Employer groups, including the Confederation ofAustralian Industry, challenged the Commissionsdecision in the High Court, claiming thatsuperannuation was not an industrial matterwithin section 51 (xxxv) of the Constitution.

15 May 1986 High Court ruled in favour of the Conciliation andArbitration Commission.

Superannuation Case,(1986) 160 CLR 341

June 1986 National Wage Case established guidelines torequire new industry superannuation schemes toconform to Commonwealth operationalstandards.

National Wage Case 1986 Reason for Decision

1987 Insurance and Superannuation Commission (ISC)was established as an industry regulator.

Insurance andSuperannuationCommissioner Act 1987

21 December1987

Hawke Government introduced the OccupationalSuperannuation Standards Act 1987 (OSSA).

Operating standards were prescribed for thevesting of benefits from employer and employeecontribution; preservation of benefits until age55; more member involvement in the control ofsuperannuation funds; and security of membersbenefits.

OccupationalSuperannuationStandards Act 1987

25May 1988 Hawke Government statement Reform of theTaxation of Superannuation contained measuresto bring forward payment of superannuationtaxation liabilities by introducing a tax oncontributions and reducing tax on benefits.Included proposal for two major changes toreasonable benefits limit (RBL) arrangements:

that the RBL based on a single multiplewould be replaced by RBL based upon atapered scale so that a persons RBL tapersoff as salary increases.that, with minor exceptions, all benefitswhich derive from concessionally taxed

Reform of the Taxation ofSuperannuation

sources or which are concessionally taxedthemselves would be subject to the RBL,regardless of whether they were providedby public or private sector sources.

Benefits previously subject to the RBL would besubject to the new rules from 1July 1988 whilepublic sector benefits and golden handshakeswould become subject to the RBL from 1July1990.

1July 1988 Reasonable benefit limits changes announced on25May 1988 take effect.

Insurance andSuperannuationCommission, Revisedinformation circular no. 7,June1988.

August 1989 Hawke Governments 1989 retirement incomepolicy statement established a policy in Australiabased on the twin pillars of the Age Pensionand private superannuation, specifically rejectingthe option of a National Superannuation Scheme.

Better incomes:Retirement income policyinto the next century

25July 1991 The Hon. Paul Keating MP, sitting as abackbencher, provided an outline of hisproposed retirement income system (NationalRetirement Income Scheme) to be based on theAge Pension augmented by a privately fundedand employment related national superannuationscheme.

A retirement incomespolicy

20August1991

In the Budget, Treasurer John Kerin announcedthat from 1 July 1992, under a new system to beknown as the Superannuation Guarantee (SG),employers would be required to makesuperannuation contributions on behalf of theiremployees.

Budget speech

2 April 1992 Keating Government introduced SuperannuationGuarantee (Administration) Bill 1992 whichprovided the basis for the proposedSuperannuation Guarantee.

Second reading speech:SuperannuationGuarantee(Administration) Bill 1992

and the SuperannuationGuarantee Charge Bill1992

June 1992 Senate Select Committee on Superannuationpresented its first report. This SenateCommittee, in various forms, reviewed andissued reports on various superannuation issuesup to the end of the 40th Parliament (2004). Manyof these reports led to significant changes in thesuperannuation system.

Safeguarding super: theregulation ofsuperannuation (PP182/92)

1July 1992 Superannuation guarantee charge was 3per centfor employers with a base year payroll of$1million or less and 4per cent where theemployers base year payroll was above$1million.

SuperannuationGuarantee(Administration) Act 1992

1993 Keating Government overhauled regulation ofsuperannuation with the introduction of theSuperannuation Industry (Supervision) Act 1993(SIS Act). The OSSA continued in force but manyof its provisions were repealed and transferredto the SIS Act.

Superannuation Industry(Supervision) Act 1993

1993 World Bank endorsed Australias three pillarsystem for the provision of retirement income asworlds best practice.

Averting the Old AgeCrisis

1 January1993

Superannuation guarantee charge was 3per centfor employers with a base year payroll of$1million or less, and 5per cent where theemployers base year payroll was above$1million.

SuperannuationGuarantee(Administration) Act 1992

June 1993 The FitzGerald report advocated increasinghousehold savings via superannuation butrecommended that national savings be increasedby increasing public sector savings.Superannuations role in increasing national

National saving: A reportto the Treasurer

savings was no longer seen as important. Thiswas a significant change in the policy rationalefor the superannuation system.

1994 Pension age for eligible women would be raisedto 65 years, in a phased process between 1994and 2014.

Social Security LegislationAmendment Act (No.2)1994

9May 1995 In the 1995 budget speech, Treasurer RalphWillis outlined plans to pay previously-announced tax cuts into employeessuperannuation funds. Government was to makematching contributions. The principal ofmatching government superannuation co-contributions was established.

Budget Speech andaccompanying statement Saving for our future.

1 July 1994 Superannuation Complaints Tribunal wasestablished to deal with complaints aboutsuperannuation, specifically in the areas ofregulated superannuation funds, annuities anddeferred annuities.

Superannuation(Resolution ofComplaints) Act 1993

1 July 1994 Superannuation guarantee charge was 4per centfor employers with a base year payroll of$1million or less, and 5per cent where theemployers base year payroll was above$1million.

2November1995

Shadow Treasurer Peter Costello called foremployee choice and for funds to compete forbusiness in an address to the Association ofSuperannuation Funds of Australia.

Federal Coalitionsapproach tosuperannuation

1July 1995 Superannuation guarantee charge was 5per centfor employers with a base year payroll of$1million or less, and 6per cent where theemployers base year payroll was above$1million.

February 1996Coalitions 1996 election policies included:

maintaining the Age Pension benchmark of25 per cent of average weekly earningscontinuing the current system of twiceyearly indexation in accordance with the CPIallowing people of pension age to defertaking up their pension entitlement for upto five years in return for receiving anincreased pension at a later dateimplementing the phased increase to thepreservation age as announced by theGovernment in 1992giving employees greater freedom tochoose the fund into which theirsuperannuation contributions will be paidallowing financial institutions to offerretirement savings accounts as analternative to superannuation fundsmaintaining the timetabled increase in thesuperannuation guarantee to 9per cent byJuly 2002, andusing allocated funds in the 199596 Budgetto match compulsory employeecontributions in full in a manner that isboth efficient and equitable.

A Social Security SafetyNet, The Liberal andNational Parties' SocialSecurity Policy(22February 1996

Super for all: Security andflexibility in retirement,The Federal Coalitionssuperannuation andretirement incomespolicy (19February 1996)

1July 1996 Superannuation guarantee charge was 6per centof an employers base year payroll for allemployers.

20 August1996

Superannuation surcharge for higher incomeearners was announced by Treasurer PeterCostello in the Howard Governments firstbudget. Other superannuation-related budgetannouncements included:

increasing the general age limit forsuperannuation contributions from 65 to 70yearsallowing banks, building societies, creditunions and life insurance companies toprovide superannuation in the form ofRetirement Savings Accountsoffering an income tax rebate for peoplewho contributed to the superannuation fundor Retirement Savings Account of a non-working or low income spouse; and

Budget speech

allowing employees who earned between$450 and $900 per month to have theoption of choosing between Superannuationguarantee contributions or the equivalent inwages and salary.

