Commonwealth Numbered Acts

SMALL SUPERANNUATION ACCOUNTS ACT 1995 No. 52, 1995 - SECT 3

3. The following is a simplified explanation of this Act:
. The Australian Taxation Office has accounts that allow employers to deposit
money for their employees instead of making superannuation contributions.
. 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.
. 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.