House of Representatives

Explanatory Memorandum

(Circulated by the authority of the Treasurer, the Hon John Dawkins, M.P.)

Chapter 6 Review of Assessments

Overview of the Chapter

This chapter deals with the procedures for review of assessments for the superannuation guarantee charge.

Explanation

Procedure for review

If an employer is dissatisfied with the assessment of the superannuation guarantee charge, the employer can object against the assessment. The procedure for objection is set out in Part IVC of the Taxation Administration Act 1953. [Clause 39]

Summary of objection and appeal procedures in Part IVC of the Taxation Administration Act 1953

(The section references below are from the Taxation Administration Act)

In general a taxpayer has 60 days from receiving a notice of assessment to object against the assessment. An objection may be lodged after the 60 day period but must be accompanied by a request for an extension of time (section 14ZW). The Commissioner must then decide whether to consider the objection as lodged on time. A decision not to extend the lodgement time is reviewable by the Administrative Appeals Tribunal (AAT) (section 14ZX).

The objection must be in writing, and must fully and in detail state the grounds that the taxpayer is relying upon (section 14ZU). If an amendment is made to an assessment the taxpayer can only object to the alterations (section 14ZV).

If an objection is lodged within time, the Commissioner must decide whether to allow in full, allow in part, or disallow the objection (section 14ZY). A person who has lodged an objection may give the Commissioner a notice requiring the Commissioner to make a decision on the objection by the later of:

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60 days after the objection was lodged with the Commissioner;

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60 days after the day on which the Commissioner decides to agree to accept an objection lodged out of time; or

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if the Commissioner has requested further information relating to the objection - 60 days after receipt of that information.

If the commissioner does not make a decision within 60 days of receiving the notice, the Commissioner is deemed to have disallowed the objection and is required to serve a notice of the objection decision on the person. (section 14ZYA)

If the objection is not allowed in full the taxpayer has the option to apply to either the AAT or the Federal Court depending upon the circumstances of the case (section 14ZZ).

An application to the AAT or Federal Court must be made within 60 days of receiving the notice of the Commissioner's decision. Once again the application must be in writing and set out the grounds for the application (sections 14ZZC and 14ZZN). The applicant is then limited to these grounds of objection, unless the court orders otherwise. The applicant also has the burden of proof (sections14ZZK and 14ZZO).

Despite appeal and review proceedings pending, any superannuation guarantee charge owing is still payable as if there was no review or appeal being undertaken (sections 14ZZM and 14ZZR).