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2013-2014-2015
THE PARLIAMENT OF THE COMMONWEALTH OF AUSTRALIA
HOUSE OF REPRESENTATIVES
TREASURY LEGISLATION AMENDMENT (REPEAL DAY 2015) BILL 2015
EXPLANATORY MEMORANDUM
(Circulated by authority of the
Treasurer, the Hon Scott Morrison MP)
Table of contents
Glossary ................................................................................................. 1
General outline and financial impact....................................................... 3
Chapter 1 Superannuation guarantee charge reforms ................... 7
Chapter 2 Lost members and unclaimed superannuation
reforms .........................................................................19
Chapter 3 Modify 'in receivership' rules ........................................25
Chapter 4 Repeal of inoperative acts and provisions of the
taxation law ..................................................................37
Index......................................................................................................43
Glossary
The following abbreviations and acronyms are used throughout this
explanatory memorandum.
Abbreviation Definition
AFSL Australian financial services license
ASIC Australian Securities & Investments Commission
Commissioner Commissioner of Taxation
CTOA Crimes (Taxation Offences) Act 1980
DA Act Development Allowance Authority Act 1992
ICCT Act Infrastructure Certificate Cancellation Tax Act 1994
ITAA 1936 Income Tax Assessment Act 1936
NIRA Tax and Superannuation Laws Amendment
(Norfolk Island Reforms) Act 2015
SG superannuation guarantee
SGAA Superannuation Guarantee (Administration) Act 1992
SSSA Small Superannuation Accounts Act 1995
SUMLMA Superannuation (Unclaimed Money and Lost
Members) Act 1999
TAA 1953 Taxation Administration Act 1953
the Guide Attorney-General's Department Guide to Framing
Criminal Offences
1
General outline and financial impact
Superannuation guarantee charge reforms
Schedule 1 to this Bill simplifies the superannuation guarantee (SG)
charge and makes the SG charge and penalty more proportionate to the
non-compliance. The SG charge will be simplified by aligning the
earnings base for calculating the SG charge (currently salary or wages)
with the earnings base for calculating SG contributions (ordinary time
earnings).
The changes will also align the interest component on any SG shortfall
with the period over which the contributions are actually outstanding.
In addition, these changes will remove the additional penalties under the
Superannuation Guarantee (Administration) Act 1992 which can be
significant and align them with administrative penalties under the
Taxation Administration Act 1953.
Date of effect: 1 July 2016.
Proposal announced: This measure was first released as part of the
2014-15 MYEFO and was subsequently announced by the former
Minister for Small Business on 20 January 2015.
Financial impact: The SG charge reforms have nil net financial impact.
Human rights implications: This Schedule does not raise any human
rights issue. See Statement of Compatibility with Human Rights --
Chapter 1, paragraphs 1.48 to 1.52.
Compliance cost impact: The superannuation charge reforms have nil
compliance costs impact.
Lost members and unclaimed superannuation
Schedule 2 to this Bill amends the Superannuation (Unclaimed Money
and Lost Members) Act 1999, and other superannuation laws to enable the
Commissioner of Taxation (Commissioner) to pay certain superannuation
amounts directly to individuals with a terminal medical condition and to
remove the requirement for superannuation funds to lodge a separate
biannual lost members statement with the Commissioner.
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Treasury Legislation Amendment (Repeal Day) Bill 2015
Date of effect: 1 July 2016.
Proposal announced: The measures in Schedule 2 were announced in the
2015-16 Budget as part of the lost and unclaimed superannuation reform
package, which contains a total of six measures that reduce red tape for
superannuation funds and members by removing additional reporting
obligations and by streamlining lost and unclaimed superannuation
administrative arrangements. Schedule 2 only implements two of the
six measures in that package. Legislative and administrative changes
necessary to implement the remaining measures are being progressed
through separate processes.
Financial impact: The lost and unclaimed superannuation changes have a
nil net financial impact.
Human rights implications: This Schedule does not raise any human
rights issue. See Statement of Compatibility with Human Rights --
Chapter 2, paragraphs 2.24 to 2.28.
Compliance cost impact: The estimated reduction in compliance costs
from implementing all six measures in the lost and unclaimed
superannuation reform package, including the two measures in
Schedule 2, is $0.97 million per annum.
Modify 'in receivership'
Schedule 3 to this Bill contains amendments to the Corporations Act 2001
to modify the notification and reporting obligations applying to certain
corporations that have property in receivership or property in respect of
which a controller is acting.
Date of effect: This Schedule will commence on the day after this Bill
receives Royal Assent.
Proposal announced: This measure was released as an exposure draft for
public consultation on 28 August 2015.
Financial impact: Modifying the notification and reporting obligations
has a nil net financial impact.
Human rights implications: This Schedule does not raise any human
rights issues. See Statement of Compatibility with Human Rights --
Chapter 3, paragraphs 3.49 to 3.52.
Compliance cost impact: This measure will reduce regulatory burden by
$1.8 million.
4
General outline and financial impact
Repeal of inoperative Acts and provisions of the taxation law
Schedule 4 to this Bill repeals several inoperative acts in the Treasury
portfolio as well as amending the taxation law to remove a number of
inoperative or spent provisions.
Date of effect: This Schedule will commence on the day after this Bill
receives Royal Assent.
Proposal announced: This measure was released as an exposure draft for
public consultation on 28 August 2015.
Financial impact: This measure will have a nil net financial impact.
Human rights implications: This Schedule does not raise any human
rights issues. See Statement of Compatibility with Human Rights --
Chapter 4, paragraphs 4.29 to 4.33.
Compliance cost impact: This measure will reduce compliance costs for
affected taxpayers by reducing the overall size of the tax law. The overall
magnitude of the compliance save is unquantifiable, but expected to be
small.
5
Chapter 1
Superannuation guarantee charge reforms
Outline of chapter
1.1 Schedule 1 to this Bill amends the Superannuation Guarantee
(Administration) Act 1992 (SGAA); the Taxation Administration Act 1953
(TAA 1953); the Tax and Superannuation Laws Amendment (Norfolk
Island Reforms) Act 2015 (NIRA) and the Crimes (Taxation Offences)
Act 1980 (CTOA) to simplify the superannuation guarantee (SG) charge
for employers and make the SG charge and penalty more proportionate to
the non-compliance by:
• replacing salary or wages as the current basis for calculating
SG charge and aligning this with the base used to calculate
SG contributions (ordinary time earnings);
• aligning the nominal interest on unpaid or late
SG contributions with the period over which they are actually
outstanding; and
• removing the additional SG charge penalty imposed under
Part 7 of the SGAA and replacing this with the general tax
penalty provisions imposed under the TAA 1953.
1.2 All references to legislative provisions in this chapter are
references to the SGAA unless otherwise stated.
Context of amendments
1.3 An important part of Australia's superannuation system is the
provision of compulsory contributions by employers to complying
superannuation funds in respect of their employees. Employers must make
quarterly SG contributions for their eligible employees to avoid having to
pay SG charge to the Commissioner of Taxation (Commissioner).
1.4 The SG charge regime imposes punitive costs on employers who
pay their SG contributions late or in part. This can have a significant
impact on small businesses.
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Treasury Legislation Amendment (Repeal Day) Bill 2015
1.5 If an employer does not make the correct amount of
SG contributions on time they will have an SG shortfall on which
SG charge is imposed. SG shortfall consists of the total of the employer's
individual SG shortfalls for each employee, nominal interest component
and administration component for the quarter.
1.6 The requirement for employers to calculate SG contributions
and SG charge on different bases increases compliance complexity for
employers. Also, if an employer pays SG contributions late the
requirement to calculate SG charge based on salary or wages can result in
an SG shortfall higher than the minimum required contribution amount.
1.7 Late payment of SG contributions also attracts nominal interest
on the shortfall amount from the beginning of the relevant quarter until the
employer lodges an SG statement or the Commissioner makes a default
assessment. This means if an employer pays SG contributions late but
does not lodge an SG statement, then nominal interest accrues indefinitely
until an assessment is made.
1.8 If the employer does not lodge an SG statement (or fails to give
information to the Commissioner) they are also liable to pay the additional
SG charge penalty at a rate of up to 200 per cent of the SG charge payable
by the employer.
1.9 On 20 January 2015 the Government announced changes to
simplify the SG charge and make the SG charge and penalty more
proportionate to the non-compliance. The amendments contained in
Schedule 1 of this Bill implement this announcement.
1.10 The amendments contained in Schedule 1 complement a number
of measures announced in 2014 to reduce superannuation compliance
costs for businesses, including expanding the small business
superannuation clearing house and simplifying when employers need to
provide a choice of fund form.
Summary of new law
1.11 Part 1 of Schedule 1 amends the SGAA to provide that an
employer's individual SG shortfall for an employee is worked out using
ordinary time earnings.
1.12 Part 2 of Schedule 1 amends the SGAA to align the period over
which nominal interest accrues with the period SG contributions are
actually outstanding. Part 2 of Schedule 1 also amends the SGAA to
ensure that SG charge payments are distributed equally between
employees.
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Superannuation guarantee charge reforms
1.13 Part 3 of Schedule 1 amends the SGAA and the TAA 1953 to
remove the additional SG charge penalty imposed under Part 7 and
replace this with the general tax penalty provisions in the TAA 1953.
Comparison of key features of new law and current law
New law Current law
SG contributions are calculated as SG contributions are calculated as
9.5 per cent of ordinary time 9.5 per cent of ordinary time
earnings. earnings.
An employer's liability to SG charge An employer's liability to SG charge
is calculated based on the employee's is calculated based on the employee's
ordinary time earnings. salary or wages.
