Superannuation Laws Amendment (Abolition of Surcharge) Act 2005

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Legislation au C2005A00102 In force Act

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Superannuation Laws Amendment (Abolition of Surcharge) Act 2005

 

No. 102, 2005

 

 

 

 

 

An Act to abolish superannuation contributions surcharge and termination payments surcharge, and for related purposes

 

 

Contents

1 Short title

2 Commencement

3 Schedule(s)

Schedule 1—Amendments

Part 1—Abolition of surcharge

Superannuation Contributions Tax (Assessment and Collection) Act 1997

Superannuation Contributions Tax (Members of Constitutionally Protected Superannuation Funds) Assessment and Collection Act 1997

Termination Payments Tax (Assessment and Collection) Act 1997

Part 2—Consequential amendments

Defence Force Retirement and Death Benefits Act 1973

Parliamentary Contributory Superannuation Act 1948

Superannuation Act 1976

Superannuation Contributions Tax (Application to the Commonwealth—Reduction of Benefits) Act 1997

Superannuation Contributions Tax (Assessment and Collection) Act 1997

Superannuation Contributions Tax Imposition Act 1997

Superannuation Contributions Tax (Members of Constitutionally Protected Superannuation Funds) Assessment and Collection Act 1997

Superannuation Contributions Tax (Members of Constitutionally Protected Superannuation Funds) Imposition Act 1997

Termination Payments Tax (Assessment and Collection) Act 1997

Termination Payments Tax Imposition Act 1997

 

 

 

Superannuation Laws Amendment (Abolition of Surcharge) Act 2005

No. 102, 2005

 

 

 

An Act to abolish superannuation contributions surcharge and termination payments surcharge, and for related purposes

[Assented to 12 August 2005]

The Parliament of Australia enacts:

1  Short title

  This Act may be cited as the Superannuation Laws Amendment (Abolition of Surcharge) Act 2005.

2  Commencement

  This Act commences on the day on which it receives the Royal Assent.

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  Each Act that is specified in a Schedule to this Act is amended or repealed as set out in the applicable items in the Schedule concerned, and any other item in a Schedule to this Act has effect according to its terms.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

Part 1—Abolition of surcharge

Superannuation Contributions Tax (Assessment and Collection) Act 1997

1  At the end of subsection 7(1)

Add “that ends before 1 July 2005”.

Superannuation Contributions Tax (Members of Constitutionally Protected Superannuation Funds) Assessment and Collection Act 1997

2  At the end of subsection 8(1)

Add “that ends before 1 July 2005”.

Termination Payments Tax (Assessment and Collection) Act 1997

3  Paragraph 7(2)(a)

After “20 August 1996”, insert “and before 1 July 2005”.


Part 2—Consequential amendments

Defence Force Retirement and Death Benefits Act 1973

4  Paragraph 6C(3)(d)

Repeal the paragraph.

Parliamentary Contributory Superannuation Act 1948

5  Paragraph 4E(3)(d)

Repeal the paragraph.

Superannuation Act 1976

6  Paragraph 80A(3)(d)

Repeal the paragraph.

Superannuation Contributions Tax (Application to the Commonwealth—Reduction of Benefits) Act 1997

7  Paragraph 4(2A)(d)

Repeal the paragraph.

Superannuation Contributions Tax (Assessment and Collection) Act 1997

8  Paragraph 6(a)

After “later financial year”, insert “(being a financial year that ends before 1 July 2005)”.

9  Subsection 9(7)

After “each later financial year”, insert “(being a financial year that ends before 1 July 2005)”.

10  Subsection 13(2)

After “the end of each financial year”, insert “(being a financial year that ends before 1 July 2005)”.

11  Subsections 13(3), (4) and (4A)

After “20 August 1996”, insert “and before 1 July 2005”.

12  Paragraph 14A(1)(a)

After “member”, insert “for a financial year that ends before 1 July 2005”.

13  Subsection 15(1)

After “each financial year”, insert “(being a financial year that ends before 1 July 2005)”.

14  Subsection 15A(2) (at the end of the definition of financial year)

Add “that ends before 1 July 2005”.

15  Subsection 15B(1)

After “for a financial year”, insert “that ends before 1 July 2005”.

