Source: https://www.legislation.gov.au/Details/C2018C00105
Timestamp: 2020-02-16 18:28:19
Document Index: 311592515

Matched Legal Cases: ['art 2', 'art 12', 'art 2', 'art 3', 'art 4', 'art 5', 'art 6', 'art 7', 'art 8', 'art 9', 'art 10', 'art 11', 'art 12', 'art 12', 'art 4', 'art 13', 'art 6', 'art 8', 'art 9', 'art 9', 'art:\n47', 'art 7', 'art 9', 'art 8', 'art 8', 'art 5', 'art 7', 'art 6', 'art 12', 'art 4', 'art 4', 'art 4', 'art 4', 'art.\n91', 'art 5', 'art.\n91', 'art 7', 'art 7', 'art.\n91', 'art 8', 'art.\n92', 'art 12']

Details: C2018C00105
- C2018C00105
Act No. 52 of 1995 as amended, taking into account amendments up to Treasury Laws Amendment (2018 Measures No. 1) Act 2018
sch 1 (items 24-28)
C2018C00105
6 Act to be administered by the Commissioner of Taxation
Part 2—Superannuation Holding Accounts Special Account
Part 12A—Government co-contributions for low income earners
Schedule—Employees and employers
No. 52, 1995
This is a compilation of the Small Superannuation Accounts Act 1995 that shows the text of the law as amended and in force on 1 April 2018 (the compilation date).
3............ Simplified explanation......................................................................... 1
6............ Act to be administered by the Commissioner of Taxation................... 5
Part 2—Superannuation Holding Accounts Special Account 6
7............ Simplified outline................................................................................ 6
8............ Superannuation Holding Accounts Special Account........................... 6
9............ Special Account is not a superannuation fund..................................... 6
Part 3—Accounts 8
Division 2—Keeping of accounts 9
12.......... Accounts............................................................................................. 9
Division 3—Outline of credits and debits to accounts 10
13.......... Outline of credits to accounts............................................................ 10
14.......... Outline of debits to accounts............................................................. 10
Division 4—Opening and closing of accounts 14
15.......... Opening of accounts......................................................................... 14
16.......... Closing of accounts........................................................................... 15
Division 5—Rules about accounts 16
17.......... Accounts may have a nil balance....................................................... 16
18.......... One account per individual................................................................ 16
19.......... Account balances not held on trust etc.............................................. 16
Division 6—Notification of account balances 18
20.......... Notification of opening balance......................................................... 18
21.......... Individual may request details of account balance............................. 18
22.......... Annual notification of account balance.............................................. 18
23.......... Notification when account balance reaches $1,200........................... 19
Part 4—Deposits 20
24.......... Simplified outline.............................................................................. 20
25.......... Deposits............................................................................................ 20
26.......... Deposit to be accompanied by deposit form...................................... 21
27.......... Deposit to be made by employer or former employer....................... 21
28.......... Deposit to be instead of superannuation contributions...................... 21
29.......... Deposit to be consistent with other laws etc...................................... 21
30.......... Age limit........................................................................................... 22
31.......... Consequences of false declarations etc.............................................. 22
32.......... Deposit form may deal with multiple payments................................ 22
33.......... Deposit not held on trust etc.............................................................. 23
Part 5—Crediting of deposits 24
34.......... Simplified outline.............................................................................. 24
35.......... Crediting of deposits......................................................................... 24
Part 6—Crediting of interest 25
Division 1—Simplified outline 25
36.......... Simplified outline.............................................................................. 25
Division 2—Gross interest amount and net interest amount 26
37.......... Simplified outline.............................................................................. 26
38.......... Gross interest amount....................................................................... 26
39.......... Net interest amount........................................................................... 26
Division 3—Funding of interest 28
40.......... Simplified outline.............................................................................. 28
41.......... Crediting of net interest amount to the Special Account.................... 28
42.......... Unallocated Interest Pool.................................................................. 29
43.......... Supplementation of Unallocated Interest Pool................................... 29
44.......... Debiting of unallocated interest......................................................... 30
Division 4—Allocation day and allocation rate 31
45.......... Simplified outline.............................................................................. 31
46.......... Gazettal of allocation day and allocation rate..................................... 31
47.......... Calculation of the allocation rate........................................................ 31
Division 5—Crediting of interest 34
48.......... Simplified outline.............................................................................. 34
49.......... Accrual of interest on first $1,200 of daily balance........................... 34
50.......... Rate of accrual, and crediting, of interest........................................... 34
51.......... Rounding up..................................................................................... 36
Division 6—Interest not to accrue in certain cases 37
52.......... Simplified outline.............................................................................. 37
53.......... Interest does not accrue on refunded deposits................................... 37
54.......... Interest does not accrue on shortfall components incorrectly credited to accounts 38
55.......... Amalgamated accounts—no interest if $1,200 limit avoided............. 38
Part 7—Withdrawal of account balances 40
Division 1—Simplified outline 40
56.......... Simplified outline.............................................................................. 40
Division 2—No withdrawals for 14 days after deposit credited to account etc. 41
57.......... Simplified outline.............................................................................. 41
58.......... No withdrawals for 14 days after deposit credited to account etc...... 41
