Commonwealth: Tax and Superannuation Laws Amendment (2014 Measures No. 7) Act 2015 (Cth)

Tax and Superannuation Laws Amendment (2014 Measures No. 7) Act 2015 No. 21, 2015 Compilation No. 2 Compilation date: 29 March 2018 Includes amendments up to: Act No. 15, 2018 Registered: 4 April 2018 About this compilation This compilation This is a compilation of the Tax and Superannuation Laws Amendment (2014 Measures No. 7) Act 2015 that shows the text of the law as amended and in force on 29 March 2018 (the compilation date). The notes at the end of this compilation (the endnotes) include information about amending laws and the amendment history of provisions of the compiled law. Uncommenced amendments The effect of uncommenced amendments is not shown in the text of the compiled law. Any uncommenced amendments affecting the law are accessible on the Legislation Register (www.legislation.gov.au). The details of amendments made up to, but not commenced at, the compilation date are underlined in the endnotes. For more information on any uncommenced amendments, see the series page on the Legislation Register for the compiled law. Application, saving and transitional provisions for provisions and amendments If the operation of a provision or amendment of the compiled law is affected by an application, saving or transitional provision that is not included in this compilation, details are included in the endnotes. Editorial changes For more information about any editorial changes made in this compilation, see the endnotes. Modifications If the compiled law is modified by another law, the compiled law operates as modified but the modification does not amend the text of the law. Accordingly, this compilation does not show the text of the compiled law as modified. For more information on any modifications, see the series page on the Legislation Register for the compiled law. Self‑repealing provisions If a provision of the compiled law has been repealed in accordance with a provision of the law, details are included in the endnotes. Contents 1 Short title 2 Commencement 3 Schedules 4 Amendment of assessments Schedule 1—Excess non‑concessional superannuation contributions tax reforms Income Tax Assessment Act 1997 Taxation Administration Act 1953 Schedule 2—Transferring tax investigation function to Inspector‑General of Taxation Part 1—Main amendments Inspector‑General of Taxation Act 2003 Ombudsman Act 1976 Part 2—Other amendments Income Tax Assessment Act 1936 Tax Agent Services Act 2009 Taxation Administration Act 1953 Part 3—Application and transitional provisions Schedule 3—CGT exemption for compensation and insurance Income Tax Assessment Act 1997 Schedule 4—Providing certainty for superannuation fund mergers Part 1—Main amendments Income Tax Assessment Act 1997 Income Tax (Transitional Provisions) Act 1997 Taxation Administration Act 1953 Part 2—Other amendments Income Tax Assessment Act 1997 Schedule 5—Disclosing tax information relating to proceeds of crime orders Taxation Administration Act 1953 Schedule 6—Exploration development incentive Part 1—Main amendments Income Tax Assessment Act 1997 Part 2—Other amendments Income Tax Assessment Act 1936 Income Tax Assessment Act 1997 Taxation Administration Act 1953 Part 3—Repeal of Division 418 Income Tax Assessment Act 1936 Income Tax Assessment Act 1997 Taxation Administration Act 1953 Part 4—Application and saving provisions Division 1—Application of amendments Division 2—Savings provisions relating to repeal of Division 418 Schedule 7—Miscellaneous amendments Part 1—Amendments commencing on the day after this Act receives the Royal Assent A New Tax System (Goods and Services Tax) Act 1999 Excise Act 1901 Income Tax Assessment Act 1936 Income Tax Assessment Act 1997 Income Tax (Transitional Provisions) Act 1997 Petroleum Resource Rent Tax Assessment Act 1987 Retirement Savings Accounts Act 1997 Superannuation Act 2005 Superannuation Guarantee (Administration) Act 1992 Superannuation Industry (Supervision) Act 1993 Superannuation (Productivity Benefit) Act 1988 Taxation Administration Act 1953 Part 2—Other amendments Petroleum Resource Rent Tax Assessment Act 1987 Superannuation Laws Amendment (Capital Gains Tax Relief and Other Efficiency Measures) Act 2012 Superannuation Legislation Amendment (Further MySuper and Transparency Measures) Act 2012 Tax and Superannuation Laws Amendment (2013 Measures No. 2) Act 2013 Tax Laws Amendment (2013 Measures No. 2) Act 2013 Endnotes Endnote 1—About the endnotes Endnote 2—Abbreviation key Endnote 3—Legislation history Endnote 4—Amendment history Endnote 5—Editorial changes An Act to amend the law relating to taxation and superannuation, and for related purposes 1 Short title This Act may be cited as the Tax and Superannuation Laws Amendment (2014 Measures No. 7) Act 2015. 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 Column 1 Column 2 Column 3 Provisions Commencement Date/Details 1. Sections 1 to 4 and anything in this Act not elsewhere covered by this table The day this Act receives the Royal Assent. 19 March 2015 2. Schedule 1 The day after this Act receives the Royal Assent. 20 March 2015 3. Schedule 2 The later of: 1 May 2015 (a) the 14th day after this Act receives the Royal Assent; and (paragraph (b) applies) (b) 1 May 2015. 4. Schedule 3 The day after this Act receives the Royal Assent. 20 March 2015 5. Schedule 4 1 July 2015. 1 July 2015 6. Schedule 5 The day after this Act receives the Royal Assent. 20 March 2015 7. Schedule 6, items 1 to 20 The day this Act receives the Royal Assent. 19 March 2015 9. Schedule 6, item 22 The day this Act receives the Royal Assent. 19 March 2015 10. Schedule 6, item 23 The later of: 19 March 2015 (a) immediately after the commencement of the provisions covered by table item 1; and (paragraph (a) applies) (b) immediately after the commencement of Part 2 of Schedule 2 to the Treasury Legislation Amendment (Repeal Day) Act 2015. However, the provisions do not commence at all if the event mentioned in paragraph (b) does not occur. 11. Schedule 6, items 24 to 37 The day this Act receives the Royal Assent. 19 March 2015 12. Schedule 6, Part 3 1 July 2020. Never commenced However, the provisions do not commence at all if Parts 1 and 2 of Schedule 1 to the Treasury Laws Amendment (Junior Minerals Exploration Incentive) Act 2018 commence before 1 July 2020. 13. Schedule 6, Part 4, Division 1 The day this Act receives the Royal Assent. 19 March 2015 14. Schedule 6, Part 4, Division 2 1 July 2020. Never commenced However, the provisions do not commence at all if Parts 1 and 2 of Schedule 1 to the Treasury Laws Amendment (Junior Minerals Exploration Incentive) Act 2018 commence before 1 July 2020. 