Part 2Government co‑contribution in respect of low income earners

An Act to provide for contributions to be made towards the superannuation of low income earners, and for related purposes

Part 1—Preliminary

1 Short title

This Act may be cited as the Superannuation (Government Co‑contribution for Low Income Earners) Act 2003.

2 Commencement

This Act commences on the day on which it receives the Royal Assent.

3 Act binds Crown

(1) This Act binds the Crown in each of its capacities. (2) However, this Act does not make the Crown liable to be prosecuted for an offence.

4 Geographical application of Act

This Act extends to: (a) Norfolk Island; and (b) the Territory of Cocos (Keeling) Islands; and (c) the Territory of Christmas Island.

5 Overview of the Act

(1) This Act provides for Government co‑contributions to be made towards the superannuation of low income earners.

Note: The Government co‑contributions replace the rebates that used to be provided for in Subdivision AAC of Division 17 of Part III of the Income Tax Assessment Act 1936.

(2) The following is a simplified explanation of this Act:

• Part 2 (sections 6 to 12) tells you who are the people in respect of whom a Government co‑contribution is payable. It also tells you how much the co‑contribution is.

• Part 2A (sections 12B to 12G) tells you who are the people entitled to a low income superannuation tax offset. It also tells you how much the low income superannuation tax offset is.

• Part 3 (sections 13 and 14) tells you how the Commissioner of Taxation determines whether a Government co‑contribution is payable in respect of a person.

• Part 4 (sections 15 to 18) tells you how the Government co‑contribution is paid.

• Part 5 (sections 19 to 24) tells you what happens if there is an overpayment or an underpayment of a Government co‑contribution.

• Part 5A (section 25) sets out circumstances in which general interest charge is payable.

• Part 6 (sections 32 to 39) sets out record keeping obligations and provides for infringement notices).

• Parts 7 and 8 (sections 46 to 55) provide for administrative matters.

• Part 9 (section 56) sets out the terms that are defined to have a particular meaning when used in this Act.

Part 2—Government co‑contribution in respect of low income earners

Division 1—Government co‑contribution

6 Person in respect of whom Government co‑contribution payable

(1) A Government co‑contribution is payable under this Act in respect of a person for an income year of the person if: (a) the person makes one or more eligible personal superannuation contributions during the income year; and (b) 10% or more of the person’s total income for the income year is attributable to either or both of the following: (i) the person engaging in activities covered under subsection (2); (ii) the person carrying on a business (within the meaning of the Income Tax Assessment Act 1997); and (c) the person’s total income for the income year is less than the higher income threshold; and (d) an income tax return for the person for the income year is lodged; and (da) the person’s non‑concessional contributions for the financial year corresponding to the income year do not exceed the person’s non‑concessional contributions cap for the financial year; and (db) immediately before the start of that financial year, the person’s total superannuation balance is less than the general transfer balance cap for that financial year; and (e) the person is less than 71 years old at the end of the income year; and (f) the person: (i) is not the holder of a temporary visa under the Migration Act 1958 at any time in the income year; or (ii) at all times when he or she holds such a temporary visa during the income year, is a New Zealand citizen or the holder of a visa prescribed for the purposes of subsection 20AA(2) of the Superannuation (Unclaimed Money and Lost Members) Act 1999. (2) A person engages in activities covered under this subsection if: (a) the person engages in any of these activities in the income year in which the person makes the contribution: (i) holding an office or appointment; (ii) performing functions or duties; (iii) engaging in work; (iv) doing acts or things; and (b) the activities result in the person being treated as an employee for the purposes of the Superannuation Guarantee (Administration) Act 1992 (assuming that subsection 12(11) of that Act had not been enacted).