Superannuation Contributions Tax (Assessment and Collection) Amendment Regulations 2003 (No. 1)

Administered by Department of the Treasury

Legislation au F2003B00141 Regulations Not in force Legislative Instrument

Legislation content

Superannuation Contributions Tax (Assessment and Collection) Amendment Regulations 2003 (No. 1) 2003 No. 130

EXPLANATORY STATEMENT

STATUTORY RULES 2003 No. 130

Issued by authority of the Minister for Revenue and Assistant Treasurer

Superannuation Contributions Tax (Assessment and Collection) Act 1997

Superannuation Contributions Tax (Members of Constitutionally Protected Superannuation Funds) Assessment and Collection Act 1997

Superannuation Contributions Tax (Assessment and Collection) Amendment Regulations 2003 (No. 1)

Superannuation Contributions Tax (Members of Constitutionally Protected Superannuation Funds) Assessment and Collection Amendment Regulations 2003 (No. 1)

Section 42 of the Superannuation Contributions Tax (Assessment and Collection) Act 1997 (A&C Act) and section 37 of the Superannuation Contributions Tax (Members of Constitutionally Protected Superannuation Funds) Assessment and Collection Act 1997 (the CPF Act), provide that the Governor-General may make Regulations prescribing matters required or permitted by the respective Acts to be prescribed, or necessary or convenient to be prescribed for carrying out or giving effect to the respective Acts.

Paragraph 8(5)(a) of the A&C Act and paragraph 9(6)(a) of the CPF Act provide that the actuarial value of the benefits that accrued to, and the value of the administration expenses and risk benefits provided in respect of, a member of a defined benefits superannuation scheme for the 1999-2000 financial year and later financial years is an amount worked out by an eligible actuary using the method set out in the Regulations.

Section 13 of the A&C Act requires superannuation providers to give statements to either the Commissioner or to other superannuation providers on specific matters and any other matters required by the Regulations. Section 12 of the CPF Act requires constitutionally protected superannuation providers to give information to the Commissioner on specific and any other matters required by the Regulations.

In the May 2001 Budget the Government announced changes to the A&C Act and the Termination Payments Tax (Assessment and Collection) Act 1997 to make the transition arrangements that applied to employer eligible termination payments permanent. Consequently, from 19 August 2001 only the portion of an employer eligible termination payment that accrued after 20 August 1996 has been liable to:

a)       the superannuation contributions surcharge, if the termination payment is rolled over into a superannuation fund; or

b)       the termination payments surcharge, if the termination payment is retained by the taxpayer.

These changes were implemented by the Superannuation Contributions Taxes and Termination Payments Tax Legislation Amendment Act 2001 (which also similarly amended the CPF Act), and received Royal Assent on 15 August 2001. As a result, amendments were required to the regulations made under the A&C Act and the CPF Act.

The purpose of the proposed regulations is to reflect changes to the A&C Act and the CPF Act, making permanent the transition arrangements applying to the liability of employer eligible termination payments to either the superannuation contributions surcharge or the termination payments surcharge.

In particular the proposed regulations amend:

•       the method for calculating the amount of surchargeable contributions for a member of a defined benefit scheme; and

•       the contributed amounts information to be given to the Commissioner of Taxation and/or another superannuation provider.

Details of the amending regulations are set out in the Attachment.

The regulations commenced on gazettal.

ATTACHMENT

Superannuation Contributions Tax (Assessment and Collection) Amendment Regulations 2003 (No. 1)

Explanation of the Amendments

Regulation 1 specifies the name of the regulations as the Superannuation Contributions Tax (Assessment and Collection) Amendment Regulations 2003 (No. 1).

Regulation 2 provides that the regulations commence on gazettal.

Regulation 3 provides that Schedule 1 amends the Superannuation Contributions Tax (Assessment and Collection) Regulations 1997.

Schedule 1 - Amendments

Item 1 - amends clause 2 of Schedule 2 by removing from the formula for working out the amount of surchargeable contributions, reference to 'specified roll-over amount' to reflect changes in terminology in the Superannuation Contributions Tax (Assessment and Collection) Act 1997.

Item 2 - amends clause 2 of Schedule 2 by amending the definition of H so that it now includes the post 20 August 1996 component of any eligible termination payment that is rolled over into the scheme on or after 20 August 2001.

Item 3 - amends clause 2 of Schedule 2 by omitting the definition H(1) that is now superfluous.

Item 4 - substitutes a new description of the information to be reported under item 506 of Schedule 3.

Item 5 - substitutes a new description of the information to be reported under item 215 of Schedule 4.

Item 6 - substitutes a new description of the information to be reported under item 405 of Schedule 5.

Superannuation Contributions Tax (Members of Constitutionally Protected Superannuation Funds) Assessment and Collection Amendment Regulations 2003 (No. 1)

Explanation of the Amendments

Regulation 1 specifies the name of the regulations as the Superannuation Contributions Tax (Members of Constitutionally Protected Superannuation Funds) Assessment and Collection Amendment Regulations 2003 (No. 1).

Regulation 2 provides that the regulations commence on gazettal.

Regulation 3 provides that Schedule 1 amends the Superannuation Contributions Tax (Members of Constitutionally Protected Superannuation Funds) Assessment and Collection Regulations 1997.

Schedule 1 - Amendments

Item 1 - amends clause 2 of Schedule 1 by removing from the formula for working out the amount of surchargeable contributions, reference to 'specified roll-over amount' to reflect changes in terminology in the Superannuation Contributions Tax (Members of Constitutionally Protected Superannuation Funds) Assessment and Collection Act 1997.

