Supplementary Explanatory Memorandum
(Circulated by authority of the Treasurer, the Hon Peter Costello, MP)General outline and financial impact
Amendments to the Superannuation Legislation Amendment (Choice of Superannuation Funds) Bill 2003
Amendments 2 to 4 to the bill will:
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- clarify the fund employers must make contributions to where an employee does not choose a fund; and
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- insert new section 68A into the Superannuation Industry (Supervision) Act 1993 so that superannuation funds or their associates do not offer or withhold benefits to a person on the basis that their employees are members of the fund.
Date of effect : The amendments will apply from 1 July 2005.
Proposal announced : Not previously announced.
Financial impact : Nil.
Compliance cost impact : Nil.
Expanding the definition of dependant
Amendments 1 and 5 will add Schedule 2 to the bill to expand the definition of 'dependant' in relation to the receipt and taxation of superannuation death benefits. The relevant definitions of dependant in the Income Tax Assessment Act 1936 (ITAA 1936), the Superannuation Industry (Supervision) Act 1993 (SIS Act) and the Retirement Savings Accounts Act 1997 (RSA Act) will be amended to include interdependency relationships.
Date of effect : The ITAA 1936 amendment will apply to eligible termination payments made on or after Royal Assent. The amendment to the definition of dependant in the SIS Act and the RSA Act applies to things done on or after Royal Assent.
Proposal announced : This measure was announced in the Minister for Revenue and Assistant Treasurer's Press Release No. C046/04 of 27 May 2004.
Financial impact : There is a cost to revenue of $20 million over the forward estimates.
Compliance cost impact : Nil.