59.......... No withdrawals for 14 days after shortfall component credited to account 43
Division 3—Timing of withdrawals 44
60.......... Timing of withdrawals...................................................................... 44
Division 4—Transfer of account balances to RSAs and superannuation funds 45
61.......... Transfer to RSA or superannuation fund.......................................... 45
61A....... Commissioner may transfer account balance to RSA or superannuation fund 47
Division 5—Direct withdrawals of account balances by individuals 48
63.......... Withdrawal of account balance of less than $200, where individual has ceased to be employed by depositor etc. 49
64.......... Withdrawal of account balance—receipt of Commonwealth income support payments 50
65.......... Withdrawal of account balance—retirement on grounds of disability 52
65A....... Withdrawal of account balance—terminal medical condition............ 53
66.......... Withdrawal of account balance—individual turns 65........................ 54
67.......... Withdrawal of account balance—individual not an Australian resident 55
67A....... Withdrawal of account balance—former temporary resident............. 56
Division 6—Withdrawals of account balances after death 58
68.......... Withdrawal of account balance—death of individual........................ 58
Division 7—Notification of refusal of requests 59
69.......... Notification of refusal of requests..................................................... 59
Division 8—Recovery of account balances 60
70.......... Recovery of account balances........................................................... 60
Part 8—Refunds of deposits 61
71.......... Simplified outline.............................................................................. 61
72.......... Refunds—false or defective deposit forms etc.................................. 61
73.......... Refunds—deposit made by mistake.................................................. 62
74.......... Recovery of refunds.......................................................................... 64
Part 9—Inactive accounts 65
75.......... Simplified outline.............................................................................. 65
76.......... No activity for 10 years..................................................................... 65
77.......... Register............................................................................................. 67
Part 10—Tax file numbers 68
78.......... Simplified outline.............................................................................. 68
79.......... Individual may quote his or her tax file number................................ 68
Part 11—Review of decisions 69
80.......... Simplified outline.............................................................................. 69
81.......... Reviewable decisions........................................................................ 69
82.......... Reconsideration of reviewable decisions........................................... 69
83.......... AAT review of Commissioner of Taxation’s decisions.................... 71
84.......... Modification of the Administrative Appeals Tribunal Act 1975........ 71
85.......... Statements to accompany notification of decisions............................ 71
Part 12—Partnerships and unincorporated associations 73
Division 1—Partnerships 73
86.......... Simplified outline.............................................................................. 73
87.......... Treatment of partnerships.................................................................. 73
88.......... Giving of documents to partnerships................................................ 74
Division 2—Unincorporated associations 75
89.......... Simplified outline.............................................................................. 75
90.......... Treatment of unincorporated associations......................................... 75
91.......... Giving of documents to unincorporated associations........................ 76
Part 12A—Government co‑contributions for low income earners 77
91A....... Commissioner of Taxation may deposit Government co‑contributions for low income earners into individual’s account.......................................................................................................... 77
91B....... Act generally applies to deposits under this Part in the same way as it applies to deposits under Part 4 77
91C....... Deposit not held on trust etc.............................................................. 77
91D....... Crediting of deposits......................................................................... 77
91E........ Debiting account with overpayment of Government co‑contribution 78
91F........ Withdrawal of account balances........................................................ 78
91G....... Refunds of deposits.......................................................................... 79
Part 13—Miscellaneous 80
92.......... Delegation......................................................................................... 80
93.......... Annual report.................................................................................... 80
94.......... Regulations....................................................................................... 80
Schedule—Employees and employers 81
1............ Basic definition................................................................................. 81
2............ Company directors............................................................................ 81
3............ Contract workers............................................................................... 81
4............ Members of the Parliament of the Commonwealth........................... 81
5............ Members of the Parliament of a State................................................ 81
6............ Members of the ACT Legislative Assembly..................................... 81
7............ Members of the Northern Territory Legislative Assembly................ 82
8............ Performers and sportspersons etc..................................................... 82
9............ Office holders etc.............................................................................. 82
This Act may be cited as the Small Superannuation Accounts Act 1995.
This Act commences on 1 July 1995.
• 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.
account means a notional account kept in accordance with section 12.
Note: The Income Tax Assessment Act 1997 defines complying superannuation fund by reference to section 45 of the Superannuation Industry (Supervision) Act 1993.
dependant, in relation to an individual, includes the spouse and any child of the person.
Note: This expression is only used in the definition of superannuation contribution.
deposit means a payment under section 25.
deposit form means a statement under section 26.
depositor means a person who makes a payment under section 25.
employee has the meaning given by the Schedule.
Note: The Schedule extends the ordinary meaning of employee.
employer has the meaning given by the Schedule.
Note: The Schedule extends the ordinary meaning of employer.
employment has a meaning corresponding to employee and employer.
