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Tax and Superannuation Laws Amendment (2012 Measures No. 1) Bill 2012

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2010-2011-2012

 

THE PARLIAMENT OF THE COMMONWEALTH OF AUSTRALIA

 

 

 

HOUSE OF REPRESENTATIVES

 

 

 

tax and superannuation laws amendment (2012 measures No . 1) bill 2012

 

 

 

 

CORRECTIONS TO THE

EXPLANATORY MEMORANDUM

 

 

 

 

(Circulated by the authority of the

Deputy Prime Minister and Treasurer, the Hon Wayne Swan MP)

Superannuation — payslip reporting

Background

When the Explanatory Memorandum was drafted, the Government planned to require employers to report a date, on their payslips, by which they intended to pay their superannuation contributions to the employee’s fund.  This was an interim measure, and was to apply from 1 July 2012.  However, as a result of the recommendations of the House Standing Committee on Economics, the Government now plans to skip the interim measure, and to require employers to report, on payslips, the superannuation contributions when they are actually made.  This will apply from 1 July 2013, and is subject to further consultation with industry.

While the Government is making no changes to the Bill itself, it is now planning to enact somewhat different regulations than originally planned, necessitating the need for the following corrections to be made to the Explanatory Memorandum.

Corrections

Chapter 6, paragraph 6.1 — omit the dot point, substitute:

•        The regulations are in turn likely to require employers to report, on payslips, the superannuation contributions when they are actually made.  The regulations will be enacted once this Bill has come into force, and the new requirements will apply from 1 July 2013.

Chapter 6, paragraph 6.5 — omit the paragraph (including the dot point), substitute:

This Schedule is designed to require employers to report contributions that an employer has actually made during the pay period.  This will improve employer compliance since employers will be making a public and checkable statement on their payslips.  This Schedule will also improve the timeliness of information by telling employees when they can check with their fund that their employer has made the contribution.

•        The Regulations will probably require employers to report SG contributions of $0.00 in pay periods where they do not actually make a contribution, and to report an aggregated figure for contributions in the pay period when they do make the contribution.  Employers may wish to make a general statement on their payslips like:  ‘Your superannuation contributions will be paid to your fund on or by the 28 th day after the end of the quarter.’



 

Chapter 6, paragraph 6.7 — omit the paragraph, substitute:

This Schedule may require extensive modification of payroll software.

Chapter 6, paragraph 6.8 — omit the paragraph (including the dot point), substitute:

This measure was announced in the 2011-12 Budget, and during the 2010 election.  When the Stronger Super Consultation Panel considered it, there was some concern that the required software changes would be relatively expensive.  However, when the Bill was referred to the House Standing Committee on Economics, it heard evidence that a number of software providers were integrating payroll software with accounts payable software, and would be in a position to supply the necessary software. 

Chapter 6, paragraph 6.11 — omit the first dot point, substitute:

•        The regulations are in turn likely to require employers to report, on payslips, the superannuation contributions when they are actually made.

Chapter 6, paragraph 6.11 — omit the third dot point, substitute:

•        At present, employers are required to report accrued superannuation contributions under the Fair Work Regulations.  Those requirements will be repealed once the new requirements come into force, and the new requirements will be placed in the Superannuation Industry (Supervision) Regulations 1994 (the SIS Regulations).  The Fair Work Regulations will contain a note pointing to the new SIS Regulations. 

Chapter 6, paragraph 6.11 — omit the fourth dot point, substitute:

•        Employers will remain subject to the same penalties as currently apply.  While the measure will now sit within the SIS Act, and not within the Fair Work Act, the SIS Act imposes a civil remedy provision under the Fair Work Act, and empowers the Fair Work Ombudsman to enforce the new requirements.



 

Chapter 6, paragraph 6.19 — omit the second dot point, substitute:

•        The regulations will probably require employers who plan to pay the SG charge (rather than making an SG contribution) to report an SG contribution of $0.00 in all pay periods concerned, including the pay period in which they pay the SG charge.  (The same will apply to employers who plan to pay neither SG contributions nor the SG charge, in contravention of the law.)

Chapter 6, paragraph 6.29 :  replace ‘1 January 2013’ with ‘1 July 2013.’

Chapter 6, paragraph 6.32 — omit the paragraph, substitute:

This Schedule is designed to require employers to report contributions that an employer has actually made during the pay period.