Explanatory Memorandum
(Circulated by authority of the Assistant Treasurer, Senator the Hon Rod Kemp)Schedule 2 - Consequential Amendments of Other Acts
Explanation of Provisions
Australian Prudential Regulation Authority Act 1998
Items 1 and 2 amend the APRA Act so that documents and information given or produced under the SIS Act as administered, or applied for the purpose of administering a provision, by the Commissioner of Taxation, are not considered protected under the APRA Act. These changes ensure documents and information available to a regulator are protected under the appropriate Act. The provision removes information or documents in respect self managed superannuation funds from the coverage of the APRA secrecy provisions, except where a provision of the SIS Act in respect of a self managed superannuation fund remains administered by APRA (i.e. the disqualified person discretion).
Financial Institutions Supervisory Levies Collection Act 1998
Item 3 Section 7 (paragraph (b) of the definition of superannuation entity)
Replaces the reference to 'excluded superannuation fund' in the definition of superannuation entity with 'self managed superannuation fund'.
This ensures that, with effect from 1 July 1999, self managed superannuation funds are not subject to a liability to a levy under the Financial Institutions Supervisory Levies Collection Act 1998.
Item 4 At the end of section 11
Inserts a note highlighting that any outstanding levy and late payment penalty may be payable to the Commissioner of Taxation on behalf of the Commonwealth as a result of section 252G of the Superannuation Industry (Supervision) Act 1993 .
Income Tax Assessment Act 1936
Item 5 Subsection 160ZZPIA(5) (paragraph (a) of the definition of qualifying superannuation fund)
Replaces the reference to 'excluded superannuation fund' with 'self managed superannuation fund'.
Adds new subsection 161(3) to the Act that allows a return required under section 36A of the Superannuation Industry (Supervision) Act 1993 to be attached to or physically form part of a return under section 161 of the Act.
Superannuation (Excluded Funds) Supervisory Levy Imposition Act 1991
Amends the Short Title of the Act to the Superannuation (Self Managed Superannuation Funds) Supervisory Levy Imposition Act 1991 with effect from 1 July 1999.
Omits section 4 of the Act.
Replaces the reference to 'Excluded Funds' with 'Self Managed Superannuation Funds' reflecting the amended Short Title of the Superannuation (Self Managed Superannuation Funds) Taxation Act 1991.
Amends subsection 6(1) of the Act to provide that the amount of levy payable on the lodgment of a return for a year of income is the sum of the amount (not exceeding $200) specified in the regulations and, if the return is not lodged by the due date specified in the regulations, the amount of any late return lodgment penalty the trustee is liable to pay under section 6(2) of the Act ( item 10 ).
Omits subsection 6(2), (3), (4) and (5) of the Act and inserts a new subsection 6(2) into the Act that provides that the late lodgment amount in relation to a return is the amount (not exceeding $25) specified in the regulations in respect of the calendar month beginning the day after the due date for the return and each subsequent calendar month before the return is lodged ( item 11 ).
Item 12 Subsections 7(2) and (3)
Omits subsection 7(2) and (3) from the Act.
Superannuation (Excluded Funds) Taxation Act 1987
Amends the Short Title of the Act to the Superannuation (Self Managed Superannuation Funds) Taxation Act 1987 with effect from 1 July 1999.
Items 14 - 16 Section 3 (definitions)
Omits the definition of APRA ( item 14 ). Replaces the reference to 'APRA' in the definition of reviewable decision with 'the Commissioner of Taxation' ( item 15 ). Omits the definition of unit trust ( item 16 ).
Replaces the reference to 'APRA' in the Part III heading with 'the Commissioner of Taxation'.
Replaces the reference to 'APRA' with 'the Commissioner of Taxation'.
Replaces the reference to 'Excluded Funds' in the Part IIIAA heading with 'self managed superannuation funds'.
Items 20 - 24 Section 15DAA (definitions)
Omits the definition of basic levy amount ( item 20 ). Replaces the reference to 'Excluded Funds' with 'Self Managed Superannuation Funds' reflecting the amended Short Title of the Superannuation (Self Managed Superannuation Funds) Supervisory Levy Imposition Act 1991 ( item 22 ). Repeals the definition of minimum basic levy amount ( item 23 ). Omits the definition of excluded superannuation fund ( item 21 ). Inserts a definition of self managed superannuation fund with the meaning given by subsection 10(1) of the Superannuation Industry (Supervision) Act 1993 ( item 24 ) .
Amend section 15DA of the Act to provide that the trustee of a self managed superannuation fund who lodges a return under section 36A of the Superannuation Industry (Supervision) Act 1993 is liable to pay a levy on that lodgment.
Items 27 and 28 Subsection 15DB(1)
Amends subsection 15DB(1) of the Act to provide that the levy payable by a person on the lodgment of a return is due and payable on the day specified in the regulations ( item 27 ).
Inserts new subsection 15DB(1A) which provides that without limiting subsection 15DB(1), the regulations may provide that the levy is due and payable on a day specified in a notice given to the person by the Commissioner of Taxation ( item 28 ).
Items 29 and 30 Subsections 15DC (1), (2) and (3)
Amends subsection 15DC(1) of the Act to provide that if any levy payable by a person in relation to a return remains unpaid throughout the whole or part of the calendar month beginning the day after the day on which the levy became due and payable, or a later calendar month, the person is liable to pay to the Commonwealth in respect of that calendar month the penalty amount specified, or worked out in the manner specified, in the regulations ( item 29 ).
Omits section 15DC(2) and (3) of the Act and inserts a new subsection 15DC(2) that provides that any late levy payment penalty amount for a month must not exceed $25 ( item 30 ).
Replaces the reference to 'APRA' with 'Commissioner of Taxation' ( item 31 ).
Inserts a note highlighting that any outstanding levy and late payment penalty may be payable to APRA on behalf of the Commonwealth as a result of section 252G of the Superannuation Industry (Supervision) Act 1993 ( item 32 ).
Items 33 - 37 Sections 15DF, 15DG, 16, 17 and 22
Replaces the reference to 'APRA' wherever occurring in sections 15DF, 15DG, 16 and 17 with 'Commissioner of Taxation' ( items 33, 34, 35 and 36 ). Omits subsection 22(2) of the Act ( item 37 ).
Superannuation (Resolution of Complaints) Act 1993
Substitutes references to 'excluded fund' with 'self managed superannuation fund' and 'excluded approved deposit fund'.
Superannuation Supervisory Levy Imposition Act 1998
Item 41 Section 5 (paragraph (b) of the definition of superannuation entity)
Replaces the reference to 'excluded superannuation fund' in the definition of superannuation entity with 'self managed superannuation fund'.
Item 42 Application Provisions
All excluded superannuation funds will pay a supervisory levy on lodgment of an annual return in respect of the 1998-99 income year in accordance with the Superannuation (Excluded Funds) Taxation Act 1987 . The Superannuation (Resolution of Complaints) Act 1993 continues to apply to excluded superannuation funds until 1 April 2000.
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