Nominal interest is imposed on each Nominal interest is imposed on the
of the employer's individual total of the employer's individual
SG shortfalls starting on the 29th day SG shortfalls from the beginning of
after the end of the relevant quarter the relevant quarter until the day
and ending on the day before SG charge is payable.
SG charge is payable. If an employer
makes a late contribution payment or
payments that offset an employee's
shortfall amount, interest will accrue
on the full shortfall amount until the
day of the last payment, and then on
any remaining shortfall thereafter.
If an employer refuses or fails to give If an employer refuses or fails to give
the Commissioner an SG statement or the Commissioner an SG statement or
information when required they are information relevant to assessing their
liable to an administrative penalty SG charge liability for a quarter they
under the TAA 1953. are liable to pay additional SG charge
penalty under Part 7 equal to up to
200 per cent of the SG charge
payable.
Detailed explanation of new law
1.14 Employers must make quarterly SG contributions on behalf of
their eligible employees to avoid having to pay the SG charge.
SG contributions are due 28 days after the end of the relevant quarter.
1.15 Currently, the SG contributions an employer should make to
reduce their SG shortfall are worked out based on the employee's ordinary
time earnings. Conversely, if an employer does not make the correct
amount of SG contributions on time and has an SG shortfall, the
employer's individual SG shortfall (and therefore SG charge) is worked
out based on the employee's salary or wages.
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Treasury Legislation Amendment (Repeal Day) Bill 2015
1.16 'Salary or wages' as defined in the SGAA describes a broader
scope of remuneration than 'ordinary time earnings'. For example, salary
or wages includes overtime while ordinary time earnings does not. This
means that if an employer pays SG contributions late then they could be
liable to pay an SG shortfall amount higher than the original amount of
contribution required to be made.
1.17 If an employer makes a late contribution to their employee's
superannuation fund they are able to elect to offset the contribution
amount against their SG charge liability for a quarter under section 23A.
The late contribution must be made before the employer's original
SG charge assessment for the quarter.
1.18 SG charge is imposed on an employer's SG shortfall for a
quarter. The SG shortfall consists of the total of the employer's individual
SG shortfalls, nominal interest component and administration component
for the quarter.
1.19 Currently, the nominal interest component is calculated on the
total of the employer's individual SG shortfalls for a quarter, from the
beginning of the quarter until the date SG charge is payable. SG charge is
generally payable when the employer lodges an SG statement (deemed
assessment) or the Commissioner makes a default assessment.
1.20 If the employer does not lodge an SG statement then nominal
interest accrues indefinitely until the Commissioner makes a default
assessment.
1.21 If an employer fails to provide an SG statement or information
relevant to assessing their SG charge liability, the employer is currently
liable for the additional SG charge penalty equal to up to 200 per cent of
the SG charge payable by the employer for the quarter. This penalty is
imposed under Part 7.
Ordinary time earnings
1.22 Part 1 of Schedule 1 amends the SGAA to provide that an
employer's individual SG shortfall for an employee is worked out using
ordinary time earnings.
1.23 Specifically, subsection 19(1) is amended so that the employer's
individual SG shortfall for an employee is worked out based on the
employee's ordinary time earnings for the quarter. [Schedule 1, Part 1, items 4
and 5, the formula in subsections 19(1) and (3)]
1.24 This will mean that the calculations for SG contributions and SG
shortfall will both be based on the concept of ordinary time earnings.
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Superannuation guarantee charge reforms
1.25 The definition of ordinary time earnings is amended to
specifically refer to salary or wages. The focus of the definition has
moved from simply being 'in relation to an employee' to being
specifically in relation to an employee 'for a quarter in respect of an
employer'. It is not intended that the calculation of ordinary time earnings
be changed from the current definition. [Schedule 1, Part 1, items 1, 2 and 3,
subsection 6(1) and section 11A]
1.26 Ordinary time earnings includes the total of the salary or wages
paid by the employer to the employee that are earnings in respect of
ordinary hours of work or earnings consisting of over-award payments,
shift-loading or commission. Ordinary time earnings does not include a
lump sum payment to an employee upon their termination of employment
being a payment in lieu of unused sick, annual or long service leave.
[Schedule 1, Part 1, items 1, 2 and 3, subsection 6(1) and section 11A]
1.27 Salary or wages is defined in section 11 to specifically include
certain payments and remuneration. Section 27 specifically excludes
salary or wages paid in specific circumstances for the purposes of
calculating SG charge under section 19. The Superannuation Guarantee
(Administration) Regulations 1993 prescribes further exclusions for the
purposes of section 27.
1.28 As the definition of ordinary time earnings is amended to
specifically refer to salary or wages paid by the employer to the employee,
the above inclusions and exclusions are preserved for the purposes of
calculating SG charge under section 19.
1.29 Part 1 of Schedule 1 includes consequential amendments to the
NIRA. Schedule 2 of the NIRA contains application and transitional
provisions for the purposes of incorporating Norfolk Island salary or
wages into the SG regime. Schedule 2 of the NIRA is amended so that it
reflects the above changes to the calculation of an employer's individual
SG shortfall by changing references to 'salary or wages' to 'ordinary time
earnings'. [Schedule 1, Part 1, items 6, 7, 8 and 9, paragraph 2(2)(a), subitem 2(2), the
formula in subitem 2(2), and subitem 2(3) of Schedule 2 of the NIRA]
Example 1.1
During the July - September 2016 quarter Mario earns $4,000 from his
employer, ABC Ltd. This amount includes $200 in overtime and
$800 salary paid while Mario was undertaking service with the
Defence Force Reserves.
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Treasury Legislation Amendment (Repeal Day) Bill 2015
ABC Ltd does not make SG contributions on behalf of Mario for the
July -September 2016 quarter. Under section 23(2), ABC Ltd should
have made SG contributions of $285 on behalf of Mario to avoid the
SG charge. This amount is based on Mario's ordinary time earnings of
$3,000 for the quarter and a charge percentage rate of 9.5 per cent.
The amounts Mario earned in overtime and while undertaking Service
with the Reserves are not included in ordinary time earnings.
Because ABC Ltd did not make any contributions on behalf of Mario,
ABC Ltd has an individual SG shortfall of $285 for Mario for the
July - September 2016 quarter. This amount is based on Mario's
ordinary time earnings for the quarter. As with the calculation of
SG contributions, the amounts Mario earned in overtime and while
undertaking service with the Reserves are not included in the
calculation of the SG charge.
Nominal interest
1.30 Part 2 of Schedule 1 amends the SGAA to align the period over
which nominal interest accrues with the period SG contributions are
actually outstanding.
1.31 The nominal interest component forms part of the SG charge
payable by an employer if they have an SG shortfall for a quarter. If an
employer makes the required contribution to a Retirement Savings
Account or to a complying superannuation fund within 28 days after the
end of the relevant quarter they will not have an SG shortfall.
1.32 Nominal interest is calculated at the rate applicable under the
regulations made for the purposes of section 31, which is currently
10 per cent.
1.33 Nominal interest will accrue on each of the employer's
individual SG shortfalls for the quarter starting on the 29th day after the
end of the quarter. [Schedule 1, Part 2, items 10 and 11, subsection 6(1) and
subparagraph 31(1)(b)(i)]
1.34 If the employer does not make any late contributions that offset
against the employer's individual SG shortfall under section 23A, then
nominal interest will accrue on the full amount of the shortfall until the
day before the day the SG charge on the employer's SG shortfall would be
payable. This is generally the day before either the employer lodges an SG
statement (if this occurs after the lodgement day) or the Commissioner
makes a default assessment. This will avoid an overlap with the
imposition of General Interest Charge, which is imposed from the day the
SG charge is payable. [Schedule 1, Part 2, item 11, subparagraph 31(1)(b)(ii)]
12
Superannuation guarantee charge reforms
1.35 However, if the employer makes a late contribution and elects,
under section 23A, to offset the contribution against their individual SG
shortfall for an employee for the quarter, nominal interest will not accrue
on the shortfall amount that is offset by those contributions from the day
after the employer makes the last of those contributions. This means that
from the day after the employer makes the last late contribution payment
to which section 23A applies, nominal interest will only accrue on the
remaining individual SG shortfall amount. [Schedule 1, Part 2, item 11,
subsection 31(2)]
1.36 If the employer makes late contributions that fully offset the
employer's individual SG shortfall for an employee under section 23A,
interest will not accrue at all after the day the employer makes the last of
those contributions. [Schedule 1, Part 2, item 11, the note to section 31]
Example 1.2
On 23 December 2016 ABC Ltd makes a late payment of $285 on
behalf of Mario.
ABC Ltd does not give the Commissioner an SG statement by the
required date. On 1 March 2017 the Commissioner makes a default
assessment of ABC Ltd's SG shortfall for the July - September 2016
quarter and of the SG charge payable on the shortfall. ABC Ltd elects
to make a late payment offset against their SG charge liability for the
July - September 2016 quarter.
The default assessment shows that ABC Ltd has an SG charge liability
for the July - September 2016 quarter, which includes an individual
SG shortfall of $285 for Mario, nominal interest of $4.36 and an
administration component of $20.
Nominal interest is calculated from 29 October 2016 (the day after the
SG contribution was due) until 23 December 2016 (the day ABC Ltd
made contributions that fully offset Mario's individual SG shortfall).
The late payment offset will reduce ABC Ltd's SG charge liability by
$285, however ABC Ltd will still have an amount of $24.36
outstanding.
Example 1.3
ABC Ltd also fails to make SG contributions for the
July - September 2016 quarter on behalf of its other employee, Aisha.
