Retirement Benefits (Parliamentary Superannuation) Amendment Regulations 2007

Retirement Benefits (Parliamentary Superannuation) Amendment Regulations 2007

I, the Governor in and over the State of Tasmania and its Dependencies in the Commonwealth of Australia, acting with the advice of the Executive Council, make the following regulations under the Retirement Benefits Act 1993 .

25 June 2007

W. J. E. COX

Governor

By His Excellency's Command,

MICHAEL AIRD

Treasurer

1.   Short title

These regulations may be cited as the Retirement Benefits (Parliamentary Superannuation) Amendment Regulations 2007 .

2.   Commencement

These regulations take effect on 1 July 2007, but if, by 1 July 2007, a notice is not published in the Gazette under section 29 of the Retirement Benefits Act 1993 to the effect that a draft of these regulations has been approved by both Houses of Parliament, these regulations are taken to have taken effect on 1 July 2007.

3.   Principal Regulations

In these regulations, the Retirement Benefits (Parliamentary Superannuation) Regulations 2002 are referred to as the Principal Regulations.

4.    Regulation 3 amended (Interpretation)

Regulation 3 of the Principal Regulations is amended as follows:

(a) by inserting the following definitions after the definition of Commonwealth surcharge Act :

complying superannuation plan has the same meaning as in the Income Tax Assessment Act 1997 of the Commonwealth;

concessional contributions has the same meaning as in the Income Tax Assessment Act 1997 of the Commonwealth;

(b) by inserting the following definitions after the definition of death or invalidity benefit :

element taxed in the fund has the same meaning as in the Income Tax Assessment Act 1997 of the Commonwealth;

element untaxed in the fund has the same meaning as in the Income Tax Assessment Act 1997 of the Commonwealth;

(c) by omitting the definition of eligible termination payment ;

(d) by inserting the following definitions after the definition of member :

non-concessional contributions has the same meaning as in the Income Tax Assessment Act 1997 of the Commonwealth;

non-concessional contributions cap has the same meaning as in the Income Tax Assessment Act 1997 of the Commonwealth;

(e) by inserting the following definition after the definition of notional surchargeable contributions factor :

notional taxed contributions has the same meaning as in the Income Tax Assessment Act 1997 of the Commonwealth;

(f) by omitting the definition of spouse contributions ;

(g) by inserting the following definition after the definition of subfund :

superannuation benefit has the same meaning as in the Income Tax Assessment Act 1997 of the Commonwealth;

(h) by omitting the definition of surviving partner and substituting the following definitions:

surviving partner means a person who is determined by the Board –

(a) under regulation 84A to be the surviving partner of a PRBF member; or

(b) under regulation 84B to be the surviving partner of a PSF member;

tax free component has the same meaning as in the Income Tax Assessment Act 1997 of the Commonwealth;

(i) by omitting " Income Tax Assessment Act 1936 " from the definition of Taxation Commissioner and substituting "Taxation Administration Act 1953".

5.    Regulation 24 amended (Preservation of benefits)

Regulation 24(2) of the Principal Regulations is amended by omitting "complying superannuation scheme" and substituting "complying superannuation plan".

6.    Regulations 34A and 34B inserted

After regulation 34 of the Principal Regulations , the following regulations are inserted in Division 5:

34A.   Calculation of notional taxed contributions

For the purposes of this Division, the Board must calculate for each member to whom this Part applies the notional taxed contributions for a financial year having regard to Subdivision 292-D of the Income Tax Assessment Act 1997 of the Commonwealth.

34B.   Treatment of contributions for taxation purposes

For the purposes of taxation under the law of the Commonwealth, the Board is to treat contributions paid to the PS Fund under regulation 13 as non-concessional contributions.

7.    Regulation 36 substituted

Regulation 36 of the Principal Regulations is rescinded and the following regulation is substituted:

36.   Contributions and benefit entitlements subject to taxation

The Board, having regard to the law of the Commonwealth, must –

(a) establish and maintain policies and administrative procedures with respect to the taxation of contributions and PS Fund superannuation benefits under these regulations; and

(b) determine, from time to time –

(i) the proportion of a PS Fund superannuation benefit that is to be treated by the Board as an element untaxed in the fund for the purposes of the Income Tax Assessment Act 1997 of the Commonwealth; and

(ii) the proportion of a PS Fund superannuation benefit that is to be treated by the Board as an element taxed in the fund for the purposes of that Act; and

(iii) the proportion of a PS Fund superannuation benefit that is to be treated by the Board as a tax free component for the purposes of that Act; and

(c) deduct from contributions and PS Fund superannuation benefits all amounts required to be paid as taxation under the law of the Commonwealth and remit those amounts to the Taxation Commissioner.

8.    Regulation 44 amended (Lump sum benefit may be taken as allocated pension)

Regulation 44 of the Principal Regulations is amended by omitting " Retirement Benefits Regulations 1994 " and substituting " Retirement Benefits Regulations 2005 ".

9.    Regulation 67 amended (Preservation of benefits)

Regulation 67(2) of the Principal Regulations is amended by omitting "complying superannuation scheme" and substituting "complying superannuation plan".

10.    Regulations 68A and 68B inserted

After regulation 68 of the Principal Regulations , the following regulations are inserted in Division 5:

68A.   Calculation of notional taxed contributions

For the purposes of this Division, the Board must calculate for each member to whom this Part applies the notional taxed contributions for a financial year having regard to Subdivision 292-D of the Income Tax Assessment Act 1997 of the Commonwealth.