15. Schedule 7, Part 1 The day after this Act receives the Royal Assent. 20 March 2015 16. Schedule 7, item 44 Immediately after the commencement of Schedule 3 to the Petroleum Resource Rent Tax Assessment Amendment Act 2012. 1 July 2012 17. Schedule 7, items 45 and 46 Immediately after the commencement of Division 3 of Part 1 of Schedule 4 to the Superannuation Laws Amendment (Capital Gains Tax Relief and Other Efficiency Measures) Act 2012. 29 November 2012 18. Schedule 7, items 47 and 48 Immediately after the commencement of Part 2 of Schedule 4 to the Superannuation Laws Amendment (Capital Gains Tax Relief and Other Efficiency Measures) Act 2012. 29 November 2012 19. Schedule 7, items 49 and 50 Immediately after the commencement of item 42 of Schedule 3 to the Superannuation Legislation Amendment (Further MySuper and Transparency Measures) Act 2012. 1 July 2013 20. Schedule 7, item 51 The day after this Act receives the Royal Assent. 20 March 2015 21. Schedule 7, item 52 Immediately after the commencement of item 11 of Schedule 1 to the Tax and Superannuation Laws Amendment (2013 Measures No. 2) Act 2013. 28 June 2013 22. Schedule 7, items 53 and 54 Immediately after the commencement of item 34 of Schedule 2 to the Tax Laws Amendment (2013 Measures No. 2) Act 2013. 11 July 2013 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 Schedules Legislation that is specified in a Schedule to this Act is amended or repealed as set out in the applicable items in the Schedule concerned, and any other item in a Schedule to this Act has effect according to its terms. 4 Amendment of assessments Section 170 of the Income Tax Assessment Act 1936 does not prevent the amendment of an assessment if: (a) the assessment was made before the commencement of Schedule 3 (about CGT exemption for compensation and insurance) to this Act; and (b) the amendment is made for the purpose of giving effect to that Schedule; and (c) the amendment is made within 2 years after the day that Schedule commences. Note: The 2‑year period in paragraph (c) can be extended (see section 170A of the Income Tax Assessment Act 1936). Schedule 1—Excess non‑concessional superannuation contributions tax reforms Income Tax Assessment Act 1997 1 Section 10‑5 (table item headed "superannuation") Before: benefits generally .......................... Divisions 301 to 306 insert: associated earnings on non‑concessional contributions Subdivision 292‑B 2 Section 11‑55 (table item headed "superannuation") Omit: release authorities, payments from ............... 303‑15 303‑20 304‑15 substitute: release authorities, payments from ............... 303‑15 303‑17 303‑20 304‑15 3 Section 13‑1 (table item headed "superannuation") After: generally ................................ Divisions 301 and 302 insert: associated earnings on non‑concessional contributions Subdivision 292‑B 4 Subsection 280‑15(3) Repeal the subsection, substitute: (3) If non‑concessional contributions exceed an indexed cap, the individual can: (a) elect to release an amount corresponding to that excess, and 85% of the associated earnings on that excess, from the individual's superannuation interests; or (b) elect not to release such an amount if the value of the individual's superannuation interests is nil. An amount corresponding to those associated earnings is then included in the individual's assessable income and gives rise to a tax offset. (4) The individual is taxed: (a) if the amount released as described in paragraph (3)(a) fell short of that excess—on that shortfall; or (b) on that excess, if the individual did not make either of those elections. An amount equal to this tax liability must be released from the individual's superannuation interests. 5 Division 292 (heading) Repeal the heading, substitute: Division 292—Excess non‑concessional contributions 6 Section 292‑1 Repeal the section, substitute: 292‑1 What this Division is about This Division limits the superannuation contributions made in a financial year that receive concessional tax treatment. You become liable for tax if: (a) your non‑concessional contributions exceed an indexed cap; and (b) you do not release a corresponding amount from your superannuation interests; unless the value of your superannuation interests is nil. An amount will be included in your assessable income, and you will become entitled to a tax offset, if you release such an amount or if the value of your superannuation interests is nil. 7 After Subdivision 292‑A Insert: Subdivision 292‑B—Assessable income and tax offset 292‑15 What this Subdivision is about An amount is included in your assessable income, and you are entitled to a tax offset, if your non‑concessional contributions exceed an indexed cap and: (a) as a result, you release an amount from your superannuation interests; or (b) the value of your superannuation interests is nil. This amount included in your assessable income corresponds to your associated earnings on those excess contributions. Table of sections 292‑20 Amount in assessable income, and tax offset, relating to your non‑concessional contributions 292‑25 Amount included in assessable income 292‑30 Amount of the tax offset 292‑20 Amount in assessable income, and tax offset, relating to your non‑concessional contributions Your assessable income for an income year includes an amount, and you are entitled to a *tax offset for the income year, if: (a) you receive one or more *excess non‑concessional contributions determinations for a *financial year that corresponds to the income year; and (b) you make one or more elections under paragraph 96‑7(1)(a) or (b) in Schedule 1 to the Taxation Administration Act 1953 in relation to those determinations. 292‑25 Amount included in assessable income (1) The amount included in your assessable income for the income year is equal to the amount of associated earnings stated in the most recent of those determinations. (2) However, if: (a) the sum of any amounts paid to you in response to release authorities issued in relation to those determinations (the total amount) is less than the amount of the excess stated in the most recent of those determinations; and (b) section 292‑467 does not apply to you for the *financial year; the amount included in your assessable income for the income year is equal to the amount of associated earnings that would have been stated in that most recent determination if the total amount had been the amount of the excess stated in that determination. Note 1: The amount included in your assessable income may be nil. Note 2: Any amounts paid to you in response to those release authorities are non‑assessable non‑exempt income (see section 303‑17). 