Under subsection 23(2), ABC Ltd should have made SG contributions
of $285 on behalf of Aisha to avoid the SG charge.
Nominal interest on ABC Ltd's individual SG shortfall for Aisha is
calculated from 29 October 2016 (the day after the SG contribution
was due) until 28 February 2017 (the day before the Commissioner
makes a default assessment).
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Treasury Legislation Amendment (Repeal Day) Bill 2015
Nominal interest on ABC Ltd's individual SG shortfall for Aisha
is $9.60.
Example 1.4
Assume that on 23 December 2016 ABC Ltd made a late payment of
$100 on behalf of Aisha for the July - September 2016 quarter and
later elected to make a late payment offset against their SG charge
liability for Aisha for the quarter.
Nominal interest would accrue based on the full $285 shortfall from
29 October 2016 until 23 December 2016. From 24 December 2016
until 28 February 2017 nominal interest would accrue on $185
(which is the balance of the shortfall after the late payment is taken
into account).
Apportioning payments of shortfall amounts between employees
1.37 Part 8 prescribes how the Commissioner is to distribute
SG charge payments made by an employer between the relevant
employees. Currently, where an employer makes a partial payment and
there is a shortfall component for more than one employee, each employee
will receive a proportion of an SG charge payment based on the
employee's SG shortfall amount for a given quarter. The formula for
apportioning the SG charge payment does not take into account the
nominal interest component for a given employee, or any late contribution
payments that may be offset against a given employee's SG shortfall
amount.
1.38 Under the proposed amendments to section 31, the nominal
interest proportion for an employee may now differ from their shortfall
proportion for a given quarter in circumstances where a late contribution
payment is made for that employee.
1.39 Part 2 of Schedule 1 will amend the formula for determining the
shortfall component where there is more than one benefiting employee so
it is worked out as the sum of an employee's proportionate nominal
interest component and then an employee's remaining proportionate
shortfall component for a quarter. The formulas will also take into account
any earlier late contribution payments made to a given employee prior to
an SG charge assessment. The amendments will also clarify that the
Commissioner must first apply any previous payments against the
nominal interest component for the quarter. The amendments will ensure
that where there is a partial payment of an SG charge amount that it is
distributed equitably among benefiting employees. [Schedule 1, Part 2,
items 12 to 14, subsections 64B(2), (3), (3A) and (4)]
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Superannuation guarantee charge reforms
Example 1.5
If ABC Ltd had not made a late payment on behalf of Aisha, the
ATO's assessment of ABC Ltd's SG charge payable would show
outstanding balances on 1 March 2017 in respect of Mario and Aisha
of:
• Mario - $4.36 shortfall and $20 administration component
(note: the effect of section 23A is that the $285 late payment is first
used to pay the nominal interest component and therefore leaves a
shortfall amount of $4.36); and
• Aisha - $285 shortfall, $9.60 nominal interest component and
$20 administration component.
ABC Ltd makes an SG charge payment of $100 on 2 March 2017.
The new allocation rules ensure that all of the nominal interest
components are paid before any of the shortfall amounts are paid. The
payment is allocated in the following manner:
• $9.60 towards Aisha's nominal interest component;
• $89.04 towards Aisha's shortfall (leaving a shortfall balance of
$195.96); and
• $1.36 towards Mario's shortfall (leaving a shortfall balance of
$3.00).
Penalties
1.40 Part 3 of Schedule 1 amends the CTOA, the SGAA and the
TAA 1953 to remove the additional SG charge penalty imposed under the
SGAA and replace this with the general tax penalty provisions in the
TAA 1953. [Schedule 1, Part 2, items 22 and 26, Part 7 and paragraph 286-75(2)(b)
in Schedule 1 to the TAA 1953]
1.41 Section 33 requires an employer who has an SG shortfall for a
quarter to lodge an SG statement in the approved form. If an employer has
not lodged an SG statement, section 34 gives the Commissioner the power
to require the employer to give the Commissioner a written statement.
1.42 If an employer refuses or fails to provide an SG statement or
information when required they will be subject to administrative penalties
under the TAA 1953. [Schedule 1, Part 2, items 22 and 26, Part 7 and
paragraph 286-75(2)(b) in Schedule 1 to the TAA 1953]
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Treasury Legislation Amendment (Repeal Day) Bill 2015
1.43 Under subsection 284-75(3) of Schedule 1 to the TAA 1953 an
employer will be liable to an administrative penalty if they fail to give a
statement to the Commissioner and the Commissioner makes a default
assessment without the assistance of the statement. Under subsection
286-75(1) of Schedule 1 to the TAA 1953 an employer will be liable to an
administrative penalty if they do not give the Commissioner a statement in
the approved form by the required day. If an employer makes a false or
misleading statement which leads to an SG shortfall subsection 284-75(1)
of Schedule 1 to the TAA 1953 will apply.
Example 1.6
As ABC Ltd had an SG shortfall for the July - September 2016 quarter
it was required to give the Commissioner an SG statement by
28 November 2016. As ABC Ltd did not do so it will be liable to
administrative penalties under the TAA 1953.
Consequential amendments
1.44 Part 3 of Schedule 1 makes a number of consequential
amendments that are required to remove the additional SG charge penalty
imposed under Part 7 and replace these with the general tax penalty
provisions in the TAA 1953. [Schedule 1, Part 3, items 15 to 21, and items 23 to
25, subsection 3(1) of the CTOA, subsections 6(1) and 38(2), section 47, subsection
49(5), section 50, subsection 63A(2) of the SGAA, and item 65 in the table in subsection
250-10(2) and section 284-230 in Schedule 1 to the TAA 1953]
1.45 Consequential amendments to the Superannuation Guarantee
(Administration) Regulations 1993 and other regulations will be made.
Application and transitional provisions
1.46 The amendments made by Schedule 1 apply in relation to a
quarter beginning on or after 1 July 2016. [Schedule 1, Part 4, item 27]
1.47 This means that the amendments made by Schedule 1 will apply
to SG contributions an employer is required to make on behalf of their
employees from the 1 July 2016 - 30 September 2016 quarter onwards.
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Superannuation guarantee charge reforms
STATEMENT OF COMPATIBILITY WITH HUMAN RIGHTS
Prepared in accordance with Part 3 of the Human Rights
(Parliamentary Scrutiny) Act 2011
Superannuation guarantee charge reforms
1.48 This Schedule is compatible with the human rights and freedoms
recognised or declared in the international instruments listed in section 3
of the Human Rights (Parliamentary Scrutiny) Act 2011.
Overview
1.49 This Schedule amends the Superannuation Guarantee
(Administration) Act 1992 (SGAA) and other related laws to simplify the
superannuation guarantee (SG) charge for employers and make the SG
charge and penalty more proportionate to the non-compliance by:
• replacing salary or wages as the current basis for calculating
SG charge and aligning this with the base used to calculate
SG contributions (ordinary time earnings);
• aligning the nominal interest on unpaid or late
SG contributions with the period over which they are actually
outstanding; and
• removing the additional SG charge penalty imposed under
Part 7 of the SGAA and replacing this with the general tax
penalty provisions imposed under the
Taxation Administration Act 1953.
1.50 These amendments do not affect an employee's entitlements to
superannuation contributions or reasonable compensation for the late
payment of their contributions.
Human rights implications
1.51 This Schedule does not engage any of the applicable rights or
freedoms.
Conclusion
1.52 This Schedule is compatible with human rights as it does not
raise any human rights issues.
17
Chapter 2
Lost members and unclaimed
superannuation reforms
Outline of chapter
2.1 Schedule 2 to this Bill amends the Superannuation (Unclaimed
Money and Lost Members) Act 1999 (SUMLMA), and other
superannuation laws to enable the Commissioner of Taxation
(Commissioner) to pay certain superannuation amounts directly to
individuals with a terminal medical condition and to remove the
requirement for superannuation funds to lodge a separate biannual lost
members statement with the Commissioner.
Context of amendments
2.2 In the 2015-16 Budget the Government announced a package of
measures to reduce red tape for superannuation funds and members by
removing redundant reporting obligations and by streamlining lost and
unclaimed superannuation administrative arrangements.
2.3 There are legislative impediments to the Commissioner directly
paying some lost member balances and other superannuation amounts to
individuals with a terminal medical condition. In many circumstances
these amounts must first be transferred to an account with a complying
superannuation plan before being paid to the individual. This creates
unnecessary red tape and delays for those needing immediate access to
their superannuation benefits.
2.4 Superannuation funds are required to lodge a biannual lost
members statement with the Commissioner, identifying all superannuation
balances of lost members. This statement provides information to the
Commissioner to display on a register of lost members. The
Commissioner also collects member information through the annual
member information statement, some of which is duplicated in the lost
member statement. Removing the requirement for superannuation funds to
lodge a lost members statement on a twice yearly basis will remove an
additional reporting burden for funds, reducing compliance costs.
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Treasury Legislation Amendment (Repeal Day) Bill 2015
Summary of new law
2.5 Part 1 of Schedule 2 amends the SUMLMA, the Small
Superannuation Accounts Act 1995 (SSSA) and the Superannuation
Guarantee (Administration) Act 1992 (SGAA) to enable the
Commissioner to pay unclaimed money of lost members and other
superannuation amounts directly to persons with a terminal medical
condition. Part 2 of Schedule 2 amends the SUMLMA to remove the
requirement for superannuation providers to lodge, twice yearly, a
lost members statement with the Commissioner. Information for the
purposes of the register of lost members will be collected using the
Commissioner's existing administrative powers under the Taxation
Administration Act 1953 (TAA 1953). Part 3 of Schedule 2 amends the
SUMLMA to enable the meaning of a lost member to be placed in
regulation.