68B.   Treatment of contributions for taxation purposes

For the purposes of taxation under the law of the Commonwealth, the Board is to treat contributions paid to the PRB Fund –

(a) under regulation 50 as non-concessional contributions; and

(b) under regulation 56 as concessional contributions.

11.    Regulation 69 substituted

Regulation 69 of the Principal Regulations is rescinded and the following regulation is substituted:

69.   Benefit entitlements subject to taxation

The Board must –

(a) establish and maintain policies and administrative procedures with respect to the taxation of contributions and PRB Fund superannuation benefits under these regulations; and

(b) determine, from time to time –

(i) the proportion of a PRB Fund superannuation benefit that is to be treated by the Board as an element taxed in the fund for the purposes of the Income Tax Assessment Act 1997 of the Commonwealth; and

(ii) the proportion of a PRB Fund superannuation benefit that is to be treated by the Board as a tax free component for the purposes of that Act; and

(c) deduct from contributions and PRB Fund superannuation benefits all amounts required to be paid as taxation under the law of the Commonwealth and remit those amounts to the Taxation Commissioner.

12.    Regulation 81 amended (Information to be provided)

Regulation 81(1) of the Principal Regulations is amended as follows:

(a) by omitting from paragraph (e) "paragraph (c)." and substituting " paragraph (c) ; and";

(b) by inserting the following paragraph after paragraph (e) :

(f) the tax file number of each member to whom Part 3 or 4 applies.

13.    Regulations 84A and 84B inserted

After regulation 84 of the Principal Regulations , the following regulations are inserted in Division 2:

84A.   Determination of surviving partner of PRBF member

(1)  If the Board is satisfied that, at the time of a PRBF member's death –

(a) a person –

(i) was the spouse of the PRBF member who was living with the PRBF member on a genuine domestic basis; and

(ii) was receiving significant financial support from the PRBF member; or

(b) if there is no person referred to in paragraph (a) , a person was the spouse of the PRBF member and was living with the PRBF member on a genuine domestic basis; or

(c) if there is no person referred to in paragraph (a) or (b) , a person was the spouse of the PRBF member who was not living with the PRBF member on a genuine domestic basis but was receiving significant financial support from the PRBF member –

the Board must determine that person to be the surviving partner of the PRBF member.

(2)  The Board must not determine more than one person to be the surviving partner of a PRBF member.

(3)  In determining whether a person is the surviving partner of a PRBF member, the Board may have regard to such matters as it considers relevant.

84B.   Determination of surviving partner of PSF member

(1)  If the Board is satisfied that, at the time of a PSF member's death –

(a) a person –

(i) was the spouse of the PSF member who was living with the PSF member on a genuine domestic basis; and

(ii) was receiving significant financial support from the PSF member; or

(b) if there is no person referred to in paragraph (a) , a person was the spouse of the PSF member and was living with the PSF member on a genuine domestic basis; or

(c) if there is no person referred to in paragraph (a) or (b) , a person was the spouse of the PSF member who was not living with the PSF member on a genuine domestic basis but was receiving significant financial support from the PSF member –

the Board must determine that person to be the surviving partner of the PSF member.

(2)  The Board must not determine more than one person to be the surviving partner of a PSF member.

(3)  In determining whether a person is the surviving partner of a PSF member, the Board may have regard to such matters as it considers relevant.

14.    Regulation 87 amended (Statutory hearing)

Regulation 87(2) of the Principal Regulations is amended by omitting "14 days after receiving notification" and substituting "21 days after the date of a notification".

15.    Regulation 88 amended (Application to Supreme Court for declaration)

Regulation 88 of the Principal Regulations is amended as follows:

(a) by inserting in subregulation (1) "final" after "by a";

(b) by inserting in subregulation (2) "final" after "of a";

(c) by inserting in subregulation (3) "final" after "of the";

(d) by inserting in subregulation (5) "final" after "of a";

(e) by inserting in subregulation (6) "final" after "a";

(f) by inserting in subregulation (7)(a) "final" after "Board's";

(g) by inserting in subregulation (7)(b) "final" after "Board's";

(h) by inserting in subregulation (7)(c) "final" after "Board's";

(i) by inserting in subregulation (7)(d) "final" after "Board's".

16.    Regulation 90 substituted

Regulation 90 of the Principal Regulations is rescinded and the following regulation is substituted:

90.   Contributions to accumulation scheme

(1)  A member to whom Part 3 or 4 applies may elect, in writing to the Board, to pay concessional contributions, or non-concessional contributions, to the accumulation scheme.

(2)  A member may not elect to pay contributions to the accumulation scheme under subregulation (1) if the payment of those contributions would cause the member to exceed his or her non-concessional contributions cap.

Displayed and numbered in accordance with the Rules Publication Act 1953.

Notified in the Gazette on 28 June 2007

These regulations are administered in the Department of Treasury and Finance.

EXPLANATORY NOTE

(This note is not part of the regulation)

These regulations amend the Retirement Benefits (Parliamentary Superannuation) Regulations 2002 by –

(a) making changes consequent on the enactment of the Tax Laws Amendment (Simplified Superannuation) Act 2007 of the Commonwealth; and

(b) providing for the determination, by the Retirement Benefits Fund Board, of who is the surviving partner of a member, or former member, to whom the Retirement Benefits (Parliamentary Superannuation) Regulations 2002 apply; and

(c) making minor miscellaneous amendments.