Commonwealth of Australia Bills Commonwealth of Australia Bills[Index] [Search] [Download] [Related Items] [Help]
This is a Bill, not an Act. For current law, see the Acts databases.
2002
The Parliament of
the
Commonwealth of
Australia
HOUSE OF
REPRESENTATIVES
Presented and read a first
time
Superannuation
Legislation Amendment Bill 2002
No. ,
2002
(Treasury)
A Bill
for an Act to amend laws relating to superannuation, and for related
purposes
Contents
Part 1—Amendments 4
Income Tax Assessment Act
1936 4
Income Tax Assessment Act
1997 5
Military Superannuation and Benefits Act
1991 6
Small Superannuation Accounts Act
1995 6
Superannuation Act
1976 10
Superannuation Contributions Tax (Assessment and Collection) Act
1997 10
Superannuation Contributions Tax (Members of Constitutionally Protected
Superannuation Funds) Assessment and Collection Act
1997 11
Superannuation (Resolution of Complaints) Act
1993 11
Taxation Administration Act
1953 12
Part 2—Application 13
Part 1—Amendments related to reduction of the surcharge
rate 14
Superannuation Contributions Tax Imposition Act
1997 14
Superannuation Contributions Tax (Members of Constitutionally Protected
Superannuation Funds) Imposition Act
1997 15
Termination Payments Tax Imposition Act
1997 17
Part 2—Amendments related to reduction of the surcharge
cap 19
Defence Force Retirement and Death Benefits Act
1973 19
Parliamentary Contributory Superannuation Act
1948 19
Superannuation Act
1976 20
Superannuation Contributions Tax (Application to the
Commonwealth—Reduction of Benefits) Act
1997 20
Superannuation Contributions Tax (Members of Constitutionally Protected
Superannuation Funds) Assessment and Collection Act
1997 21
Part 3—Application
provisions 24
A Bill for an Act to amend laws relating to
superannuation, and for related purposes
The Parliament of Australia enacts:
This Act may be cited as the Superannuation Legislation Amendment Act
2002.
(1) Each provision of this Act specified in column 1 of the table
commences, or is taken to have commenced, on the day or at the time specified in
column 2 of the table.
|
Commencement information |
||
|---|---|---|
|
Column 1 |
Column 2 |
Column 3 |
|
Provision(s) |
Commencement |
Date/Details |
|
1. Sections 1 to 4 and anything in this Act not elsewhere covered by
this table |
The day on which this Act receives the Royal Assent |
|
|
2. Schedule 1, items 1 to 15 |
The day on which this Act receives the Royal Assent |
|
|
3. Schedule 1, items 16 and 17 |
The later of: |
|
|
4. Schedule 1, items 18 to 25 |
The day on which this Act receives the Royal Assent |
|
|
5. Schedule 2, items 1 to 29 |
1 July 2002 |
|
|
6. Schedule 2, item 30 |
The later of: |
|
|
7. Schedule 2, items 31 to 35 |
1 July 2002 |
|
Note: This table relates only to the provisions of this Act
as originally passed by the Parliament and assented to. It will not be expanded
to deal with provisions inserted in this Act after assent.
(2) Column 3 of the table is for additional information that is not part
of this Act. This information may be included in any published version of this
Act.
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.
Section 37 of the Superannuation Guarantee (Administration) Act
1992 and section 170 of the Income Tax Assessment Act 1936 do
not prevent the amendment of an assessment for the purposes of giving effect to
this Act.
Income Tax Assessment Act
1936
1 Paragraph 82AAS(2)(b)
Repeal the paragraph, substitute:
(b) to the extent to which those benefits would be attributable to the
year of income:
(i) the benefits would be wholly or partly attributable to contributions
made, or required to be made, in relation to the year of income:
(A) to a superannuation fund of the relevant person; and
(B) by someone other than the relevant person; and
(C) in connection with the eligible employment of the relevant person in
the year of income; or
(ii) the benefits would, in whole or in part, be paid in relation to the
year of income:
(A) out of money (other than contributions made to a superannuation fund)
of someone other than the relevant person; and
(B) in connection with the eligible employment of the person in the year
of income.