Comparison of key features of new law and current law
New law Current law
The Commissioner can pay amounts The Commissioner cannot always pay
under the SUMLMA, SSAA and amounts under the SUMLMA, SSAA
SGAA directly to persons with a and SGAA directly to persons with a
terminal medical condition. terminal medical condition.
Superannuation providers will not be Superannuation providers must give
required to provide the Commissioner the Commissioner a lost members
with a lost members statement on a statement on a twice yearly basis.
twice yearly basis.
Detailed explanation of new law
Terminal medical condition
2.6 Amounts in the superannuation system are generally able to be
released, tax-free, to persons with a terminal medical condition.
2.7 The SUMLMA requires superannuation providers to report and
transfer unclaimed money to the Commissioner on a twice yearly basis.
Individuals are able to claim back unclaimed superannuation amounts
from the Commissioner at any time with interest. These unclaimed money
amounts include certain lost member accounts, being small lost accounts
and inactive accounts of unidentifiable members.
20
Lost members and unclaimed superannuation reforms
2.8 Part 4A of the SUMLMA only permits the Commissioner to pay
claimed lost member accounts directly to a person, if the person has
reached a certain 'eligibility' age; or the amount is less than $200; and the
person has not died. In other circumstances, including where a person has
a terminal medical condition, the claimed amount must be first transferred
into an account with a complying superannuation plan, before being
released from the superannuation system. This creates unnecessary delays
and paperwork for terminally ill persons wishing to access their
superannuation benefits.
2.9 Similarly, the Commissioner also administers small accounts
under the SSAA and shortfall superannuation guarantee amounts under
the SGAA. Section 65 of the SSAA enables direct withdrawal of account
balances in certain circumstances, including on retirement on the ground
of disability. Similarly, section 66 of the SGAA requires the
Commissioner to pay an amount of shortfall component directly to a
former employee that has retired due to permanent incapacity or
invalidity. Accounts under the SSAA and shortfall amounts under the
SGAA can also be transferred to a complying superannuation plan.
However, there is no specific provision in either the SSAA or the SGAA
to enable the Commissioner to pay these amounts directly to a person with
a terminal medical condition.
2.10 Part 1 of Schedule 2 will amend the SUMLMA to enable the
Commissioner to pay amounts held in respect of lost member accounts
directly to individuals with a terminal medical condition. The
Commissioner will also be required to make direct payments of account
balances under the SSAA and shortfall amounts under the SGAA, on
request, to individuals with a terminal medical condition. [Schedule 2, Part 1,
items 4 to 12, section 14, paragraph 16(b), note 2A to section 16, sections 62 and 65A of
the SSAA, subsection 65(1) and section 66A of the SGAA, and paragraph 24G(2)(d) and
subsection 24G(2A) of the SUMLMA]
2.11 A terminal medical condition exists in relation to an individual if
two registered medical practitioners, at least one of whom is a specialist;
have certified that a person suffers from an illness or injury that is likely
to result in their death within the certification period of 24 months or less.
A payment of an amount, under the SSAA or SGAA, or a lost member
amount under subsection 24G(2) of the SUMLMA, by the Commissioner
to a person with a terminal medical condition will be a superannuation
benefit. These types of superannuation benefits under the Income Tax
Assessment Act 1997 are tax-free in the hands of the individual concerned.
[Schedule 2, Part 1, items 1 to 3, items 4 and 7 of the table in subsection 307-5(1) of the
Income Tax Assessment Act 1997]
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Treasury Legislation Amendment (Repeal Day) Bill 2015
Lost member account reporting
2.12 Part 4 of the SUMLMA requires the Commissioner to keep a
register of lost members containing information for the purpose of
reuniting individuals with their lost superannuation money.
Superannuation providers must give the Commissioner a twice yearly
statement containing information relating to lost members for the purpose
of the register. These requirements are in addition to the biannual
reporting and payment requirements for certain unclaimed lost member
accounts in Part 4A of the SUMLMA.
2.13 Superannuation providers are also required to give the
Commissioner a member information statement, in the approved form
under section 390-5 of Schedule 1 to the TAA 1953. Subsections 390-5(5)
and 390-5(6) of Schedule 1 of the TAA 1953 enable the Commissioner to
specify, by legislative instrument, the period covered by the statement and
the day on which the statement must be given to the Commissioner.
Currently, a member information statement is required for each individual
who held a superannuation interest in a superannuation plan for a financial
year and is due on 31 October each year.
2.14 The proposed amendments will repeal requirements under Part 4
of the SUMLMA for the provision of information about lost
superannuation members to the Commissioner for the purposes of the
register of lost members. The Commissioner will continue to be required
to keep a register of lost members under Part 4 of the SUMLMA and will
be permitted to give information contained in the register to State and
Territory authorities. Information for the purposes of the register of lost
members will be collected using the Commissioner's existing
administrative powers under the TAA 1953. [Schedule 2, Part 2, items 13 and
15 to 20, section 7, Part 4, subsections 24HA(1), 25(3) and 26(3), section 27, paragraph
29(1)(b) and subsection 44(1) of the SUMLMA]
2.15 The amendments will also repeal the meaning of a lost member
in Part 4 of the SUMLMA, and incorporate this meaning within the
definition of lost member in section 8 of the SUMLMA. A lost member
continues to be a lost RSA holder within the meaning of the Retirement
Savings Accounts Regulations 1997 or a lost member within the meaning
of the Superannuation Industry (Supervision) Regulations 1994. [Schedule
2, Part 2, item 14, section 8 of the SUMLMA]
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Lost members and unclaimed superannuation reforms
2.16 Part 3 of Schedule 2 will repeal the meaning of a lost member in
section 8 of the SUMLMA, so it refers to a meaning in the regulations.
This schedule will not commence until a day fixed by proclamation.
However, if Part 3 of Schedule 2 does not commence within six months
from the day this Bill receives Royal Assent, then the meaning of a lost
member will remain within the definition of a lost member in the
SUMLMA. [Schedule 2, Part 3, item 23, section 8 of the SUMLMA]
2.17 It is intended that regulations will be made to place the meaning
of a lost member in the Superannuation (Unclaimed Money and Lost
Members) Regulations 1999 following Royal Assent of the Bill. The
proclamation provision will enable a definition of a lost member to be
maintained on a continuous basis for the purposes of the SUMLMA.
2.18 Consequential amendments to the Superannuation (Unclaimed
Money and Lost Members) Regulations 1999 will be made to repeal
regulations made for the purposes of Part 4 of the SUMLMA.
Application and transitional provisions
2.19 The amendments in Part 1 of Schedule 2 will commence on
1 July 2016.
2.20 The amendments in Part 2 of Schedule 2 will commence on
1 July 2016. The amendments in Part 2 of Schedule 2 will not apply to
information in relation to lost members that must be given to the
Commissioner for a half year ending before 1 July 2016. [Schedule 2, Part 2,
item 21]
2.21 Information for the purposes of the register of lost members will
be collected by the Commissioner through a lost members statement given
under Part 4 of the SUMLMA for the half year ending on 30 June 2016.
This information must generally be given to the Commissioner on or
before 31 October 2016, in accordance with the SUMLM regulations. For
subsequent reporting periods, commencing from the 2016-17 financial
year, information will be collected under section 390-5 of the TAA 1953.
2.22 The amendments in Part 3 of Schedule 2 will commence on a
day to be fixed by proclamation. However, if the provisions do not
commence within the period of 6 months beginning on the day the Act
receives Royal Assent they do not commence at all.
2.23 Transitional provisions will ensure that any information,
collected under Part 4 of the SUMLMA, for a half year ending before
1 July 2016, can continue to be included in the register of lost members.
[Schedule 2, Part 2, item 22]
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Treasury Legislation Amendment (Repeal Day) Bill 2015
STATEMENT OF COMPATIBILITY WITH HUMAN RIGHTS
Prepared in accordance with Part 3 of the Human Rights
(Parliamentary Scrutiny) Act 2011
Lost members and unclaimed superannuation
2.24 This Schedule is compatible with the human rights and freedoms
recognised or declared in the international instruments listed in section 3
of the Human Rights (Parliamentary Scrutiny) Act 2011.
Overview
2.25 Schedule 2 to this Bill amends the Superannuation (Unclaimed
Money and Lost Members) Act 1999, and other superannuation laws to
enable the Commissioner to pay certain superannuation amounts directly
to individuals with a terminal medical condition and to remove the
requirement for superannuation funds to lodge a separate biannual lost
members statement with the Commissioner.
2.26 These amendments will make it easier for individuals with a
terminal medical condition to access certain superannuation amounts and
simplify superannuation funds' lost member reporting obligations.
Human rights implications
2.27 This Schedule does not engage any of the applicable rights or
freedoms.
Conclusion
2.28 Schedule 2 to this Bill is compatible with human rights as it does
not raise any human rights issues.
24
Chapter 3
Modify 'in receivership' rules
Outline of chapter
3.1 Schedule 3 to this Bill contains amendments to the Corporations
Act 2001 to modify the notification and reporting obligations applying to
certain corporations that have property in receivership or property in
respect of which a controller is acting.
3.2 Responsible entities of managed investment schemes, licensed
trustee companies or custodians will now:
• notify of the appointment of a receiver only on the public
documents and negotiable instruments relating to the
registered scheme or trust that is in receivership (rather than
all public documents and negotiable instruments of the
corporation); and
• report to the controller only on the affairs of the registered
scheme or trust in respect of which the controller is acting
(rather than all the affairs of the corporation).
