Explanatory Memorandum
(Circulated by the authority of the Treasurer, the Hon John Dawkins, M.P.)Chapter 1 Introduction
Overview of the Chapter
This chapter deals with the title, commencement, scope of the proposed Act, the administration of the proposed Act and comments on interpretational matters.
Explanation
Title and Commencement of the Act
When this Bill is enacted it will be called the Superannuation Guarantee (Administration) Act 1992[Clause 1]
The Act is to commence on 1 July 1992[Clause2]. Accordingly, employers will need to measure superannuation support for their employees from that date in order to determine if the minimum level of superannuation support is being provided. This is discussed further in Chapter 3.
The Bill binds the Crown not only in the Commonwealth, but in each of the States, the Australian Capital Territory, and the Northern Territory. The Bill also extends to the Territory of Cocos (Keeling) Islands and the Territory of Christmas Island. These Territories are treated as part of Australia for the purposes of the Bill. [Clauses 3 and 4] The Crown cannot be prosecuted for any offences under this Bill. [Clause 3]
The Commissioner of Taxation is to be responsible for the general administration of the Bill. Those responsibilities include the collection of the tax, redistribution to employees and enforcement of the provisions of the Bill. [Clause 40]
The Commissioner will be required to provide an annual report on the working of the Act to the Treasurer for presentation to Parliament. This is a normal requirement of Australian taxation laws. [Clause 41]
The Bill imposes an obligation of secrecy on persons who, in the course of their duties relating to the administration of the Bill, acquire information on the affairs of another person. These secrecy provisions are consistent with those in other Commonwealth Acts that the Commissioner administers. [Clause 42]
The secrecy provisions apply to a person who is or has been:
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- the Commissioner, a Second Commissioner or a Deputy Commissioner; or
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- an officer or employee of the Australian Taxation Office; or
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- otherwise appointed or employed by, or a provider of services for, the Commonwealth. [Subclause 42(1)]
A person is not allowed to make a record of, or divulge or communicate protected information about another person except in the course of their duties or if it is necessary to do so for the purpose of giving effect to the provisions of the Bill. This obligation extends to divulging or communicating protected information to a Minister or a court. [Subclauses 42(2), (4), and (5)]
However, the Commissioner, a Second Commissioner or a Deputy Commissioner or a person authorised by them is not prevented from communicating or divulging protected information to a person to enable that person to perform duties for the purposes of an Act (including associated regulations) of which the Commissioner has the general administration. Similarly, nothing in an Act administered by the Commissioner can prohibit the Commissioner, a Second Commissioner, a Deputy Commissioner or a person authorised by them from communicating or divulging any information to a person performing duties under this Bill, or to disclose information or documents to a court where it is for the purpose of this Bill. [Subclauses 42(3), (5),(6) and (7)]
A person must make a written oath or declaration to maintain secrecy in accordance with the secrecy provisions of this Bill, if it is required by the Commissioner, a Second Commissioner or a Deputy Commissioner. [Subclause 42(8)]
The penalty for failure to adhere to the secrecy provisions is imprisonment for two years.
The Bill contains a number of interpretation provisions [Part 2]. These provisions give meaning to terms which are used in the Bill. For convenience, the terms are explained in the Chapters dealing with the provisions in which the terms are used. Also, the Appendix to this explanatory memorandum contains a glossary of commonly used terms.