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Year/Date |
Measure |
Comment or Reference |
| 1900 |
New South Wales introduced a means tested age pension of £26 a year, funded out of general revenue. Victoria and Queensland followed suit. |
|
| 1901 |
The Constitution gave the Commonwealth explicit power to legislate for provision of old age and invalid pensions. |
S. 51(xxiii) Commonwealth of Australia Constitution Act 1901 |
| 10 June 1908 |
Invalid and Old Age Pensions Act 1908 passed by the Deakin Government. Rate £26 per year (10/- a week). Eligibility limited according to character, race, age, residency and means. Paid to eligible men and women at 65. Commenced 15 April 1909. |
|
| 1910 |
Pension age for eligible women reduced to 60. |
|
| 1912 |
1908 Act amended to completely remove the family home from the means test. |
|
| 1915 |
Income Tax Assessment Act 1915 provided for tax deductibility of employer contributions made on behalf of employees, and for the exemption of superannuation fund earnings from taxation. |
|
| 1923 |
Bruce Government established a Royal Commission to examine the possibility of having a comprehensive national insurance scheme for retirement, sickness or disability. |
Royal Commission on National Insurance (7 Sept 1923-5 Oct 1927). |
| 1928 |
National Insurance Bill introduced. It lapsed in 1929 when the Government was defeated. |
|
| 1938 |
National Health and Pensions Bill passed, but its introduction was delayed, then abandoned because of World War 2. |
|
| 1945 |
Chifley Government introduced an additional levy on personal income tax which, along with a payroll tax from employers, was credited to the National Welfare Fund. There was, however, no direct link between contributions and benefits and the pension. The National Welfare Fund, whilst set up as a means of establishing a base from which a national superannuation fund could be operated, was in practice merely an accounting device until its abolition in 1985. |
|
| 1961 |
Superannuation funds exempt from tax if they held required amounts of Commonwealth Bonds. Commonwealth control of superannuation funds by use of taxation power firmly established. |
Income Tax and Social Services Contribution Assessment Act 1961 |
| 1965 |
High Court upholds Commonwealth’s ability to control superannuation fund investment by use of taxation power. |
|
| By late 1960s |
Means assessed on basis of income plus a proportion of countable assets except for the family home (which has always been assets-test-exempt.) About 70% of people qualifying on grounds of age received the pension. |
|
| 1972 |
Only 32% of workers covered by superannuation. |
|
| 1973 |
Whitlam Labor Government established the National Superannuation Committee of Inquiry. Chairman Keith Hancock. |
|
| 1973 |
Means test for pensioners 75 years of age and over abolished. |
|
| 1974 |
Australian Bureau of Statistics conducted the first national survey of superannuation coverage. 32% of the workforce was covered by superannuation – 36% male; 15% females. 24% of people in the private sector had super cover compared with 58% in the public sector. |
|
| 1975 |
Means test removed for persons aged 70 to 74 inclusive. |
|
| 1975 |
Pensions linked to 25% of average weekly earnings, to be indexed annually. |
|
| 1976 |
Pensions became subject to automatic increases twice yearly. Age pension assets test abolished. |
|
| 1976 |
The Hancock Inquiry recommended a partially contributory, universal pension system with an earnings-related supplement. A minority recommendation suggested a non-contributory flat rate universal pension, a means tested supplement, and encouragement of voluntary savings through expanding occupational superannuation. |
National Superannuation Committee of Inquiry. Final Report. Parts 1 (1976) and 2 (1977) |
| 20 June 1977 | Fraser government decides not to establish a contributory national superannuation scheme. | Cabinet Decision 3435 of 20 July 1977 in response to Cabinet Submission No. 1394 of 1977 |
| 1978 |
Pension increases to be adjusted only once a year (in November). Future increases in the Age Pension for those aged 70 or over made subject to an income test. |
|
| 1979 |
Fraser Government rejected the recommendations of the Hancock Inquiry. Pension increases subject to twice yearly increases, in May and November. |
|
| May 1983 |
Base pension for those aged 70 and over subject to an incomes test. |
Social Security and Repatriation Legislation Amendment Act 1983, no. 36 |
| 1983 |
The Statement of Accord (Prices and Incomes Accord) between the ALP and the ACTU was endorsed in February, shortly before the federal election. Claims for wage increases were to be restricted to movements in the CPI. |