Context of amendments
Notification obligations
3.3 Generally, when a receiver is appointed to property of a
corporation, that corporation must notify of the receivership on all its
public documents and negotiable instruments (the notification obligation).
The same obligation applies when a controller is acting in relation to
property of a corporation.
3.4 The notification obligations impose unnecessary compliance
costs and may cause investor confusion and damage business reputations
for certain corporations that are in the business of holding property on
trust. These corporations are:
• responsible entities of registered schemes holding scheme
property;
25
Treasury Legislation Amendment (Repeal Day) Bill 2015
• licensed trustee companies that hold property on trust; and
• corporations holding an Australian financial services license
(AFSL) authorising the provision of custodial and depository
services that hold property on trust ('licensed custodians').
3.5 As these corporations hold property on trust (including bare
trusts), liability from receivership is confined to the assets of the particular
registered scheme or trust, rather than all assets of the corporation. It is
therefore appropriate that the notification obligation be confined to the
registered scheme or trust containing the assets under receivership (or
assets in respect of which the controller is acting).
3.6 Restricting the notification obligations to the public documents
and negotiable instruments relating to the affected registered scheme or
trust will reduce unnecessary compliance costs whilst ensuring persons
dealing with the corporation are informed of the receivership as required.
The modified notification obligation will also reduce investor confusion
as only documents and instruments relating to the affected scheme or trust
will contain notification of the receivership or that a controller is acting.
3.7 These amendments also specifically address the situation where
the scheme property is held by a corporation other than the responsible
entity, which is common business practice. The Schedule requires the
responsible entity of the registered scheme that has property in
receivership to notify of the receivership on all its public documents and
negotiable instruments that relate to the registered scheme. This is to
ensure that persons dealing with the responsible entity are informed of the
receivership.
3.8 The policy intent is not to modify notification obligations for
corporations generally. While there may be other corporations that hold
property on trust, it would be less likely that such corporations would
have their other business operations unaffected by the receivership of trust
assets. The other policy reason for not extending the modified notification
obligations to corporations generally is to safeguard against the risk that a
corporation will claim that the relevant assets held under receivership are
merely held in trust when this is not the case to avoid having to notify of
the receivership on all their public documents or negotiable instruments.
Reporting obligations
3.9 Where a controller is acting in relation to property of a
corporation, that corporation's 'reporting officers' must report to the
controller on all the affairs of the corporation (reporting obligation) in the
prescribed form.
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Modify 'in receivership' rules
3.10 The purpose of the reporting obligation is to ensure that a
controller receives required information on the affairs of the corporation.
However, the reporting obligation results in unnecessary compliance
costs, without resulting in additional meaningful information to the
controller in the case of:
• responsible entities of registered schemes;
• licensed trustee companies; and
• licensed custodians.
3.11 This is because these corporations, in the absence of the changes
made by this Schedule, would be required to report to the controller in
respect of all their affairs, including in respect of registered schemes and
trusts, or the corporation's own affairs, notwithstanding the affairs are not
related to the assets to which the controller was appointed.
3.12 Restricting the reporting obligation for such corporations to
affairs relating to the particular registered scheme or trust containing the
property to which the controller has been appointed addresses this
problem whilst ensuring the necessary information flows to the controller.
3.13 A separate problem arises in the case where scheme property is
held by a corporation other than the responsible entity of the registered
scheme (which is common). The obligation to report to the controller falls
on the corporation holding the scheme property (the custodian) rather than
the responsible entity, even though the latter has better access to the
information sought by the controller. The corporation holding the scheme
property generally needs to obtain information from the responsible entity
to comply with their reporting obligation, and this increases their
compliance costs. These amendments provide that where a licensed
custodian holds scheme property, the obligation to report to a controller
on the affairs of the particular registered scheme falls solely on the
responsible entity.
Summary of new law
3.14 The Schedule amends the Act:
• in the case where scheme property of a responsible entity of a
registered scheme, or property held on trust by a licensed
trustee company or licensed custodian is in receivership, to
require the corporation to notify of the receivership only on
the public documents and negotiable instrument related to the
particular registered scheme or trust;
27
Treasury Legislation Amendment (Repeal Day) Bill 2015
• in the case where a controller is acting in relation to scheme
property of a registered scheme, or property held on trust by
a licensed trustee company or a licensed custodian, to require
the corporation's reporting officers to report to the controller
only on the affairs of the particular registered scheme or
trust; and
• in the case where a controller is appointed to scheme
property of a registered scheme held by a licensed custodian,
to require the controller to only serve a notice on the
responsible entity of the registered scheme and require a
director or secretary of the responsible entity to report to the
controller on the affairs of the scheme.
Comparison of key features of new law and current law
New law Current law
Where a receiver has been appointed Where a receiver has been appointed
to: scheme property of a registered to property of a corporation, the
scheme of a responsible entity; or corporation must set out a statement
property held on trust by a licensed that a receiver has been appointed on
trustee company or corporation that every public document or negotiable
holds an AFSL authorising the instrument of the corporation.
provision of custodial or depository
services, that the corporation must set
out a statement that a receiver has
been appointed only on the public
documents or negotiable instruments
of the corporation that relate to the
registered scheme or trust containing
the property in receivership.
Where there is a controller acting in Where there is a controller acting in
relation to: scheme property of a relation to property of a corporation,
registered scheme of a responsible the corporation must set out a
entity; or property held in trust by a statement that a controller is acting on
licensed trustee company or a every public document or negotiable
corporation that holds an AFSL instrument of the corporation.
authorising the provision of custodial
or depository services, that
corporation must set out a statement
that a controller is acting only on the
public documents or negotiable
instruments relating to the particular
registered scheme or trust containing
the property in respect of which the
controller is acting.
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Modify 'in receivership' rules
New law Current law
Where a receiver has been appointed No equivalent.
to scheme property of a registered
scheme that is not property of the
responsible entity of the registered
scheme, the responsible entity must
set out a statement that a receiver has
been appointed on all public
documents and negotiable
instruments relating to the registered
scheme.
Where a controller is acting in No equivalent.
relation to scheme property of a
registered scheme that is not property
of the responsible entity of the
registered scheme, the responsible
entity must set out a statement that a
controller is acting on all public
documents and negotiable
instruments relating to the registered
scheme.
The reporting officers: of the The reporting officers of a
responsible entity of a registered corporation that has property in
scheme, licensed trustee company or respect of which a controller has been
corporation that holds an AFSL appointed must report to the
authorising the provision of custodial controller on all the affairs of the
or depository services that has corporation.
scheme property or trust property in
respect of which a controller is acting
must report to the controller only on
the affairs of the particular registered
scheme or trust.
When a person becomes a controller When a person becomes controller of
of scheme property of a registered scheme property of a registered
scheme that is not property of the scheme that is held by a licensed
responsible entity of the scheme and custodian, the controller must serve a
is property held on trust by a licensed notice on the licensed custodian and,
custodian, the controller must serve a within 14 days (or any additional
notice, as soon as practicable, on the period allowed), a director or
responsible entity (not the licensed secretary of the licensed custodian
custodian) and, within 14 days must report to the controller on all its
(or any additional period allowed), a affairs.
director or secretary of the
responsible entity must report to the
controller on the affairs of the
scheme.
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Treasury Legislation Amendment (Repeal Day) Bill 2015
Detailed explanation of new law
Modified notification obligations
3.15 The Schedule modifies the notification obligations for the
following corporations:
• a responsible entity of a registered scheme where scheme
property is in receivership or a controller is acting in relation
to such property;
• a licensed trustee company, where property held on trust is in
receivership or a controller is acting in relation to such
property; and
• a corporation holding an AFSL that authorises the provision
of custodial or depository services, where property held on
trust is in receivership or a controller is acting in relation to
such property.
3.16 These corporations must include a statement that a receiver
(or receiver and manager) has been appointed or a controller is acting only
on the public documents and negotiable instruments relating to the
particular registered scheme or trust under receivership or in respect of
which the controller is acting. [Schedule 3, item 6, subsection 428(2A)]
3.17 The corporation may specify, in the public document or
negotiable instrument, the relevant affected scheme or trust to provide
further clarity regarding the assets in respect of which the receiver
(or receiver and manager) or controller has been appointed. [Schedule 3, item
6, subsection 428(2A)]
3.18 The modified notification obligations apply only to a licensed
custodian; that is, a corporation holding an AFSL authorising the
provision of custodial or depository services, including where the licensed
custodian holds the property on bare trust (where the beneficiary is
absolutely entitled to the trust property and can call for immediate
payment).
3.19 While the property must be held by a corporation that holds an
AFSL authorising the provision of custodial or depository services, it is
not necessary that the property be held in connection with the provision of
custodial or depository services. This is to ensure that the modified
notification obligation applies to licensed custodians holding scheme
property of a registered scheme. As paragraph 766E(3)(b) provides that
'holding the assets of a registered scheme' does not constitute providing a
custodial or depository service, not requiring the property to be held in
connection with the provision of custodial and depository services ensures
30
Modify 'in receivership' rules
that a licensed custodian holding scheme property of a registered scheme
under receivership will only need to notify of the receivership on public
documents and negotiable instruments relating to the scheme, which is the
policy intent.
Scheme property not held by a responsible entity
3.20 Where a receiver is appointed to scheme property of a registered
scheme that is not property of the responsible entity of the registered
scheme, the responsible entity of the registered scheme must notify of the
receivership on every public document or negotiable instrument that
relates to the registered scheme. [Schedule 3, item 6, subsection 428(2B)].
3.21 It is common business practice for scheme property of a
registered scheme to be held by a person other than the responsible entity
of the scheme. Typically, the scheme property is held by a custodian agent
(or sub custodian) of the responsible entity on trust for the responsible
entity who holds the beneficial interest on trust for the members of the
registered scheme.
