|
|||
|
|||
|
|
| 2007-08 |
2008-09 |
2009-10 |
2010-11 |
2011-12 |
|---|---|---|---|---|
Nil |
$251m |
$378m |
$299m |
$224m |
Temporary residents are currently able to claim their superannuation after permanently departing Australia by applying for a Departing Australia Superannuation Payment (DASP) from their superannuation fund. The DASP is the value of their superannuation minus tax (which is currently 30 per cent for the taxed element of a benefit and 40 per cent for an untaxed element).
The provisions of this Bill make consequential amendments to the Superannuation (Departing Australia Superannuation Payments Tax) Act 2007 (the S(DASPT) Act). Section 5 of the S(DASPT) Act sets out the rates of tax on DASPs.Of note are the following amendments:
Item 1 amends section 3 of the S(DASPT) Act to treat the meaning of excess untaxed roll-over amount as the same as in the Income Tax Assessment Act 1997.
Items 4 and 5 amend section 5 of the S(DASPT) Act to increase the tax amounts for DASPs to:
According the Explanatory Memorandum, the rationale for this to ‘[recover] some of the superannuation tax concessions provided to departed temporary visa residents’.[2]
Item 6 inserts a proposed new subsection 5(2) which sets out the tax for a new kind of payment, to be contained in proposed section 20(H) the S(UMLM) Act.[3] The payment, called a ‘roll-over superannuation benefit’, will be taxed at the following rates:
The amendments in this Bill are essentially minor and technical in nature, and are consequential to the Temporary Residents’ Superannuation Amendment Bill 2008. The Bills Digest for that Bill should be consulted for a fuller discussion of the policy issues.
[1] Explanatory Memorandum, Temporary Residents’ Superannuation Legislation Amendment Bill 2008, p. 9
[2]. ibid., p.49.
[3]. By virtue of the Temporary Residents’ Bill.
© Commonwealth of Australia
This work is copyright. Except to the extent of uses permitted by the
Copyright Act 1968, no person may reproduce or transmit any part of this
work by any process without the prior written consent of the Parliamentary
Librarian. This requirement does not apply to members of the Parliament
of Australia acting in the course of their official duties.
This work has been prepared to support the work of the Australian Parliament
using information available at the time of production. The views expressed
do not reflect an official position of the Parliamentary Library, nor
do they constitute professional legal opinion.
Feedback is welcome and may be provided to: web.library@aph.gov.au. Any concerns or complaints should be directed to the Parliamentary Librarian. Parliamentary Library staff are available to discuss the contents of publications with Senators and Members and their staff. To access this service, clients may contact the author or the Library’s Central Entry Point for referral.