292‑30 Amount of the tax offset The *tax offset is equal to 15% of the amount included in your assessable income for the income year under section 292‑25. Note 1: This tax offset compensates for any tax liability of the superannuation provider on earnings from investments made with the contributions making up the excess amount stated in the most recent determination. Note 2: This offset cannot be refunded, transferred or carried forward (see item 20 of the table in subsection 63‑10(1)). 8 Subsection 292‑85(1) Repeal the subsection, substitute: (1) You have excess non‑concessional contributions for a *financial year if: (a) you receive one or more *excess non‑concessional contributions determinations for the financial year; and (b) the excess amount stated in the most recent of those determinations exceeds the sum of any amounts paid to you in response to release authorities issued, in relation to those determinations, under section 96‑12 in Schedule 1 to the Taxation Administration Act 1953; and (c) section 292‑467 of this Act does not apply to you for the financial year. (1A) The amount of your excess non‑concessional contributions is: (a) if no amounts were paid to you as described in paragraph (1)(b)—the excess amount stated in that most recent determination; or (b) otherwise—the amount of the excess worked out under paragraph (1)(b). Note: Any excess non‑concessional contributions determination you receive after the first one for a financial year is an amended determination. 9 Subsection 292‑465(1) After "for the purposes of this Division", insert "and Subdivision 97‑B in Schedule 1 to the Taxation Administration Act 1953". 10 Paragraph 292‑465(2)(b) Repeal the paragraph, substitute: (b) if you receive one or more *excess non‑concessional contributions determinations for the *financial year—before the end of: (i) the period of 60 days starting on the day you receive the most recent of those determinations; or (ii) a longer period allowed by the Commissioner. 11 Subsections 292‑465(3) and (4) Omit "the determination" (first occurring), substitute "a determination under subsection (1)". 12 Subsection 292‑465(7) Omit "the determination", substitute "a determination made under subsection (1)". 13 Subsection 292‑465(8) Omit "under this section", substitute "made under subsection (1)". 14 Paragraph 292‑465(9)(b) Omit "this section", substitute "subsection (1)". 15 After section 292‑465 Insert: 292‑467 Direction that the value of superannuation interests is nil (1) The Commissioner must, by writing, direct that this section applies to you for a *financial year if: (a) you receive one or more *excess non‑concessional contributions determinations for the financial year; and (b) as a result of those determinations, you make one or more elections under paragraph 96‑7(1)(a) or (b) in Schedule 1 to the Taxation Administration Act 1953; and (c) in the case of elections under paragraph 96‑7(1)(a) in that Schedule—the sum of any amounts paid to you in response to any release authorities issued in relation to those elections is less than the excess amount stated in the most recent of those determinations; and (d) the Commissioner is satisfied that the *value of all of your remaining *superannuation interests is nil. Note 1: The direction means you have no excess non‑concessional contributions for the financial year (see paragraph 292‑85(1)(c)), even though not all of the excess amount has been released to you. Note 2: The direction does not prevent an amount from being included in your assessable income (see Subdivision 292‑B). Note 3: Any excess non‑concessional contributions determination you receive after the first one for a financial year is an amended determination. (2) The Commissioner must give you a copy of the direction. (3) A direction under this section may be included in a notice of assessment. (4) To avoid doubt: (a) you may object under section 292‑245 against an *excess non‑concessional contributions tax assessment made in relation to you on the ground that a direction was not made under this section; and (b) for the purposes of paragraph (e) of Schedule 1 to the Administrative Decisions (Judicial Review) Act 1977, not making a direction under this section is a decision forming part of the process of making an assessment of tax under this Act. 16 After section 303‑15 Insert: 303‑17 Payments from release authorities etc.—released non‑concessional contributions and associated earnings A *superannuation benefit is not assessable income and is not *exempt income if it is paid to you in response to a release authority issued under section 96‑12 in Schedule 1 to the Taxation Administration Act 1953. Note: A related amount may still be included in your assessable income (see Subdivision 292‑B). 17 Subsection 995‑1(1) Insert: excess non‑concessional contributions determination has the meaning given by subsection 97‑25(2) in Schedule 1 to the Taxation Administration Act 1953. total release amount, in relation to an *excess non‑concessional contributions determination, has the meaning: (a) given by paragraph 97‑25(1)(c) in Schedule 1 to the Taxation Administration Act 1953; and (b) affected by subsection 96‑7(2) in that Schedule. Taxation Administration Act 1953 18 After section 14ZVB Insert: 14ZVC Objections relating to non‑concessional contributions Taxation decisions to which section applies (1) This section applies to the following taxation decisions: (a) an assessment against which a taxation objection may be made under section 175A of the Income Tax Assessment Act 1936; (b) an excess non‑concessional contributions determination (within the meaning of the Income Tax Assessment Act 1997); (c) an assessment against which a taxation objection may be made under section 292‑245 of the Income Tax Assessment Act 1997; (d) a determination under section 292‑465 of the Income Tax Assessment Act 1997, or a decision not to make a determination under that section; (e) a direction under section 292‑467 of the Income Tax Assessment Act 1997, or a decision not to make a direction under that section; (f) 2 or more taxation decisions that are taken to be a single taxation decision under subsection (2). Decisions treated as single decision for common objection ground (2) If: (a) a person makes a taxation objection at a particular time, on a particular ground, against a taxation decision to which this section applies; and (b) at that time, the person also objects, or could also object, on that ground, against another taxation decision to which this section applies; then, for the purposes of this Part, those taxation decisions are taken to be a single taxation decision. Limited objection rights because of earlier objection (3) A person cannot object under this Part against a taxation decision to which this section applies on a particular ground if: (a) the ground was a ground for an objection the person has made against another decision to which this section applies; or (b) the ground could have been a ground for an objection the person has made against another decision to which this section applies. 