3.22 In the absence of this provision, the responsible entity would not
have been required to notify of the receivership on its public documents
and negotiable instruments and persons dealing solely with the
responsible entity would not have been informed of the receivership.
Requiring the responsible entity to notify of the receivership ensures that
persons that only have dealings with the responsible entity in relation to
scheme property under receivership will be informed of the receivership.
3.23 For the same reason, where a controller is acting in relation to
scheme property that is not held by the responsible entity of the registered
scheme, the responsible entity must now notify that a controller is acting
on all public documents and negotiable instruments relating to the
particular registered scheme. [Schedule 3, item 6, subsection 428(2C)]
3.24 The notification obligations imposed on the responsible entity
are in addition to the notification obligations applying to the corporation
holding the property. For example, if scheme property of a particular
registered scheme under receivership were held by a licensed custodian
(that is, a corporation holding an AFSL authorising the provision of
custodial or depository services), the custodian would be required to
notify of the receivership only on those public documents and negotiable
instruments relating to the registered scheme [Schedule 3, item 6,
subparagraph 428(2A)(b)(ii)]. On the other hand, if the scheme property were
held by another corporation (for example, an unlicensed custodian), the
unlicensed custodian would be required to notify of the receivership on all
its public documents and negotiable instruments, pursuant to
subsection 428(1).
31
Treasury Legislation Amendment (Repeal Day) Bill 2015
3.25 Failure to comply with the notification obligations in this
Schedule is a strict liability offence [Schedule 3, item 7, subsection 428(3)],
carrying a maximum penalty of 15 penalty units [Schedule 3, item 18, item 120
in the table in Schedule 3].
3.26 The offence previously carried a maximum penalty of 10 penalty
units or imprisonment for 3 months, or both. The offence remains a strict
liability offence but the penalty has been changed to ensure it is consistent
with the Attorney-General's Department Guide to Framing Criminal
Offences (the Guide).
3.27 Strict liability, and the level of penalty, is appropriate, for the
following reasons:
• notification of receivership or that a controller is acting is
critical information that must be communicated to persons
dealing with an insolvent entity, and the use of strict liability
is necessary to protect the integrity of the regime;
• the requirement is clear and easy to understand, and the
offence depends entirely on the action or non-action of the
person who is liable for the offence;
• the offence no longer carries a term of imprisonment, making
it consistent with section 2.2.6 of the Guide which states that
imprisonment should not be used for strict liability offences;
• following the removal of the 3 month term of imprisonment,
the offence now attracts a maximum penalty of 15 penalty
units, consistent with the fine/imprisonment ratio of 5 penalty
units for each month's imprisonment, which the Guide
indicates should be followed unless there are cogent reasons
to depart from it (section 3.1.3).
Modified reporting requirements
3.28 Subsection 429(2) requires the reporting officer of a corporation
that has property to which a controller has been appointed, to report to the
controller on all the corporation's affairs.
3.29 The Schedule modifies this reporting obligation for the
following corporations that have property to which a controller has been
appointed:
• a responsible entity of a registered scheme, in the case of
scheme property;
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Modify 'in receivership' rules
• a licensed trustee company that holds the property on trust;
and
• a corporation that holds an AFSL authorising the provision of
custodial or depository services that holds the property on
trust.
3.30 The modified reporting obligation means the reporting officers
of these corporations must report to the controller only on the affairs of
the corporation to the extent they relate to the particular registered scheme
or trust containing property in respect of which the controller is acting.
[Schedule 3, item 13, subsection 429A(1); and item 8, subsection 429(2A)]
3.31 Requiring these corporations to report only on the affairs
relating to the particular affected registered scheme or trust will reduce
unnecessary compliance and reporting burdens, whilst ensuring the
controller (and Australian Securities & Investments Commission (ASIC))
receive the required information regarding the property in respect of
which the controller has been appointed.
3.32 When property is held by a custodian, the modified reporting
obligations will only apply to licensed custodial arrangements (where the
custodian holds an AFSL authorising the provision of custodial or
depository services) [Schedule 3, item 13, subparagraph 429(2A)(a)(ii)]. Where
the custodian is unlicensed, the custodian must continue to report to the
controller on all its affairs (including in relation to other trusts to which
the controller has not been appointed), as required under
subsection 429(2).
Scheme property not held by a responsible entity
3.33 Where a person becomes a controller of scheme property of a
registered scheme that is held by a licensed custodian and not the
responsible entity of the registered scheme, the controller must not serve a
notice on the licensed custodian. [Schedule 3, item 13, subsection 429A(2)]
3.34 Instead, the controller must, as soon as practicable, serve a
notice on the responsible entity of the affected registered scheme
[Schedule 3, item 13, paragraph 429A(3)(e)]. A director or secretary of the
responsible entity must report to the controller, in the prescribed form,
on the affairs of the relevant registered scheme as at the control day,
within 14 days (or any further period allowed, as explained below in
paragraph 3.39) [Schedule 3, item 13, paragraph 429A(3)(f)].
3.35 Requiring the controller to issue a notice to the responsible
entity recognises that the responsible entity is in a much better position to
provide a report to the controller on the affairs of the relevant scheme.
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Treasury Legislation Amendment (Repeal Day) Bill 2015
3.36 The corporation holding the scheme property continues to have
an obligation to report to the controller where the corporation holding the
scheme property is:
• a licensed trustee company, but only in respect of the affairs
of the particular scheme;
• another corporation (for example, an unlicensed custodian or
sub custodian), in respect of all the affairs of the custodian
(paragraph 429(2)(b)). In the case of an unlicensed custodian,
the custodian may not have many affairs that do not relate to
the scheme which is one reason the policy intent is not to
limit the reporting obligations of unlicensed custodians
(and sub custodians).
[Schedule 3, item 8, subsection 429(2A)]
3.37 The requirement in subparagraph 429(2)(c)(i) -- that the
controller must lodge a copy of the report with ASIC within one month of
receiving it from the reporting officers, including either a notice setting
out any comments the controller sees fit to make or a notice indicating the
controller did not see fit to make any comments -- applies to the report
from the responsible entity [Schedule 3, item 13, paragraph 429A(3)(g)]. The
amendments provide the controller will have qualified privilege in relation
to comments made [Schedule 3, item 4, paragraph 426(b)], consistent with the
position relating to other reports received by the controller.
3.38 The controller must send a copy of the report, as lodged, to the
responsible entity, as well as the corporation that holds the scheme
property, unless the scheme property is held by a licensed custodian.
[Schedule 3, item 13, paragraph 429A(3)(h)]
3.39 Subsections 429(3) to (5) set out the process by which a
reporting officer of a corporation that has been served a notice by a
controller to report on the affairs of the corporation may apply for an
extension of time by which to report. The amendments replicate those
rules for a reporting officer of a responsible entity that has been served a
notice to report by a controller [Schedule 3, item 13, paragraph 429A(3)(g)].
This means that:
• a director or secretary of the responsible entity may apply to
the controller or the Court for an extension of time by which
to report to the controller;
• if the application is made to the controller, the controller may
agree to the extension if they believe there are special reasons
for doing so and must give notice in writing of the extension
and lodge that notice as soon as practicable after it is granted;
or
34
Modify 'in receivership' rules
• if the application is made to the Court, the Court may make
an order extending the period for reporting to the controller
and a director or secretary of the responsible entity must, as
soon as practicable, lodge a copy of that order with ASIC.
3.40 Consistent with the existing rules, the Schedule addresses the
appointment of an additional or replacement controller to scheme property
not held by a responsible entity. Where this occurs, the amendments
provide the controller is not required to issue a notice to the responsible
entity where that person became a controller to act either with an existing
controller or in place of a controller who has died or ceased to be
controller [Schedule 3, item 9, subsection 429(6)]. Not requiring the new
controller to issue the notice is appropriate given the requirement to issue
the notice would already have been fulfilled by the incumbent controller.
3.41 If, however, the replacement controller is appointed due to the
death or cessation of a previous controller and the previous controller did
not issue the required notice prior to their death or cessation, the
amendments provide the replacement controller must issue the required
notice to the responsible entity. [Schedule 3, item 10, subsection 429(6A); and
item 10, paragraph 429(6A)(a)]
3.42 Subsection 429(7) provides that where a corporation is being
wound up and the same person acts as both controller and liquidator, the
rules for reporting to a controller, broadly, continue to apply. These
amendments extend the operation of this subsection to also cover cases
where the property to which the controller has been appointed is scheme
property. [Schedule 3, item 12, subsection 429(7)]
Consequential amendments
3.43 These amendments move two definitions from section 761A to
section 9:
• 'custodial or depository services', which cross-references to
the definition in section 766E; and
• 'licensed trustee company', which cross-references to the
definition in Chapter 5D.
[Schedule 3, item 1, section 9; and item 15, section 761A]
3.44 These changes are necessary as the terms 'custodial or
depository services' and 'licensed trustee company' no longer operate
exclusively in Chapters 7 and 5D respectively and it is, therefore,
appropriate that definitions of these terms be in section 9.
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Treasury Legislation Amendment (Repeal Day) Bill 2015
3.45 Minor amendments have been made to the references to
'custodial or depository services' in paragraph 601RAC(3)(b) and section
766E as this term is no longer exclusively used in Chapter 7. [Schedule 3,
item 14, paragraph 601RAC(3)(b); item 16, subsection 766E(1); and item 17,
paragraph 766E(2)(a)]
3.46 Likewise, minor amendments have been made to the references
in paragraphs 53(b) and paragraph 283(1)(aa) to 'licensed trustee
company' as this term is no longer exclusively used in Chapter 5D.
