Explanatory Statement

General outline of instrument

This instrument sets out the way in which Superannuation funds are required to lodge member contribution statements in accordance with sections 26 and 29 of the Superannuation (Government Co-contribution for Low Income Earners) Act 2003 and section 78 of the Superannuation Guarantee (Administration) Act 1992 for the year ended 30 June 2007, in the approved form, and states the due date for lodgment.

The proposed instrument will be a legislative instrument for the purposes of the Legislative Instruments Act 2003 and it is legally binding on the Commissioner of Taxation.

Date of effect

The instrument applies to the financial year ended 30 June 2007 or approved period in lieu and is effective from the day after it is registered.  

What is this instrument about:

The principal purpose of the Instrument is to set out the form and manner in which statements are to be lodged for an income year and states the date that they are required to be lodged The Legislative Instrument states the baseline dates for lodgment of statements, which can be subject to deferment  of time under the Commissioner’s discretion provided for in the associated legislation.

What is the effect of this instrument:

The effect of this instrument is that superannuation providers have clear guidance of their obligations to lodge statements, and the date by which they must be lodged and the penalty that may be applied for failure to lodge on time.

Background:

 Since June 2001 the Commissioner has published requirements for lodgment of returns and statements in accordance with relevant legislation.

This year a legislative instrument is being made to require the lodgment of Member Contribution Statements (MCS) in accordance with:

• section 78 of the Superannuation Guarantee (Administration) Act 1992;  and
• sections 26 and 29 of the Superannuation (Government Co-contribution for Low Income Earners) Act 2003

The instrument sets out the lodgment dates of statements and the manner in which they have  to be lodged, including details of acceptable electronic media that could be used and the penalties that may be applied for failing to lodge the statements on time.

Consultation:

There has been no consultation in relation to this instrument. This is considered a machinery provision and a requirement of sections 26 and 29 of the Superannuation (Government Co-contribution for Low Income Earners) Act 2003 and section 78 of the Superannuation Guarantee (Administration) Act 1992 and it is a long standing practice to publish information for lodgment of  statements for each financial year and who must lodge them.

Michael D’Ascenzo