|
| 1983 |
Hawke Labor Government expressed support for the principles of employee superannuation. The May Economic Statement began the process of reform of the taxation of superannuation. For lump sums at age 55 or later, the first $50,000 would be taxed at 15%; the remainder at 30%. Lump sums taken below age 55 would be taxed at 30%. These thresholds indexed to AWOTE. |
Economy – Ministerial statement , P. Keating, 19 May 1983.. |
| 1984 |
CBUSS - Superannuation for the building industry created, from an idea shared by building union leaders and ACTU officials. Regarded as a world first. (funds owned and controlled by a board comprising equal numbers of employer and employee or union representatives.) A number of other similar funds established in the following years- These funds are called ‘Industry’ Funds. |
|
| 1984 |
Age pension assets test reintroduced. Family home excluded. |
Social Security and Repatriation (Budget Measures and Assets Test) Act 1984, no. 93 |
| 1985 |
Renegotiation of the Accord identified superannuation as a key issue. |
|
| 1986 |
Labor joined with the ACTU in seeking a universal 3% superannuation contribution by employers to be paid into an industry fund, in lieu of a wage rise. |
|
| 1986 |
Accord Mk II between the Government and the unions stipulated that compensation to employees should be 6% (to keep pace with inflation). This was to be 3% employer superannuation contribution, a 2% wage rise, and tax cuts. Agreement endorsed by the Conciliation and Arbitration Commission February 1986. |
|
| 1986 |
Employer groups, including the Confederation of Australian Industry, challenged the Commission’s decision in the High Court, claiming that superannuation was not an industrial matter within s.51 (xxxv) of the Constitution. |
|
| 15 May 1986 |
High Court ruled in favour of the Conciliation and Arbitration Commission. |
|
| June 1986 |
National Wage Case established guidelines to require new industry superannuation schemes to conform to Commonwealth operational standards. |
|
| 1987 |
Insurance and Superannuation Commission (ISC) was established as an industry regulator. |
|
| 1987 |
Superannuation funds total assets $41.1bn.[1] |
ISC Annual Report 1988–89 |
| 21 December 1987 |
The Government introduced the Occupational Superannuation Standards Act 1987 (OSSA). Operating standards were prescribed for the vesting of benefits from employer and employee contribution; preservation of benefits until age 55; more member involvement in the control of superannuation funds; security of members’ benefits.[2] |
|
| May 1988 |
Hawke Government statement Reform of the Taxation of Superannuation contained measures to bring forward payment of superannuation taxation liabilities by introducing a tax on contributions and reducing tax on benefits. Reasonable Benefits Limits introduced. |
The Reform of the Taxation of Superannuation, Office of the Treasurer, 1988 |
| June 1988 |
51.3% employed persons covered by Superannuation |
|
| 1989 |
The Government's 1989 retirement income policy statement established a policy in Australia based on the "twin pillars" of the age pension and private superannuation, specifically rejecting the option of a National Superannuation Scheme. |
Better Incomes: Retirement Income Policy into the Next Century (Howe,1989) |
| December 1989 |
Superannuation funds total assets $119bn |
ISC Annual Report 1989–90 |
| December 1990 |
Superannuation fund assets $123bn, 64% of all employees had superannuation coverage. |
ISC Annual Report 1990–91 |
| 1991 |
In the Budget, Treasurer John Kerin announced that from 1 July 1992 , under a new system to be known as the Superannuation Guarantee (SG), employers would be required to make superannuation contributions on behalf of their employees. |
Budget speech, 20 August 1991 |
| March 1992 |
Superannuation Assets estimated to be $148bn. |
ISC Annual Report 1991–1992. |
| June 1992 |
Senate Select Committee on Superannuation presents its first report. This Senate Committee, in various forms, reviewed and issued reports on various superannuation issues up to the end of the 40th Parliament (2004). Many of these reports led to significant changes in the superannuation system. |
Safeguarding Super – The Regulation of Superannuation |
| 1992 |
Labor Government implemented the Superannuation Guarantee (SG), which extended retirement savings to 72 % of workers. Employers were required to make prescribed contributions on behalf of their employees to a complying superannuation fund. Super contributions were to be progressively increased between 1992-2002, from 3% to 9%. |
