Superannuation (Excess Untaxed Roll‑over Amounts Tax) Amendment (Temporary Budget Repair Levy) Act 2014
No. 53, 2014
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—Temporary budget repair levy
Superannuation (Excess Untaxed Roll‑over Amounts Tax) Act 2007
Superannuation (Excess Untaxed Roll-over Amounts Tax) Amendment (Temporary Budget Repair Levy) Act 2014
No. 53, 2014
An Act to amend the Superannuation (Excess Untaxed Roll‑over Amounts 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 (Excess Untaxed Roll‑over Amounts 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Note: This table relates only to the provisions of this Act as originally enacted.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Each Act that is specified in a Schedule to this Act is amended or repealed as set out in the applicable items in the Schedule concerned, and any other item in a Schedule to this Act has effect according to its terms.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 (Excess Untaxed Roll‑over Amounts Tax) Act 2007
1 At the end of the Act
Add:
6 Temporary budget repair levy
(1) This section applies if the roll‑over superannuation benefit that consists of, or includes, the excess untaxed roll‑over amount is taken to be received in a temporary budget repair levy year.
(2) Increase the percentage worked out under subsection 5(2) by 2 percentage points for the purpose of working out the amount of the tax.
(3) In this section:
roll‑over superannuation benefit has the same meaning as in the Income Tax Assessment Act 1997.
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 (Excess Untaxed Roll‑over Amounts Tax) Amendment (Temporary Budget Repair Levy) Act 2014 was enacted by the Parliament of Australia to amend the Superannuation (Excess Untaxed Roll‑over Amounts Tax) Act 2007. The Act was introduced to address the need for additional revenue to assist in budgetary repair during a specified period. The policy objective was to introduce a temporary levy on certain superannuation benefits, specifically targeting excess untaxed roll-over amounts received in a designated temporary budget repair levy year. This measure was intended to provide an additional stream of revenue to support fiscal stability in a time of budgetary constraint. The Act commenced on 25 June 2014, aligning with the commencement of related provisions in other acts.
Scope and Application
The Superannuation (Excess Untaxed Roll-over Amounts Tax) Amendment (Temporary Budget Repair Levy) Act 2014 amends the Superannuation (Excess Untaxed Roll-over Amounts Tax) Act 2007 to introduce a temporary budget repair levy on excess untaxed roll-over amounts within superannuation benefits. This Act applies to individuals or entities that receive roll-over superannuation benefits that include excess untaxed amounts during the specified temporary budget repair levy years. The geographic reach of this Act is national, as it applies across Australia and aligns with the provisions of the Income Tax Assessment Act 1997 and the Income Tax (Transitional Provisions) Act 1997. The Act imposes an additional 2 percentage points to the tax rate for excess untaxed roll-over amounts received during the designated temporary budget repair levy years. There are no specific exclusions or exemptions outlined in the text, and the application of this Act may be extended or restricted through subordinate instruments. The amendments outlined in this Act are effective from the date it receives Royal Assent, which was 25 June 2014.
Key Provisions
The Superannuation (Excess Untaxed Roll-over Amounts Tax) Amendment (Temporary Budget Repair Levy) Act 2014 (Act) introduces changes to the Superannuation (Excess Untaxed Roll-over Amounts Tax) Act 2007. The Act imposes a temporary budget repair levy on excess untaxed roll-over amounts within a superannuation benefit during a temporary budget repair levy year (section 6(1)). Specifically, the percentage used to calculate the tax on such amounts is increased by 2 percentage points (section 6(2)). This adjustment is applicable if the roll-over superannuation benefit, which includes the excess untaxed roll-over amount, is received in a temporary budget repair levy year (section 6(1)). Definitions for "roll-over superannuation benefit" and "temporary budget repair levy year" are provided in the Act, referencing the Income Tax Assessment Act 1997 and the Income Tax (Transitional Provisions) Act 1997 respectively (section 6(3)).
The Act imposes obligations on trustees and other relevant entities to ensure compliance with the increased tax rate for excess untaxed roll-over amounts received in a temporary budget repair levy year. Trustees must calculate the tax correctly by applying the amended percentage. They are also required to report the tax liability accurately in their tax returns and ensure that any excess untaxed amounts are taxed appropriately. Failure to comply with these obligations can result in penalties and additional tax liabilities.
The Act does not explicitly outline specific penalties or criminal consequences for breaches. However, non-compliance with tax obligations generally can lead to penalties under the Income Tax Assessment Act 1998. These may include interest on unpaid tax, general interest charge, and in severe cases, criminal prosecution. The maximum penalties for tax evasion or fraud can include substantial fines and imprisonment, as governed by the general tax laws. Trustees and entities must therefore adhere to the amended tax rates and ensure accurate reporting to avoid these consequences.