Government co‑contribution in respect of an individual means a Government co‑contribution payable in respect of the individual under the Superannuation (Government Co‑contribution for Low Income Earners) Act 2003.
person has a meaning affected by sections 87 and 90.
provider, in relation to an RSA, has the same meaning as in the Retirement Savings Accounts Act 1997.
quarter means a period of 3 months beginning on 1 July, 1 October, 1 January or 1 April in:
(b) any later financial year.
Special Account means the Superannuation Holding Accounts Special Account continued in existence by section 8.
Note: This expression is only used in the definition of dependant.
superannuation accounts law means:
(c) Part III of the Taxation Administration Act 1953, in so far as that Part relates to this Act or the regulations.
superannuation contribution, in relation to an individual, means a contribution made to a superannuation fund, an RSA or a superannuation scheme for the purpose of making provision for superannuation benefits for, or for dependants of, the individual.
superannuation scheme means a scheme for the payment of superannuation, retirement or death benefits.
Unallocated Interest Pool means the Unallocated Interest Pool kept in accordance with section 42.
• The Superannuation Holding Accounts Special Account is continued in existence.
• The Special Account is not a superannuation fund.
8 Superannuation Holding Accounts Special Account
(1) The Superannuation Holding Accounts Account is continued in existence as the Superannuation Holding Accounts Special Account.
Note: The Superannuation Holding Accounts Account was established by subsection 5(3) of the Financial Management Legislation Amendment Act 1999.
9 Special Account is not a superannuation fund
Special Account is not a superannuation fund
(1) For the purposes of a law of the Commonwealth:
(a) the Special Account is taken not to be a superannuation fund; and
• 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.
(1) Separate notional accounts are to be kept within the Special Account in the names of particular individuals.
(2) An account kept in the name of an individual is to be known as the individual’s account.
Note: Section 4 provides that account means a notional account kept in accordance with this section.
13 Outline of credits to accounts
The following is a simplified outline of the types of credits that may be made to an individual’s account.
• 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.
• 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.
• Under Part 6, interest may be credited to the individual’s account.
14 Outline of debits to accounts
The following is a simplified outline of the types of debits that may be made to an individual’s account. These debits also involve debiting the Special 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
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.
• 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:
• 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.
• 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.
• 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:
15 Opening of accounts
(1) The Commissioner of Taxation may open an account in the name of a particular individual.
Payment split under Family Law Act
(3) If an account is subject to a payment split, then the Commissioner may open an account in the name of the non‑member spouse.
(4) The balance of the account when it is opened is an amount worked out in accordance with the regulations.
(5) The balance of the member spouse’s account is to be reduced by the amount worked out under subsection (4).
(6) The Commissioner must give the member spouse a written notice setting out the balance (if any) of the member spouse’s account after the reduction.
16 Closing of accounts
The Commissioner of Taxation may close an individual’s account if the balance of the account is nil and:
(b) the balance of the account has been withdrawn under section 61, 65, 65A, 66, 67, 67A or 91E; or
(e) the balance of the account has been debited from the Special Account under Part 9 (which deals with inactive accounts).
Note 1: Section 61 deals with individuals who request transfer of account balances to RSAs or superannuation funds.
Note 2: Section 65 deals with individuals who retire because of disability.
Note 3: Section 66 deals with individuals who have turned 65.
Note 4: Section 67 deals with individuals who are not Australian residents for income tax purposes etc.
Note 5: Section 67A deals with individuals who have permanently departed from Australia.
Note 6: Section 91E deals with debiting of accounts to recover overpayments of Government co‑contributions.
17 Accounts may have a nil balance
(1) An account may have a nil balance.
(d) the balance of the account has been debited from the Special Account under Part 9 (which deals with inactive accounts).
18 One account per individual
(1) Only one account may be kept in respect of a particular individual.
19 Account balances not held on trust etc.
(1) Money credited to an individual’s account is not held on trust.
(2) The Commonwealth is not liable to pay, repay or refund money credited to an individual’s account except as provided by this Act.
Note: Under section 69A of the Superannuation Guarantee (Administration) Act 1992, if a shortfall component of superannuation guarantee charge has been incorrectly credited to an individual’s account, the account may be debited for the purposes of reversing the credit.
20 Notification of opening balance
As soon as practicable after the first occasion on which an amount is credited to an individual’s account, the Commissioner must give the individual a written notice setting out the balance of the account.
21 Individual may request details of account balance
(1) This section applies to an individual’s account if the individual asks the Commissioner of Taxation to give the individual a written notice setting out the balance of the account.
22 Annual notification of account balance
(b) the individual’s current address is known to the Commissioner of Taxation.
23 Notification when account balance reaches $1,200
Note 1: Section 49 imposes a limit on the accrual of interest to accounts with balances of more than $1,200.
24 Simplified outline
• 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.
• The 2 key declarations are:
• 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.