The Treasurer also announced that the formerGovernments 1995-96 Budget proposals foremployee and government contributions wouldbe reviewed and that the schedule of employerSuperannuation guarantee contributions wouldremain unchanged. The Coalition Governmentproposed that employees should be able to optout by having the opportunity to receive wagesor salary instead of Superannuation guaranteecontributions.

March 1997 Final report of the Financial System Inquiry,established by Treasurer Costello in May 1996,advocated superannuation choice and otherchanges to the superannuation system.

Financial System Inquiry,Final report (Wallisreport).

13May 1997 1997-98 Budget announcements included theestablishment of a broad-based savings taxrebate, preservation of all benefits from 1July1999, increasing the superannuationpreservation from 55to 60 years on a phased-inbasis and a Deferred Pension Bonus Plan whichoffered a financial incentive to defer retirement.

Joint statement by theTreasurer and Ministerfor Social Security,Savings: choice andincentive

1July 1997 Maximum age for superannuation guaranteecontributions was increased from 65 to 70 years.

Taxation LawsAmendment Act (No.3)1997

1July 1997 Retirement Savings Accounts (RSAs) wereintroduced. RSAs were intended to provide asimple, low-cost and low-risk savings productwhich employers could use as an alternative tomaking contributions to superannuation funds

Retirement SavingsAccount Act 1997

for their superannuation contributions foremployees. Individuals could also use RSAs fortheir personal superannuation contributions.

20September1997

Age Pension was to be formally maintained atminimum of 25per cent of AWOTE.

Social Security andVeterans AffairsLegislation Amendment(Male Total AverageWeekly EarningsBenchmark) Act 1997

1July 1997 Limited access to superannuation prior topreservation age became possible oncompassionate grounds.

Superannuation Industry(Supervision) Regulations(Amendment) 1997

9 December1997

Limited access to superannuation prior topreservation age became possible if the memberwas in severe financial hardship. This wasdefined as being in receipt of Commonwealthincome support for a continuous period of 26weeks or a cumulative period of 39weeks.


1998 Age Pension means test for retirement incomestreams was revised. Pension Bonus scheme wasintroduced. A person could accrue a pensionbonus payment by deferring claiming thepension while still working.

Social Security andVeterans AffairsLegislation Amendment(Pension Bonus Scheme)Act 1998

1July 1998 Australian Prudential Regulation Authority (APRA)was established as the lead superannuationregulator. The Australian Securities andInvestments Commission also took a significantrole in the regulation of superannuation. TheAustralian Taxation Office (ATO) continued tocarry out some regulatory functions andadminister the superannuation taxationlegislation. The Insurance and SuperannuationCommission ceased to operate on the same date.These changes were in response to therecommendations of the Wallis Inquiry.

Australian PrudentialRegulation Authority Act1998

1July 1998 Superannuation guarantee charge was 7 per centof employers base year payroll for allemployers.

1July 1999 Introduction of provisions for establishing abinding death benefit nomination forsuperannuation fund trustees that are not self-managed superannuation funds.

SuperannuationLegislation AmendmentAct 1999

1 July 1999 A number of changes were made to preservationrules and there was a phased increase inpreservation age from 55years announced in1997-98 Budget take effect according to thefollowing:

born before 1July 196055yearsborn during the year 1July 1960 to 30June196156yearsborn during the year 1 July 1961 to 30 June196257yearsborn during the year 1 July 1962 to 30 June196358yearsborn during the year 1 July 1963 to 30 June196459yearsborn after 30 June 196460years


30July 1999 Reforms to business taxation, includingproposals to reduce the capital gains tax (CGT)rate for super funds to 10per cent.

Review of BusinessTaxation, Report July1999, Final report,Chairmans introduction

21September1999

A complying superannuation entity that acquireda CGT asset and made a capital gain from a CGTevent happening to that CGT asset was able toreceive a 33 per cent discount on the capitalgain, providing that the CGT asset was owned bythe taxpayer for at least 12 months.

New Business Tax System(Integrity and OtherMeasures) Act 1999

8 October1999

ATO took administrative responsibility for Self-Managed Superannuation Funds (SMSF).

SuperannuationLegislation AmendmentAct (No.3) 1999

1July 2000 Superannuation guarantee charge was 8per centof employers base year payroll for allemployers.

10December2001

Productivity Commission delivered its final reportto the government for its inquiry into theSuperannuation Industry (Supervision) Act 1993and certain other superannuation legislation.Major recommendations included:

the need for funds regulated by theAustralian Prudential Regulation Authorityto prepare a risk management strategyprotection of lost member accounts withbalances in excess of $1,000 should beremovedPart 23 of the Superannuation Industry(Supervision) Act 1993 should be amendedto require the Minister to table inParliament, as soon as practicable, theAustralian Prudential Regulation Authoritysadvice and the reasons for the Ministersdecision on whether to provide financialassistance to funds which suffer substantialloss from theft or fraud

Review of theSuperannuation Industry(Supervision) Act 1993and certain othersuperannuationlegislation

March 2002 Financial Services Reform Act 2001was designedto be a single licensing and disclosure approachfor all financial services, includingsuperannuation.

Financial Services ReformAct 2001

1July 2002 Maximum age for personal superannuationcontributions increased from 70 to 75 years (forpeople working at least 10 hours a week).

Superannuation Industry(Supervision) AmendmentRegulations 2002 (No. 3)

1 July 2002 Temporary residents who were permanentlydeparting Australia could withdraw theiraccumulated superannuation benefits beforetheir preservation age. This does not apply toNew Zealand residents.


1July 2002 Superannuation guarantee charge was 9per centof employers base year payroll for allemployers.

28 December2002

Superannuation assets were able to be dividedbetween the parties in a marriage breakdown.

Family Law LegislationAmendment(Superannuation)(ConsequentialProvisions) Act 2002

1 July 2003 Superannuation government co-contributionprovided for a matching government contributionfor eligible personal contributions for lowincome earners (those earning less than $27,500with a reduction of $0.08 per dollar earned up to$40,000), with a maximum governmentcontribution of $1,000.

Superannuation(Government co-contribution for LowIncome Earners) Act 2003

1 July 2003 Requirement for employers to make quarterlysuperannuation guarantee payments wasintroduced.

Taxation LawsAmendment(Superannuation) Act (No.2) 2002

1 July 2003 Superannuation surcharge was reduced from 15per cent to 14.5 per cent.

Superannuation(Surcharge RateReduction) AmendmentAct 2003

25 February2004

Treasurer released A more flexible andadaptable retirement income system as part ofAustralias Demographic Challengesannouncement. Amongst other things this reportproposed to allow access to a personssuperannuation, in the form of an incomestream, before they had left the work force (thatis, transition to retirement pensions) and toscrap the work test for those under age 65.

A more flexible andadaptable retirementincome system

1July 2004 Changes were made to the regulation ofsuperannuation entities. All superannuationtrustees of large eligible funds had to belicensed from 1 July 2004. Trustees of SMSFs didnot have to be licensed.

