Commonwealth Consolidated Acts Commonwealth Consolidated ActsThe Governor - General may make regulations prescribing all matters:
(a) required or permitted by this Act to be prescribed; or
(b) necessary or convenient to be prescribed for carrying out or giving effect to this Act.
• The Australian Taxation Office administers a special account. Notional accounts 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 transferred to a nominated superannuation fund or RSA .
• Except in special cases, employees will not have direct access to their account balances.
• Interest will be calculated on the daily balance of the account and credited to the account on a quarterly basis.
• Interest is exempt from income tax .
• If an account balance exceeds $1,200, interest will only be credited on the first $1,200 of the balance. This is an incentive for employees to request that balances of more than $1,200 be transferred to a superannuation fund.
• Under the Income Tax Assessment Act 1936 , employers may get income tax deductions for deposits. There is an annual deduction limit of $1,200 per employee.
• Under the 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.
• The Superannuation Holding Accounts Special Account is continued in existence.
• The Special Account is not a superannuation fund.
• Notional accounts are to be kept within the Special Account in the names of particular individuals.
• Section 13 outlines credits to accounts.
• Section 14 outlines debits to accounts.
• The Commissioner of Taxation may open or close an account.
• Accounts may have a nil balance.
• An individual may only have one account.
• Account balances are not held on trust.
• An individual's account balance will be notified to the individual in certain circumstances.
Deposits by employers
• Under section 25, the individual's employer or former employer may make a deposit in respect of the individual. The employer or former employer will make the deposit instead of making a superannuation contribution in respect of the individual. The deposit will result in a credit to the individual's account.
Superannuation guarantee shortfalls
• Under section 65 of the Superannuation Guarantee (Administration) Act 1992 , if there is a shortfall component of a payment of superannuation guarantee charge in relation to the individual, the Commissioner of Taxation may credit the shortfall component to the individual's account.
Interest
• Under Part 6, interest may be credited to the individual's account.
Transfer to superannuation fund or RSA
• Under section 61, the balance of the amount standing to the credit of the account may be debited from the Special Account and paid by the Commonwealth to a superannuation fund or RSA.
Balance of less than $200--individual has ceased to be employed by all depositors
• Under section 63, the balance of the amount standing to the credit of the account may be debited from the Special Account and paid by the Commonwealth to the individual if:
(a) the balance is less than $200; and
(b) the individual has ceased to be employed by all depositors.
Receipt of Commonwealth income support payments
• Under section 64, the balance of the amount standing to the credit of the account may be debited from the Special Account and paid by the Commonwealth to the individual if the individual is in receipt of Commonwealth income support payments for a sufficient period.
Disability
• Under section 65, the balance of the amount standing to the credit of the account may be debited from the Special Account and paid by the Commonwealth to the individual if the individual has retired because of permanent disability.
Terminal medical condition
• Under section 65A, the balance of the amount standing to the credit of the account may be debited from the Special Account and paid by the Commonwealth to the individual if a terminal medical condition exists in relation to the individual.
Individual turns 65
• Under section 66, the balance of the amount standing to the credit of the account may be debited from the Special Account and paid by the Commonwealth to the individual if the individual has turned 65.
Individual at least 55 years old and not an Australian resident
• Under section 67, the balance of the amount standing to the credit of the account may be debited from the Special Account and paid by the Commonwealth to the individual if the individual is at least 55 years old and is not an Australian resident for income tax purposes and:
(a) the individual is not in employment; or
(b) the individual is in employment, but the duties of the individual's employment are performed wholly or principally outside Australia.
Former temporary resident
• The balance of the amount standing to the credit of an individual's account may be debited from the Special Account if the individual is a former temporary resident.
Death of individual
• Under section 68, if the individual dies, the balance of the amount standing to the credit of the account may be debited from the Special Account and paid by the Commonwealth to the individual's legal personal representative.
Refunds of deposits
• Under Part 8, an amount standing to the credit of the account may be debited from the Special Account and paid by the Commonwealth for the purposes of refunding deposits that were:
(a) accompanied by false or defective deposit forms; or
(b) made by mistake.
• A person may make a payment to the Commissioner of Taxation under section 25 in respect of an individual. The payment is called a deposit .
• The deposit must be accompanied by a deposit form.
• The deposit form must include certain declarations.
(a) that the depositor is the employer, or former employer, of the individual; and
(b) that the depositor is making the deposit instead of making a superannuation contribution in respect of the individual.
• A defect in the deposit form will not result in the invalidity of the deposit.
• A deposit form may deal with multiple payments.
• Deposits are not held on trust.
