Explanatory Memorandum
(Circulated by authority of the Treasurer, the Hon Peter Costello, MP)Chapter 1 Preliminary
Overview
1.1 This Bill makes consequential amendments to five Acts as a result of the 1996-97 Budget announcement to introduce a superannuation contributions surcharge for high income earners.
1.2 The Bill is structured in five schedules, each dealing with amendments to a particular Act. This chapter follows the structure of the Bill.
Summary of the amendments
1.3 The amendments propose to amend certain provisions of the Income Tax Assessment Act 1936 , the Retirement Savings Accounts Act 1997 , the Superannuation Industry (Supervision) Act 1993 , the Superannuation (Resolution of Complaints) Act 1993 and the Taxation (Interest on Overpayments and Early Payments) Act 1983 . The amendments to those Acts are contained in the Schedules to the Bill. [Clause 3]
Title and Commencement of the Act
1.4 When the Bill is enacted it will be called the Superannuation Contributions Surcharge (Consequential Amendments) Act 1997 . [Clause1]
1.5 The amendments outlined in the Bill are to have effect from the date on which the Act receives the Royal Assent. [Clause 2]
Background to the legislation
1.6 As part of the 1996-97 Budget the Treasurer announced the Government's intention to make the superannuation system more equitable for all Australians. To achieve this the Government announced, as one of the superannuation reform measures, the introduction, from 7.30 pm by legal time in the Australian Capital Territory on 20 August 1996, a Superannuation Contributions Surcharge for High Income Earners (the surcharge).
1.7 The surcharge is designed to reduce the extent of tax concessions in the superannuation system and to ensure that the benefits of tax concessions are more appropriately distributed. The result of this overall reduction in tax concessions will be a fairer and more equitable superannuation system.
1.8 The legislation to introduce the surcharge is contained in four Bills, the Superannuation Contributions Surcharge (Assessment and Collection) Bill 1997, the Superannuation Contributions Surcharge Imposition Bill 1997, the Termination Payments Surcharge (Assessment and Collection) Bill 1997 and the Termination Payments Surcharge Imposition Bill 1997.
1.9 As a consequence of the introduction of the superannuation contributions surcharge and the termination payments surcharge it is necessary to amend certain provisions of the Income Tax Assessment Act 1936 , the Retirement Savings Accounts Act 1997 , the Superannuation Industry (Supervision) Act 1993 , the Superannuation (Resolution of Complaints) Act 1993 and the Taxation (Interest on Overpayments and Early Payments) Act 1983 .