Superannuation (Excluded Funds) Supervisory Levy Imposition Amendment Regulations 1999 (No. 2) 1999 No. 240
EXPLANATORY STATEMENT
STATUTORY RULES 1999 No. 240
Issued by the authority of the Assistant Treasurer
Superannuation (Self Managed Superannuation Funds) Supervisory Levy Imposition Act 1991
Superannuation (Excluded Funds) Supervisory Levy
Imposition Amendment Regulations 1999 (No. 2)
The Superannuation (Self Managed Superannuation Funds) Supervisory Levy Imposition Act 1991 (the Act) and the Superannuation (Excluded Funds) Supervisory Levy Imposition Regulations (the Principal Regulations) impose the supervisory levy to be paid by the trustee of an excluded superannuation fund in accordance with the Superannuation (Self Managed Superannuation Funds) Taxation Act 1987.
Section 7 of the Act provides that the Governor-General may make regulations for the purposes of the Act.
The regulations rename the Principal Regulations the Superannuation (Self Managed Superannuation Funds) Supervisory Levy Imposition Regulations 199 1. This amendment reflects the introduction of the new term, self managed superannuation fund (previously an excluded superannuation funds), and the resulting change in the name of the Act under which the Principal Regulations are made.
The Act provides for the amount of the annual supervisory levy to be paid by self managed superannuation funds to be set in the Principal Regulations. The Act also provides for self managed superannuation funds to pay a penalty on the late lodgement of annual returns with the monthly amount of the penalty set in the Principal Regulations. The amendments provide for the inclusion of these amounts in the Principal Regulations.
The regulations are described in detail in the attachment.
The regulations commence on gazettal.
ATTACHMENT
Superannuation (Excluded Funds) Supervisory Levy Imposition Amendment Regulations 1999 (No. 2)
Regulation 1 - Name of Regulations
The amending regulations are the Superannuation (Excluded Funds) Supervisory Levy Imposition Amendment Regulations 1999 (No. 2).
Regulation 2 - Commencement
The regulations commence on gazettal.
Regulation 3 - Amendment of Superannuation Supervisory Levy Regulations
The regulations amend the Superannuation (Excluded Funds) Supervisory Levy Imposition Regulations 1991 (the Principal Regulations).
Regulation 4 - Transitional
This regulation provides that the amendment made by Item 3 of Schedule 1 of the amending regulations does not apply in relation to a return of a superannuation fund for the 1998-99 year of income. That is, the new Regulation 4 of the Principal Regulations only applies in respect of the 1999-2000 and subsequent income years. The effect of this regulation is that the supervisory levy amount to be paid by a self managed superannuation fund in respect of the 1998-99 income year is to be determined in accordance with the requirements as set out in the Principal Regulations immediately before commencement of these amending regulations.
SCHEDULE 1 AMENDMENTS
Item 1 - Name of regulations
This item amends Regulation 1 of the Principal Regulations, providing for a change in the name of the Principal Regulations to the Superannuation (Self Managed Superannuation Funds) Supervisory Levy Imposition Regulations 1991. This reflects a change in the name of the Act under which the Principal Regulations are made.
Item 2 - Regulation 3 (Definition - Act)
This item amends Regulation 3 of the Principal Regulations, changing the definition of 'Act' to Superannuation (Self Managed Superannuation Funds) Supervisory Levy Imposition Act 1991, reflecting a change in the name of the Act under which the Principal Regulations are made.
Item 3 - Regulation 4 (Specified levy amount and late lodgement penalty amount
This item amends Regulation 4 of the Principal Regulations to provide that, in accordance with subsection 6(1) of the Act, the annual supervisory levy amount to be paid by self managed superannuation funds in respect of the 1999-2000 year of income is $45. This item also amends Regulation 4 of the Principal Regulations to provide that, in accordance with subsection 6(2) of the Act, the monthly amount of any late annual return lodgement penalty to be paid by self managed superannuation funds in respect of the 1999-2000 year of income is $10 per month.