Superannuation Contributions Tax Imposition Act 1997

16  At the end of section 4

Add:

Note: Surcharge is not payable for the financial year that began on 1 July 2005 or a later financial year—see subsection 7(1) of the Superannuation Contributions Tax (Assessment and Collection) Act 1997.

17  Subsection 5(1AA) (paragraph (b) of the definition of higher income amount)

Omit “for each later financial year”, substitute “for the 2004‑2005 financial year”.

18  Subsection 5(1AA) (paragraph (b) of the definition of lower income amount)

Omit “for each later financial year”, substitute “for the 2004‑2005 financial year”.

19  Subsection 5(1AA) (paragraph (b) of the definition of maximum surcharge percentage)

Omit “12.5%; and”, substitute “12.5%.”.

20  Subsection 5(1AA) (paragraph (c) of the definition of maximum surcharge percentage)

Repeal the paragraph.

21  Subsection 7(6)

Omit “, and before the start of each later financial year,”.

Note: The heading to subsection 7(1) is altered by omitting “and later financial years”.

22  Subsection 7(7) (definition of indexing financial year)

Omit “or a later financial year”.

Superannuation Contributions Tax (Members of Constitutionally Protected Superannuation Funds) Assessment and Collection Act 1997

23  Paragraph 6(a)

After “later financial year”, insert “(being a financial year that ends before 1 July 2005)”.

24  Subsection 10(7)

After “each later financial year”, insert “(being a financial year that ends before 1 July 2005)”.

25  Subsection 12(2)

After “the end of each financial year”, insert “(being a financial year that ends before 1 July 2005)”.

26  Subsection 12(3)

After “20 August 1996”, insert “and before 1 July 2005”.

27  Subsection 12(6)

Before “then the provider”, insert “(being a member who was a member at any time after 7.30 pm by legal time in the Australian Capital Territory on 20 August 1996 and before 1 July 2005),”.

28  Subsection 14(1)

After “each financial year”, insert “(being a financial year that ends before 1 July 2005)”.

29  Subparagraph 15(6)(b)(iv)

Repeal the subparagraph.

30  Subparagraph 15(6AA)(d)(iv)

Repeal the subparagraph.

31  Subparagraph 15(6A)(b)(iv)

Repeal the subparagraph.

Superannuation Contributions Tax (Members of Constitutionally Protected Superannuation Funds) Imposition Act 1997

32  At the end of section 4

Add:

Note: Surcharge is not payable for the financial year that began on 1 July 2005 or a later financial year—see subsection 8(1) of the Superannuation Contributions Tax (Members of Constitutionally Protected Superannuation Funds) Assessment and Collection Act 1997.

33  Subsection 5(1A) (paragraph (b) of the definition of higher income amount)

Omit “for each later financial year”, substitute “for the 2004‑2005 financial year”.

34  Subsection 5(1A) (paragraph (b) of the definition of lower income amount)

Omit “for each later financial year”, substitute “for the 2004‑2005 financial year”.

35  Subsection 5(1A) (paragraph (b) of the definition of maximum surcharge percentage)

Omit “12.5%; and”, substitute “12.5%.”.

36  Subsection 5(1A) (paragraph (c) of the definition of maximum surcharge percentage)

Repeal the paragraph.

37  Subsection 7(6)

Omit “, and before the start of each later financial year,”.

Note: The heading to subsection 7(1) is altered by omitting “and later financial years”.

38  Subsection 7(7) (definition of indexing financial year)

Omit “or a later financial year”.

Termination Payments Tax (Assessment and Collection) Act 1997

39  Section 6

After “20 August 1996”, insert “and before 1 July 2005”.

40  Subsection 10(7)

After “each later financial year”, insert “(being a financial year that ends before 1 July 2005)”.

41  Subsection 11(1)

After “each financial year”, insert “(being a financial year that ends before 1 July 2005)”.

Termination Payments Tax Imposition Act 1997

42  At the end of section 4

Add:

Note: Surcharge is not payable on a termination payment made on or after 1 July 2005—see subsection 7(2) of the Termination Payments Tax (Assessment and Collection) Act 1997.

43  Subsection 5(1AA) (paragraph (b) of the definition of higher income amount)

Omit “for each later financial year”, substitute “for the 2004‑2005 financial year”.

44  Subsection 5(1AA) (paragraph (b) of the definition of lower income amount)

Omit “for each later financial year”, substitute “for the 2004‑2005 financial year”.

