Superannuation (Excess Untaxed Roll‑over Amounts Tax) Amendment (DisabilityCare Australia) Act 2013
No. 45, 2013
An Act to amend the Superannuation (Excess Untaxed Roll‑over Amounts Tax) Act 2007, and for related purposes
Contents
1 Short title
2 Commencement
3 Schedule(s)
Schedule 1—Amendments
Superannuation (Excess Untaxed Roll‑over Amounts Tax) Act 2007
Superannuation (Excess Untaxed Roll-over Amounts Tax) Amendment (DisabilityCare Australia) Act 2013
No. 45, 2013
An Act to amend the Superannuation (Excess Untaxed Roll‑over Amounts 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 Untaxed Roll‑over Amounts 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Note: This table relates only to the provisions of this Act as originally enacted.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Each Act that is specified in a Schedule to this Act is amended or repealed as set out in the applicable items in the Schedule concerned, and any other item in a Schedule to this Act has effect according to its terms.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 Untaxed Roll‑over Amounts Tax) Act 2007
1 Paragraph 5(2)(b)
Omit “1.5%”, substitute “2%”.
2 Application of amendment
The amendment made by this Schedule applies to excess untaxed roll‑over amounts paid on or after 1 July 2014.
[Minister’s second reading speech made in—
House of Representatives on 15 May 2013
Senate on 16 May 2013]
Overview
The Superannuation (Excess Untaxed Roll-over Amounts Tax) Amendment (DisabilityCare Australia) Act 2013, enacted by the Parliament of Australia, aims to amend the Superannuation (Excess Untaxed Roll-over Amounts Tax) Act 2007, focusing specifically on the tax rate applied to excess untaxed rollover amounts to fund DisabilityCare Australia. This Act was designed to address a gap in funding for disability care services by increasing the tax rate on certain rollover amounts from 1.5% to 2%, effective for amounts paid on or after 1 July 2014. The policy objective behind this amendment is to generate additional revenue to support DisabilityCare Australia, thereby enhancing the availability and quality of disability care services across the nation. The Act received Royal Assent on 28 May 2013 and came into effect on the same date, with the amendments to the tax rate applying from 1 July 2014.
Scope and Application
The Superannuation (Excess Untaxed Roll-over Amounts Tax) Amendment (DisabilityCare Australia) Act 2013 amends the Superannuation (Excess Untaxed Roll-over Amounts Tax) Act 2007 to modify the tax rate on excess untaxed roll-over amounts in superannuation funds. This Act applies to the entities and individuals managing or holding superannuation funds in Australia, specifically targeting those who have made roll-over payments that exceed the untaxed threshold. The changes introduced by this legislation are designed to affect transactions occurring from 1 July 2014 onwards, thereby modifying the financial implications for both trustees and beneficiaries involved in such transactions. The Act applies across the Commonwealth of Australia and its amendments extend to any subordinate instruments or regulations that may further define or implement the provisions of the original Act.
Key Provisions
The Superannuation (Excess Untaxed Roll-over Amounts Tax) Amendment (DisabilityCare Australia) Act 2013 amends the Superannuation (Excess Untaxed Roll-over Amounts Tax) Act 2007 by adjusting the rate of tax on excess untaxed roll-over amounts. Specifically, section 5(2)(b) of the original Act is altered, with the tax rate changing from 1.5% to 2% (Schedule 1, item 1). This amendment applies to excess untaxed roll-over amounts paid on or after 1 July 2014 (Schedule 1, item 2).
The primary obligation imposed by this Act is on trustees of superannuation funds to accurately calculate and remit the increased tax rate of 2% on any excess untaxed roll-over amounts. This obligation extends to ensuring that all relevant documentation and reporting are completed in accordance with the updated tax rate, thereby facilitating compliance with the legislative changes. Trustees must also ensure that their systems and processes are updated to reflect the new tax rate when dealing with roll-over amounts from the effective date of the amendment.
The Act does not explicitly outline specific offences or penalties for non-compliance within its text. However, non-compliance with superannuation tax obligations can lead to general penalties under the Superannuation Industry (Supervision) Act 1993, which includes civil penalty provisions. These penalties can include fines of up to $27,000 per breach for individuals and significantly higher amounts for entities, along with potential criminal sanctions for serious or repeated breaches. Additionally, trustees may face professional disqualification under the same Act, further emphasizing the importance of adherence to the updated tax requirements.