[Schedule 3, items 2 and 3, paragraphs 53(b) and 283AC(1)(aa)]
3.47 A new heading - 'Property of corporation' has been introduced
to improve the readability of section 428. [Schedule 3, item 5, subsection 428(1)]
Application and transitional provisions
3.48 The amendments apply from the date of Royal Assent.
STATEMENT OF COMPATIBILITY WITH HUMAN RIGHTS
Prepared in accordance with Part 3 of the Human Rights
(Parliamentary Scrutiny) Act 2011
Modify 'in receivership' rules
3.49 This Schedule is compatible with the human rights and freedoms
recognised or declared in the international instruments listed in section 3
of the Human Rights (Parliamentary Scrutiny) Act 2011.
Overview
3.50 Schedule 3 to the Bill contains amendments to the Corporations
Act 2001 to modify the notification and reporting obligations applying to
certain corporations that have property in receivership or property in
respect of which a controller is acting.
Human rights implications
3.51 This Schedule does not engage any of the applicable rights or
freedoms.
Conclusion
3.52 This Schedule is compatible with human rights as it does not
raise any human rights issues.
36
Chapter 4
Repeal of inoperative acts and provisions
of the taxation law
Outline of chapter
4.1 Schedule 4 to this Bill repeals several inoperative acts in the
Treasury portfolio as well as amending the taxation law to remove a
number of inoperative or spent provisions.
Context of amendments
Background
4.2 There are various reasons why Acts and provisions within an
Act can become spent or cease to be operative.
4.3 Some Acts or provisions in the law are intended to apply only
for a limited period. Once this period expires, the provisions are spent and
no longer have any effect.
4.4 In other cases, while the Act or provision is intended to apply on
an ongoing basis, changes in external circumstances, such as to the way
entities behave or other provisions of the law, can mean that in practice
the provision no longer applies to anything and has become inoperative.
4.5 While these spent or inoperative Acts and provisions have no
application to any entity, they remain on the statute book until repeal by
Parliament. Retaining these provisions increases the volume of
Commonwealth legislation, without providing any benefit.
Summary of new law
4.6 Schedule 4 to this Bill repeals several inoperative acts in the
Treasury portfolio as well as amending the taxation law to remove a
number of inoperative or spent provisions.
37
Treasury Legislation Amendment (Repeal Day) Bill 2015
Detailed explanation of new law
Repeal of the Commonwealth Borrowing Levy
4.7 Part 1 of Schedule 4 repeals the Commonwealth Borrowing Levy
Act 1987 and the Commonwealth Borrowing Levy Collection Act 1987.
[Schedule 4, items 1 and 2, the whole of the Commonwealth Borrowing Levy Act 1987
and the Commonwealth Borrowing Levy Collection Act 1987]
4.8 These Acts imposed and provided for the collection of the
Commonwealth Borrowing Levy - a tax on borrowings by certain
commonwealth-controlled entities. Since changes to the governance
framework for Commonwealth-controlled entities in 1997, the rate of the
levy has been set at zero by the Commonwealth Borrowing Levy
Regulations. As a result, no tax is payable as a result of the levy.
4.9 Additionally, the levy only ever applied to a small group of
entities listed in the Schedule to the Commonwealth Borrowing Levy
Act 1987, most of which have now either ceased to exist, or been
privatised and exempted from the levy.
4.10 Given this, neither the Commonwealth Borrowing Levy Act 1987
nor the Commonwealth Borrowing Levy Collection Act 1987 have any
ongoing operative effect.
4.11 The repeal of these Acts will also result in the Commonwealth
Borrowing Levy Regulations lapsing as a result of the repeal of the
provision enabling the regulations to be made.
Repeal of the tax exempt infrastructure borrowing concession
4.12 Part 2 of Schedule 4 repeals Division 16L of the Income Tax
Assessment Act 1936 (ITAA 1936), the Development Allowance Authority
Act 1992 (DA Act) and the Infrastructure Certificate Cancellation Tax
Act 1994 (ICCT Act). [Schedule 4, items 10, 11 and 17, the whole of the DA Act and
ICCT Act and Division 16L of the ITAA 1936]
4.13 Division 16L, together with the DA Act and ICCT Act, provides
for income in relation to borrowings for certain infrastructure projects to
be non-assessable, but also not to give rise to deductions, for a 15 year
period, subject to conditions being met in relation to the project and the
use of the borrowings. If the conditions are not met at any point in the life
of the project, additional tax will be imposed to recover the benefit of the
concessions.
38
Repeal of inoperative acts and provisions of the taxation law
4.14 This tax exempt infrastructure borrowing concession was closed
to new projects in 1997. As the tax concession is only available in relation
to borrowings for a project for 15 years, it is no longer operative.
4.15 The repeal of these Acts will also result in the Development
Allowance Authority Regulations lapsing as a result of the repeal of the
provision enabling the regulations to be made.
Repeal of the concession for equity investments by lenders in small and
medium enterprises
4.16 Part 3 of Schedule 4 repeals Division 11B of the ITAA 1936.
[Schedule 4, item 34, Division 11B of the ITAA 1936]
4.17 Division 11B broadly allows entities that acquire at least
10 per cent of the ordinary shares of an enterprise in the course of a
business of lending money, to treat any profit or loss from the disposal of
those shares as being a capital gain rather than ordinary income.
4.18 The intention of this provision was to improve access to finance
by small and medium enterprises by providing a tax incentive for banks
and other entities to lend to and invest in these businesses. It did so by
treating the gains or losses that financial institutions made from the
disposal of an eligible equity interest in the small or medium enterprise as
capital gains or losses that were subject to capital gains tax rather than
ordinary income or general deductions, allowing the lending entity to
apply indexation to reduce the value of any gain that arose (see paragraph
5.4 to 5.15 of the Explanatory Memorandum for the Taxation Laws
Amendment (No.3) Bill 1996).
4.19 Subsequently, changes were made to the taxation law to freeze
indexation for all existing capital gains tax assets from 11.45 am on
21 September 1999 and remove access to indexation for all assets
subsequently acquired by taxpayers.
4.20 As a result of the removal of indexation, the 'concession' in
Division 11B no longer provides any benefit to financial institutions.
There is no evidence that any entities are currently accessing the
provisions, leaving them, in practice, inoperative.
39
Treasury Legislation Amendment (Repeal Day) Bill 2015
Consequential amendments
4.21 Schedule 4 includes a number of consequential amendments to
remove references to the repealed provisions and Acts in the taxation law
and other Commonwealth legislation. [Schedule 4, items 3 to 8, 12 to 16, 18 to
32, 35 to 40 and 42, Part 7 of the AeroSpace Technologies of Australia Limited Sale Act
1994, section 52 of the CSL Sale Act 1993, Schedule 3 to the Medibank Private Sale Act
2006, section 54 to the Moomba-Sydney Pipeline System Sale Act 1994, section 28 to the
Qantas Sale Act 1992, section 42 of the Snowy Mountains Engineering Corporation
Limited Sale Act 1993, section 56 of the Airports (Transitional) Act 1996, the definition
of 'assessment' in subsection 6(1), the note to subsection 82KZME(1), subsection
82KZME(6), paragraphs 126(1)(d) and 128B(3)(bb) and Division 16L of the ITAA 1936,
subsection 272-90(10) in Schedule 2F to the ITAA 1936, the items headed 'interest' and
'shares' in the table in section 10-5, the item headed 'financial transactions' in the table
in section 11-15, the items headed 'infrastructure' and 'shares' in the table in section
12-5, the item headed 'infrastructure' in the table in section 13-1, paragraph
104-71(3)(a), item 7 in section 109-60, items 9 and 12A of the table in section 112-97,
paragraphs 118-425(13)(d) and 118-427(14)(d), subsection 230 460(14), items 1 and 2 in
subsection 713-140(5) and the note to subsection 721 10(2) in the Income Tax
Assessment Act 1997, subsection 3B(1B), section 8AB, paragraph 8J(2)(ga) and
subsections 8W(1B), 13K(11), 15(4) and 15A(11) of the Taxation Administration
Act 1953 and item 105 in the table in subsection 250-10(1) of Schedule 1 and item 3 in
the table in subsection 355-65(5) of Schedule 1 to the Taxation Administration Act 1953
and the whole of the Housing Loans Insurance Corporation (Transfer of Assets and
Abolition) Act 1996]
Application and transitional provisions
Application dates
4.22 The amendments relating to the Commonwealth Borrowing
Levy apply from the day after the Bill receives Royal Assent. However,
the amendments make any entity liable to pay Commonwealth Borrowing
Levy. [Item 5 of the table in clause 2 of the Bill and Schedule 4, item 9]
4.23 The amendments relating to the tax exempt infrastructure
borrowing concession, except as they relate to the closure of the
Development Allowance Authority, do not apply in relation to a
borrowing that has benefitted from the concession. [Schedule 4, subitem 33(1)]
4.24 This means that while the provisions will be repealed going
forwards, projects that benefitted from the concessions will still be
required to repay the benefit of the concession if they breach the
conditions imposed by the legislation.