25 Deposits
A person (the depositor) may make a payment (the deposit) to the Commissioner of Taxation under this section in respect of an individual if, and only if, the payment is made before 1 July 2006.
26 Deposit to be accompanied by deposit form
The deposit must be accompanied by a written statement (the deposit form) that:
(d) sets out the individual’s tax file number (if known to the depositor); and
27 Deposit to be made by employer or former employer
The deposit form must include a declaration that the depositor is the employer, or former employer, of the individual.
28 Deposit to be instead of superannuation contributions
The deposit form must include a declaration that the depositor is making the deposit:
29 Deposit to be consistent with other laws etc.
The deposit form must include a declaration that, to the best of the knowledge of the depositor, the making of the deposit does not contravene:
The deposit form must include a declaration that, to the best of the knowledge of the depositor, the individual was under 70 on at least one day during the period of employment to which the deposit relates.
31 Consequences of false declarations etc.
If the deposit is accompanied by a deposit form, or a purported deposit form, that:
32 Deposit form may deal with multiple payments
(1) A deposit form may deal with 2 or more payments made by the same person (whether the payments are made in respect of the same individual or in respect of different individuals).
33 Deposit not held on trust etc.
(1) A deposit, or purported deposit, made in respect of an individual is 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.
35 Crediting of deposits
Step 1—Credit to Special Account
(1) An amount equal to a deposit or purported deposit made in respect of an individual is to be credited to the Special Account.
Step 2—Credit to individual’s account
(2) As soon as practicable after the amount is credited to the Special Account, the individual’s account is to be credited with an amount equal to the deposit or purported deposit.
36 Simplified outline
• 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:
• The expressions gross interest amount and net interest amount are defined.
• Those expressions are used to work out:
38 Gross interest amount
For the purposes of this Part, the gross interest amount for a quarter is the sum of the following amounts:
(a) the income derived by the Commonwealth during the quarter from the investment of amounts standing to the credit of the Special Account;
(b) the amount (if any) determined by the Finance Minister in relation to the quarter having regard to the amount standing to the credit of the Special Account that remains uninvested from time to time during the quarter.
39 Net interest amount
(1) For the purposes of this Part, the net interest amount for a quarter is the gross interest amount for the quarter, reduced (but not below 0) by the sum of:
Note: Gross interest amount is defined by section 38.
Carry‑forward amount
the excess is taken to be the carry‑forward amount for the quarter.
Allocation of carry‑forward amounts
(3) For the purposes of this section, the Finance Minister may determine that:
(a) a carry‑forward amount for a quarter is to be allocated to a later quarter; or
(b) different parts of the carry‑forward amount for a quarter are to be allocated to different later quarters.
(5) For the purposes of this section, the costs incurred by the Commonwealth in connection with the investment of amounts standing to the credit of the Special Account are taken to have been incurred in connection with the administration of this Act.
• 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.
41 Crediting of net interest amount to the Special Account
As soon as practicable after the end of a quarter, an amount equal to the net interest amount for the quarter is to be credited to the Special Account.
Note: Net interest amount is defined by section 39.
42 Unallocated Interest Pool
(1) For accounting purposes, a separate notional subcomponent, called the Unallocated Interest Pool, is to be kept within the Special Account.
(2) An amount credited to the Special Account under section 41 is to be credited to the Unallocated Interest Pool.
Debits from Pool
(3) The balance of the Unallocated Interest Pool is to be debited for the purposes of crediting interest to an individual’s account.
43 Supplementation of Unallocated Interest Pool
(2) The Finance Minister may determine that the Unallocated Interest Pool is to be supplemented by a specified amount.
Crediting of the supplementation amount
(3) The specified amount is to be credited to the Special Account.
44 Debiting of unallocated interest
(1) If the Commissioner of Taxation is satisfied that the balance of the Unallocated Interest Pool exceeds the requirements of the Unallocated Interest Pool, the Commissioner of Taxation must determine that the excess is surplus to the requirements of the Unallocated Interest Pool.
(3) An amount equal to the excess is to be debited from the Special Account.
45 Simplified outline
• 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.
46 Gazettal of allocation day and allocation rate
(1) As soon as practicable after an amount is credited to the Special Account under section 41 in respect of a quarter (the current quarter), the Commissioner of Taxation must, by notice published in the Gazette, declare that, for the purposes of this Part:
47 Calculation of the allocation rate
(1) To work out the allocation rate for a quarter, apply the following steps.
Net interest amount means the net interest amount for the quarter;
Adjusted total balances means the adjusted total balances for the quarter.
Gross interest amount means the gross interest amount for the quarter;
Total balances means the total balances for the quarter.
49 Accrual of interest on first $1,200 of daily balance
(1) Interest accrues to an account each day on the balance of the account as at the end of that day.
50 Rate of accrual, and crediting, of interest
(1) This section applies to interest that accrues under section 49.