19 After paragraph 14ZW(1)(aac) Insert: (aaca) if the taxation objection is made on a particular ground under any of the following provisions: (i) section 175A of the Income Tax Assessment Act 1936; (ii) section 97‑35 in Schedule 1 to this Act; (iii) section 292‑245, 292‑465 or 292‑467 of the Income Tax Assessment Act 1997; within the same period that the person must lodge a taxation objection on that ground under section 292‑245 of the Income Tax Assessment Act 1997; or 20 Part 2‑35 in Schedule 1 (heading) Repeal the heading, substitute: Part 2‑35—Excess superannuation contributions 21 Section 96‑1 in Schedule 1 Repeal the section, substitute: 96‑1 What this Subdivision is about You may elect to release from your superannuation interests: (a) up to 85% of your excess concessional contributions for a financial year; and (b) your non‑concessional contributions that exceed your non‑concessional contributions cap for the financial year, and 85% of any associated earnings. Superannuation providers will usually be required to pay an amount from the superannuation interests. However, for certain interests the provider may choose whether or not to pay. Released concessional contributions are paid to the Commissioner. You get a credit for the released amount. Surplus credits are refunded to you under Division 3A of Part IIB. Released non‑concessional contributions and associated earnings are paid to you. 22 Section 96‑5 in Schedule 1 (heading) Repeal the heading, substitute: 96‑5 Electing to release excess concessional contributions 23 Subsection 96‑5(1) in Schedule 1 After "*excess concessional contributions determination", insert "for a *financial year". 24 Subsection 96‑5(1) in Schedule 1 (note 1) Omit "Division 97", substitute "Subdivision 97‑A". 25 Paragraph 96‑5(5)(b) in Schedule 1 Omit "section 96‑40", substitute "subsection 96‑40(1)". 26 After section 96‑5 in Schedule 1 Insert: 96‑7 Electing to release non‑concessional contributions etc. Original determinations (1) If you receive an *excess non‑concessional contributions determination for a *financial year, you may: (a) elect to release the *total release amount stated in the determination from your *superannuation interests; or (b) elect not to release that total release amount if the value of your superannuation interests is nil; or (c) elect not to release that total release amount for some other reason. Note 1: For excess non‑concessional contributions determinations, see Subdivision 97‑B. Note 2: The released amount will be non‑assessable non‑exempt income (see section 303‑17 of the Income Tax Assessment Act 1997), but an amount corresponding to your associated earnings on those excess contributions will be included in your assessable income (see Subdivision 292‑B of that Act). Note 3: If the value of your superannuation interests is between nil and that total release amount, you could first make an election under paragraph (a) and then a further election under paragraph (b) (see subsection (6)). Note 4: An election purportedly made under paragraph (b) will be invalid if the value of your superannuation interests was not nil. Amended determinations (2) However, if that determination is an amended determination that increased the *total release amount, any election under subsection (1) relating to the amended determination is to be made as if that new total release amount were reduced by: (a) if you made an election under paragraph (1)(a) for each earlier *excess non‑concessional contributions determination you received for the *financial year—the sum of any amounts paid to you in response to release authorities issued in relation to those determinations; or (b) otherwise—the total release amount stated in the most recent of those earlier determinations. (3) Receiving an amended determination does not prevent you from making an election under subsection (1) in relation to an earlier determination. Requirements for election (4) You make an election under paragraph (1)(a) by identifying: (a) one or more superannuation providers who hold one or more *superannuation interests for you; and (b) the amount each superannuation provider is to release. (5) An election under paragraph (1)(a), (b) or (c) relating to an *excess non‑concessional contributions determination must: (a) be in the *approved form; and (b) be given to the Commissioner within: (i) 60 days after the Commissioner issued notice of that determination; or (ii) a further period allowed by the Commissioner. Unsuccessful release—making a further election (6) If: (a) you make a valid election under paragraph (1)(a); and (b) the Commissioner gives you a notice under subsection 96‑40(2) stating an amount (the unpaid amount) that a *superannuation provider did not pay in relation to the release authority issued in relation to that election; you may make a further election under paragraph (1)(a) or (b) for the release, or non‑release, of the unpaid amount. Note: That further election would be under paragraph (1)(b) if the value of your superannuation interests is now nil. (7) The further election must comply with subsection (4) and paragraph (5)(a), and must be given to the Commissioner within: (a) 60 days after the Commissioner issued the notice mentioned in paragraph (6)(b); or (b) a further period allowed by the Commissioner. Election is irrevocable (8) An election under this section is irrevocable. 27 Section 96‑10 in Schedule 1 (heading) Repeal the heading, substitute: 96‑10 Release authorities for elections under section 96‑5 28 Subsection 96‑10(1) in Schedule 1 Omit "in relation to *excess concessional contributions you have for a *financial year". 29 After section 96‑10 in Schedule 1 Insert: 96‑12 Release authorities for elections under section 96‑7 (1) The Commissioner must issue one or more release authorities under this section if you make a valid election under paragraph 96‑7(1)(a). (2) A release authority may be issued to: (a) a *superannuation provider identified in the election; or (b) any other superannuation provider who holds one or more *superannuation interests for you. (3) Each release authority must: (a) state the total amount to be released by the *superannuation provider from *superannuation interests held by the provider for you; and (b) be dated; and (c) contain any other information that the Commissioner considers relevant. 30 Section 96‑15 in Schedule 1 Omit "payment", substitute "notice under section 96‑35". 