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					2002

The Parliament of the
Commonwealth of Australia

HOUSE OF REPRESENTATIVES



Presented and read a first time




Taxation Laws Amendment
(Superannuation) Bill (No. 1) 2002
No.                 , 2002
(Treasury)




A Bill for an Act to amend the law relating to
taxation, and for related purposes
Contents
                1       Short title ........................................................................................... 1
                2       Commencement ................................................................................. 1
                3       Schedule(s) ........................................................................................ 2

Schedule 1—Taxation of departing Australia superannuation
           payments                                                                                                            3

    Part 1—Income Tax Assessment Act 1936                                                                                      3

    Part 2—Income Tax Assessment Act 1997                                                                                      5

    Part 3—Taxation Administration Act 1953                                                                                    6

    Part 4—Income Tax Act 1986                                                                                                 9

    Part 5—Small Superannuation Accounts Act 1995                                                                            10

    Part 6—Application of amendments                                                                                         13




i    Taxation Laws Amendment (Superannuation) Bill (No. 1) 2002                                  No.            , 2002
 1   A Bill for an Act to amend the law relating to
 2   taxation, and for related purposes
 3   The Parliament of Australia enacts:
 4   1 Short title
 5               This Act may be cited as the Taxation Laws Amendment
 6               (Superannuation) Act (No. 1) 2002.

 7   2 Commencement
 8          (1) Each provision of this Act specified in column 1 of the table
 9              commences, or is taken to have commenced, on the day or at the
10              time specified in column 2 of the table.
11




       Taxation Laws Amendment (Superannuation) Bill (No. 1) 2002   No.   , 2002   1
      Commencement information
      Column 1               Column 2                                             Column 3
      Provision(s)           Commencement                                         Date/Details
      1. Sections 1 to       The day on which this Act receives the
      3 and anything in      Royal Assent
      this Act not
      elsewhere covered
      by this table
      2. Schedule 1          The later of:
                             (a) the day on which this Act receives the
                                 Royal Assent; and
                             (b) the day on which the Income Tax
                                 (Superannuation Payments Withholding
                                 Tax) Act 2002 receives the Royal Assent
 1                   Note:     This table relates only to the provisions of this Act as originally
 2                             passed by the Parliament and assented to. It will not be expanded to
 3                             deal with provisions inserted in this Act after assent.

 4           (2) Column 3 of the table is for additional information that is not part
 5               of this Act. This information may be included in any published
 6               version of this Act.

 7   3 Schedule(s)
 8                   Each Act that is specified in a Schedule to this Act is amended or
 9                   repealed as set out in the applicable items in the Schedule
10                   concerned, and any other item in a Schedule to this Act has effect
11
12                   according to its terms.




     2           Taxation Laws Amendment (Superannuation) Bill (No. 1) 2002            No.       ,
     2002
                     Taxation of departing Australia superannuation payments Schedule 1
                                                Income Tax Assessment Act 1936 Part 1


 1
 2   Schedule 1—Taxation of departing Australia
 3         superannuation payments
 4   Part 1—Income Tax Assessment Act 1936
 5   1 Subsection 6(1) (definition of withholding tax)
 6         After “section”, insert “27GA or”.

 7   2 Subsection 27A(1)
 8         Insert:
 9              departing Australia superannuation payment means a payment
10              that:
11                (a) would be an ETP except for the operation of paragraph (qa)
12                    of the definition of eligible termination payment; and
13                (b) is paid to a person who has departed Australia; and
14                (c) is paid:
15                      (i) in accordance with regulations under the
16                          Superannuation Industry (Supervision) Act 1993 or the
17                          Retirement Savings Accounts Act 1997 that are
18                          prescribed for the purposes of this definition; or
19                     (ii) in accordance with section 67A of the Small
20                          Superannuation Accounts Act 1995; or
21                    (iii) by an exempt public sector superannuation scheme
22                          (within the meaning of section 10 of the Superannuation
23                          Industry (Supervision) Act 1993) and is made in
24                          accordance with rules of the fund that are substantially
25                          similar to the regulations referred to in subparagraph (i).

26   3 Subsection 27A(1) (after paragraph (q) of the definition of
27       eligible termination payment)
28         Insert:
29              (qa) a payment that is a departing Australia superannuation
30                   payment; or

31   4 After section 27G
32         Insert:



             Taxation Laws Amendment (Superannuation) Bill (No. 1) 2002   No.    , 2002
                                                                                      3
     Schedule 1 Taxation of departing Australia superannuation payments
     Part 1 Income Tax Assessment Act 1936



 1   27GA Departing Australia superannuation payment
 2           (1) A person who receives a departing Australia superannuation
 3               payment is liable to pay income tax upon that payment at the rate
 4               declared by the Parliament in respect of departing Australia
 5               superannuation payments.
 6                Note:      See the Taxation Administration Act 1953 for provisions dealing with
 7                           the payment of the tax.

