Govt tidies up reportable super rules
The Federal Government has moved to tidy up the reportable superannuation rules relating to people receiving government financial assistance.
The Assistant Treasurer, Bill Shorten (pictured), introduced to the Parliament this week legislation amending the definition of reportable employer superannuation contributions (RESC).
He said the amendment would apply retrospectively back to July 2009 when the original RESC arrangements were first legislated and had followed consultation with both the industry and the public.
Explaining the new arrangements, Shorten said that if a working Australian received government financial assistance and, as a result, received additional superannuation contributions because the amount was prescribed by law or the rules of a super fund, they would no longer be considered as receiving RESC.
“It means we’re not penalising people who are saving for their retirement through superannuation but who still require assistance,” Shorten said.
He said amendments gave effect to the Government’s original intention that RESC should only be those contributions that employees could control such as salary sacrifice-like arrangements.
AUTHOR
Mike Taylor
Recommended for you
With just 30 per cent of Australians knowing their superannuation balance to the nearest $1,000, Findex has emphasised the role of financial advice in addressing the critical super knowledge gap.
Underestimating the cost of insurance by almost $75,000 in a Statement of Advice is among multiple reasons that a relevant provider has faced action from the FSCP.
Financial Services Council chief executive, Blake Briggs, is urging Minister for Financial Services, Stephen Jones, to take advantage of the QAR opportunity to reduce regulatory duplication and ensure advice is affordable.
Former chair of the House of Representatives’ Standing Economics Committee, Tim Wilson, is planning a return to politics after losing his seat in the 2022 federal election.
