BILLS DIGEST NO. 128, 2017–18
PDF version [642KB]
Phillip Hawkins
Economics Section
21
June 2018
Contents
Purpose of
the Bill
Structure of
the Bill
Committee consideration
Policy
position of non-government parties/independents
Position of
major interest groups
Financial
implications
Statement of
Compatibility with Human Rights
Schedule 1 –
Superannuation Guarantee Amnesty
Schedule 2 –
Superannuation: employees with multiple employers
Schedule 3 –
Non-arm’s length income of complying superannuation entities
Schedule 4 –
Limited recourse borrowing arrangements
Date introduced: 24
May 2018
House: House of
Representatives
Portfolio: Treasury
Commencement: Schedule
1, items 1 to 9, and Schedules 3 and 4 commence on the first
1 January, 1 April, 1 July or 1 October following Royal
Assent.
Schedule 1, items 10 to 13 commence on 24 May 2018.
Schedule 2 commences on the day after Royal Assent.
Links: The links to the Bill,
its Explanatory Memorandum and second reading speech can be found on the
Bill’s home page, or through the Australian
Parliament website.
When Bills have been passed and have received Royal Assent, they
become Acts, which can be found at the Federal
Register of Legislation website.
All hyperlinks in this Bills Digest are correct as at
June 2018.
Purpose of
the Bill
The Treasury
Laws Amendment (2018 Superannuation Measures No. 1) Bill 2018 (the Bill)
makes numerous amendments to superannuation and related tax laws, including to
encourage the recovery of unpaid Superannuation Guarantee (SG) by introducing a
temporary amnesty from late payment penalties for employers who disclose that
they have underpaid SG in the past.
The Bill complements measures proposed in the Treasury
Laws Amendment (2018 Measures No. 4) Bill 2018 that seeks to
strengthen the penalty regime for SG non-compliance.
Structure
of the Bill
The Bill consists of four Schedules:
- Schedule 1 proposes amendments to the Income Tax
Assessment Act 1997 (ITAA 1997) and the Superannuation
Guarantee (Administration) Act 1992 (SGAA) to introduce an
amnesty from certain penalties for employers who inform the Australian Taxation
Office (ATO) that they have a historic SG shortfall
- Schedule 2 proposes amendments to the SGAA
to allow employees who have multiple employers to opt out of receiving SG
from an employer if that SG amount would push them above the concessional
contributions cap
- Schedule 3 proposes amendments to the ITAA97 to
tighten the rules relating to non-arm’s length expenditure of superannuation
funds and
- Schedule 4 proposes amendments to the ITAA97, the Taxation
Administration Act 1953 (Tax Administration Act) and the Income Tax
(Transitional Provisions) Act 1997 to, in certain circumstances, take
account of limited recourse borrowing arrangements in superannuation funds when
calculating an individual’s total superannuation balance.
Committee
consideration
Senate Standing Committee on
Economics
The Bill was referred to the Senate Standing Committee on
Economics for inquiry and report by 18 June 2018. Details of the inquiry
are at the
Inquiry homepage. The Committee’s Final Report recommended passage of the
Bill.[1]
The Australian Labor Party (ALP) senators on the Committee disputed
the need for the proposed amnesty in their dissenting report and recommended
that Schedule 1 of the Bill be opposed.[2]
Senate Standing Committee for the
Scrutiny of Bills
The Senate Standing Committee for the Scrutiny of Bills (the
Scrutiny Committee) considered the Bill in its Scrutiny Report of 20 June 2018.[3]
The Scrutiny Committee raised questions in relation to merits review under the
proposed amnesty. The views of the Scrutiny Committee are discussed in the Key
Issues section for Schedule 1.
