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A Bill for an Act to amend the Superannuation Guarantee (Administration) Act 1992
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Introduced HR 20 Aug 2001

Superannuation Guarantee (Administration) Amendment Bill 2001
First Reading

1998-1999-2000-2001

The Parliament of the

Commonwealth of Australia

HOUSE OF REPRESENTATIVES

Presented and read a first time

Superannuation Guarantee (Administration) Amendment Bill 2001

No. , 2001

(Mr K J Thomson)

A Bill for an Act to amend the Superannuation Guarantee (Administration) Act 1992

Contents

1 Short title       1

2 Commencement       1

3 Schedule       1

Schedule 1--Amendment of the Superannuation Guarantee (Administration) Act 1992       2

A Bill for an Act to amend the Superannuation Guarantee (Administration) Act 1992

The Parliament of Australia enacts:

1 Short title

        This Act may be cited as the Superannuation Guarantee (Administration) Amendment Act 2001.

2 Commencement

       (1) Subject to this section, this Act commences on the day on which it receives the Royal Assent.

       (2) Schedule 1 commences, or is taken to have commenced, on 1 July 2002.

3 Schedule

        The Superannuation Guarantee (Administration) Act 1992 is amended as set out in the applicable items in Schedule 1 and the other item in the Schedule has effect according to its terms.

Schedule 1--Amendment of the Superannuation Guarantee (Administration) Act 1992
1 Subsection 23(2)

Omit ",(6A)".

2 Subsection 23(3)

Omit ",(6A)".

3 Subsection 23(4)

Omit ",(6A)".

4 Subsection 23(4A)

Omit ",(6A)".

5 Subsection 23(5)

Omit ",(6A)".

6 Subsection 23(6A)

Repeal the subsection.

7 Subsection 23(6B)

Omit "and all later years", substitute "and to all later years until the year that ends on 30 June 2002".

8 Subsection 23(7)

Repeal the subsection, substitute:

[Certain contributions made before a period may be taken into account for the period]

       (7) A contribution to a complying superannuation fund or an RSA made by an employer for the benefit of an employee may be taken into account under this section as if it had been made during a particular contribution period commencing after 30 June 1983 if the contribution:

       (a) is made not more than 12 months before the beginning of the period; or

       (b) in respect of the first three contribution periods in a year not more than 21 days after the end of the contribution period; or

       (c) in respect of the last contribution period of the year not more than 28 days after the end of the contribution period.

9 Section 30

Repeal the section, substitute:

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30 Arrangements to avoid payment of superannuation guarantee charge

        If:

       (a) an employer makes an arrangement; and

       (b) as a result of the arrangement the employer's superannuation guarantee shortfall in a contribution period is reduced; and

       (c) in the Commissioner's opinion the arrangement was made solely or principally for the purpose of avoiding payment of superannuation guarantee charge otherwise than in accordance with this Act;

        the employer is liable to pay for the contribution period an amount of superannuation guarantee charge equal to the amount that, in the Commissioner's opinion, the employer would have been liable to pay if the arrangement had not been made.

10 Section 31

Repeal the section, substitute:

31 Nominal interest component

       (1) The nominal interest component in relation to an employer for a contribution period is the amount that would accrue by way of interest on the total of the employer's individual superannuation guarantee shortfalls for the contribution period if interest were calculated at the rate applicable under the regulations for the purposes of this subsection from the beginning of the year in which the contribution period in question falls until the date on which superannuation guarantee charge in relation to the total would be payable under section 46.

11 Section 32

Repeal the section, substitute:

32 Administration component

        An employer's administration component for a contribution period is the amount worked out using the formula:

Base amount + [N x Per capita amount]

where:

Base amount is $50 or such other amount as is from time to time prescribed;

N is the number of employees in respect of whom the employer has an individual superannuation guarantee shortfall for the contribution period;

Per capita amount is $30 or such other amount as is from time to time prescribed.

12 Section 33

Repeal the section, substitute:

33 Superannuation guarantee statements

       (1) An employer who has a superannuation guarantee shortfall for a contribution period must lodge a superannuation guarantee statement for the contribution period on or before:

       (a) the day on which the superannuation guarantee charge is payable under section 46; or

       (b) any later day allowed by the Commissioner.

       (2) The statement must set out:

       (a) the name and postal address of the employer; and

       (b) the name, postal address and tax file number (so far as is known to the employer) of each employee in relation to whom the employer had an individual superannuation guarantee shortfall for the contribution period; and

       (c) the amount of each such shortfall; and

       (d) the employer's nominal interest component for the contribution period; and

       (e) the employer's administration component for the contribution period; and

       (f) if the employer's annual national payroll for the employer's base year is $1,000,000 or less, the amount of that payroll; and

       (g) the total of the employer's individual superannuation guarantee shortfalls for the contribution period; and

       (h) the amount of the employer's superannuation guarantee charge for the contribution period.

       (3) The statement must:

       (a) be in a form approved by the Commissioner; and

       (b) be lodged with the Commissioner in accordance with the regulations; and


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       (c) be signed by or on behalf of the employer making the statement.

       (4) Subsection (1) does not apply to the employer if the employer has previously given the Commissioner a statement for the contribution period under section 34.

13 Section 34

Repeal the section, substitute:

34 Power to require information where no superannuation guarantee statement

        The Commissioner, by written notice, may require a person who was at any time during a contribution period an employer and who has not lodged a superannuation guarantee statement for that contribution period to give the Commissioner, within a specified period of not less than 14 days, a written statement for the contribution period stating whether the person has a superannuation guarantee shortfall for the contribution period and if so, setting out the matters referred to in subsection 33(2).