31 Subsection 96‑20(1) in Schedule 1 Omit "that has been". 32 After subsection 96‑20(1) in Schedule 1 Insert: (1A) A *superannuation provider issued with a release authority under section 96‑12 must, within 21 days after the release authority is issued (or a further period allowed by the Commissioner), pay to the individual the lesser of: (a) the amount stated in the release authority; and (b) the sum of the *maximum available release amounts for each *superannuation interest held by the superannuation provider for the individual in *superannuation plans. Note 1: Subsection 288‑95(3) provides for an administrative penalty for failing to comply with this section. Note 2: For the taxation treatment of the payment, see section 96‑60. 33 At the end of section 96‑20 in Schedule 1 Add: (3) Despite paragraph (1A)(b), the *maximum available release amount for a *defined benefit interest is not to be included in the sum worked out under that paragraph. 34 Section 96‑25 in Schedule 1 (heading) Repeal the heading, substitute: 96‑25 Voluntary compliance with a release authority relating to voluntary release interests and defined benefit interests 35 Subsection 96‑25(1) in Schedule 1 Omit "that has been". 36 Subsection 96‑25(2) in Schedule 1 Repeal the subsection, substitute: (2) A *superannuation provider issued with a release authority under section 96‑12 may, within 21 days after the release authority is issued (or a further period allowed by the Commissioner), pay to the individual the lesser of: (a) the amount stated in the release authority; and (b) the sum of the *maximum available release amounts for each *defined benefit interest held by the superannuation provider for the individual in *superannuation plans. (3) For the purposes of paragraph (1)(a) or (2)(a), reduce the amount mentioned in that paragraph by any amount the provider pays under section 96‑20 in relation to the release authority. 37 Subsection 96‑35(1) in Schedule 1 Omit "that has been". 38 Subsection 96‑35(1) in Schedule 1 After "section 96‑10", insert "or 96‑12". 39 Paragraph 96‑35(2)(a) in Schedule 1 After "section 96‑10", insert "or 96‑12". 40 Subsection 96‑35(3) in Schedule 1 Repeal the subsection, substitute: (3) A notice under this section must be given in the *approved form: (a) within 7 days after the release authority is issued, if the release authority was issued under section 96‑10; or (b) within 21 days after the release authority is issued (or a further period allowed by the Commissioner), if the release authority was issued under section 96‑12. Note: Subsection 286‑75(1) provides for an administrative penalty for failing to comply with this section. 41 Section 96‑40 in Schedule 1 Repeal the section, substitute: 96‑40 Notifying individual—unsuccessful release attempt (1) The Commissioner must notify an individual if, in relation to the individual's election under section 96‑5, the Commissioner: (a) receives a notice from a *superannuation provider under subsection 96‑35(2); or (b) does not receive a payment from a superannuation provider of the full amount stated in a release authority within the time mentioned in subsection 96‑20(1) or 96‑25(1). (2) The Commissioner must notify an individual if, in relation to the individual's election under paragraph 96‑7(1)(a): (a) the Commissioner receives a notice from a *superannuation provider under subsection 96‑35(2); or (b) the individual does not receive a payment from a superannuation provider of the full amount stated in a release authority within the time mentioned in subsection 96‑20(1A) or 96‑25(2). (3) A notice under subsection (1) or (2) must: (a) be in writing; and (b) identify the *superannuation provider; and (c) state how much of the amount stated in the release authority was not paid within the applicable time. 96‑42 Notifying individual—successful releases under section 96‑12 (1) A *superannuation provider issued with a release authority under section 96‑12 must notify an individual of a payment made to the individual in accordance with the release authority and this Subdivision. (2) The notice must be given in the *approved form within: (a) 21 days after the release authority is issued; or (b) a further period allowed by the Commissioner. Note: Subsection 286‑75(2AA) provides an administrative penalty for failing to comply with this section. 42 Section 96‑60 in Schedule 1 (note) Repeal the note, substitute: Note: The income tax treatment of released amounts is also affected by Subdivision 292‑B, and sections 303‑15 and 303‑17, of that Act. 43 Division 97 in Schedule 1 (heading) Repeal the heading, substitute: Division 97—Excess contributions determinations 44 At the end of Division 97 in Schedule 1 Add: Subdivision 97‑B—Excess non‑concessional contributions determinations Guide to Subdivision 97‑B 97‑20 What this Subdivision is about The Commissioner must give you a determination stating: (a) the amount by which your non‑concessional contributions exceed your non‑concessional contributions cap; and (b) a proxy amount for your associated earnings on this excess; and (c) the total amount that can be released from your superannuation interests in relation to this excess and those earnings. Table of sections Operative provisions 97‑25 Excess non‑concessional contributions determinations 97‑30 Associated earnings 97‑35 Review Operative provisions 97‑25 Excess non‑concessional contributions determinations (1) If your *non‑concessional contributions for a *financial year (the contributions year) exceed your *non‑concessional contributions cap for the contributions year, the Commissioner must make a written determination stating: (a) the amount of the excess; and (b) the amount of your associated earnings worked out under section 97‑30; and (c) the following amount (the total release amount): (2) A determination under this section is an excess non‑concessional contributions determination. (3) The Commissioner may amend a determination at any time. (4) Notice of the determination may be included in any other notice given to you by the Commissioner. (5) Notice of a determination given by the Commissioner under this section is prima facie evidence of the matters stated in the notice. 