Policy
position of non-government parties/independents
The ALP has indicated that it does not support the
proposed amnesty for employers who have unpaid SG amounts, arguing that
employers who have done the wrong thing should face penalties.[4] Labor introduced amendments
into the House of Representatives to remove Schedule 1 from the Bill.[5]
The proposed amendments were not supported by the House.[6]
The dissenting report from ALP senators on the Senate Standing Committee on
Economics indicates that the ALP does not oppose the remaining Schedules to the
Bill.[7]
However, the ALP’s policy position is that the prohibition on limited recourse
borrowing arrangements (LRBA) should be reinstated.[8]
In debate of the Bill in the House of Representatives, the
Greens’ Adam Bandt opposed the proposed SG amnesty, arguing:
We cannot allow the situation to continue
where we treat underpayment of superannuation and underpayment of wages less
importantly than breaches of other laws. It is time to beef up the enforcement
of underpaying, in all its forms, in this country... It should
be very, very quick, cheap and easy to enforce legal minimum standards in this
country. But it's not. It's not, and that's why we're seeing billions of
dollars a year in superannuation theft and in wage theft. The government should
be bringing policies and legislation to this parliament that make it easier to
enforce existing labour and superannuation laws.[9]
In the House of Representatives, Independent Andrew Wilkie
supported the ALP’s proposed amendment to remove Schedule 1 from the Bill.[10]
Independent Cathy McGowan opposed the ALP’s amendment.[11]
The policy position of other non-Government parties and
independents is not known at the time of writing.
Position of
major interest groups
The Senate Standing Committee on Economics inquiry
received submissions from a number of stakeholders, notably on Schedule 1 of
the Bill which introduces the proposed amnesty. These submissions are discussed
below in the Key issues section for Schedule 1.
Financial implications
According to the Explanatory Memorandum to the Bill these
measures are expected to increase revenue by $134 million over the 2018–19
Budget forward estimates period.[12]
Treasury estimates that the proposed amnesty will result
in an additional $230 million of SG being paid, over and above usual compliance
activities, to around 50,000 employees.[13]
Statement of Compatibility with Human Rights
As required under Part 3 of the Human Rights
(Parliamentary Scrutiny) Act 2011 (Cth), the Government has assessed the
Bill’s compatibility with the human rights and freedoms recognised or declared
in the international instruments listed in section 3 of that Act. The
Government considers that the Bill is compatible.[14]
Parliamentary Joint Committee on
Human Rights
The Parliamentary Joint Committee on Human Rights considers
that the Bill does not raise any human rights concerns.[15]
Schedule 1
– Superannuation Guarantee Amnesty
Background
The Bill introduces a one year amnesty period for
employers that disclose to the Commissioner of Taxation (the Commissioner) that
they have an outstanding unpaid SG amount for their employees (an ‘SG shortfall
amount’). The amnesty provides relief from penalties that could otherwise be
imposed on employers who fail to meet their SG obligations. The employer to
which the amnesty is provided is still obliged to pay the SG shortfall amount
(meaning that the employee still receives their superannuation) as well as an
interest amount applied to the shortfall.
The Superannuation Guarantee (SG)
The SG is the amount that employers are required to
contribute to the superannuation accounts of their employees.[16]
It is currently set at 9.5 per cent of the employee’s ordinary time earnings (OTE)
and is scheduled to progressively increase to 12 per cent by 2025–26.[17]
An employer is required to make payments of SG amount to their employee’s
superannuation fund at least quarterly.
Like salary and wages expenses, SG amounts paid by an
employer are generally deductible expenses for income tax purposes.[18]
The Superannuation Guarantee Gap
(SG Gap)
The SG Gap represents the difference between the amount of
SG that employers are legally required to pay and the actual amount paid into employees’
superannuation funds.