Allocation day event, withdrawal event and inactive account debit event
(a) the rate of accrual of interest to an account in respect of a particular day (the accrual day) in a particular quarter; and
(c) the occurrence of the allocation day for the quarter (this event is to be known as the allocation day event);
(d) the withdrawal under Part 7 of the balance of the account (this event is to be known as the withdrawal event);
(e) the debiting of the balance of the account from the Special Account under Part 9 (this event is to be known as the inactive account debit event).
Allocation rate means the allocation rate for the quarter; and
Adjusted allocation rate means the last allocation rate that was published in the Gazette before the accrual day; and
Inactive account debit event
(5) If the inactive account debit event comes first:
(b) the accrued interest is to be credited to the account on the day of the debit.
(6) Despite paragraph (4)(a), if the withdrawal event occurs before the allocation day for the quarter beginning on 1 July 1995, that paragraph has effect, in relation to that event, as if the adjusted allocation rate were 0.4% or such higher rate as the Finance Minister determines.
51 Rounding up
If the total amount of interest to be credited to an account on a particular day (when expressed as a number of cents) is not a number of whole cents, that total must be rounded up to the nearest cent.
53 Interest does not accrue on refunded deposits
(1) Despite section 49, interest does not accrue, and is taken never to have accrued, under that section in respect of so much of the balance of an account as is refunded under Part 8.
Reversing interest credit
(2) If interest has been credited to an individual’s account in contravention of subsection (1), the Commissioner of Taxation must debit the account by the amount of the credit. The debit must be made before the account balance is debited by the amount of the refund payment.
54 Interest does not accrue on shortfall components incorrectly credited to accounts
55 Amalgamated accounts—no interest if $1,200 limit avoided
(a) the Commissioner becomes aware that 2 or more accounts (the separate accounts) are being kept in respect of the same individual; and
56 Simplified outline
• There are 3 types of withdrawals of account balances:
(a) transfers of account balances to superannuation funds or RSAs;
• 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.
57 Simplified outline
• 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.
58 No withdrawals for 14 days after deposit credited to account etc.
(b) as a result of the deposit or purported deposit, an amount was credited to the account under Part 5 at a particular time (the deposit time); and
(c) a request under this Part (the individual’s request) is made during the period of 14 days beginning at the deposit time.
Individual’s request frozen for 14 days
(2) The individual’s request has no effect at any time during that 14‑day period.
Individual’s request frozen for additional period
(3) If an application for a refund of the deposit or purported deposit was made under section 73 during that 14‑day period, then:
(a) if the refund application is granted—the individual’s request has no effect at any time; or
(b) if the refund application is refused—the individual’s request has no effect at a particular time if:
(ii) if, during that 21‑day period, the refund applicant asks the Commissioner of Taxation to reconsider the refund application—the time is during the period when that reconsideration, or any later application to the Administrative Appeals Tribunal, has not been finalised.
59 No withdrawals for 14 days after shortfall component credited to account
(a) an amount was credited to the account under section 65 of the Superannuation Guarantee (Administration) Act 1992 at a particular time (the credit time); and
(2) The request has no effect at any time during that 14‑day period.
60 Timing of withdrawals
24‑hour delay
(1) If a request is made under this Part, the Commissioner of Taxation must wait at least 24 hours before complying with the request.
Division 4—Transfer of account balances to RSAs and superannuation funds
61 Transfer to RSA or superannuation fund
(a) the individual gives the Commissioner of Taxation a request (the transfer request) to transfer the account balance to a specified RSA or to the trustee of a specified fund for the benefit of the individual; and
Note: Section 63 of the Superannuation Industry (Supervision) Act 1993 deals with funds that have been directed not to accept contributions from an employer‑sponsor.
(4) The Commissioner of Taxation must pay to the provider of the RSA, or to the trustee, for the benefit of the individual, an amount equal to the account balance immediately before the payment is made. However, this rule does not apply if the Commissioner of Taxation is satisfied that the RSA provider or the trustee is unwilling to accept the payment.
(5) The Special Account is debited for the purposes of making the payment.
(6) When the payment is made, the individual’s account is debited by the amount of the payment.
(b) the RSA provider or the trustee acting on the individual’s behalf in accordance with an authority given by the individual.
fund includes a public sector superannuation scheme within the meaning of the Superannuation Industry (Supervision) Act 1993.
61A Commissioner may transfer account balance to RSA or superannuation fund
(1) The Commissioner of Taxation may pay the balance of an individual’s account to:
(a) an RSA of the individual; or
(b) the trustee of a complying superannuation fund for crediting to an account of the individual within that fund.
(2) To avoid doubt, the Commissioner of Taxation may make the payment under subsection (1) without a request from the individual under section 61.
(3) The Special Account is debited for the purposes of making the payment under subsection (1).
(4) When the payment under subsection (1) is made, the individual’s account is debited by the amount of the payment.
trustee of a superannuation fund means:
• The balance of an individual’s account may be withdrawn if:
• 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 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:
• The balance of an individual’s account may be withdrawn if the individual is a former temporary resident.
