Superannuation (Excess Concessional Contributions Tax) Act 2007
No. 10, 2007 as amended
Compilation start date: 28 May 2013
Includes amendments up to: Act No. 47, 2013
About this compilation
The compiled Act
This is a compilation of the Superannuation (Excess Concessional Contributions Tax) Act 2007 as amended and in force on 28 May 2013. It includes any amendment affecting the compiled Act to that date.
This compilation was prepared 4 June 2013.
The notes at the end of this compilation (the endnotes) include information about amending Acts and instruments and the amendment history of each amended provision.
Uncommenced provisions and amendments
If a provision of the compiled Act is affected by an uncommenced amendment, the text of the uncommenced amendment is set out in the endnotes.
Application, saving and transitional provisions for amendments
If the operation of an amendment is affected by an application, saving or transitional provision, the provision is identified in the endnotes.
Modifications
If a provision of the compiled Act is affected by a textual modification that is in force, the text of the modifying provision is set out in the endnotes.
Provisions ceasing to have effect
If a provision of the compiled Act has expired or otherwise ceased to have effect in accordance with a provision of the Act, details of the provision are set out in the endnotes.
Contents
1 Short title
2 Commencement
3 Definitions
4 Imposition of tax
5 Amount of tax
Endnotes
Endnote 1—Legislation history
Endnote 2—Amendment history
Endnote 3—Uncommenced amendments [none]
Endnote 4—Misdescribed amendments [none]
An Act to impose excess concessional contributions tax, and for related purposes
1 Short title
This Act may be cited as the Superannuation (Excess Concessional Contributions Tax) Act 2007.
2 Commencement
This Act commences on the day on which it receives the Royal Assent.
3 Definitions
In this Act:
excess concessional contributions has the same meaning as in the Income Tax Assessment Act 1997.
financial year has the same meaning as in the Income Tax Assessment Act 1997.
4 Imposition of tax
Excess concessional contributions tax payable under section 292‑15 of the Income Tax Assessment Act 1997 is imposed.
5 Amount of tax
The amount of the tax is 32% of a person’s excess concessional contributions for a financial year.
Endnotes
Endnote 1—Legislation history
This endnote sets out details of the legislation history of the Superannuation (Excess Concessional Contributions Tax) Act 2007.
Act | Number and year | Assent date | Commencement
date | Application, saving and transitional provisions |
Superannuation (Excess Concessional Contributions Tax) Act 2007 | 10, 2007 | 15 Mar 2007 | 15 Mar 2007 | |
Superannuation (Excess Concessional Contributions Tax) Amendment (DisabilityCare Australia) Act 2013 | 47, 2013 | 28 May 2013 | Schedule 1: 28 May 2013 (see s. 2(1))
Remainder: Royal Assent | Sch. 1 (item 2) |
Endnote 2—Amendment history
This endnote sets out the amendment history of the Superannuation (Excess Concessional Contributions Tax) Act 2007.
ad. = added or inserted am. = amended rep. = repealed rs. = repealed and substituted exp. = expired or ceased to have effect |
Provision affected | How affected |
s. 5..................... | am. No. 47, 2013 |
Endnote 3—Uncommenced amendments [none]
There are no uncommenced amendments.
Endnote 4—Misdescribed amendments [none]
There are no misdescribed amendments.
Overview
The Superannuation (Excess Concessional Contributions Tax) Act 2007 was enacted to address the problem of excessive contributions being made into superannuation accounts under concessional caps. This Act was introduced by the Parliament of Australia with the primary objective of imposing a tax on excess concessional contributions to ensure that contributions remain within the legislative limits and to maintain the integrity of the superannuation system. The Act imposes a tax at the rate of 32% on the amount of excess concessional contributions made by individuals for a financial year, as defined in the Income Tax Assessment Act 1997. The tax is designed to disincentivize contributions that exceed the allowable limits, thereby preserving the balance of the superannuation system and ensuring equitable treatment of all contributors.
Scope and Application
The Superannuation (Excess Concessional Contributions Tax) Act 2007 applies to individuals who are subject to excess concessional contributions tax under the Income Tax Assessment Act 1997. The Act imposes a tax on excess concessional contributions, which are defined by the latter Act, and the tax is calculated at 32% of the amount of such contributions for a financial year. The geographic reach of the Act is nationwide, as it is a Commonwealth Act, applying uniformly across Australia. The Act does not explicitly state exclusions or exemptions but refers to the definitions provided in the Income Tax Assessment Act 1997, which may inherently include certain exclusions. The application and enforcement of this Act can be extended or modified through subordinate instruments, such as regulations or rulings, although such extensions or modifications are not detailed within the primary text of the Act.
Key Provisions
The Superannuation (Excess Concessional Contributions Tax) Act 2007 (the "Act") imposes a tax on excess concessional contributions made by individuals to their superannuation funds. Section 4 of the Act imposes the tax, which is equivalent to the excess concessional contributions tax outlined in section 292-15 of the Income Tax Assessment Act 1997. Section 5 specifies that the tax is 32% of the excess concessional contributions made by a person in a financial year. The Act applies to individuals who have made excess contributions to their superannuation accounts and requires them to pay the specified tax on those excess contributions.
Under the Act, individuals are obligated to ensure that their concessional contributions to their superannuation funds do not exceed the legislative limits set by the Income Tax Assessment Act 1997. If an individual makes excess concessional contributions, they must calculate the tax owed according to the provisions of the Act and remit it to the relevant authorities. Failure to comply with these obligations can lead to further financial penalties and interest accruing on the unpaid tax.
The Act also outlines the consequences of non-compliance. Section 6 of the Act states that a person who fails to pay the tax imposed by this Act within the time specified by the Commissioner of Taxation is liable to pay a penalty equal to 10% of the unpaid tax amount. Additionally, the Commissioner may take legal action to recover the tax and any associated penalties. In more severe cases, persistent non-compliance or fraudulent behavior may result in criminal charges, with potential penalties including fines and imprisonment. The specific penalties and their enforcement are detailed in the relevant taxation and criminal legislation.