|
| 1993 |
Labor Government overhauls regulation of superannuation with introduction of the Superannuation Industry (Supervision) Act 1993 (SIS Act). The OSSA continues in force but many of its provisions are repealed and transferred to the SIS Act. |
|
| 1993 |
World Bank endorses Australia’s three pillar system for the provision of retirement income as world’s best practice. |
Averting the Old Age Crisis: Policies to Protect the Old and Promote Growth |
| June 1993 |
Superannuation assets reaches $169bn |
ISC Annual Report 1992–93. |
| June 1993 |
FitzGerald report advocates increasing household savings via superannuation, but recommends that national savings be increased by increasing public sector savings. Superannuation’s role in increasing national savings no longer seen as important. This is a significant change in the policy rational for superannuation system. |
Dr Vince FitzGerald - National Savings: A Report to the Treasurer |
| November 1993 |
80% of employed persons either made superannuation contributions or had them made on their behalf. |
Superannuation Australia, ABS Cat 6319.0, November 1995 |
| 1994 |
Pension age for eligible women to be raised to 65, in a phased process. |
Social Security Legislation Amendment Act (no.2) 1994, No. 109 |
| June 1994 |
Superannuation assets $183bn |
ISC Annual Report 1993–94 |
| 1995 |
In the 1995 budget speech Treasurer Ralph Willis outlined plans to pay previously announced tax cuts into employee’s superannuation funds. Government to make matching contributions. The principal of matching government superannuation co-contributions established. |
Budget Speech 9 May 1995 and accompanying statement – Saving For Our Future |
| 1995 |
Shadow Treasurer Peter Costello called for employee choice and for funds to “compete for business” |
Address to ASFA (Australian Superannuation Funds Association), 2 Nov 1995. |
| March 1995 |
Superannuation Assets $187bn. |
ISC Annual Report 1994–95 |
| June 1995 |
80.5 % employed persons covered by superannuation |
|
| June 1996 |
Superannuation assets $245.3bn, 37.9% of GDP |
|
| 20 August 1996 |
Superannuation Surcharge introduced by Treasurer Peter Costello in the Howard Government’s first budget. |
|
| 1997 |
Wallis Financial System Inquiry, established by Treasurer Costello in May 1996, advocated superannuation choice and other changes to the superannuation system. |
|
| 1997 |
Age pension to be formally maintained at 25% AWOTE. Retirement savings accounts (RSA) established. Superannuation surcharge implemented.
|
|
| 1997 |
Limited access to superannuation possible on compassionate grounds. |
SIS Reg 19A |
| June 1997 |
Superannuation assets $321.0bn, 47.7% of GDP, 81% were covered by superannuation. |
|
| 9 December 1997 |
Limited access to superannuation possible if member is in severe financial hardship. This is defined as being in receipt of commonwealth income support for a continuous period of 26 weeks or a cumulative period of 39 weeks. |
SIS Reg 6.01 |
| 1998 |
Age pension means test for retirement income streams revised. Pension Bonus scheme introduced. A person could accrue a pension bonus payment by deferring claiming the pension while still working. |
Social Security and Veterans’ Affairs Legislation Amendment (Pension Bonus Scheme) Act 1998, No. 67 |
| 1998 |
Reforms to business taxation, including proposals to reduce the CGT rate for super funds to 10% |
|
| 1998 |
Australian Prudential Regulation Authority established on 1 July 1998 . APRA is the lead superannuation regulator. The Australian Securities and Investments Commission also took a significant role in the regulation of superannuation. The Australian Taxation Office continued to carry out some regulatory functions and administer the superannuation taxation legislation. The Insurance and Superannuation Commission ceases to operate on the same date. These changes were in response to the recommendations of the Wallis Inquiry. |
|
| June 1998 |
Superannuation assets $360.3bn, 51.2% of GDP |
|
| 1999 |
In 1999, the SIS Act was amended to establish a new category of small superannuation fund, the Self Managed Superannuation Fund to be regulated by the Australian Taxation Office. |
Superannuation Legislation Amendment Act (No. 3) 1999, no. 38 (SLAA3) |
| June 1999 |
Superannuation assets $411.4bn, 55.6% of GDP |
|
| 8 October 1999 |
Australian Taxation Office took administrative responsibility for Self Managed Superannuation Funds (SMSF). |
|
| June 2000 |
Superannuation assets $484.2bn, 63.0% of GDP, 87% of employed persons (both part and full time workers) covered by superannuation. |
