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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
Taxation
Laws Amendment (Superannuation) Bill (No. 1)
2002
No. ,
2002
(Treasury)
A Bill
for an Act to amend the law relating to taxation, and for related
purposes
Contents
Part 1—Income Tax Assessment Act
1936 3
Part 2—Income Tax Assessment Act
1997 5
Part 3—Taxation Administration Act
1953 6
Part 4—Income Tax Act
1986 9
Part 5—Small Superannuation Accounts Act
1995 10
Part 6—Application of
amendments 13
A Bill for an Act to amend the law relating to taxation,
and for related purposes
The Parliament of Australia enacts:
This
Act may be cited as the Taxation Laws Amendment (Superannuation) Act
(No. 1) 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 3 and anything in this Act not elsewhere covered by
this table |
The day on which this Act receives the Royal Assent |
|
|
2. Schedule 1 |
The later of: |
|
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repealed as set out in the applicable items in the Schedule concerned, and any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.
Part 1—Income
Tax Assessment Act 1936
1 Subsection 6(1) (definition of withholding
tax)
After “section”, insert “27GA or”.
2 Subsection 27A(1)
Insert:
departing Australia superannuation payment means a payment
that:
(a) would be an ETP except for the operation of paragraph (qa) of the
definition of eligible termination payment; and
(b) is paid to a person who has departed Australia; and
(c) is paid:
(i) in accordance with regulations under the Superannuation Industry
(Supervision) Act 1993 or the Retirement Savings Accounts Act 1997
that are prescribed for the purposes of this definition; or
(ii) in accordance with section 67A of the Small Superannuation
Accounts Act 1995; or
(iii) by an exempt public sector superannuation scheme (within the meaning
of section 10 of the Superannuation Industry (Supervision) Act 1993)
and is made in accordance with rules of the fund that are substantially similar
to the regulations referred to in subparagraph (i).
3 Subsection 27A(1) (after paragraph (q) of
the definition of eligible termination payment)
Insert:
(qa) a payment that is a departing Australia superannuation payment;
or
4 After section 27G
Insert:
(1) A person who receives a departing Australia superannuation payment is
liable to pay income tax upon that payment at the rate declared by the
Parliament in respect of departing Australia superannuation payments.
Note: See the Taxation Administration Act 1953 for
provisions dealing with the payment of the tax.
(2) Income tax payable by a person in accordance with this section is in
addition to any other income tax payable by the person upon income other than
departing Australia superannuation payments.
(3) A departing Australia superannuation payment is not to be included in
the assessable income of a person.
(4) If an amount would be a departing Australia superannuation payment
apart from the fact that the person has not received it, it becomes a departing
Australia superannuation payment to the person as soon as it is applied or dealt
with in any way on the person’s behalf or as the person
directs.
Part 2—Income
Tax Assessment Act 1997
5 Subsection 995-1(1) (definition of
withholding tax)
After “section”, insert “27GA or”.
Part 3—Taxation
Administration Act 1953
6 Section 10-5 in Schedule 1 (after
table item 22)
Insert:
|
22A |
A departing Australia superannuation payment |
12-305 |
7 After Subdivision 12-F in
Schedule 1
Insert:
Table of sections
12-305 Departing Australia superannuation
payment
12-310 Limits on amount withheld under this
Subdivision
An entity must withhold an amount from a departing Australia
superannuation payment (within the meaning of Subdivision AA of Division 2
of Part III of the Income Tax Assessment Act 1936) it pays to an
entity.
This Subdivision does not require an entity:
(a) to withhold an amount from a departing Australia superannuation
payment (within the meaning of Subdivision AA of Division 2 of
Part III of the Income Tax Assessment Act 1936) if no
*withholding tax is payable in respect of the
departing Australia superannuation payment; or
(b) to withhold from a departing Australia superannuation payment (within
the meaning of Subdivision AA of Division 2 of Part III of the
Income Tax Assessment Act 1936) more than the withholding tax payable in
respect of the departing Australia superannuation payment (reduced by each
amount already withheld from it under this Subdivision).
Note: Section 27GA of the Income Tax Assessment Act
1936 deals with the withholding tax liability.
