Explanatory Memorandum(Circulated by authority of the Treasurer, the Hon Peter Costello, MP)
PART 4 - Superannuation Contributions Tax Imposition Amendment Bill 1997
Part 4 of the Explanatory Memorandum (Chapter 19) explains the provisions of the Superannuation Contributions Tax Imposition Amendment Bill 1997.
19.1 This Bill amends the Superannuation Contributions Tax Imposition Act 1997 (the Imposition Act) to round the rate of superannuation contributions surcharge imposed under that Act to 5 decimal places. The Bill also makes technical amendments to the provisions in the Imposition Act which deal with the actions the Commissioner must take where a member has not provided his or her tax file number (TFN).
19.2 When the Bill is enacted it will be called the Superannuation Contributions Tax Imposition Amendment Act 1997. [Clause 1]
19.3 The Act is to commence on the day it receives the Royal Assent. Schedule 1 of the Act will be taken to have commenced on 5 June 1997 immediately after the commencement of the Imposition Act. [Clause 2]
19.4 Section 5 of the Imposition Act identifies the rate of superannuation contributions surcharge imposed on the surchargeable contributions of a member of a superannuation fund or scheme.
19.5 Item 1 and Item 2 provide that the rate of superannuation contributions surcharge imposed under the Imposition Act is rounded to 5 decimal places.
19.6 Item 3 and Item 4 make technical amendments to subsection 5(3) of the Imposition Act to ensure that, if a member does not quote his or her TFN and the Commissioner of Taxation is unable to find it out, superannuation contributions surcharge will be payable only on the surchargeable contributions received by a superannuation provider for the member in the relevant financial year rather than on all contributions received for the member in that year.
19.7 Item 5 makes a technical amendment to subsection 5(4) to recognise that superannuation contributions surcharge is imposed under the Act rather than by the Commissioner.