Superannuation SafetyAmendment Act 2004

3 June 2004

Superannuation regulations were changed toallow the portability of money between differentsuperannuation accounts.


1July 2004 Tax free payment of superannuation benefitscould be made to the surviving partner on aninterdependent relationship. An interdependentrelationship can encompass same-sex couples ora relationship where one person is financiallydependent on another person. For example,were a son or daughter, is financially supportinga parent.

SuperannuationLegislation Amendment(Choice ofSuperannuation Funds)Act 2004

1 July 2004 Work test governing contributions made underage 65 ceased to operate. Work test remainedfor contributions made above age 65.


1 July 2004 Superannuation surcharge was reduced from14.5 per cent to 12.5 per cent.

Superannuation BudgetMeasures Act 2004

1 July 2004 Superannuation government co-contributionmatching rate increased from 100per cent to150per cent up to a maximum contribution of$1,500. Eligibility income thresholds increased to$28,000 for full contribution with a reduction of$0.05 per dollar earned up to $58,000.

Superannuation(Government Co-contribution for LowIncome Earners) Act 2003

10 May 2005 Treasurer Costello announced in the Budget theabolition of the superannuation surcharge.Changes made were intended to take effect from1 July 2005.

Budget speech

1 July 2005 Transition to Retirement (Superannuation)pensions became available. A member couldcommence to receive a transition to retirementpension without having to leave the workforce orretire.


1July 2005 Choice of superannuation fund wasimplemented. This required employers toprovide their employees with a choice of fundinto which superannuation guarantee paymentsmade for them could be paid. The choice of fund

SuperannuationLegislation Amendment(Choice ofSuperannuation Funds)Act 2004

proposals were first announced in the 1997-98Budget. In 1998, the Superannuation LegislationAmendment (Choice of Superannuation Funds)Bill 1998 was the first bill introduced toimplement the measure, however the Bill lapsedwith the election in 2001. The SuperannuationLegislation Amendment (Choice ofSuperannuation Funds) Bill 2002 was thenintroduced in 2002 and this was subsequentlyrenamed as a 2003 Bill. The 2003 Bill wasamended in 2003 and 2004 before finally beingpassed by the Parliament.

1 July 2005 Superannuation surcharge abolition took effect. Superannuation LawAmendment (Abolition ofSurcharge) Act 2005

1 Jan 2006 Contributions splitting took effect. A memberssuperannuation guarantee and othercontributions could be split with their spouse.


9 May 2006 In the Budget, Treasurer Costello announcedplans to simplify superannuation. Simpler Superincluded:

exemption from tax on end benefits forAustralians aged 60 years or over from 1July 2007no tax on a lump sumno tax on a superannuation pensionreasonable benefit limits to be abolishedtransferring super between funds madeeasier.

Implementation date was 1 July 2007.

Budget speech

Continuing tax reform:Ministerial statement bythe Treasurer

1 July 2007 Most simplified superannuation amendmentstook effect. Bulk of operating superannuation taxlaw was now in the Income Tax Assessment Act1997. Prudential and operational aspects werelargely in the SIS Act. Residual parts ofsuperannuation law remained in the Income TaxAssessment Act 1936.

Tax Laws Amendment(SimplifiedSuperannuation) Act 2007

1 July 2007 Minister for Revenue and Assistant Treasurerannounced that tax free benefits were able to bepaid to those with a terminal illness.

Media release

Tax Laws Amendment(2008 Measures No. 1)Act 2008

31 December2007

Employees ability to recover unpaidsuperannuation amounts from employers thathave ceased operating was enhanced.

Corporations Amendment(Insolvency) Act 2007

16 February2008

Superannuation fund members with a diagnosedterminal medical condition were able to accesstheir accrued superannuation entitlements.


3 March 2008 Minister for Superannuation and Corporate Law,Nick Sherry, announced the establishment of aSuperannuation Advisory Group to advise onmatters relevant to current or prospectivesuperannuation legislation and on Governmentpolicy proposals which have significant impactfor the superannuation industry.

Media release

5 May 2008 Minister Sherry announced consultation on ameasure introduced by the Coalition Governmentwhich required future superannuationcontributions and existing balances fortemporary residents to be transferred to theATO. If these were unclaimed after 5 years, theamounts would be confiscated. Extra revenue ofup to $1 billion a year was predicted.

Media release

13 May 2008 Labors first Budget contained details of a reviewof taxationAustralias future tax system, to bechaired by Treasury Secretary Dr Ken Henry.Terms of reference included the governmentscommitment to preserve tax-freesuperannuation payments for the over 60s.

Superannuation budget initiatives included:

expanded definitions of income to includecertain salary sacrificed contributions to

Australias future taxsystem and terms ofreference

Budget paper no. 2:200809

superannuationaccess to tax free lump sums for personswith a terminal medical conditionpayment of temporary residentssuperannuation to the AustralianGovernmentestablishment of a Superannuation ClearingHouse Facilityreduction in funding for choice ofsuperannuation fundnot to proceed with SimplifiedSuperannuationadvertising campaign.

19 May 2008 In a speech to the Institute of Actuaries FinancialServices Forum Minister Sherry announced thatuniversal forecasting of superannuation end-benefits could be introduced to enable betterunderstanding of retirement savings.

The Governmentspriorities insuperannuation andfinancial services

28 May 2008 Attorney-General Robert McClelland introducedthe first of a range of amendments to removesame-sex discrimination from acts governingCommonwealth superannuation schemes. Thisensured that same-sex couples were not deniedthe payment of death benefits fromsuperannuation schemes or the tax concessionson death benefits that were made available toopposite-sex couples.

Same-Sex Relationships(Equal Treatment inCommonwealth LawsSuperannuation) Bill 2008

June 2008 ASIC began to provide advice on long termsuperannuation returns.

Media release

17 Jun 2008 The Same-Sex Relationships (Equal Treatment inCommonwealth LawsSuperannuation) Bill 2008was sent to a committee inquiry without areporting date.

Referral of Bills toCommittee

24 June 2008 Legislation providing further relief for employerswho made a late superannuation guaranteecontribution received Royal Assent.

Media release

Tax Laws Amendment(2008 Measures No.2) Act2008

26 June 2008 Minister Sherry announced a review of pensionindexation arrangements for AustralianGovernment civilian and military superannuationschemes. The review commenced in July 2008and was expected to conclude by the end of2008.

Media release

December2008

Review of Australian government pensionindexation (Matthews Review) was completed.However the Report was not released to thepublic until 21August 2009.

Pension IndexationReview website

18 December2008

Temporary residents superannuation benefitswere required to be paid to the ATO, if notclaimed within six months of departing Australia.

Media release

Temporary Residents'SuperannuationLegislation AmendmentAct 2008

4 December2008

Royal Assent to the Same-Sex Relationships(Equal Treatment in Commonwealth LawsSuperannuation) Act 2008

1 April 2009 Higher tax rate of temporary residentssuperannuation benefits were applied.

Media release

Superannuation(Departing AustraliaSuperannuation PaymentsTax) Amendment Act2008

28 April 2009 Minister Sherry announced a review into thegovernance, efficiency, structure and operationof Australias superannuation system.

