Lodgment of statements by superannuation providers in relation to superannuation plans (other than self managed superannuation funds) for each income 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 income 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 contribution statements in accordance with section 390-5 of Schedule 1 to the Taxation Administration Act 1953 (‘TAA 1953’) for the income year ended 30 June 2008 and later income 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 TAA 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 income year ended 30 June 2008 and later income 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 an income 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 TAA 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 TAA 1953.

An MCS is required for each member of the fund where contributions have been received by the fund for that member to ensure that the employer has met the obligations in relation to the Superannuation Guarantee (Administration Act) 1992 and that the eligibility for a government co-contribution for low income earners under the Superannuation (Government Co-contribution for Low Income Earners) Act 2003 can be established.

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.

Compliance cost impact:

No change/low.  An assessment of the compliance cost impact indicates that the impact will be minimal for both implementation and on-going compliance costs. The Instrument is of a routine nature.

Background:

Since June 2001 the Commissioner has published requirements for lodgment of returns and statements in accordance with relevant legislation.

This year a Legislative Instrument is being made to require the lodgment of Member Contribution Statements (MCS) in accordance with section 390-5 of Schedule 1 to the TAA 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 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 TAA 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.