Bills Digest No. 62   1997-98 Superannuation Contributions Tax (Members of Constitutionally Protected Superannuation Funds) Imposition Bill 1997


Numerical Index | Alphabetical Index

WARNING:
This Digest was prepared for debate. It reflects the legislation as introduced and does not canvass subsequent amendments. This Digest does not have any official legal status. Other sources should be consulted to determine the subsequent official status of the Bill.

CONTENTS

Passage History

Superannuation Contributions Tax (Members of Constitutionally Protected Superannuation Funds) Imposition Bill 1997

Date Introduced: 2 October 1997
House: House of Representatives
Portfolio: Treasury
Commencement: Royal Assent

Purpose

To impose the superannuation contributions tax and declare the rate of superannuation contributions surcharge on members of constitutionally protected superannuation funds.

Background

The reader is referred to the Digest for the Superannuation Contributions Tax (Members of Constitutionally Protected Superannuation Funds) Assessment and Collection Bill 1997.

Main Provisions

This Bills has effect from 20 August 1996.

Clause 4 imposes a superannuation contributions surcharge on a member's surchargeable contributions for a financial year.

Clause 5 deals with the rate of superannuation contributions surcharge. The surcharge would be imposed at the rate of 0.001% for each $1 of annual income in excess of $70,000 with a maximum of 15% achieved when taxable income and superannuation contributions reach $85,000.

This clause also provides for the situation where a member has not quoted their tax file number (TFN) and the Commissioner of Taxation has taken reasonable steps to find out the TFN including writing to the member and advising that failure to quote his or her TFN may result in the surcharge applying at the rate of 15%.After this situation has occurred then the rate of surcharge will be 15% or zero depending upon the whether the member was/was not a member of the fund by 7 May 1997 and the surchargeable contributions do/do not exceed the surchargeable contributions threshold.

Clause 6 deals with the surchargeable contributions threshold which is $2000 for the 1996-97 financial year, and is subject to indexingin later years.

Clause 7 deals with indexation for 1997-98 and following financial years, how the indexation factors are to be calculated and requires the Commissioner to publish indexable amounts.

Contact Officer and Copyright Details

John Harrison
24 October 1997
Bills Digest Service
Information and Research Services

This paper has been prepared for general distribution to Senators and Members of the Australian Parliament. While great care is taken to ensure that the paper is accurate and balanced, the paper is written using information publicly available at the time of production. The views expressed are those of the author and should not be attributed to the Information and Research Services (IRS). Advice on legislation or legal policy issues contained in this paper is provided for use in parliamentary debate and for related parliamentary purposes. This paper is not professional legal opinion. Readers are reminded that the paper is not an official parliamentary or Australian government document.

IRS staff are available to discuss the paper's contents with Senators and Members
and their staff but not with members of the public.

ISSN 1328-8091
© Commonwealth of Australia 1997

Except to the extent of the uses permitted under the Copyright Act 1968, no part of this publication may be reproduced or transmitted in any form or by any means, including information storage and retrieval systems, without the prior written consent of the Parliamentary Library, other than by Members of the Australian Parliament in the course of their official duties.

Published by the Department of the Parliamentary Library, 1997.

This page was prepared by the Parliamentary Library, Commonwealth of Australia
Last updated: 27 October 1997

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