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SUPERANNUATION CONTRIBUTIONS TAX (ASSESSMENT AND COLLECTION) REGULATIONS1997 NO. 271
EXPLANATORY STATEMENTSTATUTORY RULES 1997 No. 271
Issued by the Authority of the Assistant Treasurer
Superannuation Contributions Tax (Assessment and Collection) Act 1997
Superannuation Contributions Tax (Assessment and Collection) Regulations
The Superannuation Contributions Tax (Assessment and Collection) Act 1997 (the Act) provides for the assessment and collection of the superannuation contributions tax. Section 42 of the Act provides that the Governor-General may make regulations for the purposes of the Act. Section 42 enables regulations to prescribe matters required or permitted by the Act or necessary or convenient for carrying out or giving effect to the Act.
The regulations:
* prescribe additional matters of information to be given by superannuation providers under subsection 13(2) of the Act (regulation 3);
* allow the Commissioner of Taxation (the Commissioner) to specify how and where information is to be given to the Commissioner (regulations 4 and 5);
* require superannuation providers to update the Commissioner with changes in address for service, changes and omissions in information given to the Commissioner and tax file numbers (regulations 6, 9 and 10);
* provide rules for determining a person's address for service and last known place of business or residence in Australia, (regulations 7 and 8);
* allow the Commissioner to mark or annotate information given to the Commissioner (regulation 11);
* provide rules governing the acceptance of information by the Commissioner, service of documents, signatures on documents, rounding of amounts and reimbursement of expenses for persons attending before the Commissioner (regulations 12, 14, 15, 16, 17 and 18); and
* allow the Commissioner to request information in connection with the operation or possible future operation of the Act and these Regulations (regulation 13).
The purpose of the regulations is to prescribe administrative matters to assist the assessment and collection of the superannuation contributions tax payable on the surchargeable superannuation contributions of high income earners.
The regulations are described in detail in the attachment. The regulations commence on gazettal.
ATTACHMENT
Superannuation Contributions Tax (Assessment and Collection) Regulations
COMMENCEMENT OF THE REGULATIONS
The Superannuation Contributions Tax (Assessment and Collection) Regulations (the Regulations) commence on gazettal.
BACKGROUND TO THE REGULATIONS
The Superannuation Contributions Tax (Assessment and Collection) Act 1997 (the Act) provides for the assessment and collection of the superannuation contributions tax.
Section 42 of the Act enables regulations to prescribe matters required or permitted by the Act or necessary or convenient for carrying out or giving effect to the Act.
Paragraph 13(2)(c) of the Act enables regulations to prescribe additional matters that superannuation providers are required to give the Commissioner of Taxation (the Commissioner) if they are the holders of contributed amounts at the end of a financial year.
Subsection 39(4) of the Act enables regulations to prescribe scales of expenses to be allowed to persons required to attend before the Commissioner under section 39 of the Act.
The Regulations prescribe inflamation to be given by superannuation providers to the Commissioner and other matters necessary or convenient for the assessment and collection of the superannuation contributions tax.
EXPLANATION OF THE REGULATIONS
Regulation 1 - Citation
Regulation 1 provides that the Regulations may be cited as the Superannuation Contributions Tax (Assessment and Collection) Regulations.
Regulation 2 - Interpretation
Regulation 2 contains definitions of terms used in the Regulations.
Regulation 2 defines the terms "direct employer-contributed amount", "direct specified roll-over amount", "roll-in employer-contributed amount" and "roll-in specified roll-over amount" which are set out in Schedule 1 of the Regulations.
Under subsection 13(2) of the Act and regulation 3 of these Regulations superannuation providers will be required to provide details of the amounts to the Commissioner if they are the holder of contributed amounts for the member at the end of the financial year. Superannuation providers will be required to provide details as applicable (regulation 3 of the Regulations) and as known to them (paragraph 12(2)(a) of the Regulations).
For a superannuation (accumulated benefits) provider, the "direct employer-contributed amount" is the amount of surchargeable contributions (other than specified rollover amounts) that have been made directly by an employer for the member to the superannuation fund administered by the provider during. the relevant financial year that have been retained in the fund. The "roll-in employer-contributed amount" is the amount of direct employer-contributed amounts made to other, superannuation funds but transferred to the superannuation fund administered by the provider during the financial year.
For a superannuation (defined benefits) provider, the "direct employer-contributed amount" is the amount of the member's surchargeable contributions (as calculated under subsection 8(3) of the Act) for the relevant financial year less the member's surchargeable contributions transferred to the provider in the financial year. The "Roll-in employer-contributed amount" is the amount of the member's surchargeable contributions transferred to the superannuation fund administered by the provider from another superannuation fund during the financial year.
Section 8 of the Act explains the member's surchargeable contributions for a financial year. Subsection 8(4) of the Act provides a special explanation of the member's surchargeable contributions for the 1996/97 financial year.
The terms "direct specified rollover amounts" and "roll-in specified rollover amounts" have corresponding meanings in relation to a "specified rollover amount" which is defined by section 43 of the Act.
Regulation 3 - Information requirements under subsection 13(2) of the Act
Regulation 3 prescribes additional matters of information to be given by superannuation providers to the Commissioner under subsection 13(2) of the Act. These additional matters are set out in Schedule 1 of the Regulations.
Regulation 4 - Form of information to be given to the Commissioner.