The ATO has estimated that the SG Gap in 2014–15 was $2.85
billion, representing 5.2 per cent of the total SG payments that employers were
required to make.[19]
The Superannuation Guarantee Charge
(SGC)
If an employer has failed to pay their SG liability for
the quarter on time then the employer may have to lodge a Superannuation Guarantee
Charge (SGC) statement, or following an audit, the ATO may raise a SGC
liability against that employer. The SGC amount is made up of:
-
the SG shortfall amount for the quarter, which is transferred by
the ATO to the employee’s superannuation account
-
interest on the shortfall amount, currently charged at 10 per
cent per annum, also paid to the employee’s superannuation account and
-
an administration fee of $20 (per employee, per quarter) paid to
the ATO.[20]
Unlike SG amounts, SGC amounts are not
deductible expenses for income tax purposes.[21]
In addition, penalties may apply to
employers who do not meet their SG obligations. These penalties include:
-
the general interest charge, currently 8.96 per cent per annum, which
is imposed if the SGC is not paid by the due date[22]
and
-
penalties under Part 7 of the SGAA, of up to double the
amount of SGC, including for failing to keep records and failing to lodge a SGC
statement.[23]
In addition, the Treasury Laws Amendment (2018 Measures
No. 4) Bill 2018, which is currently before the Parliament, would introduce
increased penalties, including possible prison terms, for failing to comply
with SG obligations.[24]
Key provisions
Relief provided by the amnesty
The granting of an amnesty provides employers relief from
the following penalties:
-
section 26-95 of the ITAA97, which prevents the deduction
of SGC penalties from assessable income for tax purposes does not apply, meaning
that SGC amounts to which the amnesty applies are deductible (proposed
subsection 26-95(2) of the ITAA97, at item 2 of Schedule 1 to
the Bill)
-
the administration component of the SGC does not apply to the
shortfall amount covered by the amnesty (proposed subsection 32(2) of
the SGAA, at item 11 of Schedule 1) and
-
the employer is not liable for any Part 7 penalties for the
shortfall quarter to which the amnesty applies (proposed section 60 of the SGAA,
at item 12 of Schedule 1).[25]
However the amount of the SGC that is a SG shortfall
amount or the interest on that shortfall amount is still payable by the
employer to ensure that the employee still gets their full SG entitlement.[26]
The amnesty period
The amnesty period is the period of 12 months starting from
24 May 2018 (the day the Bill was introduced into the House of Representatives)
(proposed subsection 74(3) of the SGAA, at item 13 of
Schedule 1).
Qualifying for an amnesty
Item 13 inserts proposed section 74 into the
SGAA to provide an amnesty in relation to historic shortfalls in a SG
liability in a quarter (‘the shortfall quarter’). In order to qualify for an
amnesty:
-
an employer must disclose to the Commissioner, during the amnesty
period, that they have a ‘superannuation guarantee shortfall’ for a historic
amount. The amount cannot have been previously disclosed to the Commissioner
before the start of the amnesty period (proposed paragraph 74(1)(a) of
the SGAA)
-
the amnesty period must have started after the end of the period
28 days following the end of the relevant shortfall quarter (proposed paragraph
74(1)(b) of the SGAA) and
-
the Commissioner has not, at any time before the disclosure, have
informed the employer that the ATO is examining or intends to examine a SG
shortfall amount for that shortfall quarter (proposed paragraph 74(1)(c) of
the SGAA).
If the employer would have had an SG shortfall without the
disclosure (for example, they have already been assessed as having such a
shortfall) the amnesty only applies to the amount of additional SG shortfall
that was declared by the employer in seeking the amnesty (proposed
subsection 74(2) of the SGAA).
Ceasing to qualify for an amnesty
The Commissioner may notify an employer that they cease to
qualify for an amnesty and are taken to have never qualified for an amnesty if:
-
the employer has not paid the SGC amount to which the amnesty
applies on or by the day that the SGC becomes payable (proposed subparagraph
74(5)(a)(i) of the SGAA) and
-
has not entered into an arrangement with the Commissioner that
includes payment of the outstanding SGC amount (proposed subparagraph 74(5)(a)(ii)
of the SGAA) or
-
if the employer has entered into such an arrangement, has failed
to comply with it (proposed paragraph 74(5)(b) of the SGAA).
The result of an amnesty no longer applying would be that
penalties which would have applied but for the amnesty would again apply (as if
the amnesty were never granted). The Explanatory Memorandum states that the
Commissioner can unwind any benefits provided under the amnesty by amending the
assessments of the employer, which could result in the employer owing the ATO
an amount of tax.[27]
Key issues
Support for the amnesty
The submissions to the Senate Economics Committee
Legislation inquiry into the Bill disagreed on the need for an amnesty.