40
Repeal of inoperative acts and provisions of the taxation law
4.25 The abolition of the Development Allowance Authority will
apply from the day after Royal Assent. To the extent it may be required by
the residual application of the concession, the Commissioner of Taxation
(the Commissioner) will be able to exercise the powers and functions of
the Authority. [Schedule 4, subitems 33(1) and (2)]
4.26 Finally, the amendments relating to equity investment in small
and medium enterprises in relation to income tax assessments for 2015-16
and later income years. [Schedule 4, subitem 41]
4.27 However, to ensure the measure can have no effect on
arrangements entered into prior to the repeal, the amendments will not
apply in respect of threshold interests acquired on or before the day of
Royal Assent. [Schedule 4, subitem 41(2)]
Transitional rules
4.28 Schedule 4 also includes general savings provisions. These
provisions, which are standard when there are repeals of tax legislation
that has become inoperative, preserve the rights and obligations of
taxpayers and the Commissioner in relation to past years. This ensures
that the repeal can have no effect on liabilities and entitlements in prior
income years, even where these liabilities or entitlements are not
identified until after the repeal commences. [Schedule 4, items 43 to 47]
STATEMENT OF COMPATIBILITY WITH HUMAN RIGHTS
Prepared in accordance with Part 3 of the Human Rights
(Parliamentary Scrutiny) Act 2011
Repeal of inoperative acts and provisions of the taxation law
4.29 This Schedule is compatible with the human rights and freedoms
recognised or declared in the international instruments listed in section 3
of the Human Rights (Parliamentary Scrutiny) Act 2011.
Overview
4.30 Schedule 4 to this Bill repeals several inoperative acts in the
Treasury portfolio as well as amending the taxation law to remove a
number of inoperative or spent provisions.
41
Treasury Legislation Amendment (Repeal Day) Bill 2015
4.31 Schedule 4 will commence on the day after it receives Royal
Assent.
Human rights implications
4.32 Schedule 4 to this Bill does not engage any of the applicable
rights or freedoms. None of the provisions being repealed have, in
practice, any ongoing operative effect.
Conclusion
4.33 Schedule 4 to this Bill is compatible with human rights as it does
not raise any human rights issues.
42
Index
Schedule 1: Superannuation guarantee charge
Bill reference Paragraph number
Part 1, items 1, 2 and 3, subsection 6(1) and section 11A 1.25, 1.26
Part 1, items 4 and 5, the formula in subsections 19(1) and 19(3) 1.23
Part 1, items 6, 7, 8 and 9, paragraph 2(2)(a), subitem 2(2), the 1.29
formula in subitem 2(2), and subitem 2(3) of Schedule 2 of the
NIRA
Part 2, items 10 and 11, subsection 6(1) and subparagraph 31(1)(b)(i) 1.33
Part 2, item 11, the note to section 31 1.36
Part 2, item 11, subparagraph 31(1)(b)(ii) 1.34
Part 2, item 11, subsection 31(2) 1.35
Part 2, items 12 to 14, subsections 64B(2), (3), (3A) and (4) 1.39
Part 2, items 22 and 26, Part 7 and paragraph 286-75(2)(b) in 1.40, 1.42
Schedule 1 to the TAA 1953
Part 3, items 15 to 21, and items 23 to 25, subsection 3(1) of the 1.44
CTOA, subsections 6(1) and 38(2), section 47, subsection 49(5),
section 50, subsection 63A(2) of the SGAA, and item 65 in the table
in subsection 250-10(2) and section 284-230 in Schedule 1 to the
TAA 1953
Part 4, Item 27 1.46
Schedule 2: Lost members and unclaimed superannuation
Bill reference Paragraph number
Part 1, items 1 to 3, items 4 and 7 of the table in subsection 307-5(1) 2.11
of the Income Tax Assessment Act 1997
Part 1, items 4 to 12, section 14, paragraph 16(b), note 2A to 2.10
section 16, sections 62 and 65A of the SSAA, subsection 65(1) and
section 66A of the SGAA, and paragraph 24G(2)(d) and
subsection 24G(2A) of the SUMLMA
Part 2, items 13 and 15 to 20, section 7, Part 4, subsections 24HA(1), 2.14
25(3), and 26(3), section 27, paragraph 29(1)(b) and
subsection 44(1) of the SUMLMA
Part 2, item 14, section 8 of the SUMLMA 2.15
Part 2, item 21 2.20
Part 2, item 22 2.23
Part 3, item 23, section 8 of the SUMLMA 2.16
43
Treasury Legislation Amendment (Repeal Day) Bill 2015
Schedule 3: Receivers, and other controllers, of property of
corporations
Bill reference Paragraph number
Item 1, section 9; and item 15, section 761A 3.43
Items 2 and 3, paragraph 53(b) and subparagraph 283AC(1)(aa) 3.46
Item 4, paragraph 426(b) 3.37
Item 5, subsection 428(1) 3.47
Item 6, subsection 428(2A) 3.16, 3.17
Item 6, subparagraph 428(2A)(b)(ii) 3.24
Item 6, subsection 428(2B) 3.20
Item 6, subsection 428(2C) 3.23
Item 7, subsection 428(3) 3.25
Item 8, subsection 429(2A) 3.36
Item 9, subsection 429(6) 3.40
Item 10, subsection 429(6A); and item 10, paragraph 429(6A)(a) 3.41
Item 12, subsection 429(7) 3.42
Item 13, subsection 429A(1); and item 8, subsection 429(2A) 3.30
Item 13, subsection 429A(2) 3.33
Item 13, subparagraph 429(2A)(a)(ii) 3.32
Item 13, paragraph 429A(3)(e) 3.34
Item 13, paragraph 429A(3)(f) 3.34
Item 13, paragraph 429A(3)(g) 3.37, 3.39
Item 13, paragraph 429A(3)(h) 3.38
Item 14, paragraph 601RAC(3)(b); item 16, subsection 766E(1); and 3.45
item 17, paragraph 766E(2)(a)
Item 18, item 120 in the table in Schedule 3 3.25
Item 1, section 9; and item 15, section 761A 3.43
Items 2 and 3, paragraph 53(b) and subparagraph 283AC(1)(aa) 3.46
Item 4, paragraph 426(b) 3.37
Item 5, subsection 428(1) 3.47
Item 6, subsection 428(2A) 3.16, 3.17
Item 6, subparagraph 428(2A)(b)(ii) 3.24
Item 6, subsection 428(2B) 3.20
Item 6, subsection 428(2C) 3.23
Item 7, subsection 428(3) 3.25
Item 8, subsection 429(2A) 3.36
Item 9, subsection 429(6) 3.40
44
Index
Bill reference Paragraph number
Item 10, subsection 429(6A); and item 10, paragraph 429(6A)(a) 3.41
Item 12, subsection 429(7) 3.42
Item 13, subsection 429A(1); and item 8, subsection 429(2A) 3.30
Item 13, subsection 429A(2) 3.33
Item 13, subparagraph 429(2A)(a)(ii) 3.32
Item 13, paragraph 429A(3)(e) 3.34
Item 13, paragraph 429A(3)(f) 3.34
Item 13, paragraph 429A(3)(g) 3.37, 3.39
Item 13, paragraph 429A(3)(h) 3.38
Item 14, paragraph 601RAC(3)(b); item 16, subsection 766E(1); and 3.45
item 17, paragraph 766E(2)(a)
Item 18, item 120 in the table in Schedule 3 3.25
Schedule 4: Inoperative provisions
Bill reference Paragraph number
Items 1 and 2, the whole of the Commonwealth Borrowing Levy Act 4.7
1987 and the Commonwealth Borrowing Levy Collection Act 1987
Items 3 to 8, 12 to 16, 18 to 32, 35 to 40 and 42, Part 7 of the 4.21
AeroSpace Technologies of Australia Limited Sale Act 1994,
section 52 of the CSL Sale Act 1993, Schedule 3 to the Medibank
Private Sale Act 2006, section 54 to the Moomba-Sydney Pipeline
System Sale Act 1994, section 28 to the Qantas Sale Act 1992,
section 42 of the Snowy Mountains Engineering Corporation
Limited Sale Act 1993, section 56 of the Airports (Transitional)
Act 1996, the definition of 'assessment' in subsection 6(1), the note
to subsection 82KZME(1), subsection 82KZME(6),
paragraphs 126(1)(d) and 128B(3)(bb) and Division 16L of the
ITAA 1936, subsection 272-90(10) in Schedule 2F to the
ITAA 1936, the items headed 'interest' and 'shares' in the table in
section 10-5, the item headed 'financial transactions' in the table in
section 11-15, the items headed 'infrastructure' and 'shares' in the
table in section 12-5, the item headed 'infrastructure' in the table in
section 13-1, paragraph 104-71(3)(a), item 7 in section 109-60, items
9 and 12A of the table in section 112-97, paragraphs 118-425(13)(d)
and 118-427(14)(d), subsection 230 460(14), items 1 and 2 in
subsection 713-140(5) and the note to subsection 721 10(2) in the
Income Tax Assessment Act 1997, subsection 3B(1B), section 8AB,
paragraph 8J(2)(ga) and subsections 8W(1B), 13K(11), 15(4) and
15A(11) of the Taxation Administration Act 1953 and item 105 in
the table in subsection 250-10(1) of Schedule 1 and item 3 in the
table in subsection 355-65(5) of Schedule 1 to the Taxation
Administration Act 1953 and the whole of the Housing Loans
Insurance Corporation (Transfer of Assets and Abolition) Act 1996
45
Treasury Legislation Amendment (Repeal Day) Bill 2015
Bill reference Paragraph number
Item 5 of the table in clause 2 of the Bill 4.22
Item 9 4.22
Items 10, 11 and 17, the whole of the DA Act and ICCT Act and 4.12
Division 16L of the ITAA 1936
Subitem 33(1) 4.23
Subitems 33(1) and (2) 4.25
Item 34, Division 11B of the ITAA 1936 4.16
Subitem 41 4.26
Subitem 41(2) 4.27
Items 43 to 47 4.28
46