Media release

4 May 2009 Release of the Report on strategic issues for theretirement income systemas part of theAustralias future tax system inquiry (HenryReview). Amongst other things it recommendedthat the superannuation guarantee contributionrate remain at 9 per cent of ordinary time

Report on strategic issuesfor the retirementincome system

earnings and retained the $450 per monthminimum wage threshold for superannuationguarantee purposes.

12May 2009 200910 budget announcements included:

extension of capital loss roll-over forcomplying superannuation fund mergersdrawdown relief for retirees for 2008-09further drawdown relief for retireesamendments to the general unclaimedmoney regime and other amendmentsresulting from the temporary residentssuperannuation measurereducing the concessional contributions capto $25,000 (indexed) from 200910payment of small and insoluble lostaccounts to unclaimed moniestrans-Tasman retirement savings portabilityscheme.


29 May 2009 Minister Sherry announced the terms ofreference and makeup of the review into thegovernance, efficiency, structure and operationof Australias superannuation system.

Media release

1 July 2009 Rate at which government superannuation co-contribution is paid was reduced temporarilybetween 1 July 2009 and 30 June 2014. Thematching rate was to be 100per cent for 2009-10, 2010-11 and 2011-12 (with a maximum of$1,000), 125per cent for 2012-13 and 2013-14(with a maximum of $1,250). Matching ratereturns to $1.50 for every $1 contribution(subject to income test threshold) on 1 July 2014(with a maximum of $1,500).

Tax Laws Amendment(2009 Budget MeasuresNo 1) Act 2009

1 July 2009 Limit on concessional contributions (formallyknown as tax deductible contributions) reducedfrom $50,000 per annum to $25,000 per annumfor 200910 and later years. This limit wasindexed to changes in AWOTE (if those changeswere sufficiently large enough). Transitionalmeasures remained in place for those over 50years of age to 20112012. Annual limits on

Tax Laws Amendment(2009 Budget MeasuresNo 1) Act 2009

non-concessional contributions (that is, after taxcontributions) are six times the limit onconcessional contributions for those under 50years of age (that is, six times $25,000 or$150,000 per annum for the 200910 year).

1 July 2009 Income for government superannuation co-contribution purposes to include a personsreportable employer superannuationcontributions. That is, the amount that theemployer puts into superannuation on theemployees behalf that exceeds thesuperannuation guarantee requirements.

Tax Laws Amendment(2009 Measures No 1) Act2009

1 July 2009 Expanded definition of ordinary time earningsfor superannuation guarantee purposes tookeffect. Ordinary time earnings included over-award payments, shift loadings, allowances andpiece rates paid in relation to a persons ordinaryhours of work. It did not include overtimepayments.

SuperannuationGuarantee Ruling (SGR)2009/2

Later regulationspecifically exemptedparenting payments fromdefinition of ordinarytime earnings forsuperannuationguarantee purposes.

9 July 2009 Superannuation funds were able to offer limitedfinancial advice to their members.

Media release

21 August2009

Release of the Matthews Report recommendedthat government superannuation pensionscontinue to be adjusted by increases in theConsumer Price Index (CPI). Government fullysupported this recommendation.

Matthews Report

20 September2009

The rate of the Age Pension was raised by $30per week for single people. Existing pensionsupplements were consolidated into one pensionsupplement and increased by $2.49 per week forsingle people and $10.14 per week for couples.

The 25per cent of male total average weeklyearnings (MTAWE) adequacy benchmark wasadjusted to 27.7per cent for single people and

Social Security And OtherLegislation Amendment(Pension Reform andOther 2009 BudgetMeasures) Act 2009

41.76per cent for couples. A new pricesmeasure called the Pensioner and BeneficiaryLiving Cost Index (PBLCI) was added to thepension indexation process. Where the increasein the PBLCI was greater than that for the CPI itwould be used instead of the CPI in theindexation process.

The pension income test taper rate wasincreased from 40 per cent to 50 per cent. Awork bonus was introduced that exempted halfof any income from employment up to $500 perfortnight from consideration under the incometest.

The Pension Bonus Scheme was abolished.

14 December2009

Clearer super choices, the Phase onepreliminary report of the review into thegovernance, efficiency, structure and operationof Australias superannuation system (CooperReview) on superannuation fund governance wasreleased.

Clearer super choices:matching governancesolutions, Phase onepreliminary report

January 2010 There was to be formal inclusion of specificsuperannuation funds (usually industry funds) inindustrial awards. This change did not restrict anemployees right to have contributions made to asuperannuation fund of their choice.

Fair Work Act 2009,paragraph 139(1)(i)

20 April 2010 MySuper, the second Phase onepreliminaryreport of the Cooper Review was released.

MySuper: optimisingAustraliansuperannuation, SecondPhase onepreliminaryreport

29 April 2010 Self-managed super solutions, the Phase threepreliminary report of the Cooper Review wasreleased.

Self-managed supersolutions, Phase threepreliminary report

2 May 2010 Government response to Australias future taxsystem review (Henry Review) was released. TheGovernment agreed to the following:

Superannuation guarantee rate to be raised

Media release

to 12 per cent between 201314 and 201920Superannuation guarantee age limit to beincreased to 75 from 1July 2013an annual superannuation contribution ofup to $500 provided for those receivingadjusted taxable income of up to $37,000per annum andthe concessional contribution cap for thoseover age 50, with less than $500,000 intotal superannuation benefits to bepermanently raised from $25,000 to$50,000 per annum.

The proposed measures were repeated inbudget papers released on 11 May 2010 (seebelow).

11 May 2010 2010-11 Budget announcements included:

changes to co-contributions scheme.Income thresholds applying for 200910were to continue for a further two years andthe government co-contribution rate was tobe set permanently at $1 for every $1 ofpersonal contributions made by thosereceiving an adjusted annual income lessthan $31,920 per annumnew low income government contributionfor those on adjusted taxable incomes of upto $37,000. This was to commence from2012-13higher concessional contributions caps forindividuals aged over 50 withsuperannuation balances below $500,000progressively increase the superannuationguarantee rate from 9 per cent to 12 percent by 2019-20raise the superannuation guarantee agelimit from 70 to 75 years.


1 July 2010 Small business employees were able to fulfiltheir superannuation guarantee requirements bymaking payment to an approved clearing house.


1 July 2010 Implementation of 201011 Budgetannouncements relating to pausing of incomethresholds for the Government co-contributionand permanent reduction in co-contribution rateat $1 for every $1 of personal contributions.


5 July 2010 Final report of the Cooper Review was released.It includes 177 recommendations covering tenbroad areas of reform:

MySuper (a simplified low-cost defaultsuperannuation product) and choice offund/default fund arrangementstrustee governanceinvestment governancetransparency of fund operationsinsurance arrangements and feesprudential requirementsretirement products and adviceself-managed superannuation fundsbackoffice industry arrangements, andregulation.

Final Report

16 December2010

Government formally accepted the bulk ofCooper Reviews recommendations (StrongerSuper), including implementation of low costsuperannuation funds (MySuper), streamlinedback office procedures (Super Stream),strengthening the oversight of self-managedsuperannuation funds, strengthening APRAsprudential supervision of the superannuationindustry and increasing prudential requirementsof trustees.

