Superannuation Laws Amendment (Abolition of Surcharge) Act 2005

No. 102, 2005

An Act to abolish superannuation contributions surcharge and termination payments surcharge, and for related purposes

[Assented to 12 August 2005]

The Parliament of Australia enacts:

1 Short title

This Act may be cited as the Superannuation Laws Amendment (Abolition of Surcharge) Act 2005.

2 Commencement

This Act commences on the day on which it receives the Royal Assent.

3 Schedule(s)

Each Act that is specified in a Schedule to this Act is amended or repealed as set out in the applicable items in the Schedule concerned, and any other item in a Schedule to this Act has effect according to its terms.

Schedule 1—Amendments

Part 1—Abolition of surcharge

Superannuation Contributions Tax (Assessment and Collection) Act 1997

1 At the end of subsection 7(1)

Add “that ends before 1 July 2005”.

Superannuation Contributions Tax (Members of Constitutionally Protected Superannuation Funds) Assessment and Collection Act 1997

2 At the end of subsection 8(1)

Add “that ends before 1 July 2005”.

Termination Payments Tax (Assessment and Collection) Act 1997

3 Paragraph 7(2)(a)

After “20 August 1996”, insert “and before 1 July 2005”.

Part 2—Consequential amendments

Defence Force Retirement and Death Benefits Act 1973

4 Paragraph 6C(3)(d)

Repeal the paragraph.

Parliamentary Contributory Superannuation Act 1948

5 Paragraph 4E(3)(d)

Repeal the paragraph.

Superannuation Act 1976

6 Paragraph 80A(3)(d)

Repeal the paragraph.

Superannuation Contributions Tax (Application to the Commonwealth—Reduction of Benefits) Act 1997

7 Paragraph 4(2A)(d)

Repeal the paragraph.

Superannuation Contributions Tax (Assessment and Collection) Act 1997

8 Paragraph 6(a)

After “later financial year”, insert “(being a financial year that ends before 1 July 2005)”.

9 Subsection 9(7)

After “each later financial year”, insert “(being a financial year that ends before 1 July 2005)”.

10 Subsection 13(2)

After “the end of each financial year”, insert “(being a financial year that ends before 1 July 2005)”.

11 Subsections 13(3), (4) and (4A)

After “20 August 1996”, insert “and before 1 July 2005”.

12 Paragraph 14A(1)(a)

After “member”, insert “for a financial year that ends before 1 July 2005”.

13 Subsection 15(1)

After “each financial year”, insert “(being a financial year that ends before 1 July 2005)”.

14 Subsection 15A(2) (at the end of the definition of financial year)

Add “that ends before 1 July 2005”.

15 Subsection 15B(1)

After “for a financial year”, insert “that ends before 1 July 2005”.

Superannuation Contributions Tax Imposition Act 1997

16 At the end of section 4

Add:

Note: Surcharge is not payable for the financial year that began on 1 July 2005 or a later financial year—see subsection 7(1) of the Superannuation Contributions Tax (Assessment and Collection) Act 1997.

17 Subsection 5(1AA) (paragraph (b) of the definition of higher income amount)

Omit “for each later financial year”, substitute “for the 2004‑2005 financial year”.

18 Subsection 5(1AA) (paragraph (b) of the definition of lower income amount)

Omit “for each later financial year”, substitute “for the 2004‑2005 financial year”.

19 Subsection 5(1AA) (paragraph (b) of the definition of maximum surcharge percentage)

Omit “12.5%; and”, substitute “12.5%.”.

20 Subsection 5(1AA) (paragraph (c) of the definition of maximum surcharge percentage)

Repeal the paragraph.

21 Subsection 7(6)

Omit “, and before the start of each later financial year,”.

Note: The heading to subsection 7(1) is altered by omitting “and later financial years”.

22 Subsection 7(7) (definition of indexing financial year)

Omit “or a later financial year”.

Superannuation Contributions Tax (Members of Constitutionally Protected Superannuation Funds) Assessment and Collection Act 1997

23 Paragraph 6(a)

After “later financial year”, insert “(being a financial year that ends before 1 July 2005)”.

24 Subsection 10(7)

After “each later financial year”, insert “(being a financial year that ends before 1 July 2005)”.

25 Subsection 12(2)

After “the end of each financial year”, insert “(being a financial year that ends before 1 July 2005)”.

26 Subsection 12(3)

After “20 August 1996”, insert “and before 1 July 2005”.

27 Subsection 12(6)

Before “then the provider”, insert “(being a member who was a member at any time after 7.30 pm by legal time in the Australian Capital Territory on 20 August 1996 and before 1 July 2005),”.

28 Subsection 14(1)

After “each financial year”, insert “(being a financial year that ends before 1 July 2005)”.

29 Subparagraph 15(6)(b)(iv)

Repeal the subparagraph.

30 Subparagraph 15(6AA)(d)(iv)

Repeal the subparagraph.

31 Subparagraph 15(6A)(b)(iv)

Repeal the subparagraph.

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

32 At the end of section 4

Add:

Note: Surcharge is not payable for the financial year that began on 1 July 2005 or a later financial year—see subsection 8(1) of the Superannuation Contributions Tax (Members of Constitutionally Protected Superannuation Funds) Assessment and Collection Act 1997.

33 Subsection 5(1A) (paragraph (b) of the definition of higher income amount)

Omit “for each later financial year”, substitute “for the 2004‑2005 financial year”.

34 Subsection 5(1A) (paragraph (b) of the definition of lower income amount)

Omit “for each later financial year”, substitute “for the 2004‑2005 financial year”.

35 Subsection 5(1A) (paragraph (b) of the definition of maximum surcharge percentage)

Omit “12.5%; and”, substitute “12.5%.”.

36 Subsection 5(1A) (paragraph (c) of the definition of maximum surcharge percentage)

Repeal the paragraph.

37 Subsection 7(6)

Omit “, and before the start of each later financial year,”.

Note: The heading to subsection 7(1) is altered by omitting “and later financial years”.

38 Subsection 7(7) (definition of indexing financial year)

Omit “or a later financial year”.

Termination Payments Tax (Assessment and Collection) Act 1997

39 Section 6

After “20 August 1996”, insert “and before 1 July 2005”.

40 Subsection 10(7)

After “each later financial year”, insert “(being a financial year that ends before 1 July 2005)”.

41 Subsection 11(1)

After “each financial year”, insert “(being a financial year that ends before 1 July 2005)”.

Termination Payments Tax Imposition Act 1997

42 At the end of section 4

Add:

Note: Surcharge is not payable on a termination payment made on or after 1 July 2005—see subsection 7(2) of the Termination Payments Tax (Assessment and Collection) Act 1997.

43 Subsection 5(1AA) (paragraph (b) of the definition of higher income amount)

Omit “for each later financial year”, substitute “for the 2004‑2005 financial year”.

44 Subsection 5(1AA) (paragraph (b) of the definition of lower income amount)

Omit “for each later financial year”, substitute “for the 2004‑2005 financial year”.

45 Subsection 5(1AA) (paragraph (b) of the definition of maximum surcharge percentage)

Omit “12.5%; and”, substitute “12.5%.”.

46 Subsection 5(1AA) (paragraph (c) of the definition of maximum surcharge percentage)

Repeal the paragraph.

47 Subsection 6(6)

Omit “, and before the start of each later financial year,”.

Note: The heading to subsection 6(1) is altered by omitting “and later financial years”.

48 Subsection 6(7) (definition of indexing financial year)

Omit “or a later financial year”.

[Minister’s second reading speech made in—

House of Representatives on 26 May 2005

Senate on 14 June 2005]

(69/05)