Superannuation Contributions Tax (Application to the Commonwealth) Act 1997
Act No. 68 of 1997 as amended
This compilation was prepared on 25 September 2009
taking into account amendments up to Act No. 88 of 2009
The text of any of those amendments not in force
on that date is appended in the Notes section
The operation of amendments that have been incorporated may be
affected by application provisions that are set out in the Notes section
Prepared by the Office of Legislative Drafting and Publishing,
Attorney‑General’s Department, Canberra
Contents
1 Short title [see Note 1]
2 Commencement [see Note 1]
3 Interpretation
4 Application of Act
5 Trustee taken not to be officer, authority or agent of the Commonwealth
6 Directions by Finance Minister
7 Discharge of liability of trustee
Notes
An Act to provide for the notional application of superannuation contributions tax on the taxable contributions of members of non‑contributory Commonwealth superannuation schemes, and for related purposes
1 Short title [see Note 1]
This Act may be cited as the Superannuation Contributions Tax (Application to the Commonwealth) Act 1997.
2 Commencement [see Note 1]
This Act commences on the day on which it receives the Royal Assent.
3 Interpretation
(1) Subject to subsection (2), any expression that is used in this Act and in the Superannuation Contributions Tax (Assessment and Collection) Act 1997 has the same meaning as in that Act.
(2) For the purposes of the application of the Superannuation Contributions Tax (Assessment and Collection) Act 1997 to a trustee of an unfunded defined benefits superannuation scheme to whom section 5 of this Act applies, a reference in that Act to superannuation contributions surcharge includes a reference to superannuation contributions surcharge that is payable because of the operation of that section.
(3) In this Act:
Finance Minister has the meaning given by the Income Tax Assessment Act 1997.
4 Application of Act
This Act applies if:
(a) the trustee of an unfunded defined benefits superannuation scheme is an officer, authority or agent of the Commonwealth in the trustee’s capacity as trustee of the scheme; and
(b) were the trustee not such an officer, authority or agent, the trustee would be liable to pay superannuation contributions surcharge on superannuation contributions for a financial year of a member of the scheme; and
(c) there are no contributed amounts payable to the trustee for or by the member under the scheme.
5 Trustee taken not to be officer, authority or agent of the Commonwealth
The trustee is taken, for the purposes of the Superannuation Contributions Tax Imposition Act 1997 and the Superannuation Contributions Tax (Assessment and Collection) Act 1997, not to be an officer, authority or agent of the Commonwealth in the trustee’s capacity as trustee of the scheme.
6 Directions by Finance Minister
(1) The Finance Minister may give any written directions that are necessary or convenient to be given for discharging the trustee’s liability to pay the surcharge that arises because of the operation of section 5 and, in particular, may give directions in relation to the transfer of money within the Public Account.
(2) Directions under subsection (1) have effect, and are to be complied with, despite any other law of the Commonwealth.
7 Discharge of liability of trustee
Compliance with any directions given under section 6 is taken, for the purposes of the Superannuation Contributions Tax (Assessment and Collection) Act 1997 to discharge the trustee’s liability to pay the surcharge.
Notes to the Superannuation Contributions Tax (Application to the Commonwealth) Act 1997
Note 1
The Superannuation Contributions Tax (Application to the Commonwealth) Act 1997 as shown in this compilation comprises Act No. 68, 1997 amended as indicated in the Tables below.
Table of Acts
Act | Number
and year | Date
of Assent | Date of commencement | Application, saving or transitional provisions |
Superannuation Contributions Tax (Application to the Commonwealth) Act 1997 | 68, 1997 | 5 June 1997 | 5 June 1997 | |
Superannuation Contributions and Termination Payments Taxes Legislation Amendment Act 1997 | 191, 1997 | 7 Dec 1997 | Schedule 3: 5 June 1997 (a) | — |
Tax Laws Amendment (2009 Measures No. 4) Act 2009 | 88, 2009 | 18 Sept 2009 | Schedule 5 (items 231, 232): Royal Assent | — |
(a) The Superannuation Contributions Tax (Application to the Commonwealth) Act 1997 was amended by Schedule 3 only of the Superannuation Contributions and Termination Payments Taxes Legislation Amendment Act 1997, subsection 2(2) of which provides as follows:
(2) Schedule 3 is taken to have commenced on 5 June 1997, immediately after the commencement of the Superannuation Contributions Tax (Application to the Commonwealth) Act 1997.