Media release

1 February2011

Government announced that the establishmentof a consultation panel to advise on theimplementation of the Cooper Reviewrecommendations.

Media release

13 April 2011 Government announced its decision to provide agrant of approximately $55 million in financialassistance to benefit the members of four

Media release

superannuation funds that were formerly underthe trusteeship of Trio.

10May 2011 Government announced a range of measuresincluding some linked to implementing theCooper Review recommendations:

allowing superannuation fund trustees touse of tax file numbers (TFNs) from 1July2011 to locate multiple member accounts toassist in account consolidationrefund of excess concessional contributionsemployees were to receive information ontheir payslips about the amount ofsuperannuation actually paid into theiraccount from 1July 2012concessional superannuation contributioncap of $50,000 for those aged over 50 yearswith a total superannuation balance of lessthan $500,000extending the pause to the indexation ofthe income threshold for thesuperannuation co-contributionpayment of $55million to compensatemembers of four superannuation funds,formerly under the trusteeship of TrioCapital Limited, which suffered losses dueto fraudulent conduct.


10May 2011 Access removed to the trading stock exception tothe capital gains tax primary code rule forcertain assets (primarily shares, units in a trustand land) owned by a complying superannuationentity.


1 July 2011 Implementation of greater use of TFNs to locatemultiple member accounts to assist in accountconsolidation.


1July 2011 Implementation of a limited refund of excessconcessional contributions for taxpayers thatbreach the limit by $10,000 or less if they do nothave excess concessional contributions for anearlier financial year commencing on or after 1July 2011.

Tax and SuperannuationLaws Amendment (2012Measures No. 1) Act 2012

1July 2011 Regulations would be able to be made imposingrules on SMSF investment in collectables orpersonal use assets.


21September2011

Government announced its decisions on the keydesign aspects of its accepted recommendationsfrom the Cooper review including:

MySuper products to have a singleinvestment strategy and a standard set offees except in certain circumstancesemployers must make contributions foremployees who have not chosen their fund,to a fund offering a MySuper product inorder to satisfy superannuation guaranteeobligations from 1 October 2013by 1 July 2017, funds would need to transferthe existing default balances of members toa MySuper productnew processes for locating andconsolidating multiple member accounts sothat inactive accounts with balances under$1,000, and accounts in eligible rolloverfunds are automatically consolidated intothe members current active account (unlessthe member opts out), andrequirements for employers to disclose onpayslips when superannuation contributionsare due to be paid.

Media release

Stronger super:Information pack

Stronger super:Outcomes of consultationprocess

1October2011

Merging superannuation funds could choose totake up capital gains tax loss relief where thetransferring entity transfers assets to thereceiving entity on or after 1 October 2011 andbefore 2July 2017.

Superannuation LawsAmendment (CapitalGains Tax Relief andOther EfficiencyMeasures) Act 2012

29November2011

Government announced a number of changes tosuperannuation arrangements as part of theMid-Year Economic and Fiscal Outlook including:

individuals who receive less than 10 percent of their income through employment

Media release

or business would not be eligible for thegovernment low income superannuationcontribution (consistent with therequirements for the low incomeGovernment superannuation co-contribution)matching rate for the Governmentsuperannuation co-contribution to bereduced from $1 to $0.50, with themaximum benefit also to be reduced from$1,000to $500. The maximum incomethreshold was also proposed to fall from$61,920 to $46,920indexation of concessional contributioncaps was proposed to be paused for oneyear in 2013-14 at $25,000 for individualsunder the age of 50 and $50,000 forindividuals aged 50and overextension of draw-down relief for account-based pensions to 2012-13 year, with a 25per cent reduction in the minimum paymentamount.

20 January2012

Government formally announced a review ofdefault superannuation funds arrangements bythe Productivity Commission (PC) to designcriteria for the selection and ongoingassessment of superannuation funds eligible fornomination as default funds in modern awards byFair Work Australia.

Media release

21March2012

Superannuation fund members would be able toelectronically request the consolidation of theirsuperannuation benefits through the ATO.


8May 2012 2012-13 Budget announced a number ofsuperannuation-related measures including:

reduction in superannuation contributionstax concession from 30per cent to 15percent for very high income earners (thosewith income greater than $300,000) from1July 2012capital gains tax relief for mergers ofcomplying superannuation funds from1June 2012 to 1 July 2017

Budget paper no. 2:2012-13

deferral of the 2010-11 Budget measure toincrease the concessional contributions capfor individuals over 50with asuperannuation balance of less than$500,000 from 1July 2012 to 1July 2014special industry levy on APRA-regulatedsuperannuation funds to raise$467.1million over 2012-13 to 2017-18 toimplement SuperStream reforms.

27June 2012 ATO was permitted to disclose details of anindividuals superannuation interests andsuperannuation benefits to specified classes offunds to enable the ATO to provide informationabout a members superannuation interests,including amounts held by the ATO. Thisinformation would enable funds to assist theirmembers to find and consolidate theirsuperannuation interests.


29June 2012 Implementation of a framework to support theintroduction of superannuation data and paymentregulations and standards that would apply tospecified superannuation transactionsundertaken by superannuation entities,retirement savings account providers (RSAproviders) and employers. Application of thestandards would be staggered according to thefollowing schedule:

RSA providers and trustees of asuperannuation entity 1July 2013medium to large employer on 1 July 2014 inrelation to conduct that occurs on or after 1July 2014small employer on 1 July 2014 in relation toconduct that occurs on or after 1 July 2015,unless the regulations prescribe analternate application date after 1 July 2015.

SuperannuationLegislation Amendment(Stronger Super) Act 2012

29June 2012 Productivity Commission (PC) released draftreport on review of default superannuationarrangements. PCs preferred options were for abody that is either part of, or separate to, the

Fair Work Authority to undertake assessmentsabout the selection of default superannuationfunds. Final report was to be submitted to theGovernment in October 2012.

1July 2012 Government low income superannuationcontribution came into effect, providing for agovernment contribution of 15per cent ofeligible contributions up to a maximum of $500for eligible individuals on adjusted taxableincomes of up to $37,000 (not indexed).

Tax Laws Amendment(Stronger, Fairer, Simplerand Other Measures) Act2012

1July 2012 Implementation of arrangements for thetemporary levy on APRA-regulated funds tosupport the costs of SuperStream measures.

SuperannuationSupervisory LevyImposition AmendmentAct 2012

Tax Laws Amendment(Stronger, Fairer, Simplerand Other Measures) Act2012

1July 2012 Superannuation providers were required toprovide statements for all members who held aninterest in the superannuation plan at any timeduring a reporting period, not just those forwhom contributions were received. Theamendments apply to the 2012-13 financial year,for which the first member statements were dueby October 2013.


1July 2012 Key thresholds changed for the superannuationco-contribution scheme to apply for the 201213income year onwards:

reducing rate of payment for thesuperannuation co-contribution from 100per cent to 50 per centdecreasing the maximum amount payablefrom $1,000 to $500extending the freeze on the indexation ofthe lower income threshold for the 2012-13income year andsetting the higher income threshold at$15,000 above the lower income threshold


(down from $30,000).

