Superannuation (Excess Transfer Balance Tax) Imposition Act 2016

No. 80, 2016

An Act to impose excess transfer balance tax, and for related purposes

Contents

1 Short title 1

2 Commencement 2

3 Definitions 2

4 Imposition of tax 2

5 Amount of tax 3

6 Severability 3

An Act to impose excess transfer balance tax, and for related purposes

[Assented to 29 November 2016]

The Parliament of Australia enacts:
1 Short title

This Act is the Superannuation (Excess Transfer Balance Tax) Imposition Act 2016.
2 Commencement 1

Each provision of this Act specified in column 1 of the table commences, or is taken to have commenced, in accordance with column 2 of the table. Any other statement in column 2 has effect according to its terms.
Commencement information Commencement information Commencement information
Column 1 Column 2 Column 3
Provisions Commencement Date/Details
1. The whole of this Act At the same time as Schedule 1 to the Treasury Laws Amendment (Fair and Sustainable Superannuation) Act 2016 commences. However, the provisions do not commence at all if that Schedule does not commence. 1 January 2017

Note: This table relates only to the provisions of this Act as originally enacted. It will not be amended to deal with any later amendments of this Act.

 2

Any information in column 3 of the table is not part of this Act. Information may be inserted in this column, or information in it may be edited, in any published version of this Act.
3 Definitions

In this Act:

excess transfer balance period has the same meaning as in the Income Tax Assessment Act 1997.

notional earnings means the sum worked out under subsection 294-230(3) of the Income Tax Assessment Act 1997 for the excess transfer balance period.
4 Imposition of tax

Excess transfer balance tax payable under Income Tax Assessment Act 1997 is imposed.section 294-230 of the

5 Amount of tax 1

The amount of the excess transfer balance tax is:

 a

if the circumstances mentioned in subsection (2) apply—30% of the person’s notional earnings for the excess transfer balance period; or

 b

in any other case—15% of the person’s notional earnings for the excess transfer balance period.

 2

For the purposes of paragraph (1)(a), the circumstances are:

 a

the excess transfer balance period starts on or after 1 July 2018; and

 b

the person has previously been liable to pay excess transfer balance tax for an excess transfer balance period starting on or after 1 July 2018.
6 Severability

If, apart from this section, section 4 would impose, in relation to a person, a tax the imposition of which in relation to the person would exceed the legislative power of the Commonwealth, section 4 has effect as if it did not impose that tax in relation to the person.

[Minister’s second reading speech made in—

House of Representatives on 9 November 2016

Senate on 23 November 2016]

(172/16)