Superannuation (Excess Concessional Contributions Tax) Amendment (DisabilityCare Australia) Act 2013
No. 47, 2013
An Act to amend the Superannuation (Excess Concessional Contributions Tax) Act 2007, and for related purposes
Contents
1 Short title
2 Commencement
3 Schedule(s)
Schedule 1—Amendments
Superannuation (Excess Concessional Contributions Tax) Act 2007
Superannuation (Excess Concessional Contributions Tax) Amendment (DisabilityCare Australia) Act 2013
No. 47, 2013
An Act to amend the Superannuation (Excess Concessional Contributions Tax) Act 2007, and for related purposes
[Assented to 28 May 2013]
The Parliament of Australia enacts:
1 Short title
This Act may be cited as the Superannuation (Excess Concessional Contributions Tax) Amendment (DisabilityCare Australia) Act 2013.
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. | 28 May 2013 |
2. Schedule 1 | At the same time as Schedule 1 to the Medicare Levy Amendment (DisabilityCare Australia) Act 2013 commences. | 28 May 2013 |
Note: This table relates only to the provisions of this Act as originally enacted.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Each Act that is specified in a Schedule to this Act is amended or repealed as set out in the applicable items in the Schedule concerned, and any other item in a Schedule to this Act has effect according to its terms.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—Amendments
Superannuation (Excess Concessional Contributions Tax) Act 2007
1 Section 5
Omit “31.5%”, substitute “32%”.
2 Application of amendment
The amendment made by this Schedule applies to assessments for the 2014‑15 financial year and later financial years.
[Minister’s second reading speech made in—
House of Representatives on 15 May 2013
Senate on 16 May 2013]
Overview
The Superannuation (Excess Concessional Contributions Tax) Amendment (DisabilityCare Australia) Act 2013 was enacted by the Parliament of Australia to amend the Superannuation (Excess Concessional Contributions Tax) Act 2007. The Act received Royal Assent on 28 May 2013 and was introduced to address a specific issue related to the taxation of excess concessional contributions within superannuation accounts. The primary policy objective of this legislation is to adjust the tax rate applied to excess concessional contributions, aligning it with changes implemented under the Medicare Levy Amendment (DisabilityCare Australia) Act 2013. This amendment ensures consistency in the tax treatment of contributions across different legislative frameworks. The Act applies to financial years commencing from 2014-15, reflecting the intent to create a uniform and streamlined approach to tax adjustments associated with superannuation contributions.
Scope and Application
The Superannuation (Excess Concessional Contributions Tax) Amendment (DisabilityCare Australia) Act 2013 amends the Superannuation (Excess Concessional Contributions Tax) Act 2007 to adjust the rate of tax on excess concessional contributions within superannuation funds. This amendment applies to all superannuation funds governed under the Commonwealth’s jurisdiction and affects entities such as super funds, trustees, and individuals who make or receive such contributions. The change, which modifies the tax rate from 31.5% to 32%, is effective from the 2014-15 financial year onwards. The Act does not specify any exclusions or exemptions, meaning it broadly applies to all relevant entities and contributions within its scope. Any further elaboration or specific application details are to be determined through subordinate instruments or subsequent legislative measures.
Key Provisions
The Superannuation (Excess Concessional Contributions Tax) Amendment (DisabilityCare Australia) Act 2013 amends the Superannuation (Excess Concessional Contributions Tax) Act 2007. Specifically, section 5 of the Superannuation Act is modified by increasing the percentage from 31.5% to 32% (Schedule 1, item 1). This adjustment applies to assessments for the 2014-15 financial year and subsequent years (Schedule 1, item 2). Essentially, this change increases the rate at which excess concessional contributions tax is applied.
Under the amended Act, superannuation funds must adhere to the updated tax rate when calculating excess concessional contributions tax for relevant financial years. This means that for any financial year starting from 2014-15, the superannuation funds will need to use the new 32% rate when assessing and applying the tax on excess contributions. The obligation to report and pay this tax correctly rests with the superannuation funds, who must ensure they are compliant with the new legislative requirements.
Failure to comply with the new tax rate can result in legal consequences. The Act does not explicitly state penalties for non-compliance, but it is reasonable to infer that breaches could lead to penalties under the existing framework of the Superannuation (Excess Concessional Contributions Tax) Act 2007. This could include financial penalties or other enforcement actions taken by the Australian Taxation Office (ATO). Given the context, the penalties might align with those specified in the primary Act, which could include fines or other administrative actions as determined by the ATO.