63 Withdrawal of account balance of less than $200, where individual has ceased to be employed by depositor etc.
(c) the individual gives the Commissioner of Taxation a request (the withdrawal request) for the withdrawal of the account balance; and
(d) the balance of the account is less than $200 immediately before the time when the account balance is withdrawn.
64 Withdrawal of account balance—receipt of Commonwealth income support payments
(b) the individual has been in receipt of one or more Commonwealth income support payments for:
(i) if the person is at least 55 years of age—a period of at least 39 weeks, or for 2 or more periods that total at least 39 weeks, since the person turned 55; or
(ii) in any case—for an unbroken period of at least 26 weeks (other than such a period that ended before the withdrawal request was given); and
(c) the individual gives the Commissioner of Taxation:
(i) written evidence of the individual’s receipt of relevant Commonwealth income support payments provided by the Commonwealth Department or agency that is responsible for administering the payment; or
(ii) such other evidence of the individual’s receipt of relevant Commonwealth income support payments as is prescribed.
(6) For the purposes of subparagraph (1)(b)(ii), if an individual obtains evidence covered by subparagraph (1)(c)(i), the individual is, subject to evidence to the contrary, to be taken to have continued to have received the Commonwealth income support payment concerned for 21 days after the date of the written evidence.
Commonwealth income support payment means:
(a) any of the following payments (as defined in section 23 of the Social Security Act 1991):
(i) a social security benefit (other than an austudy payment or a youth allowance paid to a person who is undertaking full‑time study);
(ii) a social security pension;
(iv) an income support supplement; or
(d) a payment of salary or wages made under the employment scheme of the Commonwealth that is known as the Community Development Employment Projects Scheme; or
(e) any other payment prescribed for the purposes of this definition.
65 Withdrawal of account balance—retirement on grounds of disability
66 Withdrawal of account balance—individual turns 65
(1) This section applies to an individual’s account if the individual has turned 65.
(3) The individual may give the Commissioner of Taxation a request (the withdrawal request) to make a payment under subsection (2).
(6) The Special Account is debited for the purposes of making the payment.
(7) When the payment is made, the individual’s account is debited by the amount of the payment.
67 Withdrawal of account balance—individual not an Australian resident
(ba) the individual is at least 55 years old when he or she gives the withdrawal request; and
(ii) the individual is in employment, but the duties of the individual’s employment are performed wholly or principally outside Australia.
Note: Australia is defined by subsection (6).
Australia has the same meaning as in the Income Tax Assessment Act 1936.
67A Withdrawal of account balance—former temporary resident
(b) the individual satisfies the Commissioner of Taxation that before, on or after the commencement of this section, the individual:
(i) was, under the Migration Act 1958, the holder of a temporary visa that has ceased to be in effect; and
(c) the individual satisfies the Commissioner of Taxation that the individual:
(i) is not, under the Migration Act 1958, the holder of a permanent visa; and
(ii) is neither an Australian citizen nor a New Zealand citizen.
68 Withdrawal of account balance—death of individual
(b) the individual’s legal personal representative gives the Commissioner of Taxation a request (the withdrawal request) for the withdrawal of the account balance.
69 Notification of refusal of requests
70 Recovery of account balances
If a person is entitled to be paid an amount by the Commissioner of Taxation under this Part, the amount may be recovered, as a debt due to the person by the Commonwealth, by action in a court of competent jurisdiction.
71 Simplified outline
• 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.
72 Refunds—false or defective deposit forms etc.
(b) the individual’s account was credited with an amount equal to the deposit or purported deposit; and
(e) the balance of the individual’s account is attributable, in whole or in part, to the deposit or purported deposit.
(2) The Commissioner of Taxation may decide to pay to the depositor or purported depositor an amount (the refund payment) equal to the deposit or purported deposit.
(3) The Special Account is debited for the purposes of making the refund payment.
(4) When the refund payment is made, the individual’s account is debited by the amount of the refund payment.
73 Refunds—deposit made by mistake
(e) the balance of the individual’s account is attributable, in whole or in part, to the deposit or purported deposit; and
(3) The Commissioner of Taxation must pay to the depositor or purported depositor an amount (the refund payment) equal to the deposit or purported deposit.
(4) The Special Account is debited for the purposes of making the refund payment.
(5) When the refund payment is made, the individual’s account is debited by the amount of the refund payment.
(b) an obligation imposed on the Commissioner of Taxation by Part 7;
the first‑mentioned obligation prevails.
74 Recovery of refunds
• 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.
76 No activity for 10 years
(1) This section applies to an individual’s account if no amount was credited to the account under:
Statement to be given to the Commissioner
(2) As soon as practicable after the end of that period, the Commissioner must record information about the account.
(3) If the individual’s tax file number is known to the Commissioner, the record made for the purposes of subsection (2) must set out that tax file number.
Debit from the Special Account
(4) As soon as practicable after the end of that period, an amount equal to the balance of the individual’s account as at the end of that period is to be debited from the Special Account.
Debiting of individual’s account balance
(5) If an amount is debited from the Special Account under subsection (4), the individual’s account is debited by an amount equal to the amount debited from the Special Account.
