Senate

Superannuation Contributions and Termination Payments Taxes Legislation Amendment Bill 1999

Supplementary Explanatory Memorandum

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

General outline and financial impact

Amendment to the Superannuation Contributions and Termination Payments Taxes Legislation Amendment Bill 1999

This Bill amends item 3 of Schedule 1 of the Superannuation Contributions and Termination Payments Taxes Legislation Amendment Bill 1999 to:

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remove the requirement for an eligible actuary to work out the actuarial value of the benefits that accrued to, and the value of the administration expenses and risk benefits provided in respect of, a member of a defined benefits superannuation scheme using the formula set out in the Bill or the method set out in the regulations; and
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remove any doubt that a method approved by the Commissioner of Taxation for working out the actuarial value of the benefits that accrued to, and the value of the administration expenses and risk benefits provided in respect of, a member of a defined benefits superannuation scheme excludes personal undeducted contributions.

Date of effect: The amendments do not affect the date of effect proposed in the Bill.

Proposal announced: Assistant Treasurers Press Release No. 12 of 23 March 1999 as for the other measures in the Superannuation Contributions and Termination Payments Taxes Legislation Amendment Bill 1999.

Financial impact: There is no additional financial impact of the amendments.

Compliance cost impact: Compliance costs associated with the amendments are low .

Summary of Regulation Impact Statement

Impact: Low

Main points: The amendments do not change the Regulation Impact Statement (RIS) contained in the Explanatory Memorandum (EM) to the Superannuation Contributions and Termination Payments Taxes Legislation Amendment Bill 1999.

Policy objective: The amendments do not change the RIS contained in the EM to the Superannuation Contributions and Termination Payments Taxes Legislation Amendment Bill 1999.