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EXPLANATORY MATERIAL Corporations Amendment Regulations 2004 (No. ) The Superannuation Government (Co-contribution for Low Income Earners) Act 2003 (the Act) and the Superannuation Government (Co-contribution for Low Income Earners) (Consequential Amendments) Act 2003, replace the low income earner superannuation taxation offset for undeducted personal superannuation contributions with a Government superannuation co-contribution. Section 55 of the Superannuation (Government Co-contribution for Low Income Earners) Act 2003 (the Act) provides that the Governor-General may make regulations prescribing matters required or permitted by the Act to be prescribed, or necessary or convenient to be prescribed for carrying out or giving effect to the Act. The general purpose of the proposed amendments is to support the necessary administration requirements of the Act. Explanation of the Amendments Regulation 1 specifies the name of the regulations as the Corporations Amendment Regulations 2004 (No. ). Regulation 2 provides that the regulations commence on 1 July 2004. Regulation 3 provides that Schedule 1 amends the Corporations Regulations 2001. Schedule 1 - Amendments Items 1 to 4 The proposed regulations would amend subregulation 7.9.01(1) of the Corporations Regulations 2001 to include a definition of a ‘net amount of Government co-contribution received’. This definition will include all amounts credited to a superannuation fund member or Retirement Savings Account (RSA) holder less any amounts repaid to the Commissioner of Taxation during a reporting period. The proposed regulations would amend subregulation 7.9.01(1) of the Corporations Regulations 2001 to include definitions of ‘Government co-contribution’, ‘superannuation provider’ and ‘RSA’. Items 5 to 8 The proposed Regulations would amend subregulations 7.9.20(1) and 7.9.26(1) of the Corporations Regulations 2001 to require trustees of superannuation funds (other than self managed superannuation funds) and RSA providers to report to members and account holders about Government co-contributions that have been credited to a person’s account. This would be done via the existing periodic statement processes that exist. The additional item that would be required to be reported under these proposals would be the ‘net amount of Government co-contribution received’ during the reporting period, as defined in the above mentioned proposed amendment to subregulation 7.9.01(l). Items 9 and 10 The proposed regulations would amend subregulation 7.9.62(4) of the Corporations Regulations 2001 to exempt superannuation providers from confirming a transaction relating to a Government co-contribution. Much of the administrative design for the co-contribution measure is based on the reporting system used for superannuation surcharge purposes. This proposal is consistent with the treatment of superannuation surcharge liabilities in this provision.