1July 2012 Reduced tax concession for individuals withincome above $300,000 receive on theirconcessional superannuation contributions from30 per cent to 15 per cent for the 2012-13income year. Special rules for working out thetax for:

individuals with defined benefit interestsState higher level office holders withsuperannuation contributions toconstitutionally protected fundsCommonwealth justices and judges inrespect of contributions for a definedbenefit interest in a superannuation fundestablished under the Judges Pensions Act1968.

Former temporary residents who received adeparting Australia superannuation payment towhich withholding tax applied would be eligiblefor a refund of the amount tax paid and releasefrom liability for tax, as they effectively do notreceive any concessional tax treatment on theircontributions to superannuation.

Tax and SuperannuationLaws Amendment(Increased ConcessionalContributions Cap andOther Measures) Act 2013

Superannuation(Sustaining theSuperannuationContribution Concession)Imposition Act 2013

22August2012

Government submission to the PC review ofdefault superannuation arrangements proposedthat funds seeking to be listed as default fundsin modern awards should have the opportunity toput an Expression of Interest to the expert panelwithin Fair Work Australia, which would assessthe funds against legislated criteria proposed bythe PC.

Media release

9September2012

APRA was granted the power to make prudentialstandards for regulated superannuation funds.

SuperannuationLegislation Amendment(Trustee Obligations andPrudential Standards) Act2012

12October2012

Productivity Commission report on defaultsuperannuation arrangements was released. Thereport recommended that decisions on the

Default superannuationfunds in modern awards

listing of default products should be made by anew Default Superannuation Panel within FairWork Australia, with the APRA MySuper productauthorisation framework providing a first filterfor the selection of products and a set of non-prescriptive factors (such as investmentobjectives, performance, fees and costs) as asecond stage quality filter when selectingdefault products for modern award.

22October2012

Government announced revised arrangementsrelating to lost and unclaimed moneys. Inrelation to superannuation:

the account balance threshold below whichinactive accounts, and accounts ofuncontactable members, are required to betransferred to the ATO are proposed to beincreased from $200 to $2,000the period of inactivity before an account ofan unidentifiable member is required to betransferred to the ATO would be reducedfrom five years to 12 months.interest at a rate equivalent to ConsumerPrice Index (CPI) inflation from 1 July 2013on all reclaimed superannuation accounts.

Additional measures announced relating tosuperannuation included:

increases to SMSF levy and changes topayment arrangementsallowing the tax exemption for earnings onassets supporting superannuation pensionsto continue following the death of a fundmember in the pension phase until thedeceased members benefits have beenpaid out of the fundproviding $10 million over three years as acontribution to a non-governmentinvestment fund, the earnings of which willbe used to fund the ongoing costs of a newSuperannuation Consumer Centre (SCC)reducing the SuperStream component ofthe Superannuation Supervisory levy beingcollected from APRA-regulatedsuperannuation funds designed to recover

201213 Mid-YearEconomic and FiscalOutlook

the Governments costs of implementingSuperStream.

29November2012

In a speech to the 2012 National Conference ofthe Association of Superannuation Funds ofAustralia (ASFA), Paul Keating considered that acontribution of 12per cent of wages was notsufficient for retirement because of increasedlongevity. Proposed policies to address theincrease in longevity included compulsorydeferred annuities or to increase contributionsto 15per cent via employer contributions orthrough a government pooled insurance fund.

Extract from openingaddress to ASFAconference

2012 NationalConference of ASFA[Keating, speaking notes]

December2012

Legislation allowing individuals to transfer theirretirement savings between an Australiancomplying superannuation fund and a NewZealand KiwiSaver scheme received Royal Assent.Commencement was scheduled for 1July 2013.

SuperannuationLegislation Amendment(New ZealandArrangement) Act 2012

30December2012

The balance threshold below which small lostaccounts were required to be transferred to theCommissioner increased from $200 to $2,000.The period of inactivity before inactive accountsof unidentifiable members would be required tobe transferred to the Commissioner decreasedfrom five years to 12 months.

Treasury LegislationAmendment (UnclaimedMoney and OtherMeasures) Act 2012

1January2013

Funds would be able to lodge MySuperapplications. Key features of a MySuper productinclude:

there is a single diversified or lifecycleinvestment strategyall members have access to the sameoptions and facilitiesthe MySuper product is only for the pre-retirement phaseonly permitted fees can be deducted frommember accounts and the permitted feesare the same for all members in theMySuper product, with the exception of theadministration fee.

SuperannuationLegislation Amendment(MySuper Core Provisions)Act 2012

SuperannuationLegislation Amendment(Service Providers andOther GovernanceMeasures) Act 2013

Trustees able to have a single cap on percentagebased administration fees. The amount of theadministration fee can be capped at a specifiedamount, and must be the same for all membersof that MySuper product.

1January2013

Various additional rules about fees withinMySuper were enacted including not charging afee that relates to the payment of conflictedremuneration to a financial services licensee,arrangements for intra-fund advice, prohibitionof entry fees and limiting exit fees, switchingfees and buy-sell spreads to being charged on acost-recovery basis.

SuperannuationLegislation Amendment(Further MySuper andTransparency Measures)Act 2012

1January2013

Registrable superannuation entity (RSE) licenseesmust be authorised by APRA to operate aneligible rollover fund (ERF). New enhancedtrustee obligations would apply to a trustee of anRSE that has been authorised by APRA to offer anERF as members fully rely on the trustee to makejudgments about managing theirsuperannuation. These enhanced trusteeobligations required trustees to comply with aduty to promote the financial interests ofmembers of the fund.


31January2013

Registration regime for SMSF auditorscommenced. Auditors would be required tomeet initial and ongoing requirements relatingto their qualifications, competency andindependence. ASIC is responsible for theregistration of SMSF auditors, settingcompetency standards and taking enforcementaction against auditors who have not met theirongoing obligations.


Superannuation AuditorRegistration ImpositionAct 2012

5April 2013 Government announced changes to improve thefairness, sustainability and efficiency of thesuperannuation system. Changes included:

Media release

capping the tax exemption for earnings onsuperannuation assets supporting incomestreams at $100,000 from 1July 2014, witha concessional tax rate of 15 per centapplying thereafter, and applying the sametreatment to defined benefit fundsproviding for a uniform $35,000concessional contributions cap for thoseaged 60years or over from 1July 2013 andfrom 1July 2014 for those aged 50 years oroverchanging the treatment of concessionalcontributions in excess of the annual capfrom 1July 2013 to allow individuals towithdraw excess contributions and to taxthese contributions at the individual'smarginal tax rate, plus an interest chargeextending the normal deeming rules from1July 2015 to superannuation account-based income streamsextending concessional tax treatment todeferred lifetime annuities from 1July 2014increasing threshold of $2,000 to $2,500from 31December 2015 and then$3,000from 31December 2016 for thetransfer of superannuation account balancesto the ATO for inactive accounts andaccounts of uncontactable members.

The Government also announced establishmentof a Council of Superannuation Custodians toensure that future changes are consistent withan agreed Charter of Superannuation Adequacyand Sustainability.

