Explanatory Memorandum
(Circulated by authority of the Treasurer, the Hon Scott Morrison MP)General outline and financial impact
Working holiday makers: Departing Australia superannuation payments tax rate reduction
The Superannuation (Departing Australia Superannuation Payments Tax) Amendment Bill (No. 2) 2016 reduces the rate from 95 per cent to 65 per cent for the departing Australia superannuation payments tax that applies to amounts attributable to superannuation contributions made while a person was a working holiday maker.
Date of effect: 1 July 2017.
Proposal announced: The amendment was announced on 1 December 2016.
Financial impact: These amendments to reduce the rate of the departing Australia superannuation payments tax from 95 per cent to 65 per cent for the departing Australia superannuation payments tax that applies to amounts attributable to superannuation contributions made while a person was a working holiday maker results in a reduction in receipts of $55 million over the forward estimates period as follows:
| Underlying cash balance ($m) | 2016-17 | 2017-18 | 2018-19 | 2019-20 |
| Reduce tax rate on Departing Australia Superannuation Payment to 65 per cent | - | -15 | -20 | -20 |
Human rights implications: The amendment does not raise any human rights issues - see paragraphs 1.6 to 1.9.
Compliance cost impact: Nil.