97‑30 Associated earnings (1) You are taken to have associated earnings equal to the sum (rounded down to the nearest dollar) of the amounts worked out under the following formula for each of the days during the period: (a) starting on the first day of the contributions year; and (b) ending on the day the Commissioner makes the first *excess non‑concessional contributions determination you receive for the contributions year. where: excess means the amount of the excess referred to in paragraph 97‑25(1)(a). proxy rate means the lower of: (a) the rate worked out under subsection 8AAD(1) for the first day of that period as if the base interest rate (within the meaning of subsection 8AAD(2)) for that day were the average of the base interest rates for each of the days of the contributions year; and (b) a rate determined under subsection (2) for the contributions year. sum of earlier daily proxy amounts means the sum of the amounts worked out under the formula for each of the earlier days (if any) during that period. Note: Any excess non‑concessional contributions determination you receive after the first one for the contributions year is an amended determination. (2) The Minister may, by legislative instrument, determine a rate for a specified *financial year. 97‑35 Review If you are dissatisfied with an *excess non‑concessional contributions determination made in relation to you, you may object against the determination in the manner set out in Part IVC. 45 Subsection 250‑10(2) in Schedule 1 (table item 135R) Omit "concessional", substitute "superannuation". 46 After subsection 286‑75(2) in Schedule 1 Insert: (2AA) You are also liable to an administrative penalty if: (a) you are required under section 96‑42 (releasing superannuation) to give a notice to an entity (other than the Commissioner) in the *approved form by a particular day; and (b) you do not give the notice in the approved form to the entity by that day. 47 Section 288‑90 in Schedule 1 Omit "paragraph 292‑405(1)(b)", substitute "subsection 292‑405(1)". 48 Subsection 288‑95(3) in Schedule 1 Omit "concessional", substitute "superannuation". 49 Application of amendments The amendments made by this Schedule apply in relation to non‑concessional contributions for the 2013‑14 financial year and later financial years. Schedule 2—Transferring tax investigation function to Inspector‑General of Taxation Part 1—Main amendments Inspector‑General of Taxation Act 2003 1 Paragraph 3(a) Omit "the tax laws for the benefit of all taxpayers", substitute "taxation laws for the benefit of all taxpayers, tax practitioners and other entities". 2 Paragraph 3(b) Omit "the tax laws", substitute "taxation laws". 3 Paragraph 3(c) Repeal the paragraph, substitute: (c) investigate complaints by taxpayers, tax practitioners or other entities about the administration of taxation laws; and (d) investigate administrative action taken under taxation laws, including systemic issues, that affect taxpayers, tax practitioners or other entities. 4 Section 4 Insert: ATO official means: (a) the Commissioner; or (b) a Second Commissioner of Taxation; or (c) a Deputy Commissioner of Taxation; or (d) a person engaged under the Public Service Act 1999, or an employee or officer of an authority of the Commonwealth, performing duties in the Australian Taxation Office; or (e) a person engaged on behalf of the Commonwealth by another ATO official to provide services related to the administration of taxation laws; or (f) a person who: (i) is a member of a body established for the sole purpose of assisting the Commissioner in the administration of an aspect of taxation laws; and (ii) receives, or is entitled to receive, remuneration (but not merely allowances) from the Commonwealth in respect of his or her membership of the body. Commissioner means the Commissioner of Taxation. entity has the same meaning as in the Income Tax Assessment Act 1997. investigation into a complaint means an investigation under paragraph 7(1)(a). investigation into a systemic issue means an investigation under paragraph 7(1)(c) or (d). 5 Section 4 (definition of review) Repeal the definition. 6 Section 4 Insert: tax administration action means action that the Inspector‑General can investigate under paragraph 7(1)(a) or (b). taxation law has the same meaning as in the Income Tax Assessment Act 1997. tax file number has the same meaning as in the Income Tax Assessment Act 1997. 7 Section 4 (definition of tax law) Repeal the definition. 8 Section 4 (definition of tax official) Repeal the definition, substitute: tax official means: (a) an ATO official; or (b) a Board member of the Tax Practitioners Board; or (c) an APS employee assisting the Tax Practitioners Board as described in section 60‑80 of the Tax Agent Services Act 2009; or (d) a person engaged on behalf of the Commonwealth by another tax official (other than an ATO official) to provide services related to the administration of taxation laws; or (e) a person who: (i) is a member of a body established for the sole purpose of assisting the Tax Practitioners Board in the administration of an aspect of taxation laws; and (ii) receives, or is entitled to receive, remuneration (but not merely allowances) from the Commonwealth in respect of his or her membership of the body. 9 Section 4 (definition of taxpayer) Omit "tax law", substitute "taxation law". 10 Section 4 Insert: Tax Practitioners Board means the Tax Practitioners Board established by section 60‑5 of the Tax Agent Services Act 2009. 11 Divisions 2, 3 and 4 of Part 2 Repeal the Divisions, substitute: Division 2—Functions of the Inspector‑General 7 Functions of the Inspector‑General (1) The functions of the Inspector‑General are as follows: (a) to investigate action affecting a particular entity that: (i) is taken by a tax official; and (ii) relates to administrative matters under a taxation law; and (iii) is the subject of a complaint by that entity to the Inspector‑General; (b) to investigate other action that: (i) is taken by a tax official; and (ii) relates to administrative matters under a taxation law; (c) to investigate systems established by the Australian Taxation Office, or Tax Practitioners Board, to administer taxation laws, including systems for dealing or communicating: (i) with the public generally; or (ii) with particular people or organisations; in relation to administrative matters under those laws; (d) to investigate systems established by taxation laws, but only to the extent that the systems deal with administrative matters; (e) to investigate action that is the subject of a part of a complaint: (i) transferred to the Inspector‑General by the Ombudsman under paragraph 6D(4)(b) of the Ombudsman Act 1976; or (ii) that the Ombudsman advises, under paragraph 10(1)(b) of this Act, does not need to be transferred under subsection 10(1) of this Act; (f) to report on those investigations. Note: Paragraphs (a) and (b) can cover action under a taxation law, and action relating to action under a taxation law. Example: A taxpayer seeks compensation under an administrative scheme because of action by a tax official during the course of an audit that caused the taxpayer detriment. The Inspector‑General can investigate the action that caused the detriment, and any action by a tax official under the scheme. (2) However, these functions do not include investigating: (a) rules imposing or creating an obligation to pay an amount under a taxation law; and (b) rules dealing with the quantification of such an amount. 