Superannuation Supervisory Levy Regulations (Amendment) 1995 No. 156
EXPLANATORY STATEMENT
STATUTORY RULES 1995 No. 156
Issued by the authority of the Treasurer
Superannuation Supervisory Levy Act 1991
Superannuation Supervisory Levy Regulations (Amendment)
The Superannuation Supervisory Levy Act 1991 (the Act) provides for imposition of a levy on the lodgment of annual returns under section 36 of the Superannuation Industry (Supervision) Act 1993.
Section 7 of the Act provides that the Governor-General may make Regulations for the purposes of section 6 of the Act.
These regulations make a small number of minor technical amendments to the Superannuation Supervisory Levy Regulations (the Principal Regulations), such as replacing references to the Occupational Superannuation Standards Act 1987 with the Superannuation Entities (Taxation) Act 1987.
The regulations are-described in detail in the attachment.
The regulations commence on gazettal.
ATTACHMENT
Superannuation Supervisory Levy Regulations (Amendment)
Regulation 1 - Amendment
Regulation 1 provides that the Superannuation Supervisory Levy Regulations (the Principal Regulations) are amended as set out in these Regulations.
The regulations will commence on gazettal.
Regulation 2 - Regulation 3 (Interpretation)
Regulation 2 amends the definition of "levy payee" by omitting the current definition and replacing it with a definition which cross references to the Superannuation Entities (Taxation) Act 1987 (SETA).
This makes the definition consistent with the Superannuation Supervisory Levy Act 1991 which makes reference to SETA, and reflects the fact that the Occupational Superannuation Standards Act 1987 has been renamed the SETA.
Regulation 3 - Regulation 4 (Basic levy amount)
Changes made by the Taxation Laws Amendment (No. 4) Act 1994, to the Income Tax Assessment Act 1936 (the Tax Act) effectively made superannuation funds which are 'foreign superannuation funds', as defined in the Tax Act, ineligible for taxation concessions. Superannuation funds must now be a 'resident regulated superannuation fund' to be considered eligible for taxation concessions. A 'foreign superannuation fund', does not meet the definition of 'resident regulated superannuation fund'.
As a result of the changes to the Tax Act 'foreign superannuation funds' will not submit annual return forms. Therefore it is no longer necessary to prescribe a levy amount for 'foreign superannuation funds'. Subregulation 3.1 omits paragraph 4(1)(a) which prescribed the levy amount for these funds.
Subregulation 3.2 amends paragraph 4(1)(c) by omitting "within the meaning of the Occupational Superannuation Standards Act 1987". By virtue of section 3 of the Act 'year of income' will have the meaning given in the Superannuation Industry (Supervision) Act 1993.
Subregulation 3.3 amends paragraph 4(2)(b) by omitting "financial year" and replacing it with "Year of income". This is for consistency with the Act and other provisions of the Principal Regulations which refer to "year of income".
Regulation 4 - Application of amendments
These regulations will apply in relation to returns for the 1994-95 year of income and for all later years of income.
Overview
The Superannuation Supervisory Levy Regulations (Amendment) 1995 No. 156 amends the Superannuation Supervisory Levy Regulations to implement minor technical changes following legislative reforms. Enacted under the authority of the Treasurer, these regulations aim to align the Superannuation Supervisory Levy Regulations with the updated legislative framework, particularly by replacing outdated references to the Occupational Superannuation Standards Act 1987 with the Superannuation Entities (Taxation) Act 1987. This ensures consistency and reflects the legislative change from the former to the latter Act. The amendments also respond to changes in the Income Tax Assessment Act 1936, which affected the eligibility of superannuation funds for taxation concessions, thereby modifying the prescribed levy amounts and terminology within the regulations to match the current legal context. These regulatory adjustments are intended to streamline the administration of the levy under the Superannuation Supervisory Levy Act 1991 and ensure its continued effectiveness and relevance in the evolving superannuation landscape.
Scope and Application
The Superannuation Supervisory Levy Regulations (Amendment) 1995 No. 156, which amend the Superannuation Supervisory Levy Regulations, apply to entities subject to the Superannuation Supervisory Levy Act 1991. This Act imposes a levy on the lodgment of annual returns under section 36 of the Superannuation Industry (Supervision) Act 1993. The regulations provide minor technical amendments to the Principal Regulations, primarily replacing references to the Occupational Superannuation Standards Act 1987 with the Superannuation Entities (Taxation) Act 1987 to maintain consistency with the Act. These regulations also remove the necessity to prescribe a levy amount for 'foreign superannuation funds', which have been made ineligible for taxation concessions under changes to the Income Tax Assessment Act 1936. The amendments apply to returns for the 1994-95 year of income and all subsequent years.
Key Provisions
The Superannuation Supervisory Levy Regulations (Amendment) 1995 No. 156 amends the Superannuation Supervisory Levy Regulations to reflect legislative changes and technical adjustments. Section 1 of the amendment specifies that the regulations modify the Principal Regulations in several ways. For instance, Regulation 2 updates the definition of "levy payee" to align with the Superannuation Entities (Taxation) Act 1987, replacing outdated references to the Occupational Superannuation Standards Act 1987. This ensures consistency across related legislation. Regulation 3 addresses changes made by the Taxation Laws Amendment (No. 4) Act 1994, which altered the eligibility criteria for taxation concessions in superannuation funds. Specifically, it removes the need to prescribe a levy amount for "foreign superannuation funds" since they no longer submit annual return forms. Regulation 4 clarifies the application of these amendments to returns for the 1994-95 year of income and subsequent years.
These regulations impose several obligations on entities subject to the Superannuation Supervisory Levy Act 1991. Firstly, they require compliance with the updated definitions and provisions as set out in the amended regulations. This includes ensuring that the definition of "levy payee" aligns with the Superannuation Entities (Taxation) Act 1987 and that any references to "foreign superannuation funds" are removed where appropriate. Additionally, entities must adhere to the new levy amount provisions, particularly in light of the changes to the Income Tax Assessment Act 1936 that affect the eligibility of superannuation funds for taxation concessions.
The Superannuation Supervisory Levy Regulations (Amendment) 1995 No. 156 does not introduce new offences or penalties but ensures that entities remain compliant with the updated legislative framework. Non-compliance with the amended regulations could potentially lead to administrative or legal consequences under the broader Superannuation Supervisory Levy Act 1991 and the Superannuation Industry (Supervision) Act 1993. These could include fines, penalties, or other administrative actions taken by the Australian Taxation Office or relevant supervisory bodies. The specific penalties for non-compliance are not detailed in these regulations but would be governed by the existing legislative provisions.
Overall, the amendments to the Superannuation Supervisory Levy Regulations aim to streamline and modernise the regulatory framework for superannuation supervisory levies. By updating definitions and removing outdated references, the regulations ensure that entities remain compliant with current legislative standards. These changes are essential for maintaining the integrity and effectiveness of the superannuation system in Australia.