2 Subparagraph
82AAS(3)(c)(i)
After “made”, insert “, or required to be
made,”.
3 Subdivision AAC of Division 17 of
Part III
Repeal the Subdivision.
4 At the end of subparagraph
274(1)(a)(i)
Add:
; or (E) Government co-contributions made under the Superannuation
(Government Co-contribution for Low Income Earners) Act 2002;
5 At the end of subparagraph
274(1)(ba)(i)
Add:
; and (C) Government co-contributions made under the Superannuation
(Government Co-contribution for Low Income Earners) Act 2002; and
6 At the end of paragraph
274(1)(e)
Add “(except to the extent to which it represents a Government
co-contribution or contributions made under the Superannuation (Government
Co-contribution for Low Income Earners) Act 2002)”.
Income Tax Assessment Act
1997
7 Section 11-10
After:
|
franchise fees windfall tax |
|
|
taxable amounts |
51-48 |
insert:
|
Government co-contributions |
|
|
towards low income earner’s superannuation |
51-65 |
8 At the end of
Division 51
Add:
The following are exempt from income tax:
(a) a Government co-contribution in respect of you under the
Superannuation (Government Co-contribution for Low Income Earners) Act
2002 that is paid to you, or to your legal personal
representative;
(b) a payment to you, or to your legal personal representative, of the
balance of an account under the Small Superannuation Accounts Act 1995 to
the extent to which the balance represents a Government co-contribution or
co-contributions in respect of you under the Superannuation (Government
Co-contribution for Low Income Earners) Act 2002.
Note: A Government co-contribution in respect of you paid to
another person (such as the trustee of a complying superannuation fund) would
not be income of yours according to ordinary concepts.
Military Superannuation and
Benefits Act 1991
9 After subsection 5(1)
Insert:
(1AA) Without limiting subsection (1), the Minister may amend the
Trust Deed to:
(a) authorise the Board to:
(i) accept particular kinds of amounts in respect of particular kinds of
people who are not members of the Scheme; and
(ii) deal with those amounts under the Deed; and
(b) define the functions of the Board in relation to those amounts;
and
(c) include provisions in the Rules dealing with:
(i) the manner in which those amounts will be dealt with; and
(ii) the benefits that are to become payable in relation to those amounts;
and
(iii) the circumstances in which entitlements to receive those benefits
will arise; and
(iv) any other matter relating to those amounts or those
benefits.
Small Superannuation
Accounts Act 1995
10 At the end of
section 3
Add:
• The accounts may also be used to hold Government co-contributions
payable under the Superannuation (Government Co-contribution for Low Income
Earners) Act 2002. The rules for these deposits differ in some respects from
those that apply to other deposits.
11 Section 4
Insert:
complying superannuation fund has the same meaning as in
Part IX of the Income Tax Assessment Act 1936.
Note: Section 267 of the Income Tax Assessment Act
1936 defines complying superannuation fund by reference to the
provisions of Division 3 of Part 5 of the Superannuation Industry
(Supervision) Act 1993.
12 Section 4
Insert:
Government co-contribution in respect of an individual means
a Government co-contribution payable in respect of the individual under the
Superannuation (Government Co-contribution for Low Income Earners) Act
2002.
13 Paragraph 16(b)
Omit “65, 66, 67 or 67A”, substitute “61, 65, 66, 67, 67A
or 91E”.
14 At the end of Division 4 of
Part 7
Add:
(1) The Commissioner of Taxation may pay the balance of an
individual’s account to:
(a) an RSA of the individual; or
(b) the trustee of a complying superannuation fund for crediting to an
account of the individual within that fund.
(2) To avoid doubt, the Commissioner of Taxation may make the payment
under subsection (1) without a request from the individual under
section 61.
(3) The Reserve is debited for the purposes of making the payment under
subsection (1).