Deposits are to be credited to accounts by following these steps:
• credit the deposit to the Special Account;
• credit the deposit to the individual's account.
• Interest is funded by crediting amounts to the Special Account.
• Interest accrues to an account on the daily balance of the account. Interest only accrues on the first $1,200 of the balance of the account.
• Interest is credited each quarter on the allocation day.
• The allocation day is published in the Gazette .
• The rate at which interest accrues is called the allocation rate.
• The allocation rate is published in the Gazette .
• Interest will not accrue to an account in the following cases:
(a) a deposit is refunded;
(b) a shortfall component is incorrectly credited to the account;
(c) the $1,200 limit has been avoided by the use of multiple accounts.
• The expressions gross interest amount and net interest amount are defined.
• Those expressions are used to work out:
(a) how interest is funded; and
(b) the rate at which interest accrues to an account.
• Interest is funded by crediting the net interest amount to the Special Account.
• An Unallocated Interest Pool is to be kept within the Special Account.
• Unallocated interest is represented by the balance of the Unallocated Interest Pool.
• In special cases, the Unallocated Interest Pool may be supplemented by crediting an amount to the Special Account.
• Since interest only accrues on the first $1,200 of an account balance, it is possible for a surplus to build up in the Unallocated Interest Pool. The surplus can be debited from the Special Account.
• The allocation day for a quarter is published in the Gazette . The allocation day is the day on which interest is credited to accounts.
• The allocation rate for a quarter is published in the Gazette . The allocation rate is the rate at which interest accrues to an account.
• The allocation rate is worked out under section 47.
• Interest accrues to an account on the daily balance of the account. Interest only accrues on the first $1,200 of the balance of the account.
• Interest is credited each quarter on the allocation day.
• Interest will not accrue to an account in the following cases:
(a) a deposit is refunded;
(b) a shortfall component is incorrectly credited to the account;
(c) the $1,200 limit has been avoided by the use of multiple accounts.
• There are 3 types of withdrawals of account balances:
(a) transfers of account balances to superannuation funds or RSAs;
(b) direct withdrawals of account balances by individuals;
(c) withdrawals of account balances after death.
• Under Part 8, a depositor has 14 days to apply for a refund of a deposit on the grounds that the deposit was made by mistake. During the 14 - day period, the individual's account will be frozen.
• An individual's account will be frozen for 14 days after a deposit is credited to the account.
• The delay gives the depositor a chance to apply for a refund of the deposit.
• If the depositor applies for a refund of the deposit, the 14 - day period will be extended until the application is finalised.
• Accounts will be frozen for 14 days after a shortfall component is credited to the account.
• The delay gives the Commissioner of Taxation a chance to correct mistakes.
• The balance of an individual's account may be withdrawn if:
(a) the balance is less than $200; and
(b) the individual has ceased to be employed by all depositors.
• The balance of an individual's account may be withdrawn if the individual is in receipt of Commonwealth income support payments for a sufficient period.
• The balance of an individual's account may be withdrawn if the individual has retired because of permanent disability.
• The balance of an individual's account may be withdrawn if a terminal medical condition exists in relation to the individual.
• The balance of an individual's account may be withdrawn if the individual has turned 65.
• The balance of an individual's account may be withdrawn if the individual is at least 55 years old and is not an Australian resident for income tax purposes and:
(a) the individual is not in employment; or
(b) the individual is in employment, but the duties of the individual's employment are performed wholly or principally outside Australia.
• The balance of an individual's account may be withdrawn if the individual is a former temporary resident.
• The Commissioner of Taxation may refund a deposit if the deposit form was false or defective.
• A depositor may apply for the refund of a deposit if it was made by mistake. The refund application must be made within 14 days after the deposit was credited to the account.
• If an individual's account is inactive for 10 years, the account balance is to be debited from the Special Account.
• The individual may claim the account balance from the Commissioner of Taxation.
• The Commissioner of Taxation must keep a register of individuals' account balances debited.
• An individual may quote his or her tax file number to the Commissioner of Taxation.
• A person who is dissatisfied with a reviewable decision of the Commissioner of Taxation may seek a reconsideration of the decision.
• A person who is dissatisfied with a reconsidered decision may have the reconsidered decision reviewed by the Administrative Appeals Tribunal.
• The Commissioner of Taxation must tell people about their rights to have decisions reconsidered and reviewed.
• Partnerships are treated as if they were persons.
• A document given to a partner of a partnership is treated as if it had been given to the partnership.
• Unincorporated associations are treated as if they were persons.
• A document given to a member of the committee of management of
an unincorporated association is treated as if it had been given to the
unincorporated association.