Explanatory Memorandum
(Circulated by the authority of the Deputy Prime Minister and Treasurer, the Hon Wayne Swan MP)General outline and financial impact
GST-free health supplies
Schedule 1 to this Bill amends the A New Tax System (Goods and Services Tax) Act 1999 to ensure that a supply made by a health care provider to an insurer, a statutory compensation scheme operator, a compulsory third party scheme operator or a government entity, is treated as a GST-free supply to the extent that the underlying supply from the health care provider to an individual is a GST-free health supply.
Date of effect : 1 July 2012.
Proposal announced : This measure was announced in the 2011-12 Budget.
Financial impact : This measure is expected to be revenue neutral.
Human rights implications : This Schedule does not raise any human rights issue. See Statement of Compatibility with Human Rights - Chapter 1, paragraphs 1.25 to 1.28.
Compliance cost impact : Low.
GST treatment of appropriations
Schedule 2 to this Bill amends the A New Tax System (Goods and Services Tax) Act 1999 (GST Act) to restore the policy intent that the non commercial activities of government related entities are not subject to goods and services tax.
Date of effect : 1 July 2012.
Proposal announced : These amendments were foreshadowed by their release in draft form on the Treasury website on 23 November 2011.
Financial impact : Nil.
Human rights implications : This Schedule does not raise any human rights issue. See Statement of Compatibility with Human Rights - Chapter 2, paragraphs 2.42 to 2.45.
Compliance cost impact : Low.
Indexation of superannuation concessional contributions cap
Schedule 3 to this Bill amends the Income Tax Assessment Act 1997 to temporarily pause the indexation of the superannuation concessional contributions cap so that it will remain fixed at $25,000 up to and including the 2013-14 financial year.
Date of effect : This measure will take effect from 1 July 2013.
Proposal announced : This measure was announced in the 2011-12 Mid-Year Economic and Fiscal Outlook.
Financial impact : This measure is expected to result in a saving of $485 million over the forward estimates period.
| 2011-12 | 2012-13 | 2013-14 | 2014-15 |
| - | - | $360m | $125m |
Human rights implications : This Schedule does not raise any human rights issue. See Statement of Compatibility with Human Rights - Chapter 3, paragraphs 3.17 to 3.21.
Compliance cost impact : Low.
Superannuation - refund of excess concessional contributions
Schedule 4 to this Bill amends the Income Tax Assessment Act 1997 , the Superannuation (Government Co-contribution for Low Income Earners) Act 2003 , the Taxation Administration Act 1953 , and the Taxation (Interest on Overpayments and Early Payments) Act 1983 to allow eligible individuals the option to effectively have excess concessional contributions of $10,000 or less refunded to them. However, if the refund is accepted, the excess concessional contributions will be assessed as income for the year of the excess contributions rather than paying excess contributions tax.
Date of effect : These amendments apply to excess concessional contributions of an eligible individual for the financial year starting on 1 July 2011 and later years.
Proposal announced : This measure was announced in the 2011-12 Budget.
Financial impact : This measure will have an ongoing cost to revenue over the forward estimates period as follows:
| 2011-12 | 2012-13 | 2013-14 | 2014-15 |
| ?$0.8m | ?$13.6m | ?$3.3m | ?$2.2m |
This measure is expected to reduce revenue by $19.9 million over the forward estimate period. This is due to the loss of excess contributions tax revenue being greater than the gain in personal income tax.
Human rights implications : This Schedule does not raise any human rights issue. See Statement of Compatibility with Human Rights - Chapter 4, paragraphs 4.73 to 4.77.
Compliance cost impact : The compliance cost impact on individuals and their superannuation funds is expected to be low. The majority of the administrative processes will be handled by the Australian Taxation Office.
Disclosure of superannuation information
Schedule 5 to this Bill permits the Australian Taxation Office (ATO) to disclose details of an individual's superannuation interests and superannuation benefits to a regulated superannuation fund or public sector superannuation scheme, an approved deposit fund, retirement savings account (RSA) provider or their administrators (the bodies).
This will enable the ATO to provide information to the bodies particularly through enhanced services that will allow the bodies to access information about a member's superannuation interests, including amounts held by the ATO. This information will enable funds to assist their members to find and consolidate their superannuation interests.
Date of effect : This measure will commence on Royal Assent.
Proposal announced : This measure was announced on 21 September 2011 as part of the Government's Stronger Super package of reforms.
Financial impact : Nil.
Human rights implications : This Schedule does not raise any human rights issue. See Statement of Compatibility with Human Rights - Chapter 5, paragraphs 5.26 to 5.29.
Compliance cost impact : Low. The bodies will be required to enter into new SuperMatch agreements with the ATO and to make system changes to enable them to send requests and receive information.
Superannuation - payslip reporting
Schedule 6 to this Bill amends the Superannuation Industry (Supervision) Act 1993 to require employers to report, on payslips, any information prescribed in the regulations about superannuation contributions.
The regulations will in turn require employers to report the amount of superannuation contributions, as well as the date on which the employer expects to pay them.
The regulations will also incorporate the existing requirements in Regulation 3.46 in the Fair Work Regulations 2009 to include the name, or name and number, of any fund to which the contribution is to (or was) paid.
Date of effect : These amendments apply to contributions accrued after the date of Proclamation. In the absence of a proclamation, this Schedule will commence 12 months after Royal Assent.
Proposal announced : This measure was announced during the 2010 election, and in the 2011-12 Budget.
Financial impact : The measure has a negligible ongoing revenue impact.
Human rights implications : This Schedule does not raise any human rights issue. See Statement of Compatibility with Human Rights - Chapter 6, paragraphs 6.31 to 6.34.
Compliance cost impact : Minimal/Medium. Software producers will need to add an additional field for the expected payment date, and employers will need to fill it in when issuing payslips.
Refunds
Schedule 7 to this Bill amends the Taxation Administration Act 1953 to provide the Commissioner of Taxation with a legislative discretion to withhold entitlements to high risk refunds pending refund integrity checks of a taxpayer's claim.
Date of effect : These amendments commence from Royal Assent.
Proposal announced : This measure was announced in the Assistant Treasurer's Media Release No. 008 of 15 February 2012.
Financial impact : Nil.
Human rights implications : This Schedule does not raise any human rights issues. See Statement of Compatibility with Human Rights - Chapter 7, paragraphs 7.75 to 7.78.
Compliance cost impact : Nil.