Superannuation (Excess Non‑concessional Contributions Tax) Amendment (DisabilityCare Australia) Act 2013
No. 46, 2013
An Act to amend the Superannuation (Excess Non‑concessional Contributions Tax) Act 2007, and for related purposes
Contents
1 Short title
2 Commencement
3 Schedule(s)
Schedule 1—Amendments
Superannuation (Excess Non‑concessional Contributions Tax) Act 2007
Superannuation (Excess Non-concessional Contributions Tax) Amendment (DisabilityCare Australia) Act 2013
No. 46, 2013
An Act to amend the Superannuation (Excess Non‑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 Non‑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Note: This table relates only to the provisions of this Act as originally enacted.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Each Act that is specified in a Schedule to this Act is amended or repealed as set out in the applicable items in the Schedule concerned, and any other item in a Schedule to this Act has effect according to its terms.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 Non‑concessional Contributions Tax) Act 2007
1 Section 5
Omit “46.5%”, substitute “47%”.
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 Non-concessional Contributions Tax) Amendment (DisabilityCare Australia) Act 2013 was enacted by the Parliament of Australia to amend the Superannuation (Excess Non-concessional Contributions Tax) Act 2007. This amendment was introduced to address the need for changes in the superannuation system to support the DisabilityCare Australia initiative, aiming to improve the financial stability and retirement prospects of individuals with disabilities. The Act received Royal Assent on 28 May 2013, with specific provisions commencing on the same date. Notably, the amendments to the Superannuation Act include an adjustment to the excess non-concessional contributions tax rate from 46.5% to 47%, applicable from the 2014-15 financial year onwards. The primary policy objective of this Act is to align superannuation regulations with the broader goals of the DisabilityCare Australia scheme, ensuring that contributions and tax rates adequately support the targeted demographic.
Scope and Application
The Superannuation (Excess Non-concessional Contributions Tax) Amendment (DisabilityCare Australia) Act 2013 amends the Superannuation (Excess Non-concessional Contributions Tax) Act 2007 to modify the excess non-concessional contributions tax rate for superannuation funds. Specifically, it increases the tax rate from 46.5% to 47%. This Act applies to the assessments for the 2014-15 financial year and subsequent years, impacting individuals and entities that have made excess non-concessional contributions to superannuation funds. The legislation applies across the Commonwealth of Australia and targets the conduct and transactions involving superannuation contributions. While the Act itself specifies the changes and their application, it may be further refined or extended through subordinate instruments such as regulations or guidelines issued under the authority of the Act. This Act does not specify any exclusions or exemptions, meaning that all relevant contributions within its scope are subject to the amended tax rate.
Key Provisions
The Superannuation (Excess Non-concessional Contributions Tax) Amendment (DisabilityCare Australia) Act 2013 amends the Superannuation (Excess Non-concessional Contributions Tax) Act 2007. The primary amendment is found in Schedule 1, item 1, which increases the rate of excess non-concessional contributions tax from 46.5% to 47%. This adjustment applies to assessments for the 2014-15 financial year and subsequent years, as stated in Schedule 1, item 2. The Act's provisions, including the amendments, commenced on 28 May 2013, as per the commencement table in section 2.
This Act imposes specific obligations on entities such as superannuation funds and individuals who contribute excess non-concessional amounts into their superannuation accounts. It requires these entities to calculate and report any excess contributions accurately. In particular, superannuation funds must ensure that they comply with the new tax rate when assessing and charging excess contributions tax on their members' accounts. Similarly, individuals must be aware of their contribution limits and the applicable tax rates to avoid penalties.
Breaching the provisions of this Act can result in significant financial consequences. The excess non-concessional contributions tax is levied at the higher rate of 47% for the specified financial years. This tax is in addition to any interest and penalties that may apply. While the Act does not explicitly state maximum penalties for non-compliance, it is implied that penalties for failing to report and pay the correct amount of tax would be in line with the general tax laws of Australia, which may include fines and interest on unpaid taxes. It is also possible that non-compliance could lead to further scrutiny by the Australian Taxation Office, resulting in additional administrative and legal costs.