Explanatory Memorandum(Circulated by authority of the Treasurer, the Hon Peter Costello, MP)
Chapter 2 - Providing for a self assessment regime for specified superannuation funds
2.1 The amendments will provide for a system of self assessment for specified superannuation funds.
2.2 Currently, all superannuation funds are required to report specified information to the Commissioner by the notification date (31October) or such later date allowed by the Commissioner. The Commissioner is then required to assess the surcharge liability.
2.3 New sections 15A and 15B of the SCT(A & C) Act provide a self assessment regime for specified superannuation funds. [Item 15 of Schedule 1] This measure will reduce costs for these funds because they will be able to deal with a number of tax issues at the same time and will provide the Commissioner with the flexibility to align reporting requirements with income tax lodgment requirements.2.
2.4 A self assessing superannuation provider will be a superannuation provider specified, or included in a class of superannuation providers specified, in a determination made in writing by the Commissioner. [Item 39 of Schedule 1]
2.5 For the 1998-99 financial year, it is proposed the specified funds will be excluded funds as defined in the Superannuation Industry (Supervision) Act 1993 that can self assess the liability for each and every member of the fund and pay the self assessed liability when they report (by electronic transmission) by the notification date determined by the Commissioner.
2.6 If a fund is not in a position to self assess the surcharge liability for each and every member of the fund and/or report by electronic transmission, then it will not be considered to be a self assessing fund and will be required to report by the notification date set out in the legislation (or a later date approved by the Commissioner).
2.7 No member will be required to give information to a superannuation fund to enable the fund to self assess the surcharge liability in respect of that member.
2.8 Funds specified as self assessing superannuation funds by the Commissioner will not be required to pay the 1998-99 self assessed liability for members when they report contributions in relation to that financial year. The Commissioner will issue an assessment to these funds which will set out the payment date. Self assessing funds will be required to pay self assessed liabilities for the 1999-2000 financial year and later financial years.
2.9 New subsection 15B(5) imposes the same penalty for self assessing funds that fail to comply with the reporting requirements that are applied to all other funds that fail to comply with the reporting requirements of section 13 of the SCT(A & C) Act. [Items 15 and 26 of Schedule1]
2.10 The amended definition of notification date at section 43 of the SCT(A & C) Act provides that the notification date for a self assessing provider for the financial year is a date notified by the Commissioner. [Item 36 of Schedule 1]