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Tuesday, 7 September 1993
Page: 1051


Senator RICHARDSON —Senator Ian Macdonald asked a question on 6 September relating to the superannuation guarantee charge and how it applied to local government. The Minister for Housing, Local Government and Community Services, Mr Howe, has provided me with the following answer.

  For the purposes of the superannuation guarantee levy, councillors were defined as employees of a council. As explained in the second reading speech for the April 1992 amendments, the word `payment' was replaced with `remuneration' to make it clear that only payments for work done by councillors will be salary or wages. Reimbursements for expenditure incurred, whether paid in advance or after the incurring of the expenditure, are not included. Therefore, it is only those councillors receiving remuneration for work done, not a reimbursement, for a council which is in excess of $450 in any month, who are subject to the levy. This is not inconsistent with the former minister's letter.

  The minister responsible for local government issues is aware of the need to clarify some aspects of the legislation in terms of the impact on local government and has written to the Treasurer seeking that clarification.