APRA Insight 2007, Superannuation Coverage and financial characteristics ABS Cat 6360.0 |
| 2001 |
Financial Services Reform Act is designed to be a single licensing and disclosure approach for all financial services, including superannuation. Commenced in March 2002. |
|
| June 2001 |
Superannuation assets $519.0bn, 66.2% of GDP |
|
| 2002 |
Maximum age for superannuation contributions increased from 70 to 75 (for people working at least 10 hours a week). |
|
| June 2002 |
Superannuation assets $518.1bn, 63.7% of GDP |
|
| 1 July 2002 |
Temporary residents permanently departing Australia may withdraw their accumulated superannuation benefits before their preservation age. This does not apply to New Zealand residents. |
SIS Regs 6.20A, 6.20B & 6.24A |
| 28 December 2002 |
Superannuation assets able to be divided between the parties in a marriage breakdown |
Part VIIIB Family Law Act 1975 |
| 2003 |
Superannuation surcharge reduced from 15% to 12.5%. Government co-contribution for low/middle income earners introduced. |
|
| June 2003 |
Superannuation assets $546.8bn, 65.2% of GDP, 90% of employed persons have employer provided superannuation. |
|
| 1 July 2003 |
Superannuation co-contributions policy takes effect in respect of personal (or undeducted) contributions made after this date. |
Superannuation (Government co-contribution for Low Income Earners) Act 2003, no. 110 |
| 25 February 2004 |
On 25 February 2004, the Treasurer released A more flexible and adaptable retirement income system as part of ‘Australia’s Demographic Challenges’ announcement. Amongst other things this report proposed to allow access to a person’s superannuation, in the form of an income stream, before they had left the work force (i.e. transition to retirement pensions) and to scrap the work test for those under age 65. |
|
| 2004 |
Superannuation Safety Amendment Act 2004 enacted changes to regulation of superannuation. All superannuation trustees of large eligible funds have to be licensed from 1 July 2004. Trustees of SMSFs do not have to be licensed. |
|
| 2004 |
Superannuation regulations changed to allow the portability of money between different superannuation accounts. |
SIS Regs 6.28 and 6.29 |
| 2004 |
Employee choice of fund passed Senate in June, to come into operation from 1 July 2005. Superannuation surcharge reduced from 12.5% to 10%. |
Superannuation Legislation Amendment (Choice of Superannuation Funds) Act 2004, no. 102 |
| 2004 |
Tax free payment of superannuation benefits can be made to the surviving partner on an interdependent relationship. An interdependent relationship can encompass same sex couples, or a relationship where one person is financial dependent on another person. For example, were a son or daughter is financially supporting a parent. |
SIS Reg 10(1) and 10A |
| June 2004 |
Superannuation assets $643.0bn, 73.6% of GDP |
|
| 1 July 2004 |
Work test governing contributions made under age 65 ceased to operate. Work test remains for contributions made above age 65. |
|
| 10 May 2005 |
Treasurer Costello announced in the Budget the abolition of the Superannuation Surcharge. Changes take effect from 1 July 2005 |
|
| June 2005 |
Superannuation assets $762.9bn, 85.1% of GDP, 90% of employed persons have employer provided superannuation. |
|
| 1 July 2005 |
Transition to Retirement Pensions available. A member may commence to receive a transition to retirement pension without having to leave the workforce or retire. Choice of Superannuation Fund takes effect. |
SIS Reg 6.01. |
| 1 Jan 2006 |
Contributions Splitting took effect. A Member’s SG and other contributions may be split with their spouse. |
SIS Regs 6.40 – 6.46 |
| 9 May 2006 |
In the Budget, Treasurer Costello announced plans to simplify superannuation. “Simpler Super” includes: - exemption from tax on end benefits for Australians aged 60 or over from I July 2007; - no tax on a lump sum; - no tax on a superannuation pension; - reasonable benefit limits to be abolished; and - transferring super between funds made easier. Implementation date is 1 July 2007. |
|
| June 2006 |
Superannuation assets $912.0bn, 98.8% of GDP, 90% of all employed persons covered by superannuation. |
|
| June 2007 |
Superannuation assets $1153.3bn (i.e. 1 trillion), 119% of GDP. |
APRA Quarterly Superannuation Performance June 2007, ABS Cat 5206.0. |
| 1 July 2007 |
Most Simplified Superannuation amendments take effect. Bulk of operating superannuation tax law now in the Income Tax Assessment Act 1997. Prudential and operational aspects now largely in the SIS Act. Residual parts of superannuation law remain in Income Tax Assessment Act 1936. |