9May 2013 Government appointed a Charter Group toconduct consultations on the Charter ofSuperannuation Adequacy and Sustainability. Thisincluded developing and recommending aCharter of Superannuation Adequacy andSustainability which embodies the principles ofcertainty, adequacy, fairness and sustainability.

Discussion paper was released to assist in theconsultation process.

Media release

Discussion Paper: Charterof SuperannuationAdequacy andSustainability and Councilof SuperannuationCustodians

14May 2013 The 201314 Budget included a restatement ofthe policies announced in April 2013 along withseveral other measures including:

amending parameters of the 201213Budget measure to reduce the contributionstax concession for those earning more than$300,000further grants of financial assistance tocompensate members of foursuperannuation funds, formerly undertrusteeship of Trio Capital Limited (Trio),that suffered losses due to fraudulentconductadditional funding for the SuperannuationComplaints Tribunalamending the eligibility criteria for the lowincome superannuation contribution to payindividuals with an entitlement below $20(cost $15 million over four years).


1 July 2013 Superannuation guarantee charge was increasedfrom 9per cent to 9.25per cent.

SuperannuationGuarantee(Administration)Amendment Act 2012

1July 2013 Maximum age limit for superannuationguarantee charge (70years) was abolished.


1July 2013 Suspension of the indexation of the concessionalcontributions cap as announced in November2011. This also resulted in a pause in theindexation of the concessional contributions capfor individuals aged 50 years and over and thenon-concessional contributions cap. Indexationis to resume from 1July 2014 when the cap isexpected to rise to $25,000.


1July 2013 Proposed commencement date forimplementation of requirements for employersto report on payslips information related to thepayment of superannuation contributions.


1July 2013 Commencement of enhancements tosuperannuation trustee obligations includingrequiring a trustee to put the interests ofmembers of funds first at all times and clearlyidentifying the duties that apply to directors ofsuperannuation funds, including to act honestlyand in the best interests of members.

SuperannuationLegislation Amendment(Trustee Obligations andPrudential Standards) Act2012

1July 2013 Superannuation funds able to offer and paysuperannuation contributions into MySuperproducts from this date.


1July 2013 A trustee of a superannuation fund must provideMySuper members with benefits by way ofinsurance that are for death and benefits that areconsistent with the definition of permanentincapacity in the regulations. A relevant membermust have the option to opt-out of life and totalpermanent disability insurance unless the fundmeets conditions prescribed in the regulations.


SuperannuationLegislation AmendmentRegulation 2013 (No. 1)

1July 2013 A number of additional data collection andreporting requirements were imposed on APRAand specified funds including:

expanded powers to collect more accurateand complete data on the investments andcosts of superannuation entitiesrequirements for APRA to publishinformation on the returns, fees and costsof all MySuper products quarterly. Thisrequirement does not limit APRA frompublishing other information regardingMySuper or other superannuation productsRSE licensees will be required to publish aproduct dashboard for each of the fundsMySuper and choice products on a part oftheir website that is accessible to the publicat all timesFunds will also have to disclose theremuneration of directors and executiveofficers. Regulations will specify other


documents to be published on a fundswebsite to promote transparencyRSE licensees will be required to publishinformation regarding their portfolioholdings on their website. The RSE licenseemust publish portfolio holdings as at thereporting day, which will occur once everysix months on 30 June and 31 December,within 90 days after each reporting day.

1July 2013 Increase in the maximum levy payable by anSMSF and change to the timing of the paymentfor 201314 financial year and later years.

SuperannuationLegislation Amendment(Reform of Self ManagedSuperannuation FundsSupervisory LevyArrangements) Act 2013

Superannuation (SelfManaged SuperannuationFunds) Supervisory LevyImposition AmendmentRegulation 2013 (No. 1)

1 July 2013 Interest would be payable on all unclaimedsuperannuation money payments in respect ofindividuals.

Treasury LegislationAmendment (UnclaimedMoney and OtherMeasures) Act 2012

1July 2013 Any provisions in a funds governing rules thatrequire the trustee to use a specified serviceprovider, investment entity or financial productwould be overridden except where thearrangements is specified by law.


1July 2013 APRA would be able to issue infringementnotices for minor and straight-forward breachesof the SIS Act.


1July 2013 Superannuation trustees required to provideeligible persons, generally on request, with thereasons for decisions made in relation to acomplaint.

SuperannuationLegislation Amendment(Service Providers and

Increase in the time limits to lodge complaintswith the Superannuation Complaints Tribunalregarding total and permanent disability (TPD)claims.

Other GovernanceMeasures) Act 2013

1July 2013 Information in each MySuper product dashboardabout fees and other costs would need to beupdated within 14 days after the end of a periodprescribed in regulations. Key information to beincluded in the product dashboard is identified ingeneral terms, with detail of the requirementsable to be prescribed in regulations. Therequirement to include a statement about theliquidity of a members investments has beenremoved.

Requirement to make portfolio holdings publicwould apply in relation to the 30 June 2014reporting day and later reporting days.


1July 2013 Interest paid by the Commonwealth on paymentsof unclaimed superannuation from 1 July 2013,other than interest paid to former temporaryresidents, would be a tax free component of asuperannuation benefit.

Interest paid on the return of unclaimedsuperannuation to former temporary residentsafter 1 July 2013 would be subject to DepartingAustralia Superannuation Payment (DASP) tax at arate of 45 per cent. Interest paid to currentresidents of Australia in respect of unclaimedsuperannuation is not subject to DASP tax.


1July 2013 Duties of superannuation trustees expanded torequire the establishment and implementation ofprocedures by 30June 2014 to identify and,where appropriate, merge multiple accounts of amember.


1July 2013 Member protection standards were repealed.These standards provided that a member with anaccount balance of less than $1,000 could not

Superannuation Industry(Supervision) AmendmentRegulation 2013 (No. 2)

have their balance reduced by administrativefees that are greater than the earnings accruingto their account. However, trustees could deductadministrative fees in years with a negativeinvestment return despite a members balancebeing less than $1,000.

1July 2013 Concessional contributions cap was increased to$35,000 (not indexed) for the 201314 financialyear for individuals aged 60 years and over.


1July 2013 A number of technical changes to the low incomesuperannuation contribution (LISC) appliedincluding:

introducing an estimations process thatallows the Commissioner for Taxation todetermine a persons eligibility for the LISCensuring that all concessional contributionsfor a year attract LISC, including allocationsfrom reserves and notional taxedcontributionsreplacing the existing minimum paymentrule so that any individual that is entitled toless than $10 of LISC will have theirentitlement rounded up to $10enabling the Commissioner to not rectifysmall overpayments and underpayments ofthe LISC that are less than $10 andrequiring tabling of quarterly and annualParliamentary reports on the LISC withdetails to be specified in the regulations.


1July 2013 Income tax relief applied to superannuationfunds where there is a mandatory transfer ofdefault members account balances to a MySuperproduct in another superannuation fund between1July 2013 and 1July 2017.

