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THE PARLIAMENT OF THE COMMONWEALTH OF AUSTRALIA
HOUSE OF REPRESENTATIVES
SUPERANNUATION CONTRIBUTIONS SURCHARGE (ASSESSMENT AND COLLECTION) BILL 1997
SUPPLEMENTARY EXPLANATORY MEMORANDUM
Amendments to be Moved on Behalf of the Government
(Circulated by authority of the
Treasurer, the Hon Peter
Costello, MP)
80940 Cat. No. 96 7381 4 ISBN 0644 49793 9
The amendments to the Bill deal with certain aspects of the application of the superannuation contributions surcharge to defined benefit schemes. The amendments deal with the timing of certain reporting requirements of the Bill and other minor technical amendments to ensure the appropriate application of the Bill.
Date of effect: 20 August 1996
Proposal announced: The introduction of the superannuation contributions surcharge for high income earners was announced by the Government in the 1996-97 Budget and was incorporated in the Treasurer's Press Release No. 87 of 20 August 1996 entitled "Superannuation Reform".
Financial impact: These amendments will have a negligible financial impact. The superannuation contributions surcharge is estimated to raise additional revenue of $434 million in 1997-98, $500 million in 1998-99 and $526 million in 1999-2000.
1.1 The amendments deal with certain aspects of the application of the superannuation contributions surcharge to defined benefit superannuation schemes, the timing of the application of some of the reporting requirements of the Bill and other minor technical amendments to ensure the appropriate application of the Bill.
1.2 The previous definition of 'holder' did not cover unfunded defined benefits schemes as the definition referred to amounts paid. For unfunded defined benefits schemes there may not be any amounts that have been paid to the provider. The amendments replace the definition of 'holder' to ensure that it covers situations where there has not been any contributions actually paid to the provider.
1.3 The amendments provide for the consistent application of the superannuation contributions surcharge to all members of defined benefits superannuation schemes by ensuring that the appropriate amount of surchargeable contributions can be calculated for a member for a financial year regardless of the funding arrangements for the scheme. [Amendment 30 - new definition of holder]
1.4 New subclause 8(3) explains how the surchargeable contributions for members of defined benefits schemes are to be calculated. [Amendment 5] The amendment omits and replaces the calculation of contributed amounts for a defined benefits provider. The method applies the notional surchargeable contributions factor to the member's annual salary. This method is explained in paragraph 2.9 of the Explanatory Memorandum to the Superannuation Contributions (Assessment and Collection) Bill 1997.
1.5 Amendments 1 through to 4, 6 through to 12, and 20 through to 24 and 27 are minor amendments to ensure that other relevant provisions of the Bill are consistent with the changes made by Amendments 5 and 30.
1.6 Amendments 13 through to 19 allow for the accurate calculation of surchargeable contributions paid after Budget night 1996 by imposing reporting requirements on superannuation providers in respect of some amounts from this date.
1.7 Provision is made to ensure that the Commonwealth is not liable to pay any amount. The amendment also ensures that its application does not contravene the Constitution. [Amendment 25]
1.8 Clause 34 of the Bill is omitted to remove any doubt about the Constitutional validity of the Bill. [Amendment 26]
1.9 Provision is made for the consistent application of the superannuation contributions surcharge by ensuring that exempt public sector superannuation schemes are subject to the surcharge. [Amendments 28 and 29]
1.10 A definition of trustee is inserted which provides that for the purposes of the Bill a trustee will include a person who, although not a trustee within the ordinary meaning of the word, is a manager of a superannuation fund. This ensures consistency in the treatment of superannuation funds for the purposes of the superannuation contributions surcharge. [Amendment 31]