Superannuation (PSS) (Liability to Taxation) Regulations 2000 2000 No. 155
EXPLANATORY STATEMENT
STATUTORY RULES 2000 No. 155
Issued by the Authority of the Minister for Finance and Administration
Superannuation Act 1990
Superannuation (PSS) (Liability to Taxation) Regulations 2000
Subsection 48(1) of the Superannuation Act 1990 (the 1990 Act) provides that the Governor-General may make Regulations for the purposes of the Act.
Paragraph 48(2)(a) of the 1990 Act requires the PSS Board to consent to the making of the Regulations where the Regulations do not meet the exemptions specified in paragraph 48(2)(b) of the 1990 Act.
The 1990 Act makes provision for, and in relation to, the Public Sector
Superannuation Scheme (PSS) for Commonwealth employees and certain other persons commencing from 1 July 1990. Contributions by or on behalf of PSS
members as well as interest earnings on those contributions are paid into the PSS
Fund. The PSS Board is responsible for the management and investment of the Fund, and the administration of the PSS.
Subsection 26(1) of the 1990 Act provides that except where specified, the PSS Board and Fund are not subject to taxation laws. Exceptions specified are the
Superannuation Contributions Tax (Assessment and Collection) Act 1997, the Income Tax Assessment Act 1936, the Income Tax Assessment Act 1997 and any law specified in regulations made under subsection 26(3) of the 1990 Act.
The purpose of these Regulations is to ensure that the PSS Board and Fund are subject to the Goods and Services Tax (GST) laws. The Office of the Australian Government Solicitor considers that the following GST laws should be specified in the Regulations to put the application of the GST to the PSS Board and Fund beyond doubt:
* A New Tax System (Goods and Services Tax) Act 1999;
* A New Tax System (Goods and Services Tax Transition) Act 1999;
* A New Tax System (Goods and Services Tax) Regulations 1999; and
* Part VI of the Taxation Administration Act 1953.
The Regulations are consistent with the Government's intention that the GST laws apply to all Commonwealth entities, superannuation funds and trustee boards.
The PSS Board has consented to these Regulations.
Details of the amendments are explained in the Attachment.
The Regulations commence on 1 July 2000.
ATTACHMENT
SUPERANNUATION (PSS) (LIABILITY TO TAXATION)
REGULATIONS 2000
Regulation 1
Regulation 1 provides that the Regulations are called the Superannuation (PSS) (Liability to Taxation) 2000.
Regulation 2
Regulation 2 provides that the Regulations commence on 1 July 2000.
Regulation 3
Regulation 3 defines the 'Act' to mean the Superannuation Act 1990.
Regulation 4
Regulation 4 uses the regulation making power under subsection 26(3) of the Act to ensure that subsection 26(1) of the Act does not exempt the PSS Board and Fund from the GST laws specified in Schedule 1.
Schedule 1
Schedule 1 specifies the GST laws which apply to the PSS Board and Fund to be:
* A New Tax System (Goods and Services Tax) Act 1999
* A New Tax System (Goods and Services Tax Transition) Act 1999
* A New Tax System (Goods and Services Tax) Regulations 1999
* Part V1 of the Taxation Administration Act 1953.
Overview
The Superannuation (PSS) (Liability to Taxation) Regulations 2000 were enacted by the Australian Government to address the issue of tax liabilities, particularly in relation to the Goods and Services Tax (GST), for the Public Sector Superannuation Scheme (PSS) Board and Fund. The Regulations were authorised under the Superannuation Act 1990 and made by the Minister for Finance and Administration. The primary policy objective of these Regulations is to ensure that the PSS Board and Fund are subject to the GST laws, thereby clarifying their tax obligations. This was achieved by specifying the relevant GST laws that apply to the PSS Board and Fund, including the A New Tax System (Goods and Services Tax) Act 1999, the A New Tax System (Goods and Services Tax Transition) Act 1999, the A New Tax System (Goods and Services Tax) Regulations 1999, and Part VI of the Taxation Administration Act 1953. The PSS Board consented to the making of these Regulations, which came into effect on 1 July 2000.
Scope and Application
The Superannuation (PSS) (Liability to Taxation) Regulations 2000 apply to the Public Sector Superannuation Scheme (PSS) Board and Fund established under the Superannuation Act 1990. These Regulations specifically target the taxation liabilities of the PSS Board and Fund, ensuring they are subject to Goods and Services Tax (GST) laws. This regulation extends to all Commonwealth entities, superannuation funds, and trustee boards, thereby ensuring uniformity in tax obligations across these entities. The geographic reach of these Regulations is inherently federal, given they apply to entities under the Commonwealth's jurisdiction. The Regulations were consented to by the PSS Board and commenced on 1 July 2000, aligning with the broader implementation timeline of the GST in Australia. These Regulations do not specify any exclusions or thresholds, thereby applying broadly to the PSS Board and Fund as defined by the Superannuation Act 1990. The applicability of these Regulations can be extended or restricted through subordinate instruments, although the primary focus remains on clarifying the tax liabilities of the PSS Board and Fund under GST laws.
Key Provisions
The Superannuation (PSS) (Liability to Taxation) Regulations 2000 (referred to as the 2000 Regulations) establish specific requirements and obligations for the Public Sector Superannuation Scheme (PSS) Board and Fund, as outlined in Regulation 4 (paragraphs 4 and 26(3) of the Superannuation Act 1990). Regulation 4 uses the regulatory power under the Act to ensure that the PSS Board and Fund are subject to certain Goods and Services Tax (GST) laws. These laws are explicitly listed in Schedule 1, which includes the A New Tax System (Goods and Services Tax) Act 1999, the A New Tax System (Goods and Services Tax Transition) Act 1999, the A New Tax System (Goods and Services Tax) Regulations 1999, and Part VI of the Taxation Administration Act 1953.
The obligations imposed by the 2000 Regulations on the PSS Board and Fund are primarily to ensure compliance with the specified GST laws. The PSS Board and Fund must adhere to the provisions of these laws, which pertain to the application and collection of GST. This includes complying with registration requirements, maintaining proper records, and reporting obligations as stipulated under the specified GST laws. The Regulations aim to ensure that the PSS Board and Fund are treated in the same manner as other Commonwealth entities in terms of GST liability.
Breaches of the 2000 Regulations, particularly non-compliance with the specified GST laws, may result in civil or criminal consequences. The specific penalties for non-compliance with GST laws can include fines and, in severe cases, imprisonment. The exact penalties are detailed in the relevant GST laws and may vary depending on the nature and severity of the breach. It is important for the PSS Board and Fund to ensure full compliance to avoid these potential consequences. The Regulations are designed to align the PSS Board and Fund with broader tax obligations applicable to other Commonwealth entities, thereby maintaining consistency and fairness within the tax system.