Explanatory Memorandum
(Circulated by the authority of the Deputy Prime Minister and Treasurer, the Hon Wayne Swan MP)Chapter 3 Amendment to the Superannuation Supervisory Levy Imposition Act 1998
Outline of chapter
3.1 Schedule 1 of the Superannuation Supervisory Levy Imposition Amendment Bill 2012 amends the Superannuation Supervisory Levy Imposition Act 1998 to enable the Treasurer to make more than one determination for a financial year.
Context of amendments
3.2 As part of the Stronger Super reform package, the Government announced that expenditure associated with the introduction of SuperStream would be financed by a temporary levy on industry.
3.3 Government costs associated with the implementation of SuperStream will be recovered through the Superannuation Supervisory Levy that applies to APRA-regulated funds.
3.4 The amendment made in Schedule 1 is to provide the Treasurer the ability to make a subsequent determination, for a financial year, of the restricted and unrestricted levy amounts, restricted and unrestricted levy percentages and the superannuation entity levy base.
3.5 This amendment will provide flexibility for the Treasurer in the event that amendments to the Australian Prudential Regulation Authority Act 1998 (APRA Act), that provide for costs associated with the implementation of SuperStream to be included in the Minister's determination that specifies the amount of levy money payable to the Commonwealth, are delayed beyond 30 June 2012.
Summary of new law
3.6 Schedule 1 amends the Superannuation Supervisory Levy Imposition Act 1998 to enable the Treasurer to make more than one determination for a financial year.
3.7 The amendment enables the Treasurer to make more than one determination, for a financial year, on any or all of the components included in the determination, being - the restricted levy amount, the unrestricted levy amounts, the restricted levy percentage, the unrestricted levy percentages and the superannuation entity levy base.
Comparison of key features of new law and current law
| New law | Current law |
| The Treasurer is able to make more than one determination for a financial year. | No equivalent. |
Detailed explanation of new law
Treasurer able to make multiple determinations for a financial year
3.8 An amendment will be made to insert at the end of subsection 7, a provision that provides the ability for the Treasurer to make more than one determination, for a financial year, on any or all of the components included in the determination. [ Schedule 1, item 1, section 7 of the Superannuation Supervisory Levy Imposition Act 1998 ]
Application and transitional provisions
3.9 The amendment in this Schedule applies from 1 July 2012.
Consequential amendments
3.10 Nil.
STATEMENT OF COMPATIBILITY WITH HUMAN RIGHTS
Prepared in accordance with Part 3 of the Human Rights (Parliamentary Scrutiny) Act 2011
Amendment to the Superannuation Supervisory Levy Imposition Act 1998
3.11 This Bill 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
3.12 Schedule 1 of this Bill amends the Superannuation Supervisory Levy Imposition Act 1998 to enable the Treasurer to make a subsequent determination, for a financial year, of the restricted and unrestricted levy amounts, restricted and unrestricted levy percentages and the superannuation entity levy base.
3.13 This amendment will provide flexibility for the Treasurer in the event that amendments to the APRA Act, that provide for costs associated with the implementation of SuperStream to be included in the Minister's determination that specifies the amount of levy money payable to the Commonwealth, are delayed beyond 30 June 2012.
Human rights implications
3.14 This Bill does not engage any of the applicable rights or freedoms.
Conclusion
3.1 This Bill is compatible with human rights as it does not raise any human rights issues.
Minister for Superannuation, the Hon Bill Shorten .