Superannuation LawsAmendment (MySuperCapital Gains Tax Reliefand Other Measures) Act2013

1July 2013 Changed arrangements for the taxation ofexcess concessional contributions for the 2013-14 income year and later income years so that:

Tax Laws Amendment(Fairer Taxation of ExcessConcessional

individuals can elect to release an amountof these excess concessional contributionsfrom their superannuation. Any releasedamounts proportionately reduce their non-concessional contributionsa charge is imposed so that taxpayers whohave concessional contributions in excess oftheir annual cap are taxed at their marginalrate rather than at the highest marginalrate.

Contributions) Act 2013

Superannuation (ExcessConcessionalContributions Charge) Act2013

5July 2013 Report of the Charter Group appointed on 9 May2013 to develop and recommend a Charter ofSuperannuation Adequacy and Sustainability andto develop and recommend an appropriatestructure for a Council of SuperannuationCustodians. Key recommendations included:

that there should be legislation establishinga Super Council that would administer aSuper Charterthat the Council perform an advisoryfunction only and that it have no regulatorypowers, but that it does have the power toinitiate its own inquiries into mattersconnected with the Charter principles.that the Council be independent ofgovernment and that its members be calledguardians.

A Super Charter: fewerchanges, better outcomes

31July 2013 Government announced that it would make nomajor changes to superannuation tax policy forfive-year periods.

The Government also announced that it wouldbring forward legislation to establish the SuperCouncil to ensure any future changes tosuperannuation are consistent with an agreedCharter of Superannuation Adequacy andSustainability. The Charter would include thecommitment to a five-year moratorium onchanges to superannuation tax policy.

Media release

2August 2013Government announced that the threshold belowwhich small inactive superannuation accounts,including inactive accounts of uncontactablemembers, are required to be transferred to theATO would be increased from $4,000 to $6,000from 31 December 2016. This builds on anearlier announcement to increase the thresholdfrom $2,000 to $4,000 from 31December 2015.

Economic Statement

Media release

August andSeptember2013

Coalition release pre-election policy onsuperannuation. Key proposals include:

not making any unexpected detrimentalchanges to superannuationsuperannuation guarantee to increase from9per cent to 12per cent but gradualincrease delayed by two yearsrevisit concessional contributions caps andincentives, such as co-contributions, forlower income earners once the Budget isback in strong surplusalign corporate governance insuperannuation more closely withgovernance principles applicable to ASXlisted companiesconduct a review of minimum withdrawalamounts from account-basedsuperannuation pensionsallow small businesses to remitsuperannuation guarantee payments to theATO as part of regular tax payments, withthe ATO to distribute amounts to individualaccounts, anddiscontinuing the low incomesuperannuation contribution.

The Coalitions policy forsuperannuation

The Coalitions policy forsmall business

Fiscal budget impact ofFederal Coalition policies

31October2013

Obligation of RSEs to disclose executive officerremuneration and other information wasdeferred from 1July 2013 to commence from31October 2013.

ASIC Class Order [CO13/830] - RSE licenseesof registrablesuperannuation entities

6November2013

Government announces decisions and furtherconsultation on a range of previously announcedbut not legislatedtax and superannuationmeasures. Measures which would not proceedincluded:

Media release

capping the tax exemption for earnings onsuperannuation assets supporting incomestreams at $100,000 from 1July 2014Council of Superannuation Guardians andCharter of Superannuation Adequacy andSustainability

Measures that would proceed includedincreasing the threshold below which lostaccounts are required to be transferred to theATO from $2,000 to $4,000, and then to $6,000.

A further 64measures would be the subject offurther consultation.

28November2013

Government releases consultation paper ongovernance, transparency and defaultsuperannuation in modern awards.

Better regulation andgovernance, enhancedtransparency andimproved competition insuperannuation

Media release

14December2013

Government announces final decision onwhether to proceed with 64tax andsuperannuation measures that were subject tofurther consultation after its 6November 2013announcements. Measures which theGovernment indicated would proceed included:

the introduction of penalties for promotingillegal early release of superannuation, andproviding the ATO with penalty options forbreaches by SMSFs.Measures which the Government indicatedwould not proceed included:encouraging the take-up of deferredlifetime annuities (this was to be consideredas part of a proposed review)inter-fund consolidation of accounts lessthan $1,000prescribing additional rules for theacquisition and disposal of certain assetsbetween SMSFs and related parties.

Media release

17December2013

Government releases 201314 MidYear Fiscaland Economic Outlook. In addition to previouslyannounced measures, the statement included:

the transfer of the Small BusinessSuperannuation Clearing House to the ATOfrom April 2014minor savings to superannuation advertisingand other consumer activities.

201314 MidYear Fiscaland Economic Outlook

1January2014

Default funds listed in modern awards (otherthan exempt public sector superannuationschemes) must be authorised to offer a MySuperproduct. The Fair Work Commission (formerlyFair Work Australia) is required to conduct aone-off process to ensure, as far as possible,that on 1 January 2014 modern awards do notpurport to nominate any default funds that donot comply with MySuper requirements. A termof an enterprise agreement will be an unlawfulterm and of no effect to the extent that itnominates a default fund that does not complywith this requirement.


1January2014

Expert panel to be created within the Fair WorkCommission to conduct four-yearly reviews ofdefault fund arrangements in modern awardsand to list eligible MySuper products that are tobe used as default funds where an employeedoes not nominate a superannuation fund. Inmaking its assessment, the Fair WorkCommission is required to consider a range offactors including:

the appropriateness of the MySuperproducts long term investment returntarget and risk profilethe superannuation funds expected abilityto deliver on the MySuper products longterm investment return target, given its riskprofile andthe appropriateness of any insuranceoffered in relation to the MySuper product.

Fair Work Amendment Act2012

1January2014

Employers must make superannuation guaranteecontributions for employees who have not madea choice of fund to a fund that offers a MySuperproduct.


1 July 2014 Superannuation guarantee charge to increasefrom 9.25per cent to 9.5per cent.


1July 2014 Concessional contributions cap to increase to$35,000 (not indexed) for the 201415 financialyear for individuals aged 50 years and over.


1January2015

Corporate fund MySuper offerings andcustomised employer MySuper offerings fromretail funds will be able to be listed in modernawards, provided they satisfy a selection process.

Superannuation LawsAmendment (MySuperCapital Gains Tax Reliefand Other Measures) Act2013

1 July 2015 Superannuation guarantee charge to increasefrom 9.5per cent to 10per cent.


1 July 2016 Superannuation guarantee charge to increasefrom 10per cent to 10.5per cent.


1July 2017 Superannuation guarantee charge to increasefrom 10.5per cent to 11per cent.


1July 2017 All RSE licensees generally have until 1 July 2017to transfer all accrued default amounts to aMySuper product unless the member opts-out inwriting.


Mandatory transfers of account balances cantransfer losses and defer income tax liability.


July 2017 The qualifying age for the Age Pension willincrease by six months every two years until itreaches 67 years of age on 1January 2024.

Social Security And OtherLegislation Amendment(Pension Reform andOther 2009 BudgetMeasures) Act 2009

1July 2018 Superannuation guarantee charge to increasefrom 11per cent to 11.5per cent.


1July 2019 Superannuation guarantee charge to increasefrom 11.5per cent to 12per cent.


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Retirement Income Policy and Legislative Chronology – Parliament of Australia

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