Overview
The Superannuation (Excluded Funds) Supervisory Levy Imposition Amendment Regulations 1999 (No. 2) were enacted to address the need for updating the regulatory framework governing the supervisory levy on self-managed superannuation funds. These regulations amend the Superannuation (Excluded Funds) Supervisory Levy Imposition Regulations 1991, reflecting the renaming of excluded superannuation funds to self-managed superannuation funds under the Superannuation (Self Managed Superannuation Funds) Supervisory Levy Imposition Act 1991. The objective of these regulations is to ensure consistency and clarity in the regulatory language and to facilitate the imposition of the supervisory levy and penalties for late lodgement of annual returns, as stipulated by the Act. The regulations were issued by the authority of the Assistant Treasurer and commenced upon gazettal, applying to income years from 1999-2000 onwards.
Scope and Application
The Superannuation (Excluded Funds) Supervisory Levy Imposition Amendment Regulations 1999 (No. 2) apply to self-managed superannuation funds in Australia, specifically addressing the levy and penalties for these funds. These regulations amend the Superannuation (Self Managed Superannuation Funds) Supervisory Levy Imposition Regulations 1991, reflecting changes in nomenclature and adjustments to the supervisory levy and penalties for late lodgement of annual returns. The amendments are designed to align with the updated terminology and legislative framework established by the Superannuation (Self Managed Superannuation Funds) Supervisory Levy Imposition Act 1991. The geographic reach of these regulations is national, applying uniformly across Australia. They do not explicitly exclude any particular funds or entities, but the changes in the levy and penalty amounts apply from the 1999-2000 income year onwards, with a transitional provision ensuring that the 1998-99 year is governed by the previous regulations.
Key Provisions
The Superannuation (Excluded Funds) Supervisory Levy Imposition Amendment Regulations 1999 (No. 2) primarily amend the Superannuation (Self Managed Superannuation Funds) Supervisory Levy Imposition Regulations 1991. The regulations rename the Principal Regulations as the Superannuation (Self Managed Superannuation Funds) Supervisory Levy Imposition Regulations 1991 (reg 1). This change reflects the introduction of the term "self managed superannuation fund" and the corresponding update in the name of the Act. The regulations also introduce new specifications for the annual supervisory levy and late lodgement penalties applicable to self managed superannuation funds (reg 4). These amendments ensure that the Principal Regulations are aligned with the new terminology and legislative framework.
Under these regulations, self managed superannuation funds are required to pay an annual supervisory levy, with the amount specified in the Principal Regulations. For the 1999-2000 year of income, the supervisory levy is set at $45 (reg 4). In addition, self managed superannuation funds must also pay a penalty for late lodgement of annual returns, with the penalty being $10 per month (reg 4). These requirements are essential for ensuring that funds are properly managed and regulated. The regulations also clarify that the amendments do not apply to returns for the 1998-99 income year, maintaining continuity in the application of the levy and penalties (reg 4).
The Superannuation (Excluded Funds) Supervisory Levy Imposition Amendment Regulations 1999 (No. 2) impose specific obligations on trustees of self managed superannuation funds. Trustees must ensure that the annual supervisory levy is paid in accordance with the specified amount in the Principal Regulations. For the 1999-2000 year of income, this means paying $45 annually (reg 4). Additionally, trustees must be aware of and comply with the late lodgement penalty, which is $10 per month for returns not lodged on time (reg 4). These obligations are critical for maintaining compliance and ensuring that funds are managed according to regulatory standards.
Breaches of the obligations outlined in these regulations may result in penalties and consequences. Trustees who fail to pay the annual supervisory levy as specified may face financial penalties. Similarly, those who do not comply with the late lodgement penalties for annual returns may incur additional fines. While the regulations do not specify maximum penalties, penalties for non-compliance with superannuation regulations can include fines and, in severe cases, criminal charges. It is essential for trustees to adhere to these requirements to avoid potential legal repercussions.