Lodgment of statements by superannuation providers in relation to superannuation plans (other than self managed superannuation funds) for each financial year ended 30 June in accordance with the Taxation Administration Act 1953

Lodgment of statements by superannuation providers in relation to superannuation plans (other than self managed superannuation funds) for each financial year ended 30 June in accordance with the Taxation Administration Act 1953  

Explanatory Statement

General outline of instrument:

This instrument sets out the way in which superannuation providers in relation to superannuation plans (other than self managed superannuation funds) are required to lodge member contributions statements in accordance with section 390-5 of Schedule 1 to the Taxation Administration Act 1953 for the financial year ended 30 June 2014 and later financial years, in the approved form, and states the due date for lodgment.

A plan that is a self managed superannuation fund within the meaning of section 17A of the Superannuation Industry (Supervision) Act 1993 will lodge the Self Managed Superannuation Fund Annual Return, which will meet the requirements of section 390-5 of Schedule 1 to the Taxation Administration Act 1953. A separate legislative instrument details the lodgment requirements of the Self Managed Superannuation Fund Annual Return.

The proposed instrument will be a legislative instrument for the purposes of the Legislative Instruments Act 2003 and it is legally binding on the Commissioner of Taxation.

Date of effect:

The instrument applies to the financial year ended 30 June 2014 and later years or approved periods in lieu, and is effective from the day after it is registered.  

What is this instrument about:

The principal purpose of the instrument is to set out the form and manner in which statements are to be lodged for a financial year and states the date by which they are required to be lodged. The legislative instrument establishes the due date for lodgment of statements, which can be deferred by the exercise of the Commissioner’s discretion under section 388-55 of Schedule 1 to the Taxation Administration Act 1953.

The principal purpose of the instrument is to require lodgment of Member Contributions Statements (MCS) in accordance with section 390-5 of Schedule 1 to the Taxation Administration Act 1953.

An MCS is required for each individual who held a superannuation interest in a superannuation plan at any time during the financial year. The information report for these individuals allows the Commissioner to administer a large number of tax and superannuation measures including:

• Entitlement to co-contributions for low income earners under the Superannuation (Government Co-contribution for Low Income Earners) Act 2003
• Assessment of Division 293 tax under the Income Tax Assessment Act 1997
• Assessment of tax in relation to the excess contributions caps under the Income Tax Assessment Act 1997
• Helping employers meet their obligations under the Superannuation Guarantee (Administration) Act 1992, and
• Consolidation of small or inactive accounts and display of information online to assist members in understanding, managing and consolidating their super accounts.

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What is the effect of this instrument:

The effect of this instrument is that superannuation providers have guidance on their obligations to lodge statements, the date by which they must be lodged and the penalty that may be applied for failure to lodge on time in the approved form.

Compliance cost impact:

An assessment of the compliance cost impact indicates that the impact will be minor for both implementation and on-going compliance costs. The new instrument is of a minor or machinery nature.

Background:

Since June 2001 the Commissioner has published requirements for lodgment of returns and statements in accordance with relevant legislation. Since July 2007 these requirements have applied to the MCS. Since July 2013 the obligation to provide an MCS has been expanded to include all individuals with a superannuation interest.

This year a legislative instrument is being made to require the lodgment of the MCS in accordance with the expanded reporting provisions of section 390-5 of Schedule 1 to the Taxation Administration Act 1953.

The instrument sets out the lodgment dates of statements and the manner in which they have to be lodged, including details of acceptable electronic media that could be used, the limitations imposed upon lodgment of paper forms and the penalties that may be applied for failing to lodge the statements on time.

Consultation:

There has been no consultation in relation to this instrument. This is considered a machinery provision and a requirement of section 390-5 of Schedule 1 to the Taxation Administration Act 1953 and it is a long standing practice to publish the due dates for lodgment of statements for each financial year and who must lodge them.

Statement of Compatibility with Human Rights

This Statement is prepared in accordance with Part 3 of the Human Rights (Parliamentary Scrutiny) Act 2011.

Lodgment of Statements by superannuation providers in relation to superannuation plans (other than self managed superannuation funds) for each financial year ended 30 June in accordance with the Taxation Administration Act 1953

This legislative instrument is compatible with the human rights and freedoms recognised or declared in the international instruments listed in section 3 of the Human Rights (Parliamentary Scrutiny) Act 2011.

Overview

This instrument sets out the way in which superannuation providers in relation to superannuation plans (other than self managed superannuation funds) are required to lodge member contribution statements in accordance with section 390-5 of Schedule 1 to the Taxation Administration Act 1953 for the financial year ended 30 June 2014 and later financial years, in the approved form, and states the due date for lodgment.

Human rights implications

This legislative instrument does not engage any of the applicable rights or freedoms as it simply provides guidance for superannuation providers on their obligations to lodge statements, the date by which they must be lodged and the penalty that may be applied for failure to lodge on time in the approved form.

Conclusion

This legislative instrument is compatible with human rights as it does not raise any human rights issues.