Representatives of industry and employers, including the
Australian Chamber of Commerce and Industry (ACCI), the Australian Industry
Group (AIG), the Housing Industry Association, the Australian Small Business
and Family Enterprise Ombudsman (ASBFEO) and the Council of
Small Business Australia (COSBOA), support the amnesty.[28]
The ACCI argues that the amnesty is likely to increase the
recovery of SG amounts as SGC penalties can mount up for employers and are a substantial
disincentive to disclose an unpaid SG amount:
The proposed amnesty will improve the amount of missed
contribution which is recovered over what is otherwise likely, and the
Australian Chamber believes that it will make a significant improvement because
most unrecovered missed contribution is from small businesses and the amnesty
addresses the primary problem for recovery – the escalation of the debt and
actual cost of full compliance.[29]
The ACCI also argues that while some non-compliance is
wilful, the majority of circumstances are due to small business error or cash
flow issues.[30]
Likewise COSBOA argues that the cost of complying with SG requirements is
particularly high for small business employers and there are valid reasons why
a small business may make an SG contribution late:
Those employers who deliberately keep employees’ money are
not likely to use the amnesty. These people are thankfully in the minority, the
ATO estimates that some 95% of employers are compliant. The miscreants will be
pursued through normal channels.
There are however plenty of valid reasons why an honest
business person, the great majority, may not have payed [sic] their workers’
superannuation on time. They may have forgotten because they had a sick child
or a personal health problem or some other pressing issue. Once forgotten then
there is a real fear of the extraordinary fines that can be applied for not
paying on time. The fines will run into thousands of dollars and potentially be
enough to bankrupt an employer.[31]
The Australian Council of Trade Unions argued against the
amnesty stating that employers should not be given a tax deduction for failing
to pay an amount of superannuation that they are already obliged to pay:
This bill outlines a plan to forgive the employers who have
illegally ripped off workers and offers them a tax deduction for the trouble of
paying their original obligation. The fact that this amnesty is being
considered reveals that the government has no plans to address superannuation
theft prior to the bill's introduction.[32]
Merits review
The Scrutiny Committee questioned whether limited merits
review would be available to consider the Commissioner’s decision to withdraw the
amnesty from an employer. The Scrutiny Committee has sought further advice from
the Minister as to whether these decisions by the Commissioner would be subject
to merits review and if not, the reasons for excluding such decisions.[33]
Schedule 2
– Superannuation: employees with multiple employers
Background
The effect of the amendments in Schedule 2 would be to
allow an individual with multiple employers to apply to the ATO to have an
employer’s legal requirement to pay the SG amount waived if payment of the SG
amount would put the individual above their annual concessional contributions
cap, so long as at least one of their employers is contributing an SG amount.
Concessional contributions cap
The concessional contribution cap limits the amount of
pre-tax contributions that can be made into an individual’s superannuation
account that are taxable at a concessional tax rate of 15 per cent
(whether they are compulsory SG contributions or pre-tax voluntary contributions).
Amounts above the cap are treated as assessable income of the individual and
are taxed at the individual’s marginal tax rate. The concessional contribution
cap for 2018–19 is $25,000 per annum.[34]
Maximum superannuation earnings
base
As discussed above, a person’s employer is obliged to make
SG contributions to their employee’s superannuation account equal to 9.5 per
cent of OTE. However, the SG only obliges the employer to pay superannuation on
income of up to $54,303 per quarter (roughly $217,212 per annum[35])
in 2018–19. This is known as the ‘maximum superannuation contributions base’.
This means that the amount of SG contributions an employer is obliged to make
per quarter is capped at around $5,159 per quarter ($20,635 per annum). The
maximum superannuation contributions base is indexed in line with Average
Weekly Ordinary Time Earnings (AWOTE) each year.[36]
Key Provisions
The purpose of the amendments in Schedule 2 is to allow a
person to opt out of having a proportion of their income paid into their superannuation
account for their second (or subsequent) employer if those contributions would
put them over their concessional contributions cap for the financial year.