 8           (2) Income tax payable by a person in accordance with this section is
 9               in addition to any other income tax payable by the person upon
10               income other than departing Australia superannuation payments.
11           (3) A departing Australia superannuation payment is not to be
12               included in the assessable income of a person.
13           (4) If an amount would be a departing Australia superannuation
14               payment apart from the fact that the person has not received it, it
15               becomes a departing Australia superannuation payment to the
16               person as soon as it is applied or dealt with in any way on the
17
18               person’s behalf or as the person directs.




     4          Taxation Laws Amendment (Superannuation) Bill (No. 1) 2002         No.      ,
     2002
                  Taxation of departing Australia superannuation payments Schedule 1
                                             Income Tax Assessment Act 1997 Part 2


1


2   Part 2—Income Tax Assessment Act 1997
3   5 Subsection 995-1(1) (definition of withholding tax)
4
5         After “section”, insert “27GA or”.




            Taxation Laws Amendment (Superannuation) Bill (No. 1) 2002   No.   , 2002
                                                                                    5
     Schedule 1 Taxation of departing Australia superannuation payments
     Part 3 Taxation Administration Act 1953


 1


 2   Part 3—Taxation Administration Act 1953
 3   6 Section 10-5 in Schedule 1 (after table item 22)
 4           Insert:
      22A     A departing Australia superannuation payment                   12-305

 5   7 After Subdivision 12-F in Schedule 1
 6           Insert:

 7   Subdivision 12-FA—Departing Australia superannuation
 8             payments
 9   Table of sections
10            12-305    Departing Australia superannuation payment
11            12-310    Limits on amount withheld under this Subdivision


12   12-305 Departing Australia superannuation payment
13                An entity must withhold an amount from a departing Australia
14                superannuation payment (within the meaning of Subdivision AA of
15                Division 2 of Part III of the Income Tax Assessment Act 1936) it
16                pays to an entity.

17   12-310 Limits on amount withheld under this Subdivision
18                This Subdivision does not require an entity:
19                 (a) to withhold an amount from a departing Australia
20                      superannuation payment (within the meaning of Subdivision
21                      AA of Division 2 of Part III of the Income Tax Assessment
22                      Act 1936) if no *withholding tax is payable in respect of the
23                      departing Australia superannuation payment; or
24                 (b) to withhold from a departing Australia superannuation
25                      payment (within the meaning of Subdivision AA of
26                      Division 2 of Part III of the Income Tax Assessment Act
27                      1936) more than the withholding tax payable in respect of the
28                      departing Australia superannuation payment (reduced by
29                      each amount already withheld from it under this
30                      Subdivision).


     6          Taxation Laws Amendment (Superannuation) Bill (No. 1) 2002   No.      ,
     2002
                     Taxation of departing Australia superannuation payments Schedule 1
                                                Taxation Administration Act 1953 Part 3



 1              Note:      Section 27GA of the Income Tax Assessment Act 1936 deals with the
 2                         withholding tax liability.

 3   8 Subsection 15-10(2) in Schedule 1
 4         After “12-F”, insert “, 12-FA”.

 5   9 Paragraph 16-153(1)(a) in Schedule 1
 6         After “or 12-285)”, insert “, Subdivision 12-FA”.

 7   10 Paragraph 16-153(1)(b) in Schedule 1
 8         After “or 12-285)”, insert “, Subdivision 12-FA”.

 9   11 After section 16-165 in Schedule 1
10         Insert:

11   16-166 Payment summary for a departing Australia
12            superannuation payment
13              Within 14 days after an entity (the payer) makes a departing
14              Australia superannuation payment (within the meaning of
15              Subdivision AA of Division 2 of Part III of the Income Tax
16              Assessment Act 1936), the payer must:
17               (a) give a *payment summary that covers the payment to the
18                   recipient of the payment; and
19               (b) give a copy of the summary to the Commissioner.

20   12 After paragraph 16-195(a) in Schedule 1
21         Insert:
22               (aa) section 12-305 (about a departing Australia superannuation
23                    payment); or

24   13 Section 18-10 in Schedule 1
25         After “royalties),”, insert “Subdivision 12-FA (about departing
26         Australia superannuation payments),”.

27   14 After section 18-40 in Schedule 1
28         Insert:




             Taxation Laws Amendment (Superannuation) Bill (No. 1) 2002       No.      , 2002
                                                                                            7
     Schedule 1 Taxation of departing Australia superannuation payments
     Part 3 Taxation Administration Act 1953



 1   Entitlement to credit: departing Australia superannuation
 2            payment

 3   18-42 Credit—departing Australia superannuation payment

 4                Credit—amount withheld
 5           (1) If there is an *amount withheld from a *withholding payment that
 6               is covered by section 12-305 (departing Australia superannuation
 7               payment), the person liable to pay *withholding tax under
 8               section 27GA of the Income Tax Assessment Act 1936 on the
 9               payment is entitled to a credit of an amount equal to the amount
10               withheld.