Item 2 - amends clause 2 of Schedule 1 by amending the definition of H so that it now includes the post 20 August 1996 component of any eligible termination payment that is rolled over into the scheme on or after 20 August 2001.

Item 3 - amends clause 2 of Schedule 1 by omitting the definition H(1) that is now superfluous.

Item 4 - substitutes a new description of the information to be reported under item 506 of Schedule 2.

 

Overview

The Superannuation Contributions Tax (Assessment and Collection) Amendment Regulations 2003 (No. 1) were enacted to implement changes made to the Superannuation Contributions Tax (Assessment and Collection) Act 1997 and the Superannuation Contributions Tax (Members of Constitutionally Protected Superannuation Funds) Assessment and Collection Act 1997. These amendments were necessitated by the changes introduced in the Superannuation Contributions Taxes and Termination Payments Tax Legislation Amendment Act 2001, which made permanent the transition arrangements for employer eligible termination payments. The regulations were issued under the authority of the Minister for Revenue and Assistant Treasurer and were designed to align the regulations with the legislative changes, specifically by adjusting the method for calculating surchargeable contributions and modifying the information requirements for reporting to the Commissioner of Taxation and other superannuation providers. This legislative update ensures that the regulatory framework accurately reflects the updated legal provisions concerning superannuation contributions and termination payments.

Scope and Application

The Superannuation Contributions Tax (Assessment and Collection) Amendment Regulations 2003 (No. 1) and the Superannuation Contributions Tax (Members of Constitutionally Protected Superannuation Funds) Assessment and Collection Amendment Regulations 2003 (No. 1) amend existing regulations to reflect legislative changes made by the Superannuation Contributions Taxes and Termination Payments Tax Legislation Amendment Act 2001. These regulations apply to superannuation providers and trustees, particularly those managing defined benefits superannuation schemes. They govern the assessment and collection of superannuation contributions tax, focusing on the calculation of surchargeable contributions and the information that must be reported to the Commissioner of Taxation or other relevant superannuation providers. The changes made by these regulations are effective from the date of gazette, thereby ensuring that the new provisions are implemented promptly and uniformly across Australia. The regulations specifically address the method for calculating surchargeable contributions and update the contributed amounts information to be reported, ensuring alignment with the legislative amendments.

Key Provisions

The Superannuation Contributions Tax (Assessment and Collection) Amendment Regulations 2003 (No. 1) and the Superannuation Contributions Tax (Members of Constitutionally Protected Superannuation Funds) Assessment and Collection Amendment Regulations 2003 (No. 1) serve to update the regulations in light of legislative amendments concerning the assessment and collection of superannuation contributions tax, particularly in relation to employer eligible termination payments. These regulations were necessitated by changes introduced in the Superannuation Contributions Taxes and Termination Payments Tax Legislation Amendment Act 2001, which made permanent the transition arrangements for the liability of employer eligible termination payments to either the superannuation contributions surcharge or the termination payments surcharge. Section 42 of the Superannuation Contributions Tax (Assessment and Collection) Act 1997 and section 37 of the Superannuation Contributions Tax (Members of Constitutionally Protected Superannuation Funds) Assessment and Collection Act 1997 allow the Governor-General to make these regulations to prescribe matters required or permitted by these Acts, or necessary or convenient for carrying them out. The regulations impose specific obligations on superannuation providers and constitutionally protected superannuation providers. They are required to report certain information to the Commissioner of Taxation or other superannuation providers. Specifically, section 13 of the Superannuation Contributions Tax (Assessment and Collection) Act 1997 mandates that superannuation providers must furnish statements to the Commissioner or other superannuation providers on specified matters, and any additional matters prescribed by the Regulations. Similarly, section 12 of the Superannuation Contributions Tax (Members of Constitutionally Protected Superannuation Funds) Assessment and Collection Act 1997 requires constitutionally protected superannuation providers to provide information to the Commissioner on particular matters and any other matters stipulated by the Regulations. The Regulations provide specific details on the information to be reported, ensuring compliance with the legislative requirements. Breaches of the obligations set out in these regulations may result in penalties. However, the explanatory statement does not explicitly detail the penalties for non-compliance with these regulations. Generally, failure to comply with reporting obligations under the Superannuation Contributions Tax (Assessment and Collection) Act 1997 or the Superannuation Contributions Tax (Members of Constitutionally Protected Superannuation Funds) Assessment and Collection Act 1997 can lead to civil or criminal penalties, depending on the nature and severity of the breach. Civil penalties can include fines, while criminal penalties may involve imprisonment. The exact penalties would need to be referred to in the primary Acts or relevant case law. The regulations aim to streamline the process of calculating surchargeable contributions and ensure accurate reporting by superannuation and constitutionally protected superannuation providers, aligning with the legislative changes that made permanent the transition arrangements for employer eligible termination payments. By updating the method for calculating surchargeable contributions and the information reporting requirements, these regulations support the effective administration and enforcement of superannuation contributions tax laws.

Legal classification tags

Area of Law
Taxation Law
Instrument
Regulation
Concepts
Definitions & Interpretation
Regulatory Standards
Reporting & Disclosure Obligations

Interactions

Authorises

All Versions

Sourced from the Federal Register of Legislation at 26 August 2026. For the latest information on Australian Government law please go to https://www.legislation.gov.au.