Superannuation (Departing Australia Superannuation Payments Tax) Amendment (Temporary Budget Repair Levy) Act 2014
No. 51, 2014
An Act to amend the Superannuation (Departing Australia Superannuation Payments Tax) Act 2007, and for related purposes
Contents
1 Short title
2 Commencement
3 Schedule(s)
Schedule 1—Temporary budget repair levy
Superannuation (Departing Australia Superannuation Payments Tax) Act 2007
Superannuation (Departing Australia Superannuation Payments Tax) Amendment (Temporary Budget Repair Levy) Act 2014
No. 51, 2014
An Act to amend the Superannuation (Departing Australia Superannuation Payments Tax) Act 2007, and for related purposes
[Assented to 25 June 2014]
The Parliament of Australia enacts:
1 Short title
This Act may be cited as the Superannuation (Departing Australia Superannuation Payments Tax) Amendment (Temporary Budget Repair Levy) Act 2014.
2 Commencement
(1) Each provision of this Act specified in column 1 of the table commences, or is taken to have commenced, in accordance with column 2 of the table. Any other statement in column 2 has effect according to its terms.
Commencement information |
Column 1 | Column 2 | Column 3 |
Provision(s) | Commencement | Date/Details |
1. Sections 1 to 3 and anything in this Act not elsewhere covered by this table | The day this Act receives the Royal Assent. | 25 June 2014 |
2. Schedule 1 | At the same time as Schedule 1 to the Tax Laws Amendment (Temporary Budget Repair Levy) Act 2014 commences. | 25 June 2014 |
Note: This table relates only to the provisions of this Act as originally enacted. It will not be amended to deal with any later amendments of this Act.
(2) Any information in column 3 of the table is not part of this Act. Information may be inserted in this column, or information in it may be edited, in any published version of this Act.
3 Schedule(s)
Each Act that is specified in a Schedule to this Act is amended or repealed as set out in the applicable items in the Schedule concerned, and any other item in a Schedule to this Act has effect according to its terms.
Schedule 1—Temporary budget repair levy
Superannuation (Departing Australia Superannuation Payments Tax) Act 2007
1 At the end of the Act
Add:
6 Temporary budget repair levy
(1) This section applies to departing Australia superannuation payments received in a temporary budget repair levy year.
(2) Increase:
(a) the percentage mentioned in paragraph 5(1)(b) by 3 percentage points; and
(b) the percentage mentioned in paragraph 5(1)(c) by 2 percentage points; and
(c) the percentage mentioned in paragraph 5(2)(a) by 2 percentage points.
(3) In this section:
temporary budget repair levy year has the same meaning as in section 4‑11 of the Income Tax (Transitional Provisions) Act 1997.
[Minister’s second reading speech made in—
House of Representatives on 13 May 2014
Senate on 16 June 2014]
Overview
The Superannuation (Departing Australia Superannuation Payments Tax) Amendment (Temporary Budget Repair Levy) Act 2014 was enacted by the Parliament of Australia to amend the Superannuation (Departing Australia Superannuation Payments Tax) Act 2007. This Act was introduced to address a fiscal gap by introducing a temporary budget repair levy on departing Australia superannuation payments. The levy, which is defined in section 4-11 of the Income Tax (Transitional Provisions) Act 1997, imposes an additional tax to contribute towards budget repair efforts. The policy objective of this Act is clearly aligned with the need to manage and stabilise the national budget through increased revenue from superannuation taxes during specified temporary budget repair levy years. The Act received Royal Assent on 25 June 2014 and commenced on the same date, with the levy applying concurrently with the commencement of Schedule 1 to the Tax Laws Amendment (Temporary Budget Repair Levy) Act 2014.
Scope and Application
The Superannuation (Departing Australia Superannuation Payments Tax) Amendment (Temporary Budget Repair Levy) Act 2014 amends the Superannuation (Departing Australia Superannuation Payments Tax) Act 2007 to introduce a temporary budget repair levy on departing Australia superannuation payments. This Act applies to individuals who receive superannuation payments upon leaving Australia in the specified temporary budget repair levy years. The legislation increases certain percentages applied to these payments as defined in the original Act, thereby affecting the tax rate on such payments. The amendments are effective from the date the Act receives Royal Assent, which is 25 June 2014, and are concurrent with the commencement of Schedule 1 to the Tax Laws Amendment (Temporary Budget Repair Levy) Act 2014 on the same date. The levy's application is confined to the temporary budget repair levy years as defined in section 4-11 of the Income Tax (Transitional Provisions) Act 1997. The Act does not specify any exclusions, exemptions, or thresholds beyond what is outlined in the amended sections.
Key Provisions
The Superannuation (Departing Australia Superannuation Payments Tax) Amendment (Temporary Budget Repair Levy) Act 2014 primarily amends the Superannuation (Departing Australia Superannuation Payments Tax) Act 2007 by introducing a temporary budget repair levy. Section 6 of the amended Act introduces this levy, which applies to superannuation payments received in a temporary budget repair levy year, as defined in section 4-11 of the Income Tax (Transitional Provisions) Act 1997. The levy increases the tax rate on such payments by 3 percentage points for the first band, 2 percentage points for the second band, and again by 2 percentage points for the third band, as outlined in paragraphs 5(1)(b), 5(1)(c), and 5(2)(a) of the Superannuation (Departing Australia Superannuation Payments Tax) Act 2007.
The Act imposes obligations on entities making superannuation payments to departing Australians to account for and remit the additional tax resulting from the temporary budget repair levy. This includes calculating the increased tax liability based on the specified percentages and ensuring timely reporting and payment to the Australian Taxation Office (ATO). Additionally, it places a responsibility on the ATO to enforce compliance with these additional tax obligations, ensuring that the levy is correctly applied and collected.
Failure to comply with the requirements of this Act can result in civil and criminal penalties. Specifically, entities that fail to remit the additional tax due to the temporary budget repair levy may be liable for penalties under section 284-10 of the Tax Administration Act 1953, which can include fines up to the maximum penalties stipulated by the ATO. Additionally, individuals or entities found to have deliberately or negligently failed to comply may face prosecution, leading to more severe criminal penalties, including imprisonment. The exact penalties depend on the nature and severity of the breach, but they are designed to ensure strict adherence to the new tax obligations introduced by the Act.