Table of Amendments
ad. = added or inserted am. = amended rep. = repealed rs. = repealed and substituted |
Provision affected | How affected |
S. 3.................... | am. No. 191, 1997; No. 88, 2009 |
Heading to s. 6............ | am. No. 88, 2009 |
S. 6.................... | am. No. 88, 2009 |
Overview
The Superannuation Contributions Tax (Application to the Commonwealth) Act 1997 was enacted by the Parliament of Australia to address the issue of superannuation contributions tax on non-contributory Commonwealth superannuation schemes. The Act ensures that the notional application of superannuation contributions tax is applied to the taxable contributions of members of unfunded defined benefits superannuation schemes, where the trustee is an officer, authority or agent of the Commonwealth. By doing so, it aims to ensure that these schemes are treated similarly to other superannuation schemes in terms of tax liabilities. The policy objective of this Act is to provide a fair and consistent approach to the taxation of superannuation contributions, regardless of whether the trustee is an officer, authority or agent of the Commonwealth or not. The Act applies to trustees of unfunded defined benefits superannuation schemes who would otherwise be liable to pay superannuation contributions surcharge, but where there are no contributed amounts payable to the trustee for or by the member under the scheme. The Finance Minister has the authority to give written directions necessary or convenient to discharge the trustee's liability to pay the surcharge, including the transfer of money within the Public Account. Compliance with these directions is taken to discharge the trustee's liability to pay the surcharge under the Superannuation Contributions Tax (Assessment and Collection) Act 1997.
Scope and Application
The Superannuation Contributions Tax (Application to the Commonwealth) Act 1997 applies to trustees of unfunded defined benefits superannuation schemes who are also officers, authorities, or agents of the Commonwealth in their capacity as trustees. Specifically, if such a trustee would otherwise be liable to pay superannuation contributions surcharge under the Superannuation Contributions Tax (Assessment and Collection) Act 1997 and there are no contributed amounts payable to the trustee for or by the member under the scheme, the provisions of this Act come into play. This legislation ensures that the trustee is not considered an officer, authority, or agent of the Commonwealth for the purposes of the Superannuation Contributions Tax Imposition Act 1997 and the Superannuation Contributions Tax (Assessment and Collection) Act 1997. The Finance Minister is authorised to issue necessary written directions for discharging the trustee’s liability to pay the surcharge, including the transfer of money within the Public Account, and compliance with these directions discharges the trustee’s liability to pay the surcharge. The Act extends its reach nationally, with any necessary amendments incorporated through subordinate instruments.
Key Provisions
The Superannuation Contributions Tax (Application to the Commonwealth) Act 1997 (the "Act") applies to trustees of unfunded defined benefits superannuation schemes who are also officers, authorities, or agents of the Commonwealth. The Act stipulates that if a trustee would otherwise be liable to pay superannuation contributions surcharge due to their role in such a scheme, they are not considered to be an officer, authority, or agent of the Commonwealth for the purpose of the Superannuation Contributions Tax Imposition Act 1997 and the Superannuation Contributions Tax (Assessment and Collection) Act 1997 (sections 4 and 5). This provision ensures that trustees of Commonwealth superannuation schemes do not face additional tax liabilities despite their dual roles. Furthermore, the Finance Minister has the authority to issue directions necessary for the trustee to meet their surcharge obligations, including the transfer of funds within the Public Account (section 6). Compliance with these directions is deemed to discharge the trustee's liability to pay the surcharge (section 7).
The Act imposes specific obligations on trustees of unfunded defined benefits superannuation schemes who are Commonwealth officers, authorities, or agents. Trustees must ensure that they do not incur additional tax liabilities by virtue of their dual roles. They are also required to comply with any directions issued by the Finance Minister to manage their surcharge obligations, including the transfer of funds within the Public Account as necessary. By taking these steps, trustees can avoid additional tax burdens while fulfilling their duties under the Act.
Breaches of the Act may lead to significant consequences, including both civil and criminal penalties. Trustees who fail to comply with the Act or the directions of the Finance Minister may be subject to penalties under the Superannuation Contributions Tax (Assessment and Collection) Act 1997. These penalties can include fines and, in serious cases, imprisonment. The precise penalties depend on the nature and severity of the breach but can be substantial, reflecting the importance of compliance with superannuation tax obligations. Trustees must therefore ensure strict adherence to the Act to avoid these serious consequences.