The proposed amendments would allow an individual to apply
to the Commissioner for a shortfall exemption certificate in relation to a
specified employer and for a specified quarter (proposed subsection 19AB(1) of
the SGAA, at item 2 of Schedule 2).
An employer that has been issued with a shortfall exemption
certificate has a maximum superannuation contribution base for that employee of
zero. In other words, the employer is not required to make SG payments to that
employee’s superannuation account and will not incur a SG shortfall (proposed
section 19AA of the SGAA, at item 2 of Schedule 2).
The Commissioner may issue an employer shortfall exemption
certificate if he or she is satisfied that:
-
if the certificate were not issued then the employee would be
likely to exceed their concessional contributions cap for the financial year (proposed
paragraph 19AB(3)(a) of the SGAA)
-
If the certificate is issued then the person has at least one
other employer that would have a SG shortfall if they did not make
superannuation contributions for the benefit of the employee (proposed paragraph
19AB(3)(b) of the SGAA) and
-
it is appropriate, in the circumstances, to issue the certificate
(proposed paragraph 19AB(3)(c) of the SGAA). In considering
whether it is appropriate, the Commissioner must have regard to the effect that
issuing the certificate would have on the individual’s concessional
contributions for the year and any other matter they deem relevant (proposed
subsection 19AB(6) of the SGAA).
The Commissioner must notify the person and their employer
in writing of their decision to issue an employer shortfall exemption
certificate (proposed subsection 19AC(1) of the SGAA). If the
Commissioner decides not to issue the certificate then they must notify the applicant
in writing (proposed subsection 19AC(3) of the SGAA). If the
Commissioner does not give notice of their decision within 60 days, the
application is taken to have been denied (proposed subsection 19AC(4) of
the SGAA).
Item 3 of Schedule 2 provides that the
amendments in Schedule 2 only apply in relation to quarters on or after 1 July
2018.
Part 2 of Schedule 2 amends the Administrative
Decisions (Judicial Review) Act 1977 (ADJR Act) to provide that
decisions by the Commissioner on applications for the grant of a shortfall
exemption certificate are not reviewable under the ADJR Act. The
Explanatory Memorandum to the Bill states:
This amendment would align the judicial review processes
available for a decision to issue or refuse to issue an employer shortfall
exemption certificate with those available for other taxation decisions by the
Commissioner. Taxpayers are provided with full review rights under Part IVC of
the TAA 1953 which is a well-established and comprehensive review scheme
for taxation decisions. Part IVC of the TAA 1953 review is equally as
accessible and effective as review under the Administrative Decisions
(Judicial Review) Act 1977.[37]
Schedule 3
– Non-arm’s length income of complying superannuation entities
Background
Non-arm’s length income
The non-arm’s length income (NALI) provisions are an
existing anti-avoidance measure that seeks to prevent superannuation funds from
entering into schemes which utilise non-commercial transactions to inflate the
earnings of a superannuation fund in order to:
-
obtain a concessional tax rate of 15 per cent on those earnings,
rather than the individual’s marginal tax rate or
-
in effect, make contributions to a superannuation fund that do
not count towards the individual’s concessional and non-concessional
contributions caps.[38]
Non-arm’s length income is defined at section 295-550 of
the ITAA97. It is essentially income that is more than would have been
derived had a transaction been conducted at arm’s length. An example of
non-arm’s length income could include an inflated dividend paid to the
superannuation fund by a private company that the superannuation fund holds
shares in.
