Explanatory Memorandum
(Circulated by authority of the Minister for Revenue and Assistant Treasurer, Senator the Hon Helen Coonan)Chapter 3 - Proposed legislation
Clause 1 - Short Title
3.1 Upon enactment, the Act would be known as the Superannuation (Financial Assistance Funding) Levy Amendment Act 2002.
Clause 2 - Commencement
3.2 Clause 2 provides for the Act to commence on Royal Assent.
Clause 3 - Schedules
3.3 Clause 3 states that each Act that is specified in a schedule to this Act will be amended or repealed, as it is included in this Act.
Schedule 1 - Amendment of the Superannuation (Financial Assistance Funding) Levy Act 1993
3.4 Schedule 1 amends the Superannuation (Financial Assistance Funding) Levy Act 1993 'the Levy Act' to allow, in conjunction with the imposition of a levy to collect financial assistance granted under Part 23 of the Superannuation Industry ( Supervision ) Act 1993 , the setting of a maximum and minimum levy amount. It also amends the Levy Act to allow for collection of all financial assistance granted in a previous financial year to be aggregated and collected as one levy.
3.5 Item 1 amends section 6 of the Levy Act to insert two new sections.
3.6 Subsection 6(1A) allows regulations to impose a levy to cover more than one determination of financial assistance made under Part 23 of the SIS Act. The Levy Act prevents a levy from being imposed on any regulated superannuation fund or approved deposit fund that had financial assistance granted to it in the same financial year. Self managed superannuation funds are ineligible for financial assistance under the provisions of the SIS Act nor are they charged a levy under the Levy Act.
3.7 Subsection 6(1B) specifies that if a regulation imposes a levy in respect of more than one grant of financial assistance, the regulation imposing the levy must specify all the determinations to with the levy relates and the proportion that each individual determination represents to the aggregate levy.
Item 2 - At the end of Section 6
3.8 Item 2 adds a new subsection that enables regulations imposing a levy in respect of one or more determinations to impose either or both a maximum and minimum amount of levy that is payable.
3.9 Item 3 repeals subsection 7(1) and inserts a new subsection. The inserted provision ensures that the rate of any levies introduced because of determinations made under Part 23 in conjunction with the minimum and maximum amounts of levy that is payable, are designed and set in such a manner that the amount of revenue raised by the imposed levy does not exceed the amount that was granted as financial assistance, for which the particular levy relates.
Item 4 - After subsection 8(1)
3.10 Item 4 inserts a new subsection 8(1A). This provision clarifies that if the amount of levy worked out under subsection 8(1), (being the Applicable rate multiplied by the Value of the assets), is greater than the amount set as the maximum levy amount (if a maximum levy amount is stated in the regulation), than the amount of levy imposed on the fund by the regulation is equal to the maximum amount.
3.11 Conversely, if the amount of levy worked out under subsection 8(1), (being the Applicable rate multiplied by the Value of the assets) is less than the amount set as the minimum levy amount (if a minimum levy amount is stated in the regulation), than the amount of levy imposed on the fund by the regulation is equal to the minimum amount.
Copyright notice
© Australian Taxation Office for the Commonwealth of Australia
You are free to copy, adapt, modify, transmit and distribute material on this website as you wish (but not in any way that suggests the ATO or the Commonwealth endorses you or any of your services or products).