8 Conducting investigations on Inspector‑General's own initiative (1) The Inspector‑General may conduct an investigation under paragraph 7(1)(b), (c) or (d) on his or her own initiative. Note: For example, the Inspector‑General may conduct an investigation into a systemic issue that has been drawn to his or her attention by taxpayers, tax practitioners, the Auditor‑General or the Ombudsman. (2) The Inspector‑General must conduct an investigation under paragraph 7(1)(c) or (d) if so directed by the Minister. (3) The Inspector‑General may be requested to conduct an investigation under paragraph 7(1)(c) or (d) by: (a) the Minister; or (b) the Commissioner or the Tax Practitioners Board; or (c) a resolution of either House, or of both Houses, of the Parliament; or (d) a resolution of a Committee of either House, or of both Houses, of the Parliament. However, the Inspector‑General is not required to comply with the request. 9 Discretion not to investigate certain complaints The Inspector‑General may, in his or her discretion: (a) decide not to conduct an investigation into a complaint; or (b) if he or she has started such an investigation—decide not to continue investigating the action complained about; if the Inspector‑General is of the opinion that: (c) the complaint is frivolous or vexatious or was not made in good faith; or (d) the complainant does not have a sufficient interest in the subject matter of the complaint; or (e) an investigation, or further investigation, of the action is not warranted having regard to all the circumstances; or (f) the complainant has not yet raised the complaint with the Commissioner or the Tax Practitioners Board (as applicable); or (g) the action came to the complainant's knowledge more than 12 months before the complaint was made; or (h) the complainant has not exercised a right to cause the action to which the complaint relates to be reviewed by a court or by a tribunal constituted by or under a law of the Commonwealth. 10 Transferring complaints to the Ombudsman (1) The Inspector‑General must transfer the following to the Ombudsman: (a) a complaint made to the Inspector‑General that is wholly about action other than tax administration action, unless the Ombudsman advises otherwise; (b) if part of a complaint made to the Inspector‑General is not about tax administration action—that part of the complaint, unless the Ombudsman advises otherwise. (2) For a complaint made to the Inspector‑General that is only partly about tax administration action, the Inspector‑General: (a) must consult the Ombudsman about the complaint or about complaints of that kind; and (b) may transfer to the Ombudsman the part of the complaint that is about tax administration action if the Inspector‑General is satisfied that the whole complaint could be more appropriately or effectively dealt with by the Ombudsman. (3) The Inspector‑General must, for each complaint (or part of a complaint) transferred to the Ombudsman: (a) notify the complainant in writing of that transfer; and (b) give the Ombudsman any related information or documents (other than tax file numbers) that are: (i) in the Inspector‑General's possession; or (ii) under the Inspector‑General's control. (4) For the purposes of the Ombudsman Act 1976 (other than subsection 6D(2), (3) or (4) of that Act), a complaint (or part of a complaint) transferred under this section is taken to be a complaint made to the Ombudsman under that Act. Note: A similar provision for transferring to the Inspector‑General complaints made to the Ombudsman is contained in section 6D of the Ombudsman Act 1976. Subsection 6D(6) of that Act deems transferred complaints to be complaints made to the Inspector‑General under this Act. (5) This section does not apply to a complaint if: (a) the Inspector‑General transfers the complaint under subsections 6(9) and (10), or section 6C, of the Ombudsman Act 1976; or (b) subsection 6(17) of that Act applies in relation to the complaint. (Each of the above provisions of the Ombudsman Act 1976 is that provision as it applies because of section 15 of this Act). Division 3—Powers and duties of the Inspector‑General 15 Certain provisions of the Ombudsman Act 1976 apply Each of the following provisions of the Ombudsman Act 1976 also applies in relation to the Inspector‑General with the modifications set out in the following table: (a) subsections 3(1), to the extent that it provides for the definitions of Agency Head, authorized person, Commonwealth service provider, disclosable conduct and law enforcement agency; (b) subsections 3(2) to (6) and subsection 3(7); (c) sections 3BA, 3C and 3D; (d) subsections 5(2), (3) and (3A); (e) section 5A; (f) subsections 6(5), (9) to (11) and (16) to (19); (g) sections 6C, 7 and 7A; (h) section 8, other than paragraphs (7A)(b) and (10)(ba) to (d) and subsections (8), (9), (10B), (10C) and (12); (i) sections 9 to 19, other than subsections 16(4) and (5); (j) sections 35AA to 37. How each of those provisions applies in relation to the Inspector‑General Item The provision applies as if a reference in that provision to: were a reference to: 1 the Ombudsman the Inspector‑General 2 an investigation under the Ombudsman Act 1976 an investigation under this Act 3 a complaint under the Ombudsman Act 1976 a complaint under this Act 4 any of the following: the entity identified under section 16 of this Act (a) a Department; (b) a prescribed authority; (c) a Department or a prescribed authority 5 another person who is not a Department or prescribed authority another person who is not: (a) a Department of State; or (b) an authority of the Commonwealth 6 either of the following: either of the following: (a) principal officer of a Department or prescribed authority; (a) Commissioner; (b) Secretary of a Department (b) Chair of the Tax Practitioners Board 7 an officer of a Department or prescribed authority (that is not a reference to the principal officer) tax official 8 officer within the meaning of section 35 of the Ombudsman Act 1976 either of the following: (a) the Inspector‑General; (b) a member of the Inspector‑General's staff 9 paragraph 5(1)(b) of the Ombudsman Act 1976 paragraph 7(1)(b) of this Act 10 enactment either of the following: (a) Act; (b) instrument made under an Act 11 in the Ombudsman Act 1976 either of the following: (a) in the Ombudsman Act 1976; (b) in this Act. 12 any of the following: the Minister administering this Act (a) the Minister administering the Ombudsman Act 1976; (b) the Minister administering the Department; (c) the responsible Minister; (d) the Prime Minister 13 either of the following: either of the following: (a) a report under Division 2 of Part II of the Ombudsman Act 1976; (a) a report under that Act; (b) a report under that Act (b) a report under this Act 14 section 35 (other than subsection (5) of that section) section 37 of this Act Note: The above references in provisions of the Ombudsman Act 1976 are described in substance, rather than form. For example, table item 2 will apply to the phrase "an investigation under this Act" wherever it appears in any of those provisions. 