Explanatory Memorandum
(Circulated by authority of the Treasurer, the Hon Peter Costello, MP)Chapter 1 - Removing the requirement for the Commissioner to determine an advance instalment
Purpose of the amendments
1.1 To remove the requirement in the SCT(A & C) Act for the Commissioner to determine an advance instalment if superannuation contributions surcharge is payable for a member for a financial year.
Background to the legislation
1.2 The SCT(A & C) Act provides that if surcharge is payable for a member for a financial year, an advance instalment of one-half of the amount of the surcharge is payable on account of surcharge payable for the member for the following financial year.
Explanation of the amendments
1.3 Section 11 of the SCT(A & C) Act is amended to ensure that an advance instalment is only required to be determined if surcharge is payable under an assessment made before 23March1999 the date of the announcement. [Item 8 of Schedule 1]
1.4 Subsection 15(2) is amended to require the Commissioner to determine an advance instalment if, under an assessment issued before 23March1999, there is an amount (other than a nil amount) of surcharge payable. [Item 13 of Schedule 1]
1.5 The amendments do not affect determinations of advance instalment made in association with assessments that issued before 23March1999; such determinations remain payable by the original due date. The Commissioner's right to recover advance instalments determined before 23March1999 remain and late payment penalties continue to accrue if the advance instalment amounts have not been paid.
1.6 Advance instalments previously determined will be applied in accordance with section 17 (credit or refund of advance instalment) of the SCT (A & C) Act.