29 Sep 10
Superannuation unclaimed money and other amendments: Superannuation Legislation Amendment Bill 2010
This Bill was introduced into the House of Representatives on Wednesday 29 September 2010. The Bill amends superannuation and tax legislation in the following areas:
- Superannuation unclaimed money: the Bill amends the Superannuation (Unclaimed Money and Lost Members) Act 1999 and the ITAA 1997 to facilitate state and territory authorities and public sector superannuation schemes paying unclaimed superannuation moneys to the Commissioner, and to enable the Commissioner to accept, and subsequently pay out, amounts transferred by state and territory authorities and public sector superannuation schemes. These amendments will commence on the day after Royal Assent to the Bill.
- Transitional relief for income tax deductibility of total and permanent disability insurance premiums paid by superannuation funds: the Bill will provide transitional relief for income tax deductibility of total and permanent disability (TPD) insurance premiums paid by superannuation funds by amending the Income Tax (Transitional Provisions) Act 1997 and the ITAA 1997. The transitional relief will provide complying superannuation funds, for the 2004-05 to 2010-11 income years, with a greater scope to deduct premiums paid for insurance cover commonly regarded as TPD insurance.
- Relationship breakdowns: the Bill amends the Superannuation Industry (Supervision) Act 1993 (SIS Act) to allow the trustee of a regulated superannuation fund to acquire an asset in specie from a related party of the fund, following the relationship breakdown of a member of the fund, without contravening the prohibition against related party acquisitions. The Bill also amends the SIS Act to ensure equitable application of the transitional arrangements in relation to in-house assets where an asset transfer occurs as the result of the relationship breakdown of a member of the fund. These amendments will apply in relation to assets acquired by a superannuation fund trustee or investment manager on or after the date of Royal Assent to the Bill.
- Other superannuation amendments: the Bill makes a number of minor amendments to improve the operation of the superannuation sections of the income tax legislation. These amendments include allowing a deduction for eligible contributions to be claimed from successor superannuation funds after 1 July 2011; increasing the time-limit for deductible employer contributions made for former employees; clarifying the due date of the shortfall interest charge for the purposes of excess contributions tax; allowing the Commissioner to exercise discretion for the purposes of excess contributions tax before an assessment is issued; providing a regulation-making power to specify additional circumstances when a benefit from a public sector superannuation scheme will have an untaxed element; and streamlining references to the Immigration Secretary and Immigration Department.
For the full texts of the Bill and its Explanatory Memorandum, go here