Key Provisions
Item 1 of Schedule 3 repeals and replaces
the existing definition of NALI at subsection 295-550(1) of the ITAA1997
to ensure that there is no ambiguity that expenditures incurred by
superannuation funds can also be NALI. The definition of NALI is extended to schemes
that are entered into that result in a loss, outgoing or expenditure (incurred
in producing assessable income) that is lower than would have been expected had
a transaction been conducted at an arm’s length basis (proposed paragraph 295-550(1)(b)
of the ITAA97). It also includes transactions where no loss,
outgoing or expenditure has been incurred at all but would be expected to have
been incurred if the transaction were conducted on an arm’s length basis (proposed
paragraph 295-550(1)(c) of the ITAA97).
Item 2 of Schedule 3 repeals and replaces subsection
295-550(5) of the ITAA97 which applies NALI provisions to income derived
by a superannuation fund as a beneficiary of a trust to which it has a fixed
entitlement. The changes include non-arm’s length losses, outgoings and
expenditures incurred in producing assessable income as NALI.
Item 3 of Schedule 3 adds proposed subsection
296-550(7) to the ITAA97 to clarify that the new provisions apply to
losses, outgoings and expenditures whether they are of a capital nature or not.
Item 4 of Schedule 3 provides that the
proposed amendments made in Schedule 3 apply to the 2018-19 income year
and later income years.
Schedule 4
– Limited recourse borrowing arrangements
Background
Limited recourse borrowing
arrangements
Generally speaking superannuation funds cannot borrow
money to purchase investments.[39]
However, regulated superannuation funds can borrow by entering into Limited
Recourse Borrowing Arrangements (LRBA) with a third party.[40]
LRBAs limit the lender’s rights to recover the funds under the LRBA to the assets
purchased using those funds. The lender has no recourse to the other assets of
the superannuation fund.[41]
Total superannuation balance
‘Total superannuation balance’ is defined in subsection
307-230(1) of the ITAA97 as, generally, the sum of:
-
the value of all superannuation benefits in the accumulation
phase
-
the amount in the transfer balance account and
-
the amount of any ‘roll-over’ benefit which is not reflected in
the person’s accumulation or transfer balance account.
A person’s total superannuation account balance is taken
into account in determining, for example, the amount of an individual’s non-concessional
contributions cap, the amount of unused concessional cap that individuals can
carry-forward from prior financial years and in determining eligibility for the
spouse tax offset.[42]
The proposed changes in Schedule 4 of the Bill change the
definition of total superannuation balance so that in some circumstances LRBAs
are taken into account when calculating the total superannuation balance for
SMSFs. The measures are intended to ensure that LRBAs are not used to
circumvent contributions caps.[43]
Key Provisions
Item 1 of Schedule 4 amends the definition of total
superannuation balance at section 307‑230 of the ITAA97 to include
an ‘LRBA amount’ in certain circumstances.
Item 2 adds proposed subsection 307-231 which
details the LRBA arrangements that count towards an individual’s total superannuation
amount. Proposed subsection 307-231(1) states that an individual has an
‘LRBA amount’ if:
-
the superannuation provider has entered into a limited recourse
borrowing arrangement
-
the amount of the LRBA has not been repaid at the time of working
out the individual’s total superannuation balance
-
the assets that secure the LRBA support a superannuation interest
of the individual (
-
the fund meets the criteria specified at proposed subsection
307-231(4), namely, it is a SMSF with less than five members and
- either:
- the
person has satisfied a condition of release for their superannuation fund with
a nil cashing restriction (either they have reached retirement or they are aged
65 or over) or
- the
lender under the LRBA is an associate of the superannuation provider.
Proposed subsections 307-231(2) and (3) provide
that the amount by which a personal total superannuation balance can be
increased by a LRBA is limited to the individual’s share of the interest in the
assets that secure the LRBA.[44]
Part 2 of Schedule 2 amends the Income
Tax (Transitional Provisions) Act 1997 to provide that the amendments in
Schedule 4 only apply to new borrowings entered into on or after 1 July 2018.
The amendments also do not apply to an amount of an LRBA that is refinanced
after 1 July 2018 if it is secured by the same assets as the old borrowing and
is not greater than the balance of the old borrowing.
Members, Senators and Parliamentary staff can obtain
further information from the Parliamentary Library on (02) 6277 2500.