16 References to a Department or a prescribed authority (1) For the purposes of table item 4 in section 15, if the relevant investigation relates to action taken by an ATO official or to the Australian Taxation Office, the reference described in that item applies as if it were a reference to the Commissioner, or the Australian Taxation Office, (as the context requires). (2) For other investigations under this Act, the reference described in table item 4 in section 15 applies as if it were a reference to the Tax Practitioners Board. 17 Further modifications to how some of those provisions apply (1) Despite subsection 8(2) of the Ombudsman Act 1976 (as it applies because of section 15 of this Act), an investigation into a systemic issue need not be conducted in private. (2) Despite paragraph 9(1)(a) of the Ombudsman Act 1976 (as it applies because of section 15 of this Act), a person may furnish information under that paragraph in a way otherwise than by writing signed by the person. (3) Despite section 15, 16 or 17 of the Ombudsman Act 1976 (as it applies because of section 15 of this Act), the Inspector‑General must not recommend changes to taxation laws in a report under that section. Note: The Inspector‑General can include such recommendations in reports under section 18. (4) Despite subsection 36(1) of the Ombudsman Act 1976 (as it applies because of section 15 of this Act), the penalty set out at the foot of that subsection applies as if it were imprisonment for 6 months in the case of a refusal or failure relating to an investigation into a systemic issue. 18 Reports recommending improvements to taxation laws (1) After completing an investigation under this Act, the Inspector‑General may make a written report to the Minister: (a) identifying a taxation law under which the action being investigated was taken; and (b) setting out any recommendations for how that taxation law might be improved; and (c) setting out the reasons for those recommendations. The report may set out other matters. (2) The Minister must cause a copy of the report to be made publicly available before the end of the 25th sitting day of the House of Representatives after the day the Minister receives the report. 12 Part 4 (heading) Repeal the heading, substitute: Part 4—Information management Division 1—Secrecy 13 Subsection 37(1) (paragraph (b) of the definition of protected document) Omit "a taxpayer's", substitute "an entity's". 14 Subsection 37(1) (paragraph (b) of the definition of protected information) Omit "a taxpayer's", substitute "an entity's". 15 After section 37 Insert: Division 2—Powers relating to tax file numbers 37B Requesting a person's tax file number (1) The Inspector‑General may request, but not require, a person making a complaint covered by paragraph 7(1)(a) to quote the person's tax file number to the Inspector‑General. (2) The Inspector‑General may provide the person's tax file number to the Commissioner for the purposes of an investigation by the Inspector‑General into the complaint. 37C Investigations under this Act The Commissioner may quote a person's tax file number to the Inspector‑General for the purposes of an investigation by the Inspector‑General into a complaint by the person that is covered by paragraph 7(1)(a). 16 Before section 38 Insert: Part 5—Other matters 17 Section 38 Omit "a review", substitute "an investigation". 18 Paragraph 38(c) Omit "Commissioner of Taxation", substitute "Commissioner". 19 Subparagraph 39(1)(e)(i) Omit "section 14 or 15", substitute "section 9 of the Ombudsman Act 1976 (as it applies because of section 15 of this Act)". 20 Subparagraphs 39(1)(e)(ii), (iii) and (iv) Omit "section 14 or 15", substitute "that section". 21 Subparagraphs 39(1)(e)(v) and (vi) Repeal the subparagraphs, substitute: (v) is the subject of a report under this Act, or the Ombudsman Act 1976 (as it applies because of section 15 of this Act), that relates to an investigation under this Act. 22 Subparagraph 39(2)(c)(i) Omit "section 14 or 15", substitute "section 9 of the Ombudsman Act 1976 (as it applies because of section 15 of this Act)". 23 Subparagraphs 39(2)(c)(ii), (iii) and (iv) Omit "section 14 or 15", substitute "that section". 24 Subparagraphs 39(2)(c)(v) and (vi) Repeal the subparagraphs, substitute: (v) is the subject of a report under this Act, or the Ombudsman Act 1976 (as it applies because of section 15 of this Act), that relates to an investigation under this Act. 25 Subsection 40(2) After "this Act", insert "or the Ombudsman Act 1976 (as it applies because of section 15 of this Act)". 26 Section 41 Before "The", insert "(1)". 27 Section 41 (note) Repeal the note. 28 At the end of section 41 Add: (2) The report must also include: (a) the number of complaints received by the Inspector‑General under this Act during the period; and (b) the number of investigations under paragraph 7(1)(a) or (b): (i) started during the period; and (ii) completed during the period; and (c) the number of investigations into systemic issues: (i) started during that period; and (ii) completed during that period; and (d) the number of times when the Inspector‑General has made a requirement of a person under section 9 of the Ombudsman Act 1976 (as it applies because of section 15 of this Act) during the period; and (e) details of the circumstances in which each of those requirements under section 9 of that Act was made. 29 Section 42 Repeal the section, substitute: 42 Delegation of certain powers by the Inspector‑General (1) The Inspector‑General may, in writing, delegate any of the following powers to a member of the Inspector‑General's staff: (a) the Inspector‑General's powers under the Ombudsman Act 1976 (as it applies because of section 15 of this Act), except for the Inspector‑General's powers under sections 15 to 19 of that Act; (b) the Inspector‑General's powers under subsections 36(3) and (4) of this Act to make arrangements and engage consultants (including determining the terms and conditions of their engagement). (2) In exercising powers under a delegation, a delegate must comply with any