(4) When the payment under subsection (1) is made, the
individual’s account is debited by the amount of the payment.
(5) In this section:
trustee of a superannuation fund means:
(a) if there is a trustee (within the ordinary meaning of that expression)
of the fund—the trustee; or
(b) otherwise—the person who manages the fund.
15 After Part 12
Insert:
In addition to the deposits that may be made under Part 4, the
Commissioner of Taxation may deposit into an individual’s account a
Government co-contribution payable in respect of the individual.
Except as provided for in this Part, this Act applies to a deposit made
under this Part in the same way as it applies to a deposit made under
Part 4.
(1) Section 33 applies to a deposit made under this Part.
(2) None of the other provisions of Part 4 apply to a deposit made
under this Part.
(1) Part 5 does not apply to a deposit made under this
Part.
(2) An amount equal to a deposit made under this Part is to be transferred
from the Consolidated Revenue Fund to the Reserve.
(3) As soon as practicable after the amount is transferred to the Reserve
under subsection (2), the individual’s account is to be credited with
an amount equal to the deposit.
Under section 24 of the Superannuation (Government
Co-contribution for Low Income Earners) Act 2002, the Commissioner may, in
certain circumstances, debit an individual’s account as a way of
recovering an overpayment of a Government co-contribution if the account
includes deposits made under this Part.
Division 2 of Part 7 does not apply
(1) Division 2 of Part 7 (account frozen for 14 days after
deposit) does not apply to a deposit made under this Part.
Modification of section 61 (transfer to RSA or superannuation fund
at individual’s request)
(2) To the extent to which the balance in an individual’s account
represents deposits made under this Part, section 61 applies to the account
as if the reference in subparagraph (2)(b)(i) to a regulated superannuation
fund were a reference to a complying superannuation fund.
Section 63 does not apply
(3) Section 63 (withdrawal of account balance of less than $200 where
individual has ceased to be employed by depositor) does not apply to an
individual’s account to the extent that the balance in the account
represents deposits made under this Part.
Interpretation
(4) A reference in this section to the balance of an individual’s
account to the extent to which it represents deposits made under this Part is a
reference to that balance to the extent to which it represents:
(a) deposits made under this Part; and
(b) interest accruing on deposits made under this Part.
Part 8 does not apply to deposits made under this Part.
16 Section 130A (after paragraph (c)
of the definition of transferred amount)
Insert:
; or (d) an amount payable in respect of the person under the
Superannuation (Government Co-contribution for Low Income Earners) Act
2002;
17 After subsection 130B(1)
Insert:
(1A) The Commissioner of Taxation may pay to the Board an amount payable
in respect of a person under the Superannuation (Government Co-contribution
for Low Income Earners) Act 2002.
Superannuation
Contributions Tax (Assessment and Collection) Act 1997
18 Paragraph 8(5)(a)
After “excludes”, insert “Government co-contributions
made under the Superannuation (Government Co-contribution for Low Income
Earners) Act 2002 and”.
19 Paragraph 8(5)(b)
After “excludes”, insert “Government co-contributions
made under the Superannuation (Government Co-contribution for Low Income
Earners) Act 2002 and”.
Superannuation
Contributions Tax (Members of Constitutionally Protected Superannuation Funds)
Assessment and Collection Act 1997
20 Paragraph 9(6)(a)
After “excludes”, insert “Government co-contributions
made under the Superannuation (Government Co-contribution for Low Income
Earners) Act 2002 and”.
21 Paragraph 9(6)(b)
After “excludes”, insert “Government co-contributions
made under the Superannuation (Government Co-contribution for Low Income
Earners) Act 2002 and”.
