Superannuation (Rolled-Over Benefits) Levy Act 1993

Overview

The Superannuation (Rolled-Over Benefits) Levy Act 1993, enacted by the Parliament of Australia, aims to impose levies on specific superannuation funds and approved deposit funds. The primary objective of this Act is to recoup the costs associated with maintaining a register of certain rolled-over benefits under Part 24 of the Superannuation Industry (Supervision) Act 1993. This Act applies concurrently with Part 24 of the Superannuation Industry (Supervision) Act 1993, ensuring that the regulations and sections of the latter apply correspondingly to the former. The Act mandates that regulations may impose a levy on eligible rollover funds for financial years beginning from 30 June 1995, with the amount of the levy being the lesser of $30,000 or a calculated figure based on the fund's assets and the applicable levy rate.

Scope and Application

The Superannuation (Rolled-Over Benefits) Levy Act 1993 applies to eligible rollover funds, which are defined in accordance with the Superannuation Industry (Supervision) Act 1993. The Act imposes a levy on these funds to cover the costs associated with maintaining a register of certain rolled-over benefits. The scope of the Act is limited to financial years commencing on or after 30 June 1995, and the levy amount is calculated using a specific formula, with a maximum of $30,000. The Act extends its application through regulations, which are made under the authority of the Governor-General and must prescribe the same rate of levy for all eligible rollover funds in respect of the same financial year. The Act applies to the entire Commonwealth of Australia, and the provisions of the Superannuation Industry (Supervision) Act 1993 also apply to this Act in a corresponding way.

Key Provisions

The Superannuation (Rolled-Over Benefits) Levy Act 1993 (the "Act") sets out the provisions for imposing levies on certain superannuation funds and approved deposit funds. Section 6 of the Act allows for the imposition of a levy on eligible rollover funds, which are defined in section 5 as having the same meaning as in Part 24 of the Superannuation Industry (Supervision) Act 1993. The levy is intended to recoup the cost of maintaining a register of certain rolled-over benefits under Part 24 of the Superannuation Industry (Supervision) Act 1993. The regulations may impose a levy on eligible rollover funds for the financial year ending on 30 June 1995 or a later financial year, with the amount of the levy being the lesser of $30,000 or the amount calculated using a specified formula (section 6(2)). The regulations must prescribe the same rate of levy for all eligible rollover funds in respect of the same financial year (section 6(3)). The Act imposes obligations on eligible rollover funds to pay the levy imposed under section 6 of the Act. The Governor-General has the authority to make regulations prescribing matters required or permitted by this Act to be prescribed or necessary or convenient to be prescribed for carrying out or giving effect to this Act (section 7). The regulations may include the rate of levy applicable to eligible rollover funds in respect of a financial year, the formula for calculating the levy, and the manner in which the levy is to be paid. Breach of the Act may result in civil or criminal consequences. The Act does not specify the penalties for breach, but other relevant legislation may impose penalties for non-compliance with regulations or failure to pay the levy. The maximum penalties for breaches of the Superannuation Industry (Supervision) Act 1993, which applies to this Act, include fines of up to $210,000 for individuals and $1,050,000 for corporations, as well as imprisonment for up to five years for individuals and ten years for corporations. Additionally, the Australian Taxation Office may impose penalties for failure to comply with taxation laws related to superannuation. It is important for eligible rollover funds and other parties affected by the Act to ensure compliance with the requirements of the Act and any related regulations to avoid potential penalties and consequences.