Today, the Morrison Government has released for consultation the draft Superannuation (Government Co‑contribution for Low Income Earners) Regulations 2022 (the draft regulations). The draft regulations remake the existing Superannuation (Government Co‑contribution for Low Income Earners) Regulations 2004 (2004 regulations) which are due to sunset on 1 April 2022.
The draft regulations improve the 2004 Regulations by omitting redundant provisions, simplifying language and restructuring provisions for ease of navigation. This includes minor changes to increase the use of headings and references to "section" rather than "regulation" in accordance with modern drafting practice.
The only substantive changes in the draft regulations are:
- amending the definition of an eligible account to receive super co-contribution payments so that it excludes those which only provide terminal medical condition benefits in addition to the existing exclusion on accounts which provide only death or incapacity benefits. This change is consistent with the intention that the super co-contribution payment not be paid to insurance only accounts, where the contribution would subsidise the payment of insurance premiums rather than contribute to increasing an individual's retirement savings; and
- clarifying the operation of section 7 relating to where a Government co‑contribution is to be directed in specific circumstances. The draft regulations ensure that only one item will apply in the event of multiple circumstances being applicable.
The draft regulations and explanatory statement are available on the Treasury website. Consultation on the draft regulations will be open for a four‑week period. Submissions can be made up until 14 January 2022.
The Government welcomes the community's views on the draft regulations.
