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Senate

Superannuation Contributions Tax (Members of Constitutionally Protected Superannuation Funds) Assessment and Collection Bill 1997

Superannuation Contributions Tax (Members of Constitutionally Protected Superannuation Funds) Imposition Bill 1997

Superannuation Contributions Tax (Members of Constitutionally Protected Superannuation Funds) Imposition Act 1997

Superannuation Contributions and Termination Payments Taxes Legislation Amendment Bill 1997

Superannuation Contributions Tax Imposition Amendment Bill 1997

Termination Payments Tax Imposition Amendment Bill 1997

Explanatory Memorandum

(Circulated by authority of the Treasurer, the Hon Peter Costello, MP)

General outline and financial impact

These Bills form part of a package of legislation designed to give a legislative framework for the introduction of a superannuation contributions surcharge for high income earners.

The Superannuation Contributions Tax (Members of Constitutionally Protected Superannuation Funds) Assessment and Collection Bill 1997 provides for the assessment and collection of the surcharge from members of constitutionally protected superannuation funds. The provisions of this Bill are explained in Part 1 - Chapters 1 to 7 of the Explanatory Memorandum.

The Superannuation Contributions Tax (Members of Constitutionally Protected Superannuation Funds) Imposition Bill 1997 imposes the superannuation contributions surcharge on members of constitutionally protected superannuation funds. The provisions of this Bill are explained in Part 2 - Chapter 8 of the Explanatory Memorandum.

The Superannuation Contributions and Termination Payments Taxes Legislation Amendment Bill 1997 makes consequential amendments to a number of Acts as a result of the introduction of the two new Bills dealing with the application of the surcharge to members of constitutionally protected superannuation funds. The Bill also makes technical amendments to clarify the operation of the surcharge. The provisions of this Bill are explained in Part 3 - Chapters 9 to 18 of the Explanatory Memorandum.

The Superannuation Contributions Tax Imposition Amendment Bill 1997 amends the Superannuation Contributions Tax Imposition Act 1997 to round the rate of superannuation contributions surcharge imposed under that Act to 5 decimal places. This Bill also makes technical amendments to the provisions in that Act concerning the actions the Commissioner must take where a member has not provided his or her tax file number. The provisions of this Bill are explained in Part 4 - Chapter 19 of the Explanatory Memorandum.

The Termination Payments Tax Imposition Amendment Bill 1997 amends the Termination Payments Tax Imposition Act 1997 to round the rate of termination payments surcharge imposed under that Act to 5 decimal places. The provisions of this Bill are explained in Part 5 - Chapter 20 of the Explanatory Memorandum.

Date of effect: The Superannuation Contributions Tax (Members of Constitutionally Protected Superannuation Funds) Assessment and Collection Bill 1997 and the Superannuation Contributions Tax (Members of Constitutionally Protected Superannuation Funds) Imposition Bill 1997 have effect from 20 August 1996.

The amendments contained in Schedules 3, 5 and 9, together with the amendments in Items 1 and 2 and 4 to 45 of Schedule 4 of the Superannuation Contributions and Termination Payments Taxes Legislation Amendment Bill 1997 have effect from 5 June 1997. The remaining amendments in this Bill commence from the day on which the Act receives the Royal Assent.

The Superannuation Contributions Tax Imposition Amendment Bill 1997 and the Termination Payments Tax Imposition Amendment Bill 1997 have effect from 5 June 1997.

Proposal announced: The introduction of the superannuation contributions surcharge for high income earners was announced by the Government in the 1996-97 Budget and was incorporated in the Treasurer's Press Release No 87 of 20 August 1996 entitled 'Superannuation Reform'. The application to constitutionally protected schemes was further announced in the Treasurer's Press Release No 5 of 5 February 1997 entitled 'Superannuation contributions surcharge for higher income individuals: application to defined benefits schemes, unfunded schemes and golden handshakes'.

Financial impact: It is estimated that the revenue impact of the surcharge will be $480 million in 1997-98, $470 million in 1998-99 and $530 million in 1999-2000.

Compliance cost impact: Full details of the compliance costs associated with the surcharge measures are contained in the compliance cost statement in the Explanatory Memorandum to the Superannuation Contributions Tax (Assessment and Collection) Act 1997 .


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