Senate

Explanatory Memorandum

(Circulated by authority of the Treasurer, the Hon Peter Costello, MP)

Tax File Numbers

Purpose of the amendment

9.1 The amendment to the Superannuation Industry (Supervision) Act 1993 in Schedule 7 increases the period in which eligible superannuation entities must request the tax file numbers of new beneficiaries of the entity (if they do not already have them) from 7 days to 30 days.

Date of effect

9.2 The amendment will apply from the 60th day after Royal Assent to Taxation Laws Amendment Bill (No. 2) 1996.

Background to the amendmen

9.3 Schedule 4 of Taxation Laws Amendment Bill (No. 2) 1996 (the Bill) extends the use of tax file numbers in the superannuation industry.

9.4 Proposed new section 299G in Schedule 4 of the Bill requires eligible superannuation entities to seek the tax file number of a person who becomes a beneficiary after the commencement of the section, before the 'required time', unless the entity already has the tax file number.

9.5 Subsection (2) of that section specifies the 'required time' as the end of the 7th day after the day on which the person becomes a beneficiary of the eligible superannuation entity.

9.6 The term 'eligible superannuation entity' is defined by proposed new section 299W in Schedule 4 of the Bill to mean a regulated superannuation fund or approved deposit fund.

9.7 Proposed new sections 299G and 299W are proposed to be inserted into the Superannuation Industry (Supervision) Act 1993 by item 15 of Schedule 4 of the Bill. In accordance with subclause 2(4) of the Bill, the sections commence on the 60th day after Royal Assent to the Bill.

Explanation of the amendment

9.8 The amendment changes the reference to '7th' in proposed new subsection 299G(2) of the Superannuation Industry (Supervision) Act 1993 to '30th' so as to allow eligible superannuation entities 30 days (instead of the proposed 7 days) in which to seek the tax file number of new beneficiaries (if they do not already have the tax file number).