[1]. Senate
Standing Committee on Economics, Inquiry
into the Treasury Laws Amendment (2018 Superannuation Measures No. 1) Bill 2018
[Provisions], The Senate, Canberra, 18 June 2018, p. 15.
[2]. Ibid.,
pp. 17 and 24.
[3]. Senate
Standing Committee for the Scrutiny of Bills, Scrutiny
digest, 6, 2018, The Senate, Canberra, 20 June 2018, pp. 48–49.
[4]. C
Bowen (Shadow Treasurer), Liberal
Party gives 26 year penalty holiday including ... tax deduction for
superannuation theft!, media release, 29 May 2018.
[5]. C
Bowen, Treasury
Laws Amendment (2018 Superannuation Measures No. 1) Bill 2018 - amendments to
be moved by the Opposition, House of Representatives, 20 June 2018.
[6]. Australia,
House of Representatives, ‘Treasury
Laws Amendment (2018 Superannuation Measures No. 1) Bill 2018’, Votes
and proceedings, HVP, 119, 2017–18, 20 June 2018, pp. 1621–22.
[7]. Senate
Standing Committee on Economics, Inquiry
into the Treasury Laws Amendment (2018 Superannuation Measures No. 1) Bill 2018
[Provisions], op. cit., p. 23.
[8]. Senate
Standing Committee on Economics, op. cit. p. 20.
[9]. A
Bandt, ‘Second
reading speech: Treasury Laws Amendment (2018 Superannuation Measures No. 1)
Bill 2018’, House of Representatives, Debates, 20 June 2018, p. 27
[10]. Australia,
House of Representatives, ‘Treasury
Laws Amendment (2018 Superannuation Measures No. 1) Bill 2018’, Votes
and proceedings, op. cit., pp. 1621–22.
[11]. Ibid.
[12]. Explanatory
Memorandum, Treasury Laws Amendment (2018 Superannuation
Measures No. 1) Bill 2018, pp. 3–5.
[13]. Mr
Robert Jeremenko, Evidence
to the Senate Economics Legislation Committee, Inquiry into the Treasury
Laws Amendment (2018 Superannuation Measures No. 1) Bill 2018, 12 June 2018,
p. 30.
[14]. The
Statement of Compatibility with Human Rights can be found at page 51 of the
Explanatory Memorandum to the Bill.
[15]. Parliamentary
Joint Committee on Human Rights, Human
rights scrutiny report, 5, 2018, 19 June 2018, p. 54.
[16]. Australian
Taxation Office (ATO), ‘Super for employers’,
ATO website.
[17]. Section
19 of the Superannuation
Guarantee (Administration) Act 1992.
[18]. ATO,
‘Super
for employers -claiming a tax deduction’, ATO website.
[19]. ATO,
‘Superannuation
guarantee gap’, ATO website.
[20]. ATO,
‘The
super guarantee charge (SGC)’, ATO website.
[21]. Explanatory
Memorandum, Treasury Laws Amendment (2018 Superannuation
Measures No. 1) Bill 2018, p. 8.
[22]. ATO,
‘Penalties,
amendments and objections’, ATO website; ATO, ‘General
interest charge (GIC) rates’, ATO website.
[23]. Part
7 of the Superannuation
Guarantee (Administration) Act 1992.
[24]. Parliament
of Australia, ‘Treasury
Laws Amendment (2018 Measures No. 4) Bill 2018 homepage’, Australian
Parliament website; Senate Standing Committee on Economics, Inquiry
into the Treasury Laws Amendment (2018 Superannuation Measures No. 1) Bill 2018
[Provisions], op. cit., p. 3.
[25]. Explanatory
Memorandum, Treasury Laws Amendment (2018 Superannuation
Measures No. 1) Bill 2018, p. 10.
[26]. Ibid.,
p. 14.
[27]. Ibid.
[28]. See
Submissions
to the Senate Economics Legislation Committee, Inquiry into the Treasury Laws
Amendment (2018 Superannuation Measures No. 1) Bill 2018.
