Explanatory Memorandum(Circulated by the authority of the Treasurer, the Hon John Dawkins, M.P.)
General Outline and Financial Impact
The Superannuation Guarantee (Administration) Bill 1992 and the Superannuation Guarantee Charge Bill 1992 were introduced into Parliament on 2 April 1992. It is proposed that from 1 July 1992 these Bills will impose a tax (called the superannuation guarantee charge) on employers who do not provide a minimum level of superannuation support for their employees.
This Bill makes a number of consequential amendments to the Occupational Superannuation Standards Act 1987, the Defence Act 1903, the Defence Force Retirement and Death Benefits Act 1973, the Military Superannuation and Benefits Act 1991, the Income Tax Assessment Act 1936 (and certain other Tax Acts) as a result of the introduction of the superannuation guarantee charge. In particular the various Defence Acts will be amended to ensure that superannuation benefits for members of the Defence Force are consistent with the benefits required by the superannuation guarantee scheme.
These consequential amendments will apply from 1 July 1992.
The additional superannuation benefits for members of the Defence Force provided as a result of amendments proposed in this Bill will be unfunded.
Members of the Defence Force Retirement and Death Benefits (DFRDB) Scheme are part way through an election period during which they have the choice of remaining with that Scheme or transferring to the Military Superannuation and Benefits Scheme (MSBS) which commenced on 1 October 1991. Costings on the additional benefits are dependent on assumptions about future behaviour and circumstances (such as the rate of transfer to MSBS).
The estimated impact over the phase-in period of the additional benefits, in December 1991 prices, is as follows:
The amendments to this Act will have no significant financial impact.
These amendments to the Tax Acts are consequential amendments resulting from the introduction of the Superannuation Guarantee (Administration) Bill 1992 and the Superannuation Guarantee Charge Bill 1992. The amendments are not expected to have a significant impact on the Revenue.