Commonwealth of Australia Explanatory Memoranda

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SUPERANNUATION GUARANTEE (ADMINISTRATION) AMENDMENT BILL 2011

                            2010-2011



  THE PARLIAMENT OF THE COMMONWEALTH OF AUSTRALIA




                 HOUSE OF REPRESENTATIVES




SUPERANNUATION GUARANTEE (ADMINISTRATION) AMENDMENT
                     BILL 2011




      SUPPLEMENTARY EXPLANATORY MEMORANDUM



        Amendments to be moved on behalf of the Government



                  (Circulated by the authority of the
    Deputy Prime Minister and Treasurer, the Hon Wayne Swan MP)
Table of contents
General outline and financial impact ....................................................... 5

Chapter 1           Amendment to the Superannuation Guarantee
                    (Administration) Amendment Bill 2011 .......................... 7
General outline and financial impact
Amendment to the Superannuation Guarantee
(Administration) Amendment Bill 2011
        This amendment removes the superannuation guarantee maximum age
        limit.

        Proposal announced: This amendment was announced in the Assistant
        Treasurer's Media Release No. 146 of 2 November 2011.

        Date of effect: The amendment commences on 1 July 2013. It is
        dependent on the passing of the Minerals Resource Rent Tax package.
        Financial impact: The cost of removing the superannuation guarantee
        maximum age limit is a net fiscal gain in underlying cash terms. This
        comes from the tax receipt of superannuation guarantee contributions less
        payments made under the low income superannuation contribution
        measure.

           2011-12        2012-13        2013-14        2014-15
             nil            nil            $7m            $5m

        Compliance cost impact: Low.




                                                                                5
Chapter 1
Amendment to the Superannuation
Guarantee (Administration) Amendment
Bill 2011
Amendment 1
        1.1       This amendment removes the exclusion relating to the age of
        an employee at which superannuation guarantee no longer needs to be
        provided.

        1.2       From 1 July 2013, employers will no longer be able to avoid or
        cease making superannuation guarantee contributions on behalf of
        eligible employees who are 75 years of age or over.




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