Explanatory Memorandum
(Circulated by authority of the Treasurer, the Hon Peter Costello, MP)Chapter 1 Preliminary
Overview
1.1 Part 1 of the Bill sets out the preliminary details of the Act.
1.2 The purpose of the provisions is to:
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- establish the title, scope and commencement date of the Act; and
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- provide an outline of the purpose and operation of the Act.
Explanation of the provisions
Title and Commencement of the Act
1.3 When the Bill is enacted it will be called the Superannuation Contributions Surcharge (Assessment and Collection) Act 1997 . [Clause 1]
1.4 The Act is to commence on the day it receives the Royal Assent. [Clause 2]
1.5 The Act binds the Crown in the Commonwealth, the Australian Capital Territory, the Northern Territory and all the external Territories. The Crown cannot be prosecuted for any offences under this Act. The application of the Act in relation to Australia's external territories is limited in its application to entities that are not exempt from income tax for the purposes of Division 1A of Part III of the Income Tax Assessment Act 1936 (refer to subclause 7(3) of the Bill). [Clauses 3 and 4]
1.6 The object of the Act is to provide for the assessment and collection of the superannuation contributions surcharge payable on the surchargeable superannuation contributions of high income earners. [Clause 5]
1.7 Clause 6 highlights significant features of the operation of the Act.