Regulation 4 allows the Commissioner to specify how information (other than information required by section 13 of the Act) is to be given to the Commissioner. Section 14 of the Act governs how information required by section 13 of the Act is to be given to the Commissioner. The flexibility permitted by regulation 4 will ensure the most efficient reporting systems are adopted in response to technological change and will facilitate the effective use of electronic commerce between superannuation providers and the Commissioner. It is envisaged that the use of electronic commerce will reduce compliance costs for superannuation providers.
Regulation 5 - Where information is to be given
Regulation 5 allows the Commissioner to specify where information is to be given to the Commissioner and is consistent with Income Tax Regulation 28.
Regulation 6 - Change of superannuation provider's address for service
Regulation 6 requires superannuation providers to update the Commissioner with changes in address for service within one month after the change and is consistent with Income Tax Regulation 37.
Regulation 7 - How an address for service will be determined
Regulation 7 provides rules for determining a person's address for service and is consistent with Income Tax Regulation 38.
Regulation 8 - Last known place of business or residence
Regulation 8 provides that a person's address for service is taken to be the person's last known place of business or residence in Australia and is consistent with Income Tax Regulation 39.
Regulation 9 - Updating the Commissioner with a change or omission, in information given to the Commission
Regulation 9 imposes an obligation on superannuation providers to update the Commissioner with any changes or omissions in information given to the Commissioner. The obligation applies in circumstances where the provider becomes aware of the change or omission unless the provider is reasonably satisfied that the change or omission will not affect an assessment. This qualification ensures that superannuation providers are not required to report insignificant changes or omissions (eg. the omission of a postcode for Sydney, NSW).
The notification of the change or omission must be made before the next reporting, day after the superannuation provider became aware of the change or omission. However if the provider becomes aware of the change or omission less than 30 days before the next reporting day, the provider has until the reporting day after that reporting day to report the change or omission.
Superannuation providers may always report changes or omissions earlier than required.
A "reporting day" is defined by regulation 2 to mean, in 1998 - 15 February, 15 April and 15 July; and in 1999 and subsequent years - 15 January, 15 April and 15 July.
Regulation 10 - Giving a tax file number statement to the Commissioner
Regulation 10 imposes an obligation on superannuation providers to give the Commissioner a member's tax file number (together with information set out in Schedule 2 of the Regulations) if.
- the superannuation provider has given information to the Commissioner in connection with the Act or the Regulations in relation to the member,
- the member did not quote his or her tax file number to the provider in connection with the operation or possible future operation of the Act before the information was given;
- the Commissioner has not informed the provider of the members tax file number; and
- the member later quotes the tax file number to the provider in connection with the operation or possible future operation of the Act.
The tax file number must be given before the next reporting day after the tax file number was quoted to the superannuation provider, However if the tax file number is quoted to the provider less than 30 days before the next reporting day, the provider has until the reporting day after that reporting day to give the tax file number to the Commissioner.
If an assessment is given to the provider after the tax file number has been quoted to the provider but before it has been given to the Commissioner, the provider must give the tax file number to the Commissioner before the earlier of the relevant reporting day and the due date for payment of the assessment.
Superannuation providers may always give tax file numbers to the Commissioner earlier than required.
Regulation 11 - Commissioner may cause information to be marked or annotated
Regulation 11 authorises the Commissioner to mark or make annotations on any information given to the Commissioner and is consistent with Income Tax Regulation 41.
Regulation 12 - Need to give information in the required form and manner
Regulation 12 contains a number of provisions related to when information requirements are taken to have been satisfied.
A person is not taken to have given information to the Commissioner until the Commissioner accepts the information. The Commissioner must accept the information if it:
* gives a complete and accurate statement of all the matters required by the Act and the Regulations, to the extent that information about those matters is known to the person; and
* is given in the form and manner required by the Act and the Regulations; and
* is signed or otherwise identified by the person giving the information as required by the Act or these Regulations.
The Commissioner may accept part information without in any way prejudicing the Commissioner's power to request the complete information.
Regulation. 13 - Commissioner may request information
Regulation 13 allows the Commissioner to request any person to give information in connection with the operation or possible future operation of the Act and these Regulations.
Regulation 14 - Service of documents
Regulation 14 contains rules governing the service of documents and is consistent with Income Tax Regulation 170.
Regulation 15 - Presumption as to signatures
Regulation 15 provides that judicial. notice must be taken of the names and signatures of current or former Commissioners, Second Commissioners, Deputy Commissioners and delegates of the Commissioner and that a document that bears the name of any such person is to be taken as signed by that person unless it is proved that the document was issued without authority. Regulation 15 is consistent with Income Tax Regulation 172.
Regulation 16 - Amounts of interest on surcharge debt accounts to be rounded down
Regulation 16 provides that if interest calculated for a member of a superannuation (unfunded defined benefits) provider under subsection 16(4) of the Act is an amount of whole dollars and an amount of cents, the amount of cents is to be disregarded.
Regulation 17 - Amounts remitted or refunded to be rounded up
Regulation 17 provides that if an amount of surcharge, advance instalment, interest or late payment penalty to be refunded or remitted under the Act is not a multiple of 5 cents, the amount is to be increased to the nearest multiple of 5 cents.
Regulation 18 - Expenses for persons attending before the Commission
Regulation 18 prescribes (as set out in Schedule 3 of the Regulations) a scale of expenses to be allowed to persons (other than persons giving information or answering questions in respect of their own income or assessment or the income or assessment of persons whose representatives they are) required to attend under section 39 of the Act to give information or evidence to the Commissioner.
Regulation 18 is prescribed for the purposes of subsection 39(4) of the Act and is consistent with regulation 174 of the Income Tax Regulations.