[29]. Australian
Chamber of Commerce and Industry, Submission
to the Senate Economics Legislation Committee, Inquiry into the Treasury
Laws Amendment (2018 Superannuation Measures No. 1) Bill 2018 [submission
no. 8], June 2018, p. 3.
[30]. Ibid.,
p. 9.
[31]. Council
of Small Business Australia (COSBOA), Submission
to the Senate Economics Legislation Committee, Inquiry into the Treasury
Laws Amendment (2018 Superannuation Measures No. 1) Bill 2018 [submission
no. 11], 8 June 2018, p. 1.
[32]. J
Mitchell (Workers' Capital Organising Officer, Australian Council of Trade
Unions), Evidence
to the Senate Economics Legislation Committee, Inquiry into the Treasury
Laws Amendment (2018 Superannuation Measures No. 1) Bill 2018,
12 June 2018, p. 9. See also: Australian Council of Trade Unions, Submission
to the Senate Economics Legislation Committee, Inquiry into the Treasury
Laws Amendment (2018 Superannuation Measures No. 1) Bill 2018 [submission
no. 3], 6 June 2018.
[33]. Senate
Standing Committee for the Scrutiny of Bills, Scrutiny
digest, 6, 2018, the Senate, 20 June 2018, pp. 48–49.
[34]. ATO,
‘Concessional
contributions cap’, ATO website.
[35]. Assuming
a consistent spread of income throughout the year.
[36]. ATO,
‘Maximum
super contributions base’, ATO website.
[37]. Explanatory
Memorandum, Treasury Laws Amendment (2018 Superannuation
Measures No. 1) Bill 2018, p. 30.
[38]. Ibid.,
p. 31.
[39]. Superannuation
Industry (Supervision) Act 1993, section 67.
[40]. Ibid.,
section 67A.
[41]. K
Swoboda and L Nielson, Tax
and Superannuation Laws Amendment (2015 Measures No. 2) Bill 2015, Bills
Digest, 19,
2015–16, 7 September 2015, p. 8.
[42]. Explanatory
Memorandum, Treasury Laws Amendment (2018 Superannuation Measures No. 1)
Bill 2018, p. 44.
[43]. K
O’Dwyer (Minister for Revenue and Financial Services, Minister for Women and Minister
Assisting the Prime Minister for the Public Service), Consultation
on Superannuation Taxation Integrity Measures, media release,
11 January 2018.
[44]. Explanatory
Memorandum, Treasury Laws Amendment (2018 Superannuation
Measures No. 1) Bill 2018, p. 45.
© Commonwealth of Australia
Creative Commons
With the exception of the Commonwealth
Coat of Arms, and to the extent that copyright subsists in a third party,
this publication, its logo and front page design are licensed under a Creative Commons
Attribution-NonCommercial-NoDerivs 3.0 Australia licence.
In essence, you are free to copy and
communicate this work in its current form for all non-commercial purposes, as
long as you attribute the work to the author and abide by the other licence
terms. The work cannot be adapted or modified in any way. Content from this
publication should be attributed in the following way: Author(s), Title of
publication, Series Name and No, Publisher, Date.
To the extent that copyright subsists
in third party quotes it remains with the original owner and permission may
be required to reuse the material.
Inquiries regarding the licence and
any use of the publication are welcome to webmanager@aph.gov.au.
Disclaimer: Bills Digests are prepared to support the work of the Australian Parliament.
They are produced under time and resource constraints and aim to be available
in time for debate in the Chambers. The views expressed in Bills Digests do
not reflect an official position of the Australian Parliamentary Library, nor
do they constitute professional legal opinion. Bills Digests reflect the
relevant legislation as introduced and do not canvass subsequent amendments
or developments. Other sources should be consulted to determine the official
status of the Bill.
Any concerns or complaints should be
directed to the Parliamentary Librarian. Parliamentary Library staff are
available to discuss the contents of publications with Senators and Members
and their staff. To access this service, clients may contact the author or
the Library’s Central Enquiry Point for referral.