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Tax Laws Amendment (2008 Measures No. 2) Bill 2008

Schedule 2 Late payment offset for superannuation guarantee contributions

   

Superannuation Guarantee (Administration) Act 1992

1  Paragraph 23A(1)(a)

Repeal the paragraph, substitute:

                     (a)  the contribution is made after the end of the period of 28 days after the end of a quarter; and

2  Subsection 23A(2)

Repeal the subsection, substitute:

             (2)  The election must be made:

                     (a)  in a statement having effect under section 35 as the employer’s assessment for the quarter; or

                     (b)  within 4 years after the employer’s superannuation guarantee charge for the quarter became payable.

The election cannot be revoked.

3  After subsection 23A(4)

Insert:

          (4A)  If the election happens after the employer’s assessment for the quarter is made, then, for the offset to take effect, the assessment must be amended accordingly under section 37.

4  Subsection 49(1)

After “unpaid amount”, insert “(the original unpaid amount )”.

5  Subsection 49(1) (note)

Repeal the note, substitute:

Note 1:       The general interest charge is worked out under Part IIA of the Taxation Administration Act 1953 .

Note 2:       Subsections (2) and (3A) deal with reducing the original unpaid amount.

6  Subsection 49(2)

Before “unpaid amount”, insert “original”.

7  After subsection 49(3)

Insert:

          (3A)  For the purposes of this section and subsection 8AAC(3) of the Taxation Administration Act 1953 , if:

                     (a)  the employer gives the Commissioner an election under section 23A at a time (the election time ) after the time the superannuation guarantee charge is due to be paid; and

                     (b)  the effect of the election is to reduce the employer’s liability to pay the superannuation guarantee charge by an amount (the offset amount );

then, from the election time, the proportion of the original unpaid amount that remains unpaid immediately before that time is taken to be reduced by the offset amount.

Note:          The original unpaid amount will not be reduced by the offset amount during the period when the charge is payable before the election time.

8  Transitional—charge remaining payable at commencement

(1)       If, for the purposes of the Superannuation Guarantee (Administration) Act 1992 , superannuation guarantee charge:

                     (a)  became payable under an assessment before the commencement of this Schedule; and

                     (b)  was not fully paid before that commencement;

this item applies in relation to the employer’s liability to pay the proportion of the charge (the remaining charge ) remaining payable at that commencement.

(2)       After that commencement, subsection 23A(2) of that Act applies as if the remaining charge became payable at that commencement.

(3)       If it is proposed to amend the assessment to effect a reduction, as a result of an offset under section 23A of that Act, in the employer’s liability to pay the remaining charge, then:

                     (a)  subsection 37(3) of that Act applies as if the assessment were made at that commencement; and

                     (b)  paragraph 37(5)(a) of that Act applies as if the remaining charge became payable under the assessment at that commencement.

(4)       If the assessment was of superannuation guarantee charge payable in relation to a year (instead of a quarter), then that Act also applies as if references in that Act to a quarter were references to a year.

9  Transitional—charge for a year that becomes payable after commencement

If, for the purposes of the Superannuation Guarantee (Administration) Act 1992 , superannuation guarantee charge:

                     (a)  is payable in relation to a year (instead of a quarter) happening before the commencement of this Schedule; and

                     (b)  does not become payable until after that commencement;

then that Act applies, in relation to the employer’s liability to pay the charge, as if references in that Act to a quarter were references to a year.