Superannuation (CSS) (Liability to Taxation) Regulations 2000 2000 No. 154
EXPLANATORY STATEMENT
STATUTORY RULES 2000 No. 154
Issued by the Authority of the Minister for Finance and Administration
Superannuation Act 1976
Superannuation (CSS) (Liability to Taxation) Regulations 2000
Subsection 168(1) of the Superannuation Act 1976 (the 1976 Act) provides that the Governor-General may make Regulations for the purposes of the Act.
Paragraph 168(13)(a) of the 1976 Act requires the CSS Board to consent to the making of the Regulations where the Regulations do not meet the exemptions specified in paragraph 168(13)(b) of the 1976 Act.
The 1976 Act makes provision for, and in relation to, the Commonwealth Superannuation Scheme (CSS) which is an occupational superannuation scheme for Commonwealth employees and for certain other persons. The CSS Fund includes contributions by or on behalf of CSS members as well as interest earnings on those contributions. Under the 1976 Act, the CSS Board is responsible for the management and investment of the Fund, and the administration of the CSS.
Subsection 42(5A) of the 1976 Act provides that except where specified, the CSS Board and Fund are not subject to taxation laws. Exceptions specified are the Superannuation Contributions Tax (Assessment and Collection) Act 1997, the Income Tax Assessment Act 1936, the Income Tax Assessment Act 1997 and any law specified in regulations made under subsection 42(5B) of the 1976 Act.
The purpose of these Regulations is to ensure that the CSS Board and Fund are subject to the Goods and Services Tax (GST) laws. The Office of the Australian Government Solicitor considers that the following GST laws should be specified in the Regulations to put the application of the GST to the CSS Board and Fund beyond doubt:
* A New Tax System (Goods and Services Tax) Act 1999;
* A New Tax System (Goods and Services Tax Transition) Act 1999;
* A New Tax System (Goods and Services Toy) Regulations 1999; and
* Part VI of the Taxation Administration Act 1953.
The Regulations are consistent with the Government's intention that the GST laws apply to all Commonwealth entities, superannuation funds and trustee boards.
The-CSS Board has consented to these Regulations.
Details of the amendments are explained in the Attachment.
The Regulations commence on 1 July 2000.
ATTACHMENT
SUPERANNUATION (CSS) (LIABILITY TO TAXATION)
REGULATIONS 2000
Regulation 1
Regulation 1 provides that the Regulations are called the Superannuation (CSS) (Liability to Taxation) Regulations 2000.
Regulation 2
Regulation 2 provides that the Regulations commence on 1 July 2000.
Regulation 3
Regulation 3 defines the 'Act' to mean the Superannuation Act 197,6.
Regulation 4
Regulation 4 uses the regulation making power under subsection 42(5B) of the Act to
ensure that subsection 42(5A) of the Act does not exempt the CSS Board and Fund
from the GST laws specified in Schedule 1.
Schedule 1
Schedule 1 specifies the GST laws which apply to the CSS Board and Fund to be:
* A New Tax System (Goods and Services Tax) Act 1999
* A New Tax System (Goods and Services Tax Transition) Act 1999
* A New Tax System (Goods and Services Tax) Regulations 1999
* Part VI of the Taxation Administration Act 1953.
Overview
The Superannuation (CSS) (Liability to Taxation) Regulations 2000 were enacted in response to a legislative gap within the Superannuation Act 1976, aiming to clarify the applicability of Goods and Services Tax (GST) laws to the Commonwealth Superannuation Scheme (CSS) Board and Fund. The 1976 Act established the CSS as an occupational superannuation scheme for Commonwealth employees, with provisions for the management and investment of the CSS Fund by the CSS Board. While the Act generally exempts the CSS Board and Fund from taxation, it leaves room for specific exceptions, which the 2000 Regulations seek to address. The Regulations were made under the authority of the Minister for Finance and Administration, ensuring alignment with the government's broader policy objective of applying GST laws uniformly across all Commonwealth entities and superannuation funds.
Scope and Application
The Superannuation (CSS) (Liability to Taxation) Regulations 2000, made under the authority of the Minister for Finance and Administration, apply to the Commonwealth Superannuation Scheme (CSS) Board and Fund as outlined in the Superannuation Act 1976. These regulations aim to clarify and enforce the application of the Goods and Services Tax (GST) laws to the CSS Board and Fund, ensuring they are subject to specified GST laws. The CSS Board, which manages the CSS Fund, including contributions and interest earnings, has consented to these regulations, which specify that the GST laws apply to the CSS Board and Fund despite the general tax exemption provisions of the Superannuation Act 1976. This ensures that the CSS Board and Fund are subject to the A New Tax System (Goods and Services Tax) Act 1999, the A New Tax System (Goods and Services Tax Transition) Act 1999, the A New Tax System (Goods and Services Tax) Regulations 1999, and Part VI of the Taxation Administration Act 1953. These regulations commence on 1 July 2000, aligning with the broader application of GST laws to all Commonwealth entities, superannuation funds, and trustee boards.
Key Provisions
The Superannuation (CSS) (Liability to Taxation) Regulations 2000, which were made under the authority of the Superannuation Act 1976 (the 1976 Act), outline the specific Goods and Services Tax (GST) laws that apply to the Commonwealth Superannuation Scheme (CSS) Board and Fund. Regulation 1 identifies these regulations as the Superannuation (CSS) (Liability to Taxation) Regulations 2000, and Regulation 2 specifies that these regulations commence on 1 July 2000. Regulation 3 defines "the Act" as the Superannuation Act 1976. Regulation 4 ensures that the CSS Board and Fund are not exempt from the GST laws specified in Schedule 1.
The obligations imposed by these regulations require the CSS Board and Fund to comply with the specified GST laws, ensuring they are not exempt from these laws. This includes adhering to the A New Tax System (Goods and Services Tax) Act 1999, the A New Tax System (Goods and Services Tax Transition) Act 1999, the A New Tax System (Goods and Services Tax) Regulations 1999, and Part VI of the Taxation Administration Act 1953. By specifying these laws, the regulations clarify the tax obligations of the CSS Board and Fund, ensuring they are subject to GST in the same manner as other Commonwealth entities, superannuation funds, and trustee boards.
For breaches of these regulations, there are potential civil and criminal consequences. Under Australian law, failure to comply with tax regulations can lead to fines and penalties. While the specific penalties are not detailed in the explanatory statement, generally, penalties for GST non-compliance can include fines based on the severity and frequency of the breach. For instance, the maximum penalties for serious or repeated breaches can be significant, both in terms of fines and potential legal action. Therefore, it is crucial for the CSS Board and Fund to adhere to these regulations to avoid such consequences.