Superannuation (Resolution
of Complaints) Act 1993
22 After paragraph
15CA(1)(b)
Insert:
; or (c) section 26 of the Superannuation (Government
Co-contribution for Low Income Earners) Act 2002;
23 Subsection 15CA(2)
Repeal the subsection, substitute:
(2) If a person who is given by a superannuation provider a copy of a
statement given by the provider to the Commissioner under:
(a) section 13 of the Superannuation Contributions Tax (Assessment
and Collection) Act 1997; or
(b) section 12 of the Superannuation Contributions Tax (Members of
Constitutionally Protected Superannuation Funds) Assessment and Collection Act
1997; or
(c) section 26 of the Superannuation (Government Co-contribution
for Low Income Earners) Act 2002;
is also given by the provider a notice setting out the prescribed period
within which the person must complain to the Tribunal about the decision, the
person may only make a complaint to the Tribunal under this section within that
period.
Taxation Administration Act
1953
24 After subsection 8AAB(5) (table
item 12)
Insert:
|
12A |
25 |
Superannuation (Government Co-contribution for Low Income Earners) Act
2002 |
25 Application of
amendments
The amendments made by Part 1 of this Schedule apply in relation to
contributions made to complying superannuation funds and RSAs on or after
1 July 2002.
Part 1—Amendments
related to reduction of the surcharge rate
Superannuation
Contributions Tax Imposition Act 1997
1 Before subsection 5(1)
Insert:
(1AA) In this section:
higher income amount means:
(a) for the 2001-2002 financial year—$103,507; and
(b) for each later financial year—that amount as indexed under
section 7.
lower income amount means:
(a) for the 2001-2002 financial year—$85,242; and
(b) for each later financial year—that amount as indexed under
section 7.
maximum surcharge percentage means:
(a) for the 2002-2003 financial year—13.5%; and
(b) for the 2003-2004 financial year—12%; and
(c) for each later financial year—10.5%.
2 Subsection 5(1)
Omit “$70,000 but is less than $85,000”, substitute “the
lower income amount but is less than the higher income amount”.
3 Subsection 5(1) (formula)
Repeal the formula, substitute:
where:
A is:
4 Subsection 5(2)
Omit “$85,000 or a higher amount”, substitute “equal to,
or greater than, the higher income amount”.
5 Subsection 5(2)
Omit “15%”, substitute “the maximum surcharge
percentage”.
6 Paragraphs 5(3)(c), (d) and
(f)
Omit “15%”, substitute “the maximum surcharge
percentage”.
7 Subsection 7(6)
Omit “1997-98”, substitute “2002-03”.
8 Subsection 7(7) (definition of indexing
financial year)
Omit “1997-98”, substitute “2002-03”.
Note: The heading to subsection 7(1) is altered by omitting
“1997-98” and substituting
“2002-03”.
Superannuation
Contributions Tax (Members of Constitutionally Protected Superannuation Funds)
Imposition Act 1997
9 Before subsection 5(1)
Insert:
(1A) In this section:
higher income amount means:
(a) for the 2001-2002 financial year—$103,507; and
(b) for each later financial year—that amount as indexed under
section 7.
lower income amount means:
(a) for the 2001-2002 financial year—$85,242; and
(b) for each later financial year—that amount as indexed under
section 7.
maximum surcharge percentage means:
(a) for the 2002-2003 financial year—13.5%; and
(b) for the 2003-2004 financial year—12%; and
(c) for each later financial year—10.5%.
10 Subsection 5(1)
Omit “$70,000 but is less than $85,000”, substitute “the
lower income amount but is less than the higher income amount”.
11 Subsection 5(1)
(formula)
Repeal the formula, substitute:
where:
A is:
12 Subsection 5(3)
Omit “$85,000 or a higher amount”, substitute “equal to,
or greater than, the higher income amount”.
13 Subsection 5(3)
Omit “15%”, substitute “the maximum surcharge
percentage”.
14 Paragraphs 5(4)(c), (d) and
(f)
Omit “15%”, substitute “the maximum surcharge
percentage”.
15 Subsection 7(6)
Omit “1997-98”, substitute “2002-03”.
16 Subsection 7(7) (definition of indexing
financial year)
Omit “1997-98”, substitute “2002-03”.