(6) If an amount has been debited from the Special Account under subsection (4), the individual may request the Commissioner of Taxation to pay to the individual an amount equal to the amount debited from the Special Account.
Claim by individual’s legal personal representative
(a) an amount has been debited from the Special Account under subsection (4) in respect of the individual’s account; and
the individual’s legal personal representative may request the Commissioner of Taxation to pay to the legal personal representative an amount equal to the amount debited from the Special Account in respect of the individual’s account.
(8) The Commissioner of Taxation must comply with a request under subsection (6) or (7).
In addition to the particulars that are required by section 19 of the Superannuation (Unclaimed Money and Lost Members) Act 1999 to be set out in the register kept under that section, that register must set out:
(a) particulars of amounts debited from the Special Account under section 76 in respect of particular individuals; and
78 Simplified outline
• An individual may quote his or her tax file number to the Commissioner of Taxation.
79 Individual may quote his or her tax file number
(1) An individual may quote his or her tax file number to the Commissioner of Taxation in connection with the operation, or the possibility of the future operation, of this Act in relation to the individual.
Note: This means that an individual’s tax file number may be quoted before or after an account is opened in the name of the individual.
(b) on the individual’s own initiative.
80 Simplified outline
• 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.
81 Reviewable decisions
For the purposes of this Part, a reviewable decision is a decision made by the Commissioner of Taxation under this Act (other than a decision under Division 2, 3 or 4 of Part 6 or a decision relating to the approval of a form).
82 Reconsideration of reviewable decisions
(1) A person who is affected by a reviewable decision may, if dissatisfied with the decision, request the Commissioner of Taxation to reconsider the decision.
Note: Reviewable decision is defined by section 81.
Notice of Commissioner of Taxation’s action
83 AAT review of Commissioner of Taxation’s decisions
Applications may be made to the Administrative Appeals Tribunal for review of decisions of the Commissioner of Taxation that have been confirmed or varied under subsection 82(4).
84 Modification of the Administrative Appeals Tribunal Act 1975
(1) If a decision is taken to be confirmed because of subsection 82(5) of this Act, section 29 of the Administrative Appeals Tribunal Act 1975 applies as if the prescribed time for making application for review of the decision were the period of 28 days beginning on the day on which the decision is taken to be confirmed.
85 Statements to accompany notification of decisions
(1) If a written notice is given to a person affected by a reviewable decision telling the person that the reviewable decision has been made, that notice is to include a statement to the effect that:
(b) the person may, subject to the Administrative Appeals Tribunal Act 1975, if dissatisfied with a decision made by the Commissioner of Taxation upon that reconsideration confirming or varying the first‑mentioned decision, make application to the Administrative Appeals Tribunal for review of the decision so confirmed or varied.
that notice is to include a statement to the effect that the person may, subject to the Administrative Appeals Tribunal Act 1975, if dissatisfied with the decision so confirmed or varied, make application to the Administrative Appeals Tribunal for review of the decision.
86 Simplified outline
• 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.
87 Treatment of partnerships
The superannuation accounts law applies to a partnership as if the partnership were a person, but it applies with the following changes:
Note: Superannuation accounts law is defined by section 4.
88 Giving of documents to partnerships
89 Simplified outline
• 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.
90 Treatment of unincorporated associations
The superannuation accounts law applies to an unincorporated association as if the unincorporated association were a person, but it applies with the following changes:
91 Giving of documents to unincorporated associations
For the purposes of this Act, if a document is given to a member of the committee of management of an unincorporated association in accordance with section 28A of the Acts Interpretation Act 1901, the document is taken to have been given to the unincorporated association.
Part 12A—Government co‑contributions for low income earners
91A Commissioner of Taxation may deposit Government co‑contributions for low income earners into individual’s account
In addition to the deposits that may be made under Part 4, the Commissioner of Taxation may credit to an individual’s account a Government co‑contribution payable in respect of the individual.
91B Act generally applies to deposits under this Part in the same way as it applies to deposits under Part 4
Except as provided for in this Part, this Act applies to a deposit made under this Part in the same way as it applies to a deposit made under Part 4.
91C Deposit not held on trust etc.
(1) Section 33 applies to a deposit made under this Part.
(2) None of the other provisions of Part 4 apply to a deposit made under this Part.
91D Crediting of deposits
(1) Part 5 does not apply to a deposit made under this Part.
(2) An amount equal to a deposit made under this Part is to be credited to the Special Account.
(3) As soon as practicable after the amount is credited to the Special Account under subsection (2), the individual’s account is to be credited with an amount equal to the deposit.
91E Debiting account with overpayment of Government co‑contribution
Under section 24 of the Superannuation (Government Co‑contribution for Low Income Earners) Act 2003, the Commissioner may, in certain circumstances, debit an individual’s account as a way of recovering an overpayment of a Government co‑contribution if the account includes deposits made under this Part.