11                Credit—penalty amount

12           (2) If an entity has paid to the Commissioner a penalty amount under
13               section 16-30 or 16-35 in relation to an *amount required to be
14               withheld under section 12-305 (departing Australia superannuation
15               payment), the person mentioned in subsection (1) is entitled to a
16               credit equal to the penalty amount.

17                Remission

18           (3) If the Commissioner remits the whole or a part of the amount of
19               penalty under section 16-45 that has been paid to the
20               Commissioner by the entity:
21                 (a) any credit that relates to the amount is reduced by the amount
22                      that is remitted; and
23                 (b) the Commissioner must pay to the entity an amount equal to
24
25                      the amount that is remitted.




     8          Taxation Laws Amendment (Superannuation) Bill (No. 1) 2002   No.   ,
     2002
                 Taxation of departing Australia superannuation payments Schedule 1
                                                         Income Tax Act 1986 Part 4


1


2   Part 4—Income Tax Act 1986
3   15 Subsection 5(2)
4
5        After “section”, insert “27GA,”.




           Taxation Laws Amendment (Superannuation) Bill (No. 1) 2002   No.   , 2002
                                                                                   9
     Schedule 1 Taxation of departing Australia superannuation payments
     Part 5 Small Superannuation Accounts Act 1995


 1


 2   Part 5—Small Superannuation Accounts Act 1995
 3   16 Section 14
 4           After:

 5                           (b)    the individual is in employment, but the duties of
 6                                  the individual’s employment are performed wholly
 7                                  or principally outside Australia.

 8           insert:

 9                Permanent departure from Australia

10                •    The balance of an individual’s account may be withdrawn if:

11                           (a)    the individual was the holder of an eligible
12                                  temporary residents visa that has expired or been
13                                  cancelled; and

14                           (b)    the individual has permanently departed from
15                                  Australia.

16   17 Paragraph 16(b)
17           Omit “or 67”, substitute “, 67 or 67A”.

18   18 At the end of section 16
19           Add:
20                Note 4:    Section 67A deals with individuals who have permanently departed
21                           from Australia.

22   19 At the end of section 62
23           Add:

24                •    The balance of an individual’s account may be withdrawn if:




     10          Taxation Laws Amendment (Superannuation) Bill (No. 1) 2002        No.      ,
     2002
                     Taxation of departing Australia superannuation payments Schedule 1
                                         Small Superannuation Accounts Act 1995 Part 5




 1                          (a)   the individual was the holder of an eligible
 2                                temporary residents visa that has expired or been
 3                                cancelled; and

 4                          (b)   the individual has permanently departed from
 5                                Australia.

 6   20 After section 67
 7         Insert:

 8   67A Withdrawal of account balance—permanent departure from
 9           Australia

10              Withdrawal request
11         (1) This section applies to an individual’s account if:
12              (a) the individual gives the Commissioner of Taxation a request
13                   (the withdrawal request) for the withdrawal of the account
14                   balance; and
15              (b) the individual satisfies the Commissioner of Taxation that:
16                     (i) the individual was the holder of an eligible temporary
17                         residents visa that has expired or been cancelled; and
18                    (ii) the individual has permanently departed from Australia.

19              Form of withdrawal request
20         (2) The withdrawal request must be:
21              (a) in writing; and
22              (b) in a form approved in writing by the Commissioner of
23                  Taxation.

24              Compliance with withdrawal request
25         (3) The Commissioner of Taxation must pay to the individual an
26             amount equal to the account balance immediately before the
27             payment is made.

28              Reserve to be debited
29         (4) The Reserve is debited for the purposes of making the payment.


             Taxation Laws Amendment (Superannuation) Bill (No. 1) 2002   No.    , 2002
                                                                                     11
    Schedule 1 Taxation of departing Australia superannuation payments
    Part 5 Small Superannuation Accounts Act 1995



1                Account to be debited
2           (5) When the payment is made, the individual’s account is debited by
3               the amount of the payment.

4                Definitions
5           (6) In this section:
6                eligible temporary residents visa has the same meaning as in the
7
8                Superannuation Industry (Supervision) Regulations 1994.




    12          Taxation Laws Amendment (Superannuation) Bill (No. 1) 2002   No.   ,
    2002
                Taxation of departing Australia superannuation payments Schedule 1
                                                  Application of amendments Part 6


1


2   Part 6—Application of amendments
3   21 Application
4        The amendments made by this Schedule apply to payments made on or
5        after 1 July 2002.




          Taxation Laws Amendment (Superannuation) Bill (No. 1) 2002   No.   , 2002
                                                                                 13

				
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