Explanatory Memorandum
(Circulated by authority of the Treasurer, the Hon Peter Costello, MP)Chapter 2 Amendments to the Income Tax Assessment Act
2.1 Schedule 1 of the Bill amends the Income Tax Assessment Act 1936 (the Act).
2.2 Section 202 is to be amended to insert references to the Superannuation Contributions Surcharge (Assessment and Collection) Act 1997 and the Termination Payments Surcharge (Assessment and Collection) Act 1997 . This amendment provides that the object of the Tax File Number (TFN) provisions is to facilitate the operation of these two Acts. [Item 1]
2.3 Section 202DH is amended to allow TFNs quoted for taxation or superannuation purposes, from the date of effect of the surcharge legislation, to be used for surcharge purposes. [Item 2]
2.4 The Bill inserts a new section into the Act to provide that where a person has quoted their TFN to a superannuation provider (ie; a superannuation fund, scheme or retirement savings account provider) for the purpose of calculating the tax to be deducted from an eligible termination payment (ETP) that TFN will be taken to have been quoted for the purposes of the Superannuation Contributions Surcharge (Assessment and Collection) Act 1997 and the Termination Payments Surcharge (Assessment and Collection) Act 1997 . [Item 3 - new section202DJ of the Act]
2.5 Section 214A is amended to include references to the Superannuation Contributions Surcharge (Assessment and Collection) Act 1997 and the Termination Payments Surcharge (Assessment and Collection) Act 1997 . This amendment will allow the rate of interest calculated under those Acts to be determined by section 214A of the Act. [Item 4]