91F Withdrawal of account balances
Division 2 of Part 7 does not apply
(1) Division 2 of Part 7 (account frozen for 14 days after deposit) does not apply to a deposit made under this Part.
Modification of section 61 (transfer to RSA or superannuation fund at individual’s request)
(2) To the extent to which the balance in an individual’s account represents deposits made under this Part, section 61 applies to the account as if the reference in subparagraph (2)(b)(i) to a regulated superannuation fund were a reference to a complying superannuation fund.
Section 63 does not apply
(3) Section 63 (withdrawal of account balance of less than $200 where individual has ceased to be employed by depositor) does not apply to an individual’s account to the extent that the balance in the account represents deposits made under this Part.
(4) A reference in this section to the balance of an individual’s account to the extent to which it represents deposits made under this Part is a reference to that balance to the extent to which it represents:
(a) deposits made under this Part; and
(b) interest accruing on deposits made under this Part.
91G Refunds of deposits
Part 8 does not apply to deposits made under this Part.
92 Delegation
The Finance Minister may, by writing, delegate to an officer of the Finance Department any or all of his or her powers under this Act.
(1) The Commissioner of Taxation must, as soon as practicable after the end of each financial year, prepare and give to the Minister a report on the operation of this Act during that year.
Subject to this Schedule, in this Act, employee and employer have their ordinary meanings. However, for the purposes of this Act, clauses 2 to 9:
3 Contract workers
4 Members of the Parliament of the Commonwealth
5 Members of the Parliament of a State
6 Members of the ACT Legislative Assembly
7 Members of the Northern Territory Legislative Assembly
8 Performers and sportspersons etc.
9 Office holders etc.
52, 1995
Sch 2 (item 97): 1 July 1995 (s 2(2))
Sch 16: 2 June 1997 (s 2)
Sch 9 (items 3, 4): 14 Oct 2014 (s 2(1))
Sch 9 (item 4)
Sch 3 (items 19–28): 1 Jan 1998 (s 2(3)(g))
Sch 1 (items 163–166): 1 July 1998 (s 2(2))
s. 8 and Sch 1 (items 36–39): 13 Oct 1999 (s 2 items 1, 2)
Sch 1 (item 25): 28 Dec 2002 (s 2)
Sch 1 (items 16–21): 4 Apr 2002 (s 2(1) item 2)
Sch 1 (items 10–15, 25): 12 Nov 2003 (s 2(1) items 2, 4)
s. 4 and Sch 1 (items 318–363, 496): 22 Feb 2005 (s 2(1) items 1, 2, 10)
Sch 1 (item 1): 1 July 2005 (s 2(1) item 2)
Sch 1 (items 287, 288, 406(1)–(3)): 15 Mar 2007 (s 2(1) item 2)
Sch 4 (items 3–5): 1 July 2008 (s 2(1) item 4)
Sch 2 (items 53–57): 27 Mar 2009 (s 2(1) item 5)
Sch 2 (item 69): 17 Dec 2010 (s 2(1) item 2)
Sch 5 (items 191–194) and Sch 6 (items 98, 99): 19 Apr 2011 (s 2(1) items 13, 17)
Sch 2 (item 1049) and Sch 3 (items 10, 11): 27 Dec 2011 (s 2(1) items 2, 7, 12)
Sch 2 (items 57, 58): 1 July 2014 (s 2(1) item 3)
Sch 2 (item 58)
Sch 12 (items 125–130) and Sch 14: 1 July 2014 (s 2(1) items 6, 14)
Sch 2 (items 321): 1 July 2016 (s 2(1) item 5)
Sch 1 (items 24–28): 1 Apr 2018 (s 2(1) item 5)
am No 62, 1997; No 111, 2003; No 8, 2005; No 62, 2014
am No 62, 1997; No 111, 2003; No 8, 2005; No 15, 2007; No 134, 2008; No 27, 2009; Nos 5 and 46, 2011; No 62, 2014
s 8 .......................................
s 10 .....................................
am No 62, 1997; No 96, 1999; No 15, 2002
am No 27, 2009; No 23, 2018
am No 114, 2001
am No 15, 2002; No 111, 2003; No 8, 2005; No 23, 2018
am No 147, 1997
s 33 .....................................
am No 8, 2005; No 5, 2011
rs No 62, 1997
am No 62, 1997; No 8, 2005
ad No 111, 2003; No 8, 2005
s 62 .....................................
am No 96, 1999; No 15, 2002; No 27, 2009; No 23, 2018
s 63 .....................................
am No 96, 1999; No 8, 2005
am No 48, 1998; No 96, 1999; No 8, 2005; No 13, 2014
s 67 .....................................
s 67A ..................................
ad No 15, 2002
am No 8, 2005; No 27, 2009
am No 48, 1998; No 128, 1999; No 8, 2005
am No 128, 1999; No 8, 2005
Part 12A...............................
ad No 111, 2003
s 91B...................................
s 91C...................................
s 91D...................................
s 91E...................................
s 91G...................................
s 95 .....................................