EXPLANATORY STATEMENT

Issued by authority of the Minister for Revenue and Financial Services

Superannuation (Self Managed Superannuation Funds) Supervisory Levy Imposition Act 1991

Superannuation (Self Managed Superannuation Funds) Supervisory Levy Imposition Regulations 2018

Section 7 of the Superannuation (Self Managed Superannuation Funds) Supervisory Levy Imposition Act 1991 (the Act) provides that the Governor-General may make regulations for the purposes of section 6 of the Act. Section 6 provides the amount of levy, not in excess of $300, be specified in regulations.

The purpose of the Superannuation (Self Managed Superannuation Funds) Supervisory Levy Imposition Regulations 2018 (the Regulations) is to remake and improve the Superannuation (Self Managed Superannuation Funds) Supervisory Levy Imposition Regulations 1991 and ensure their effect continues. The Legislation Act 2003 provides that all legislative instruments, other than exempt instruments, are automatically repealed after 10 years or in accordance with the progressive timetable set out in section 50. The Superannuation (Self Managed Superannuation Funds) Supervisory Levy Imposition Regulations 1991 was scheduled for automatic repeal on 1 October 2018.

The Act imposes a supervisory levy on self managed super funds to recover the costs of regulating the sector.

The purpose of the Superannuation (Self Managed Superannuation Funds) Supervisory Levy Imposition Regulations 1991 was to set the quantum of the levy. That purpose is achieved by the Regulations, with no change to the quantum of the levy.

The Regulations remake and improve the Superannuation (Self Managed Superannuation Funds) Supervisory Levy Imposition Regulations 1991 by adopting current drafting practices, such as referring to ‘sections’ rather than ‘regulations’.

The changes do not affect the substantive meaning or operation of the provisions.

An exposure draft of the Regulations and accompanying explanatory statement were released for public consultation from 22 February to 23 March 2018. No submissions were received during the consultation period.

Further details of the Regulations are set out in the Attachment.

The Regulations commence on 1 July 2018 and apply to the 2018-19 income year and subsequent income years.

The Office of Best Practice Regulation considered the Regulations have minor impact on business, community organisations or individuals and has certified that the remaking of the Regulations do not require a Regulatory Impact Statement (OBPR ID 23466)

Statement of Compatibility with Human Rights

Prepared in accordance with Part 3 of the Human Rights (Parliamentary Scrutiny) Act 2011

Small Superannuation Account Regulations 2018

This Legislative Instrument is compatible with the human rights and freedoms recognised or declared in the international instruments listed in section 3 of the Human Rights (Parliamentary Scrutiny) Act 2011.

Overview of the Legislative Instrument

The Regulations remake and improve the Superannuation (Self Managed Superannuation Funds) Supervisory Levy Imposition Regulations 1991 by adopting current drafting practices, such as referring to ‘sections’ rather than ‘regulations’.

The changes do not affect the substantive meaning or operation of the provisions.

Human rights implications

This Legislative Instrument does not engage any of the applicable rights or freedoms.

Conclusion

This Legislative Instrument is compatible with human rights as it does not raise any human rights issues.

ATTACHMENT

Details of the Superannuation (Self Managed Superannuation Funds) Supervisory Levy Imposition Regulations 2018

This section provides that the title of the Regulations is Superannuation (Self Managed Superannuation Funds) Supervisory Levy Imposition Regulations 2018.

Section 2 – Commencement

This section provides that the Regulations commence on 1 July 2018.

Section 3 – Authority

This section provides the Regulations are made under the Superannuation (Self Managed Superannuation Funds) Supervisory Levy Imposition Act 1991.

Section 4 – Schedules

This section provides that each instrument identified in a Schedule to the Regulations is amended or repealed in accordance with these Regulations.

Section 5 – Definitions

This section defines Act as the Superannuation (Self Managed Superannuation Funds) Supervisory Levy Imposition Act 1991.

Section 6 – Superannuation supervisory levy

This section specifies that the quantum of the levy is $259. This represents continued maintenance of the quantum of the levy since 2013.

Schedule 1 – Repeals

This section repeals the Superannuation (Self Managed Superannuation Funds) Supervisory Levy Imposition Regulations 1991 from 1 July 2018.

Finding table

As a result of some of the changes described above, it became necessary to renumber provisions of the Regulations. This Explanatory Memorandum includes a finding table to assist in identifying which provision in the Regulations corresponds to a provision in the old law that has been rewritten or consolidated, and vice versa.

References to the old law are to the Superannuation (Self Managed Superannuation Funds) Supervisory Levy Imposition Regulations 1991. References to the new law are to the Superannuation (Self Managed Superannuation Funds) Supervisory Levy Imposition Regulations 2018. Also, in the finding table, ‘no equivalent’ means that this is a new provision that has no equivalent in the old law.