45  Subsection 5(1AA) (paragraph (b) of the definition of maximum surcharge percentage)

Omit “12.5%; and”, substitute “12.5%.”.

46  Subsection 5(1AA) (paragraph (c) of the definition of maximum surcharge percentage)

Repeal the paragraph.

47  Subsection 6(6)

Omit “, and before the start of each later financial year,”.

Note: The heading to subsection 6(1) is altered by omitting “and later financial years”.

48  Subsection 6(7) (definition of indexing financial year)

Omit “or a later financial year”.

 

 

 

 

[Minister’s second reading speech made in—

House of Representatives on 26 May 2005

Senate on 14 June 2005]

(69/05)

 

Overview

The Superannuation Laws Amendment (Abolition of Surcharge) Act 2005, enacted by the Parliament of Australia, was introduced to address the need to abolish the superannuation contributions surcharge and the termination payments surcharge. This Act aims to streamline and simplify superannuation laws by removing these surcharges, which were previously imposed on certain superannuation contributions and termination payments. The policy objective, as articulated in the Minister's second reading speech, was to enhance the fairness and efficiency of the superannuation system by eliminating these surcharges, which had been a point of contention and complexity for superannuation fund members and administrators. The Act came into effect on the day it received Royal Assent, ensuring immediate implementation of the changes.

Scope and Application

The Superannuation Laws Amendment (Abolition of Surcharge) Act 2005 applies to various superannuation-related taxes and legislation, specifically targeting the abolition of the superannuation contributions surcharge and termination payments surcharge. The Act operates within the Commonwealth jurisdiction, impacting entities and individuals who are subject to these surcharges. It does not specify particular industries but affects anyone with superannuation contributions or termination payments that would otherwise be subject to these surcharges. The Act applies to financial years ending before 1 July 2005, thus ceasing the surcharges for any financial years commencing on or after that date. The Act amends several other related pieces of legislation to reflect the abolition of these surcharges and to ensure consistency across the relevant laws. No specific exclusions or exemptions are mentioned in the text, and the Act does not appear to extend or restrict its application through subordinate instruments.

Key Provisions

The Superannuation Laws Amendment (Abolition of Surcharge) Act 2005 primarily focuses on the abolition of the superannuation contributions surcharge and the termination payments surcharge, effective from 1 July 2005. This is achieved through amendments to various acts, as detailed in the Schedule to the Act (s. 3). Specifically, the Act modifies the Superannuation Contributions Tax (Assessment and Collection) Act 1997, the Superannuation Contributions Tax (Members of Constitutionally Protected Superannuation Funds) Assessment and Collection Act 1997, and the Termination Payments Tax (Assessment and Collection) Act 1997, by inserting phrases such as "that ends before 1 July 2005" or adding specific dates to clarify the scope of these surcharges (Schedule 1, Part 1, items 1-3, 8-10, 13-15, 23-26, 32, 39-41). Additionally, it makes consequential amendments to other acts to ensure consistency and alignment with the abolition of these surcharges (Schedule 1, Part 2, items 4-7, 16-18, 33-36, 42-45). The Act imposes obligations on various parties and entities governed by the amended legislation. For instance, it requires superannuation funds and providers to adjust their practices and calculations in line with the new provisions that exclude financial years ending after 30 June 2005 from the application of the surcharges (Schedule 1, Part 1, items 1-3, 8-10, 13-15, 23-26, 32, 39-41). Trustees and other relevant persons must ensure they comply with the updated definitions and conditions set out in the amended acts. These amendments necessitate changes in record-keeping, reporting, and potentially, the recalculation of certain taxes and surcharges for the affected financial years. Breaches of the provisions set out in this Act can lead to various consequences, although the Act itself does not specify detailed penalties or offences. However, the amended acts to which it applies might include provisions for penalties or other consequences for non-compliance. For example, under the Superannuation Contributions Tax (Assessment and Collection) Act 1997, penalties for non-compliance could include fines and interest on unpaid amounts (Superannuation Contributions Tax (Assessment and Collection) Act 1997, s. 18). Additionally, entities may face civil or criminal actions if they fail to adhere to the requirements set out in the amended acts. The exact penalties would be determined by the specific provisions of the relevant acts, which are amended by this legislation.

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