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SUPERANNUATION (GOVERNMENT CO-CONTRIBUTION FOR LOW INCOME EARNERS) AMENDMENT REGULATIONS 2005 (NO. 1) (SLI NO 140 OF 2005)
Issued by authority of the Minister for Revenue
and Assistant Treasurer
Superannuation (Government Co-contribution for Low Income Earners) Act 2003
Superannuation (Government Co-contribution for Low Income Earners) Amendment Regulations 2005 (No. 1 )
Section 55 of the Superannuation (Government Co-contribution for Low Income Earners) Act 2003 (the Act) provides that the Governor-General may make regulations prescribing matters required or permitted by the Act to be prescribed, or necessary or convenient to be prescribed for carrying out or giving effect to the Act.
The purpose of the Regulations is to ensure that the co-contribution reporting requirements continue to operate to allow the Commissioner of Taxation (the Commissioner) to determine co‑contribution entitlements following the cessation of the application of the Superannuation Contributions Tax (Assessment and Collection) Regulations 1997 (the SCT Regulations).
The Regulations were required due to the abolition of the superannuation surcharge from the 2005-06 financial year onwards, which was announced in the 2005-06 Budget. The SCT Regulations set out the information required for the Commissioner to determine a surcharge liability. Some of the information was also used to make a determination to pay a co-contribution, as the Superannuation (Government Co‑contribution for Low Income Earners) Regulations 2004 (the Principal Regulations) contained several references to the SCT Regulations.
Therefore, elements of the SCT Regulations needed to be incorporated into the Principal Regulations, to ensure that the Commissioner continued to be legally entitled to obtain all the necessary information to determine co-contribution payments, following the cessation of the superannuation surcharge. The Regulations also remove references to the SCT Regulations from regulation 10 and Schedules 4, 5 and 6 to the Principal Regulations.
Details of the Regulations are set out in the Attachment.
The Act specified no conditions that needed to be met before the power to make Regulations was exercised.
The Regulations commenced on 1 July 2005.
The Regulations are a legislative instrument for the purposes of the Legislative Instruments Act 2003.
Consultation was not undertaken because the instrument is of minor or machinery nature, does not alter existing arrangements and was required as a matter of urgency.
ATTACHMENT
Details of the Superannuation (Government Co-contribution for Low Income Earners) Amendment Regulations 2005 (No. 1 )
Regulation 1 specifies the name of the regulations as the Superannuation (Government Co-contribution for Low Income Earners) Amendment Regulations 2005 (No. 1 ).
Regulation 2 provides that the regulations commence on 1 July 2005.
Regulation 3 provides that Schedule 1 amends the Superannuation (Government Co‑contribution for Low Income Earners) Regulations 2004 (the Principal Regulations).
Subregulation 10(2) states that the information that is required in a co‑contribution statement is that listed in Part 1 of Schedule 4. The Regulations substitute the reference to Part 1 of Schedule 4 to the Principal Regulations with a reference to Parts 1, 2 and 3 of Schedule 4 (see Item [5] below). These Parts update the prescribed information required in the co‑contribution statement.
Subregulation 10(3) prescribes further information that is required for financial years that start on or after 1 July 2004. The Regulations substitute the reference to Part 2 of Schedule 4 with a reference to the new Part 4 of Schedule 4 (see Item [5] below).
Subregulation 10(4)
Subregulation 10(4) sets out the prescribed date for notification of co‑contribution details to the Australian Taxation Office by superannuation providers by reference to section 43 of the Superannuation Contributions Tax (Assessment and Collection) Act 1997. This subregulation has been substituted to provide the prescribed notification dates as:
· 31 March immediately following the financial year for self managed superannuation funds; and
· 31 October immediately following the financial year in any other case.
The description of funds that are able to lodge information at a later date has been modified from that contained in the Superannuation Contributions Tax (Assessment and Collection) Act 1997. It now refers to self managed superannuation funds rather than superannuation funds who self assess their superannuation surcharge liabilities. This modification is necessary because, for surcharge purposes, the Commissioner is required to determine, in writing, a self assessing superannuation provider. With the abolition of the surcharge the Commissioner cannot make these determinations for financial years after 30 June 2005.
Regulation 18 provides that in cases where the superannuation provider is unable to give the Commissioner a member’s tax file number, the provider must give a statement to the Commissioner that contains information set out in Schedule 6 to the Principal Regulations. Subregulation 18(1) has been amended to reflect the changes in the numbering of the Schedules to the regulations (see Item [5] below).
Schedules 4 to 6
Schedules 4 to 6 have been omitted and replaced by new Schedules 4 and 5. Schedules 4 and 5 now contain all the information required by superannuation providers and such other information that is necessary to make a co‑contribution. Employer information is no longer required due to the cessation of the superannuation surcharge and has not been included in Schedules 4 and 5.
Schedule 6 has been reserved for further use.