14 Section 35

Repeal the section, substitute:

35 First superannuation guarantee statement for contribution period taken to be assessment

       (1) If:

       (a) an employer lodges a superannuation guarantee statement for a contribution period; and

       (b) a superannuation guarantee statement has not previously been lodged, and an assessment has not previously been made, for the contribution period in relation to the employer;

        then:

       (c) the statement has effect as an assessment of the employer's superannuation guarantee shortfall for the contribution period and of the superannuation guarantee charge payable on the shortfall; and

       (d) the assessment is taken to have been made on the day on which the superannuation guarantee charge is payable under section 46 or the day on which the statement was lodged, whichever is the later; and

       (e) the sum of:

       (i) the total of the employer's individual superannuation guarantee shortfalls; and

       (ii) the employer's nominal interest component; and

       (iii) the employer's administration component;

        specified in the statement is to be taken to be the amount of superannuation guarantee charge payable by the employer for the contribution period; and

       (f) the statement has effect as if it were a notice of assessment signed by the Commissioner and given to the employer on the day on which the assessment is taken to have been made.

       (2) In subsection (1), "superannuation guarantee statement" includes a statement under section 34 that indicates that an employer has a superannuation guarantee shortfall for a contribution period.

15 Section 36

Repeal the section, substitute:

36 Default assessments

       (1) If:

       (a) an employer has not lodged a superannuation guarantee statement for a contribution period; and

       (b) the Commissioner is of the opinion that the employer is liable to pay superannuation guarantee charge for the contribution period;

        the Commissioner may make an assessment of the employer's superannuation guarantee shortfall for the contribution period and of the superannuation guarantee charge payable on the shortfall.

       (2) For the purposes of making an assessment under subsection (1), the superannuation guarantee shortfall is taken to be the amount that in the Commissioner's opinion might reasonably be expected to be the shortfall.

       (3) Superannuation guarantee charge in relation to an assessment for a contribution period made under this section is taken to have become payable on the day on which the superannuation guarantee charge is payable under section 46.

16 Section 46

Repeal the section, substitute:

46 When superannuation guarantee charge becomes payable


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       (1) Superannuation guarantee charge is payable:

       (a) for a contribution period commencing on 1 July--
on 5 November the same year;

       (b) for a contribution period commencing on 1 October--
on 5 February the next year;

       (c) for a contribution period commencing on 1 January--
on 6 May the same year; and

       (d) for a contribution period commencing on 1 April--
on 14 August the same year.

       (2) If, after a day on which superannuation guarantee charge is payable under subsection (1), the employer lodges a superannuation guarantee statement or a statement under section 34 indicating a superannuation guarantee shortfall for that contribution period --on the day on which the statement is lodged.

17 Paragraph 49(2)(a)

Repeal the paragraph, substitute:

       (a) the employer's administration component for the contribution period; and

18 Paragraph 49(2)(b)

Repeal the paragraph, substitute:

       (b) the employer's nominal interest component for the contribution period;

19 Subsection 59(1)

Repeal the subsection, substitute:

       (1) If an employer other than a government body refuses or fails to provide, when and as required under this Act, a superannuation guarantee statement or information relevant to assessing the employer's liability to pay superannuation guarantee charge for a contribution period, the employer is liable to pay, by way of penalty, additional superannuation guarantee charge equal to double the amount of superannuation guarantee charge payable by the employer for the contribution period.

20 Subsection 59(2)

Repeal the subsection, substitute:

       (2) If an employer liable to pay superannuation guarantee charge in relation to a contribution period:

       (a) fails to keep a record in relation to the contribution period containing details of the basis of calculation of the following amounts:

       (i) the employer's annual national payroll for the employer's base year;

       (ii) the individual superannuation guarantee shortfalls of the employer for the contribution period;

       (iii) the employer's nominal interest component for the contribution period;

       (iv) the employer's administration component for the contribution period;

        that were specified in a superannuation guarantee statement under section 33 or a statement under section 34; or

       (b) refuses or fails to produce to the Commissioner, when and as required by the Commissioner under this Act, a document containing details of the basis of calculation of the amounts referred to in paragraph (2)(a) that were specified in a superannuation guarantee statement under section 33 or a statement under section 34;

        the employer is liable to pay, by way of penalty, additional superannuation guarantee charge equal to double the amount of superannuation guarantee charge payable by the employer for the contribution period.

21 Section 64

Repeal the section, substitute:

64 What is the shortfall component?

       (1) If a payment of superannuation guarantee charge relates only to one employee, the shortfall component of the payment is the amount of the payment less:

       (a) any amount in respect of the administration component for the contribution period to which the payment relates; and

       (b) any amount of penalty charge (other than penalty charge under section 49 that does not relate to additional superannuation guarantee charge under Part 7) included in the payment.

       (2) If a payment of superannuation guarantee charge relates to 2 or more employees, the shortfall component of the payment is worked out in the following manner:

       (a) the following amounts are deducted:

       (i) any amount in respect of the administration component for the contribution period to which the payment relates;

       (ii) any amount of penalty charge (other than penalty charge under section 49 that does not relate to additional superannuation guarantee charge under Part 7) included in the payment;

       (b) the amount remaining after the amounts referred to in paragraph (a) have been deducted represents the total of the shortfall components for all of the employees concerned;

       (c) the shortfall component in relation to a particular employee is the amount worked out using the formula:

A + B

C

where:

A is the total amount referred to in paragraph (b).

B is the employer's individual superannuation guarantee shortfall in relation to the particular employee for the contribution period concerned.

C is the total of the employer's individual superannuation guarantee shortfalls in relation to all employees to whom the payment or payments related for the contribution period concerned.

22 Application of items 1 to 21

        The amendments of the Superannuation Guarantee (Administration) Act 1992 made by items 1 to 21 apply only in relation to the year commencing on 1 July 2002 and do not affect any liability or requirement in connection with any earlier time.

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