Commonwealth Numbered Regulations - Explanatory Statements

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SUPERANNUATION (SELF MANAGED SUPERANNUATION FUNDS) TAXATION REGULATIONS 2018 (F2018L00606)

EXPLANATORY STATEMENT

Issued by authority of the Minister for Revenue and Financial Services

Superannuation (Self Managed Superannuation Funds) Taxation Act 1987

Superannuation (Self Managed Superannuation Funds) Taxation Regulations 2018

Section 22 of the Superannuation (Self Managed Superannuation Funds) Taxation Act 1987 (the Act) prescribes 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 Superannuation (Self Managed Superannuation Funds) Taxation Regulations 2018 (the Regulations) is to remake and improve the Superannuation (Self Managed Superannuation Funds) Taxation Regulations 1999 and ensure their effect continues. The Legislation Act 2003 provides that all legislative instruments, other than exempt instruments, are automatically repealed after 10 years or in accordance with the progressive timetable set out in section 50. The Superannuation (Self Managed Superannuation Funds) Taxation Regulations 1999 was scheduled for automatic repeal on 1 April 2019.

The purpose of the Superannuation (Self Managed Superannuation Funds) Taxation Regulations 1999 was to prescribe the timing for when the self managed super fund supervisory levy was due and payable. That purpose is achieved by the Regulations.

The Regulations remake and improve the Superannuation (Self Managed Superannuation Funds) Taxation Regulations 1999 by repealing redundant provisions, simplifying the provisions and adopting current drafting practices, such as referring to 'sections' rather than 'regulations'.

The changes do not affect the substantive meaning or operation of the provisions.

An exposure draft of the Regulations and accompanying explanatory statement were released for public consultation from 22 February to 23 March 2018. No submissions were received during the consultation period.

Further details of the Regulations are set out in the Attachment.

The Regulations commence on 1 July 2018.

The Office of Best Practice Regulation considered the Regulations have minor impact on business, community organisations or individuals and has certified that the remaking of the Regulations do not require a Regulatory Impact Statement (OBPR ID: 23466)

Statement of Compatibility with Human Rights

Prepared in accordance with Part 3 of the Human Rights (Parliamentary Scrutiny) Act 2011

Small Superannuation Account Regulations 2018

This Legislative Instrument is compatible with the human rights and freedoms recognised or declared in the international instruments listed in section 3 of the Human Rights (Parliamentary Scrutiny) Act 2011.

Overview of the Legislative Instrument

The Regulations remake and improve the Superannuation (Self Managed Superannuation Funds) Taxation Regulations 1999 by repealing redundant provisions, simplifying the provisions and adopting current drafting practices, such as referring to 'sections' rather than 'regulations'.

The changes do not affect the substantive meaning or operation of the provisions.

Human rights implications

This Legislative Instrument does not engage any of the applicable rights or freedoms.

Conclusion

This Legislative Instrument is compatible with human rights as it does not raise any human rights issues.

ATTACHMENT

Details of the Superannuation (Self Managed Superannuation Funds) Taxation Regulations 2018

Section 1 - Name of Regulation

This section specifies the title of the Regulations as the Superannuation (Self Managed Superannuation Funds) Taxation Regulations 2018.

Section 2 - Commencement

This section provides that the Regulations commence on 1 July 2018.

Section 3 - Authority

This section provides the Regulations are made under the Superannuation (Self Managed Superannuation Funds) Taxation Act 1987.

Section 4 - Schedules

This section provides that each instrument identified in a Schedule to the Regulations is amended or repealed in accordance with these Regulations.

Section 5 - Definitions

This section provides a definitions section listing the only defined term used in the Regulations. This replaces regulation 3 of the prior Regulations.

Section 6 - When levy due for payment

This section specifies that an entity be required to pay the levy for an income year on the day it is required to lodge its annual return for the preceding income year. Consequently, an entity will be required to pay the levy for its first and second year on the day it lodges its first annual return.

Schedule 1 - Repeals

Schedule 1 repeals the Superannuation (Self Managed Superannuation Funds) Supervisory Levy Imposition Regulations 1999 from 1 July 2018.

Finding table

As a result of some of the changes described above, it became necessary to renumber provisions of the Regulations. This Explanatory Memorandum includes a finding table to assist in identifying which provision in the Regulations corresponds to a provision in the old law that has been rewritten or consolidated, and vice versa.

References to the old law are to the Superannuation (Self Managed Superannuation Funds) Taxation Regulations 1999. References to the new law are to the Superannuation (Self Managed Superannuation Funds) Taxation Regulations 2018. Also, in the finding table, 'no equivalent' means that this is a new provision that has no equivalent in the old law.