The government’s proposal would “remake” the existing regulations which are due to cease on 1 April.
“The draft regulations improve the 2004 Regulations by omitting redundant provisions, simplifying language and restructuring provisions for ease of navigation,” a statement released on Monday read.
“This includes minor changes to increase the use of headings and references to ‘section’ rather than ‘regulation’ in accordance with modern drafting practice.”
The proposed changes include to amend the definition of an eligible account to receive super co-contribution payments so it excludes those which only provide terminal medical condition benefits.
The government says this change would be consistent with the intention that the super co-contribution payment is not be paid to insurance-only accounts.
The draft regulations also see to clarify section 7 which states a government co-contribution is to be directed in “specific circumstances”.
Submissions for the draft regulations are open now and close on 14 January 2022.
Neil Griffiths
Neil is the Deputy Editor of the wealth titles, including ifa and InvestorDaily.
Neil is also the host of the ifa show podcast.