Tax Laws Amendment (Simplified Superannuation) Act 2007, no. 112. |
| 11 September 2007 Measure applies to lump sums paid on or after 1 July 2007 |
Tax free benefits able to be paid to those with a terminal illness. |
Minister for Finance and Assistant Treasurer Press Release, ‘Australians with a terminal illness now able to draw their super tax free’ Schedule 2 Tax Laws Amendment (2008 Measures No. 1) Bill 2008 also s 303-10 ITAA 97. |
| 20 September 2007 |
Social Security assets test threshold raised from $531,000 to $839,500 (couple); from $343,750 to $529,250 (single); it is estimated that more than 300,000 extra people will be eligible for the age pension. |
|
| 31 December 2007 |
Employee’s ability to recover unpaid superannuation amounts from employers that have ceased operating enhanced. |
Sub paragraph 556(1)(e) Corporations Act 2001. |
| 3 March 2008 |
Minister for Superannuation and Corporate Law Sherry announced the establishment of a Superannuation Advisory Group to advise on “matters relevant to current or prospective superannuation legislation and on Government policy proposals which have significant impact for the superannuation industry.” |
Press Release – Peak superannuation advisory group established. |
| 5 May 2008 |
Minister Sherry announces consultation on a measure introduced by the Coalition Government which required future superannuation contributions and existing balances for temoporary residents to be transferred to the ATO. If these were unclaimed after 5 years, the amounts would be confiscated. Extra revenue of up to $1 billion a year is predicted. |
Temporary residents and superannuation – Treasury |
| 13 May 2008 |
Labor’s first Budget contains details of a review of taxation – “Australia’s future tax system”, to be chaired by Dr Ken Henry. Terms of reference include the government’s commitment to preserve tax-free superannuation payments for the over 60s. |
|
| 19 May 2008 |
Minister Sherry announced that universal forecasting of superannuation end-benefits could be introduced to enable better understanding of retirement savings. |
|
| 28 May 2008 |
Attorney-General Robert McClelland introduced the first of a range of amendments to remove same-sex discrimination from Acts governing Commonwealth superannuation schemes. This ensures that same-sex couples are not denied the payment of death benefits from superannuation schemes or the tax concessions on death benefits currently made available to opposite-sex couples. |
Same-Sex Relationships (Equal Treatment in Commonwealth Laws—Superannuation) Bill 2008 |
| 17 Jun 2008 |
The Same-Sex Relationships (Equal Treatment in Commonwealth Laws—Superannuation) Bill 2008 is sent to a committee inquiry without an “end date” |
|
| 26 June 2008 |
Minister Sherry announced a review of pension indexation arrangements for Australian Government superannuation schemes (civilian and military). The review commences in July and is expected to conclude by the end of 2008. |
|
Family and Community Services and Indigenous Affairs (FACSIA), ‘A Compendium of legislative changes in social security 1908-1982’, Occasional Paper No 12, 1983, reprinted 2006. http://www.facsia.gov.au/research/op12/sec1.htm
Family and Community Services and Indigenous Affairs (FACSIA), ‘A Compendium of legislative changes in social security 1983-2000’, Occasional Paper 13, June 2006. http://www.facsia.gov.au/internet/facsinternet.nsf/research/ops-ops13.htm
Australian Prudential Regulation Authority, A Recent History of superannuation in Australia, APRA Insight, Issue 2, 2007
http://www.apra.gov.au/Insight/upload/History-of-superannuation.pdf
A. Borowski, ‘The Revolution that faltered: two decades of reform of Australia’s retirement income system’, International Social Security Review, v.58(no. 4), 2005, pp.45-65.
P. Gallagher, P and A. Preston,’ Retirement Income Modelling and Policy Development in Australia, 1993’, Treasury Retirement Income Modelling Task Force, 1993.
The Hon. J.P. Keating MP, Treasurer, Reform Of The Taxation of Superannuation, 25 May 1988
Commonwealth Government, Treasury,’ Towards higher retirement incomes for Australians - A History of the Australian retirement income system since Federation’, Economic Roundup, 1 January 2001.
[1] ISC Annual Survey 1986–87. This figure appears to be a partial figure as it is not clear that it includes superannuation monies managed solely as insurance policies.
[2] OSSA has gone through several name changes and is now entitled ‘Superannuation (Self Managed Superannuation Funds) Taxation Act 1987’ No 97!
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