House of Representatives

Explanatory Memorandum

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

Chapter 5 - Tax File Numbers

Overview

5.1 Part5 of this Bill contains provisions dealing with tax file numbers (TFNs). [Clauses 25to30]

Purpose of the provisions

5.2 The purpose of the provisions is to provide for:

•

the use of TFNs for superannuation purposes (eg. reuniting people with their superannuation) in connection with unclaimed money and lost members (TFNs are currently authorised for superannuation purposes in relation to regulated superannuation funds, approved deposit funds retirement savings accounts and the Commonwealth unclaimed money register); and

•

additional safeguards on the proper quotation of TFNs (safeguards are currently set out in Part 25A of the Superannuation Industry (Supervision) Act 1993 and Part 11 of the Retirement Savings Accounts Act 1997 ).

Explanation of the provisions

Forms etc. may require TFN

5.3 The approved form of unclaimed money statement or lost member statement may require the statement to contain the TFN of:

•

the fund; and

•

the member where:

-

the statement relates to the member; and

-

the member has quoted their TFN to the superannuation provider.

[Clause 25]

Regulated exempt public sector superannuation schemes

5.4 The approved form of unclaimed money statement or lost member statement may permit the statement to contain the TFN of:

•

the regulated exempt public sector scheme; and

•

the member where:

-

the statement relates to the member; and

-

the member has quoted their TFN to the trustee of the scheme.

[Clause 26]

Registers may contain TFNs

5.5 The particulars of persons that may be included in the unclaimed money and lost members registers may include their TFN. [Clause 27]

Use of TFNs

5.6 Clause 28 of this Bill allows the Commissioner of Taxation (the Commissioner) to use for the purposes of the Superannuation (Unclaimed Money and Lost Members) Act 1999 a persons TFN that has been quoted to the Commissioner for any other purpose and is expressed in similar terms to section140RA of the Income Tax Assessment Act 1936 .

Requesting TFNs

5.7 The unclaimed money and lost members registers may request that a claimant of the registers quote their TFN for the purposes of dealing with their claim. A person is not obliged to quote their TFN and non-quotation does not preclude the person from being paid unclaimed money. [Clause 29]

Quoting of TFNs

5.8 TFN quotation (including requests for TFN quotation) must be in accordance with the manner approved in writing by the Commissioner. [Clause 30]