Small Superannuation Accounts Act 1995
No. 52, 1995
Compilation No. 30
Compilation date: 1 July 2026
Includes amendments: Act No. 57, 2025
About this compilation
This compilation
This is a compilation of the Small Superannuation Accounts Act 1995 that shows the text of the law as amended and in force on 1 July 2026 (the compilation date).
The notes at the end of this compilation (the endnotes) include information about amending laws and the amendment history of provisions of the compiled law.
Uncommenced amendments
The effect of uncommenced amendments is not shown in the text of the compiled law. The details of amendments made up to, but not commenced at, the compilation date are underlined in the endnotes. Any uncommenced amendments affecting the law are accessible on the Register (www.legislation.gov.au).
Application, saving and transitional provisions
If the operation of a provision or amendment of the compiled law is affected by an application, saving or transitional provision that is not included in this compilation, details are included in the endnotes.
Editorial changes
For more information about any editorial changes made in this compilation, see the endnotes.
Presentational changes
The Legislation Act 2003 provides for First Parliamentary Counsel to make presentational changes to a compilation. Presentational changes are applied to give a more consistent look and feel to legislation published on the Register, and enable the user to more easily navigate those documents.
Modifications
If the compiled law is modified by another law, the compiled law operates as modified but the modification does not amend the text of the law. Accordingly, this compilation does not show the text of the compiled law as modified. Any modifications affecting the law are accessible on the Register.
Self‑repealing provisions
If a provision of the compiled law has been repealed in accordance with a provision of the law, details are included in the endnotes.
Contents
Part 1—Introduction
1 Short title
2 Commencement
3 Simplified explanation
4 Definitions
5 Crown to be bound
6 Act to be administered by the Commissioner of Taxation
Part 2—Superannuation Holding Accounts Special Account
7 Simplified outline
8 Superannuation Holding Accounts Special Account
9 Special Account is not a superannuation fund
Part 3—Accounts
Division 1—Simplified outline
11 Simplified outline
Division 2—Keeping of accounts
12 Accounts
Division 3—Outline of credits and debits to accounts
13 Outline of credits to accounts
14 Outline of debits to accounts
Division 4—Opening and closing of accounts
15 Opening of accounts
16 Closing of accounts
Division 5—Rules about accounts
17 Accounts may have a nil balance
18 One account per individual
19 Account balances not held on trust etc.
Division 6—Notification of account balances
20 Notification of opening balance
21 Individual may request details of account balance
22 Annual notification of account balance
23 Notification when account balance reaches $1,200
Part 4—Deposits
24 Simplified outline
25 Deposits
26 Deposit to be accompanied by deposit form
27 Deposit to be made by employer or former employer
28 Deposit to be instead of superannuation contributions
29
Overview
The Small Superannuation Accounts Act 1995 was enacted by the Commonwealth Parliament to address the issue of small superannuation account balances being eroded by fees. The Act provides a mechanism for employees with small superannuation account balances to have their balances held in a special account, thereby avoiding the erosion of those balances by fees. Administered by the Commissioner of Taxation, the Act establishes a special account, referred to as the Superannuation Holding Accounts Special Account, within which notional accounts are maintained in the names of particular individuals. The Act outlines the rules for the deposit, crediting, and withdrawal of account balances, including the accrual and crediting of interest on the daily balance of the account. It also sets out the conditions under which account balances may be withdrawn or transferred to a superannuation fund or Retirement Savings Account (RSA). The Act aims to provide a secure and efficient means for managing small superannuation account balances, ensuring that employees can benefit from their superannuation savings without the burden of excessive fees.
Scope and Application
The Small Superannuation Accounts Act 1995 is a Commonwealth Act that applies across Australia, binding the Crown in right of the Commonwealth, the States, the Australian Capital Territory, and the Northern Territory. The Act is administered by the Commissioner of Taxation and extends to all individuals and entities that may have superannuation accounts under the Act. It encompasses employers and employees as defined in the Schedule, including various categories such as company directors, contract workers, members of parliaments and legislative assemblies, performers, sportspersons, and office holders. The Act's provisions govern the establishment and maintenance of Small Superannuation Accounts, detailing rules for deposits, interest accrual, account balances, and withdrawals. Notably, it includes provisions for the handling of Government co-contributions for low-income earners and Paid Parental Leave (PPL) superannuation contributions. The Act also outlines processes for reviewing decisions and the administration of inactive accounts, where account balances are debited from the Special Account after a period of inactivity. Subordinate instruments, such as regulations, may extend or restrict the application of the Act, as permitted by section 94. The Act has been subject to numerous amendments since its commencement, with the most recent amendments affecting its operation and application.
Key Provisions
- The Small Superannuation Accounts Act 1995 establishes a scheme for maintaining small superannuation accounts for employees. It sets up a special account, the Superannuation Holding Accounts Special Account, which maintains notional accounts for individuals. The Act requires employers to make payments, called deposits, instead of superannuation contributions for employees with small balances, with an annual limit of $1,200 per employee. These deposits are credited to individual accounts and accrue interest. The Act outlines the rules for credits and debits to these accounts, including interest accrual and withdrawal conditions. It also specifies the obligations of the Commissioner of Taxation, including the maintenance of accounts, crediting of deposits, and interest accrual. The Act imposes penalties for false declarations in deposit forms and provides for the review of decisions by the Commissioner of Taxation and the Administrative Review Tribunal.
- The Small Superannuation Accounts Act 1995 imposes several obligations on parties it governs. Employers must make deposits instead of superannuation contributions for eligible employees, adhering to the annual limit and completing the required deposit forms. The Commissioner of Taxation is responsible for opening and maintaining individual accounts, crediting deposits, calculating and crediting interest, and handling withdrawals under specified conditions. Individuals have the right to request transfers of their account balances to superannuation funds or RSAs and to withdraw their balances under certain circumstances. The Act also requires the Commissioner to provide notifications about account balances and to keep records of inactive accounts.
- Breaches of the Small Superannuation Accounts Act 1995 can result in civil and criminal penalties. For example, making false or misleading declarations on deposit forms can lead to criminal liability under the Taxation Administration Act 1953. Employers may be denied income tax deductions if their declarations are found to be false. The Act also allows for the recovery of refunds for certain deposits and the recovery of account balances as debts due to the Commonwealth. Failure to comply with the Act's provisions can result in financial penalties and legal action.
- Area of Law
- Superannuation Law
- Taxation Law
- Instrument
- Act
- Concepts
- Definitions & Interpretation
- Commencement Provisions
- Delegation
- Offence Provisions
- Licensing & Registration
- Reporting & Disclosure Obligations
- Review & Sunset Clauses
