Bills Digest 128 1996-97
Superannuation Contributions Surcharge Imposition Bill 1997
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
Superannuation Contributions Surcharge Imposition Bill 1997
Date Introduced: 13 February 1997
House: House of Representatives
Portfolio: Treasury
Commencement: Royal Assent
To impose formally the surcharge payable under the Superannuation Contributions
Surcharge (Assessment and Collection) Bill 1997.
The reader is referred to the Digest for the Superannuation Contributions
Surcharge (Assessment and Collection) Bill 1997.
Clause 4 imposes formally the surcharge payable under the Superannuation
Contributions Surcharge (Assessment and Collection) Bill 1997.
Clause 5 deals with the rate of surcharge payable. Where the
assessable income and superannuation contributions of a superannuation
fund member is between $70 000 and $84 999 the rate of surcharge that
will apply in respect of that member in a financial year is the percentage
obtained by using the following formula:
adjusted taxable income minus $70 000 divided by $1 000 (ie. 1% per
$1 000 that adjusted taxable income exceeds $70 000)
Where the assessable income and superannuation contributions of a superannuation
fund member is over $85 000 the rate of surcharge that will apply in respect
of that member in a financial year is 15% of that member's surchargeable
contributions for that year.
Where a member of a superannuation fund has not provided, in connection
with the operation of the Superannuation Contributions Surcharge (Collection
and Assessment) Bill 1997 his or her tax file number to their superannuation
fund/s, and the Commissioner of Taxation has not otherwise found out their
tax file number, the rate of surcharge that will apply in a financial
year is 15% of their surchargeable contributions for that year.
The validity of the proposed Superannuation Contributions Surcharge
(Assessment and Collection) Act 1997 has been questioned in submissions
to the Senate Select Committee on Superannuation examining the package
of legislation which this Bill forms part of. Mr Rose's argument was based
on the difference between the liability to pay a tax and the obligation
to collect the tax. According to Mr Rose's argument, under the legislation
originally put to Parliament, the superannuation provider would not only
be liable to collect the tax from those members liable to pay the surcharge
but would also be liable to pay any amount that has not been collected,
and so be liable to pay a tax that is levied on another. Mr Rose then
argues that this is in breach of various High Court decisions and would
result in the surcharge legislation being unenforceable as the main collection
mechanism is unconstitutional.
The Prime Minister has responded to the opinion of Mr Rose in a 'Doorstop
Interview' on 11 March 1997. The Prime Minister refuted the opinion of
Mr Rose.
The Government has introduced a number of amendments designed to ensure
that the argument raised by Mr Rose will not affect the Constitutional
basis of the Bill. However, it has been reported that even if the amendments
are passed, there may still be the same potential Constitutional difficulties
with the surcharge scheme, although other provisions will be affected.(1)
- 1 Australian Financial Review, 26 March 1997, p. 3.
Chris Field
Ian Ireland
3 April 1997
Bills Digest Service
Information and Research Services
This Digest does not have any official legal status. Other sources should
be consulted to determine whether the Bill has been enacted and, if so,
whether the subsequent Act reflects further amendments.
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 1323-9031
Commonwealth of Australia 1996
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Published by the Department of the Parliamentary Library, 1997.
This page was prepared by the Parliamentary Library, Commonwealth of
Australia
Last updated: 10 April 1997
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