Note: The heading to subsection 7(1) is altered by omitting
“1997-98” and substituting
“2002-03”.
Termination Payments Tax
Imposition Act 1997
17 Before subsection 5(1)
Insert:
(1AA) In this section:
higher income amount means:
(a) for the 2001-2002 financial year—$103,507; and
(b) for each later financial year—that amount as indexed under
section 6.
lower income amount means:
(a) for the 2001-2002 financial year—$85,242; and
(b) for each later financial year—that amount as indexed under
section 6.
maximum surcharge percentage means:
(a) for the 2002-2003 financial year—13.5%; and
(b) for the 2003-2004 financial year—12%; and
(c) for each later financial year—10.5%.
18 Subsection 5(1)
Omit “$70,000 but is less than $85,000”, substitute “the
lower income amount but is less than the higher income amount”.
19 Subsection 5(1)
(formula)
Repeal the formula, substitute:
where:
A is:
20 Subsection 5(2)
Omit “$85,000 or a higher amount”, substitute “equal to,
or greater than, the higher income amount”.
21 Subsection 5(2)
Omit “15%”, substitute “the maximum surcharge
percentage”.
22 Subsection 6(6)
Omit “1997-98”, substitute “2002-03”.
23 Subsection 6(7) (definition of indexing
financial year)
Omit “1997-98”, substitute “2002-03”.
Note: The heading to subsection 6(1) is altered by omitting
“1997-98” and substituting
“2002-03”.
Part 2—Amendments
related to reduction of the surcharge cap
Defence Force Retirement
and Death Benefits Act 1973
24 Subsection 6C(3)
Repeal the subsection, substitute:
(3) The amount determined by the Authority may not be more than the total
of the following amounts:
(a) 15% of the employer-financed component of any part of the benefits
payable to the member that accrued between 20 August 1996 and 1 July
2002;
(b) 13.5% of the employer-financed component of any part of the benefits
payable to the member that accrued in the 2002-2003 financial year;
(c) 12% of the employer-financed component of any part of the benefits
payable to the member that accrued in the 2003-2004 financial year;
(d) 10.5% of the employer-financed component of any part of the benefits
payable to the member that accrued after 30 June 2004.
Parliamentary Contributory
Superannuation Act 1948
25 Subsection 4E(3)
Repeal the subsection, substitute:
(3) The amount determined by the Trust may not be more than the total of
the following amounts:
(a) 15% of the employer-financed component of any part of the benefits
payable to the person that accrued between 20 August 1996 and 1 July
2002;
(b) 13.5% of the employer-financed component of any part of the benefits
payable to the person that accrued in the 2002-2003 financial year;
(c) 12% of the employer-financed component of any part of the benefits
payable to the person that accrued in the 2003-2004 financial year;
(d) 10.5% of the employer-financed component of any part of the benefits
payable to the person that accrued after 30 June 2004.
26 Subsection 80A(3)
Repeal the subsection, substitute:
(3) The amount determined by the Board may not be more than the total of
the following amounts:
(a) 15% of the employer-financed component of any part of the benefits
payable to the person that accrued between 20 August 1996 and 1 July
2002;
(b) 13.5% of the employer-financed component of any part of the benefits
payable to the person that accrued in the 2002-2003 financial year;
(c) 12% of the employer-financed component of any part of the benefits
payable to the person that accrued in the 2003-2004 financial year;
(d) 10.5% of the employer-financed component of any part of the benefits
payable to the person that accrued after 30 June 2004.
Superannuation
Contributions Tax (Application to the Commonwealth—Reduction of Benefits)
Act 1997
27 Subsection 4(1)
Omit “not exceeding 15% of the employer-financed component of that
part of the benefits that accrued after 20 August 1996”, substitute
“subject to subsection (2A)”.
