Retirement Savings Accounts Supervisory Levy Act 1997
No. 63, 1997
An Act to impose a levy on the lodgment of certain returns under the Retirement Savings Accounts Act 1997
Contents
1 Short title................................. 1
2 Commencement.............................. 2
3 Application of the Retirement Savings Accounts Act 1997..... 2
4 Interpretation............................... 2
5 Imposition of retirement savings account levy............ 2
6 Amount of levy.............................. 2
7 Regulations................................ 3
Retirement Savings Accounts Supervisory Levy Act 1997
No. 63, 1997
An Act to impose a levy on the lodgment of certain returns under the Retirement Savings Accounts Act 1997
[Assented to 28 May 1997]
The Parliament of Australia enacts:
1 Short title
This Act may be cited as the Retirement Savings Accounts Supervisory Levy Act 1997.
2 Commencement
This Act commences on the day on which the Retirement Savings Accounts Act 1997 commences.
3 Application of the Retirement Savings Accounts Act 1997
Section 6, and Part 2, of the Retirement Savings Accounts Act 1997 apply in relation to this Act in a corresponding way to the way in which they apply in relation to that Act.
4 Interpretation
In this Act, unless the contrary intention appears:
minimum basic levy amount, for a year of income, means the lowest basic levy amount applicable to returns for the year of income for RSA providers that are RSA providers at all times during the year of income.
period of grace, in relation to a return, means the period of 14 days commencing on the day after the required return lodgment day for the return.
required return lodgment date, in relation to a return, means the last day by which the return is required to be lodged under section 44 of the Retirement Savings Accounts Act 1997.
5 Imposition of retirement savings account levy
Levy payable in accordance with section 10 of the Superannuation Entities (Taxation) Act 1987 is imposed.
6 Amount of levy
(1) The amount of levy payable on the lodgment of a return for a year of income is the sum of:
(a) the amount (the basic levy amount), not exceeding $30,000, worked out in accordance with the regulations; and
(b) if the return is lodged after the end of the period of grace for the return–the late lodgment amount worked out under subsection (2).
(2) The late lodgment amount is the amount worked out by:
(a) working out, for the calendar month beginning on the day after the required return lodgment day and each subsequent calendar month beginning before the day on which the return is lodged, the greater of the following amounts:
(i) the amount worked out using the following formula and rounded up to the nearest whole dollar:
(ii) the amount worked out using the following formula and rounded up to the nearest whole dollar:
and
(b) aggregating those amounts.
(3) If the amounts worked out under paragraph (2)(a) for a calendar month are equal, the monthly amount for that calendar month is that amount.
(4) The regulations may provide for different basic levy amounts for different RSA providers.
7 Regulations
The Governor-General may make regulations for the purposes of section 6.
[Minister’s second reading speech made in–
House of Representatives on 4 December 1996
Senate on 5 March 1997]
I HEREBY CERTIFY that the above is a fair print of the Retirement Savings Accounts Supervisory Levy Bill 1997 which originated in the House of Representatives as the Retirement Savings Accounts Supervisory Levy Bill 1996 and has been finally passed by the Senate and the House of Representatives.
Clerk of the House of Representatives
IN THE NAME OF HER MAJESTY, I assent to this Act.
Governor-General
1997
Overview
The Retirement Savings Accounts Supervisory Levy Act 1997 was enacted by the Parliament of Australia to address the need for a regulatory framework that imposes a levy on the lodgment of certain returns under the Retirement Savings Accounts Act 1997. This Act was designed to ensure that there are sufficient funds available for the supervision of retirement savings accounts, thereby supporting the integrity and efficiency of the retirement savings system. The policy objective underpinning this legislation is to create a financial mechanism that supports the ongoing oversight and management of retirement savings accounts, ensuring compliance and contributing to the stability of the retirement income system. This Act operates in conjunction with the Retirement Savings Accounts Act 1997, with specific provisions governing the imposition and calculation of the levy, as well as the penalties for late lodgment of returns.
Scope and Application
The Retirement Savings Accounts Supervisory Levy Act 1997 applies to the lodgment of certain returns under the Retirement Savings Accounts Act 1997, specifically targeting RSA providers who are required to lodge returns for a given year of income. This Act imposes a levy on these lodgments, which is payable in accordance with the Superannuation Entities (Taxation) Act 1987. The levy includes a basic levy amount, which is determined according to regulations and cannot exceed $30,000, as well as a late lodgment amount if the return is submitted after the specified grace period. The application of this Act is confined to the Commonwealth of Australia, with its provisions extending to all RSA providers within its jurisdiction. The Act allows for different basic levy amounts for different RSA providers, as specified in subordinate regulations, which may provide further detail on the calculation and application of the levy.
Key Provisions
The Retirement Savings Accounts Supervisory Levy Act 1997 (the Act) imposes a levy on the lodgment of certain returns under the Retirement Savings Accounts Act 1997 (sections 5 and 6). This levy is payable in accordance with section 10 of the Superannuation Entities (Taxation) Act 1987 (section 5). The amount of the levy payable on the lodgment of a return for a year of income is determined by the sum of the basic levy amount and the late lodgment amount, if applicable (section 6(1)). The basic levy amount is not to exceed $30,000 and is calculated according to the regulations (section 6(1)(a)). If a return is lodged after the end of the period of grace for the return, a late lodgment amount is calculated based on the number of calendar months the return is overdue, with the greater of two specified amounts being used for each month and then aggregated (section 6(2)-(4)). The regulations may also provide for different basic levy amounts for different RSA providers (section 6(4)).
The Act imposes certain obligations on Retirement Savings Account (RSA) providers, requiring them to ensure that returns are lodged within the specified timeframe to avoid incurring additional levies (section 6(1)(b)). RSA providers must also be aware of the basic and late lodgment amounts as defined in the regulations and ensure compliance with these provisions (section 6(1)-(4)). Furthermore, the Governor-General has the authority to make regulations for the purposes of section 6, providing a mechanism for the adjustment and specification of levy amounts (section 7).
Breach of the provisions outlined in the Act can lead to civil or criminal consequences, including financial penalties. Specifically, if a RSA provider fails to lodge a return within the required period or within the period of grace, they may incur additional late lodgment amounts as specified in the regulations (section 6(2)-(4)). While the Act does not explicitly state maximum penalties, it is reasonable to infer that penalties would be determined in accordance with other relevant taxation or administrative laws, potentially including fines or other financial sanctions for non-compliance. Non-compliance with the Act's provisions may also lead to scrutiny or investigation by relevant authorities, which could result in further administrative or legal consequences for the RSA provider.