8 Subsection 15-10(2) in
Schedule 1
After “12-F”, insert “, 12-FA”.
9 Paragraph 16-153(1)(a) in
Schedule 1
After “or 12-285)”, insert “,
Subdivision 12-FA”.
10 Paragraph 16-153(1)(b) in
Schedule 1
After “or 12-285)”, insert “,
Subdivision 12-FA”.
11 After section 16-165 in
Schedule 1
Insert:
Within 14 days after an entity (the payer) makes a
departing Australia superannuation payment (within the meaning of Subdivision AA
of Division 2 of Part III of the Income Tax Assessment Act
1936), the payer must:
(a) give a *payment summary that covers
the payment to the recipient of the payment; and
(b) give a copy of the summary to the Commissioner.
12 After paragraph 16-195(a) in
Schedule 1
Insert:
(aa) section 12-305 (about a departing Australia superannuation
payment); or
13 Section 18-10 in
Schedule 1
After “royalties),”, insert “Subdivision 12-FA
(about departing Australia superannuation payments),”.
14 After section 18-40 in
Schedule 1
Insert:
Credit—amount withheld
(1) If there is an *amount withheld from
a *withholding payment that is covered by
section 12-305 (departing Australia superannuation payment), the person
liable to pay *withholding tax under
section 27GA of the Income Tax Assessment Act 1936 on the payment is
entitled to a credit of an amount equal to the amount withheld.
Credit—penalty amount
(2) If an entity has paid to the Commissioner a penalty amount under
section 16-30 or 16-35 in relation to an
*amount required to be withheld under
section 12-305 (departing Australia superannuation payment), the person
mentioned in subsection (1) is entitled to a credit equal to the penalty
amount.
Remission
(3) If the Commissioner remits the whole or a part of the amount of
penalty under section 16-45 that has been paid to the Commissioner by the
entity:
(a) any credit that relates to the amount is reduced by the amount that is
remitted; and
(b) the Commissioner must pay to the entity an amount equal to the amount
that is remitted.
15 Subsection 5(2)
After “section”, insert “27GA,”.
Part 5—Small
Superannuation Accounts Act 1995
16 Section 14
After:
(b) the individual is in employment, but the duties of the
individual’s employment are performed wholly or principally outside
Australia.
insert:
Permanent departure from Australia
• The balance of an individual’s account may be withdrawn
if:
(a) the individual was the holder of an eligible temporary residents visa
that has expired or been cancelled; and
(b) the individual has permanently departed from Australia.
17 Paragraph 16(b)
Omit “or 67”, substitute “, 67 or 67A”.
18 At the end of
section 16
Add:
Note 4: Section 67A deals with individuals who have
permanently departed from Australia.
19 At the end of
section 62
Add:
• The balance of an individual’s account may be withdrawn
if:
(a) the individual was the holder of an eligible temporary residents visa
that has expired or been cancelled; and
(b) the individual has permanently departed from Australia.
20 After section 67
Insert:
Withdrawal request
(1) This section applies to an individual’s account if:
(a) the individual gives the Commissioner of Taxation a request (the
withdrawal request) for the withdrawal of the account balance;
and
(b) the individual satisfies the Commissioner of Taxation that:
(i) the individual was the holder of an eligible temporary residents visa
that has expired or been cancelled; and
(ii) the individual has permanently departed from Australia.
Form of withdrawal request
(2) The withdrawal request must be:
(a) in writing; and
(b) in a form approved in writing by the Commissioner of
Taxation.
Compliance with withdrawal request
(3) The Commissioner of Taxation must pay to the individual an amount
equal to the account balance immediately before the payment is made.
Reserve to be debited
(4) The Reserve is debited for the purposes of making the
payment.
Account to be debited
(5) When the payment is made, the individual’s account is debited by
the amount of the payment.
Definitions
(6) In this section:
eligible temporary residents visa has the same meaning as in
the Superannuation Industry (Supervision) Regulations 1994.
Part 6—Application
of amendments
21 Application
The amendments made by this Schedule apply to payments made on or after
1 July 2002.