•       The Australian Taxation Office administers a Special Account. Notional accounts are kept within the Special Account. Employers may deposit money for their employees instead of making superannuation contributions. These deposits are credited to the notional accounts.

•       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.