House of Representatives

Explanatory Memorandum

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

Chapter 5 - Reporting

Purpose of the amendments

5.1 The purpose of the amendments is to provide alternative reporting requirements for superannuation providers to reduce administration costs incurred (and ultimately borne by all members) in reporting surcharge information to all members.

5.2 In addition, amendments are made to clarify what is to be reported to the Commissioner in respect of:

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surchargeable contributions; and

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contributed amounts.

Background to the legislation

5.3 Subsections 13(2) and 12(2) respectively of the Assessment and Collection Acts require all superannuation providers to give information to the Commissioner.

5.4 Subsections 13(5) and 12(4) respectively of the Assessment and Collection Acts require superannuation providers that give a statement to the Commissioner containing surcharge information, to give the member the details reported to the Commissioner, not later than 12months after the statement is given to the Commissioner.

5.5 This reporting requirement applies to every member in relation to whom surcharge information was reported to the Commissioner.

5.6 Subsections 13(7) and 12(5) respectively of the Assessment and Collection Acts specify certain particulars to be reported by providers to the Commissioner.

Explanation of the amendments

5.7 An amendment to subsection 13(2) of the SCT(A & C) Act exempts self assessing superannuation providers from reporting under section 13. They are required to report under new sections 15A and 15B . [Item 9 of Schedule 1]

5.8 New subsections 13(5A) and 12(4A) respectively of the Assessment and Collection Acts require superannuation providers to give details to the member of what the provider reported to the Commissioner within 30 days of the member or former member requesting that information (that is, members will not have full information unless they specifically ask for it from the provider).

5.9 New subsections 13(5B) and 12(4B) respectively of the Assessment and Collection Acts allow superannuation providers to report to the member in writing or by some other means of communication. The provider must report to the member in writing if the member specifically requests information in this manner. If the provider reports to all members in accordance with the current provisions, no further reporting is required to individual members. [Items 10, 11 and 35 of Schedule 1 and Items 5, 6 and 19 of Schedule 2]

5.10 New subsections 13(7) and 12(5) respectively of the Assessment and Collection Acts ensure surchargeable contributions and contributed amounts identified under sections 8 and 9 respectively of the Assessment and Collection Acts are reported as appropriate. [Item 12 of Schedule 1 and Item 7 of Schedule 2]

5.11 The amended definition of contributed amounts at sections 43 and 38 respectively of the Assessment and Collection Acts ensures that all amounts, whether paid, credited, attributed or arising from surplus less amounts reasonably attributable to interest are reported to the Commissioner. [Item 31 of Schedule 1 and Item 18 of Schedule 2]

5.12 Transitional provisions require providers that have not reported in line with the legislation as amended to resubmit a report by a date published in the Gazette . [Item 43 of Schedule 1 and Item 26 of Schedule2]

5.13 Superannuation providers that have previously reported surchargeable contributions calculated using notional surchargeable contribution factors worked out in line with the method set out in SCR97/1, or by another method approved by the Commissioner in writing, are not required to resubmit reports.