28 After subsection 4(2)
Insert:
(2A) The amount of the reduction under subsection (1) may not be more
than the total of the following amounts:
(a) 15% of the employer-financed component of any part of the benefits
payable to the member that accrued between 20 August 1996 and 1 July
2002;
(b) 13.5% of the employer-financed component of any part of the benefits
payable to the member that accrued in the 2002-2003 financial year;
(c) 12% of the employer-financed component of any part of the benefits
payable to the member that accrued in the 2003-2004 financial year;
(d) 10.5% of the employer-financed component of any part of the benefits
payable to the member that accrued after 30 June 2004.
Superannuation
Contributions Tax (Members of Constitutionally Protected Superannuation Funds)
Assessment and Collection Act 1997
29 Paragraph 15(6)(b)
Repeal the paragraph, substitute:
(b) the total of the following amounts:
(i) 15% of the employer-financed component of any part of the benefits
payable to the member that accrued between 20 August 1996 and 1 July
2002;
(ii) 13.5% of the employer-financed component of any part of the benefits
payable to the member that accrued in the 2002-2003 financial year;
(iii) 12% of the employer-financed component of any part of the benefits
payable to the member that accrued in the 2003-2004 financial year;
(iv) 10.5% of the employer-financed component of any part of the benefits
payable to the member that accrued after 30 June 2004.
30 Paragraph 15(6AA)(d)
Repeal the paragraph, substitute:
(d) the total of the following amounts:
(i) 15% of the employer-financed component of any part of the benefits
that would have been payable to the member but for the payment split and that
accrued between 20 August 1996 and 1 July 2002;
(ii) 13.5% of the employer-financed component of any part of the benefits
that would have been payable to the member but for the payment split and that
accrued in the 2002-2003 financial year;
(iii) 12% of the employer-financed component of any part of the benefits
that would have been payable to the member but for the payment split and that
accrued in the 2003-2004 financial year;
(iv) 10.5% of the employer-financed component of any part of the benefits
that would have been payable to the member but for the payment split and that
accrued after 30 June 2004.
31 Paragraph 15(6A)(b)
Repeal the paragraph, substitute:
(b) the total of the following amounts:
(i) 15% of the employer-financed component of any part of the value of the
age retirement benefits of the member when the fund ceased to be a
constitutionally protected superannuation fund that accrued between
20 August 1996 and 1 July 2002;
(ii) 13.5% of the employer-financed component of any part of the value of
the age retirement benefits of the member when the fund ceased to be a
constitutionally protected superannuation fund that accrued in the 2002-2003
financial year;
(iii) 12% of the employer-financed component of any part of the value of
the age retirement benefits of the member when the fund ceased to be a
constitutionally protected superannuation fund that accrued in the 2003-2004
financial year;
(iv) 10.5% of the employer-financed component of any part of the value of
the age retirement benefits of the member when the fund ceased to be a
constitutionally protected superannuation fund that accrued after 30 June
2004.
32 Application of amendments made by
Part 1
The amendments made by Part 1 apply in relation to liability to
surcharge in respect of the 2002-2003 financial year and later financial
years.
Note: The Acts amended by Part 1 continue to apply in
relation to liability to surcharge in respect of financial years that ended
before 1 July 2002 as if the amendments made by Part 1 had not been
made.
33 Application of items 24 to
29
The amendments made by items 24 to 29 apply in relation to benefits
that become payable on or after 1 July 2002.
Note: The Acts amended by items 24 to 29 continue to
apply in relation to benefits that become payable before 1 July 2002 as if
the amendments made by those items had not been made.
34 Application of
item 30
The amendment made by item 30 applies in relation to benefits that
become payable on or after the commencement of that item.
Note: The Act amended by item 30 continues to apply in
relation to benefits that become payable before that item commences as if the
amendment made by that item had not been made.
35 Application of
item 31
The amendment made by item 31 applies in relation to superannuation
funds that cease to be constitutionally protected superannuation funds on or
after 1 July 2002.
Note: The Act amended by item 31 continues to apply in
relation to superannuation funds that cease to be constitutionally protected
superannuation funds before 1 July 2002 as if the amendment made by
item 31 had not been made.